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Exhibit 10(t)    
    

 
 

[LETTERHEAD OF SCIENCE APPLICATIONS INTERNATIONAL CORPORATION]    
    

VIA FEDERAL EXPRESS  

June 21,
2002 

Mr
Randy Walker

11A Chatsworth Road

Singapore 249766 

Dear
Randy: 

        Should
you accept the offer of employment with SAIC, a recommendation will be submitted to the Bonus Compensation Committee of the Board of Directors requesting that you be awarded  15,125 shares of SAIC's vesting Class A Common
Stock.1 The award of vesting stock would be on the terms set forth in the sample
Stock Restriction Agreement. When the recommendation is approved, the appropriate number of shares will be credited to your account. A Stock Restriction Agreement for the vesting shares will be
forwarded to you. The value of your award may vary depending upon the Formula Price of the stock in effect when the stock is issued. Currently, the Formula Price is  $33.06 per share and is scheduled to
be re-evaluated on July 12, 2002. The
calculation of the
Formula Price is described in the Prospectus, which will be provided to you during your new employee orientation. Except for applicable state and Federal taxes, this stock will be awarded at no cost
to you. 

	1
	This
award may be deferred in the SAIC Key Executive Non-Qualified Deferred Compensation Plan. In order to defer your vesting stock you must complete the enclosed deferral
forms and return them to Bernie Theule before your first day of work. 

        A
recommendation will also be submitted to the Stock Option Committee of the Board of Directors requesting that you be granted a vesting option to purchase up to
50,000 shares of SAIC's Class A Common Stock. The exercise price of such option will be the Formula Price in effect on the quarterly trade date immediately following
your date of hire. The option would be on the terms set forth in the sample Stock Option Agreement and pursuant to the 1999 Stock Incentive Plan, copies of which will be provided to you during your
new employee orientation. When the recommendation is approved, an option agreement will be forwarded to you. 

        You
will also be eligible to participate in the incentive compensation plan referred to in your employment offer letter. The long-term component of your annual incentive
compensation will consist of a combination of vesting stock and stock granted on option.2 Your target annual long-term bonus will be $1,750,000.00 of
stock granted on option.3 

	2
	Recommended
option share grants are subject to approval by the Stock Option Committee of the Board of Directors.

	3
	The
number of vesting shares and/or option shares granted at target will equal $1,750,000.00 divided by the Formula Price when the option and/or vesting shares are
granted. Your target bonus will not be pro-rated based on the number of months that you are employed during FY03. 

        In
addition, a recommendation will be submitted to the Operating Committee of the Board of Directors requesting that you be given the opportunity to subscribe to
purchase up to 10,000 shares of SAIC's Class A Common Stock in the Limited Market and, contingent upon such purchase, to receive a vesting option for up to  10,000 shares of
SAIC's Class A Common Stock (one option for every share you purchase). When the
recommendation is approved, a formal offer will be forwarded to you along with information on how to acquire the shares approximately three weeks prior to the trade date. This 

opportunity
to subscribe to purchase SAIC Class A Common Stock would be limited to the four trade dates immediately following your date of hire.
The acquisition price of the stock and the exercise price of the option will be the Formula Price in effect when you purchase the stock. The option would be on the terms set forth in the sample Stock
Option Agreement and would be granted pursuant to the 1999 Stock Incentive Plan. 

        The
offer and sale of all securities set forth herein are subject to obtaining all necessary consents which may be required by, or any condition which may be imposed in accordance with
applicable state and federal securities law or regulations. SAIC Class A Common Stock is subject to certain restrictions described in Article Fourth of SAIC's Certificate of Incorporation and
any offering will be based upon SAIC's Prospectus. If you have any questions regarding the acquisition of SAIC's securities, please contact SAIC's Stock Programs Department at
(800) 785-7764 in San Diego, California. 

Very
truly yours, 

	 SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
	

/s/  B.L. THEULE      
 B.L. Theule

Senior Vice President

Human Resources	
 	

 

BT

Encl:    Key
Executive Stock Deferral Plan (six parts) 

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Exhibit 10(t)

[LETTERHEAD OF SCIENCE APPLICATIONS INTERNATIONAL CORPORATION]Exhibit 4.1

 

 

 

ADVANCED
ACCESSORY HOLDINGS CORPORATION

 

as
Issuer,

 

13 1/4%
Senior Discount Notes due 2011

 

 

INDENTURE

 

Dated
as of February 4, 2004

 

 

BNY
Midwest Trust Company,

as Trustee

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture Act 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)

  	
  7.3, 7.8, 7.10

  
	
   

  	
  (c)

  	
  N.A.

  
	
  311

  	
  (a)

  	
  7.11

  
	
   

  	
  (b)

  	
  7.11

  
	
   

  	
  (c)

  	
  N.A.

  
	
  312

  	
  (a)

  	
  2.5

  
	
   

  	
  (b)

  	
  13.3

  
	
   

  	
  (c)

  	
  13.3

  
	
  313

  	
  (a)

  	
  7.6

  
	
   

  	
  (b)(1)

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
  7.6

  
	
   

  	
  (c)

  	
  7.6, 13.2

  
	
  314

  	
  (a)

  	
  4.3, 4.4

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
  13.4

  
	
   

  	
  (c)(2)

  	
  13.4

  
	
   

  	
  (c)(3)

  	
  13.4

  
	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
  (e)

  	
  13.5

  
	
   

  	
  (f)

  	
  N.A.

  
	
  315

  	
  (a)

  	
  7.2

  
	
   

  	
  (b)

  	
  7.5, 13.2

  
	
   

  	
  (c)

  	
  7.1

  
	
   

  	
  (d)

  	
  7.1

  
	
   

  	
  (e)

  	
  6.12

  
	
  316

  	
  (a)(last sentence)

  	
  2.9

  
	
   

  	
  (a)(1)(A)

  	
  6.5

  
	
   

  	
  (a)(1)(B)

  	
  6.4

  
	
   

  	
  (a)(2)

  	
  N.A.

  
	
   

  	
  (b)

  	
  6.7

  
	
   

  	
  (c)

  	
  N.A.

  
	
  317

  	
  (a)(1)

  	
  6.8

  
	
   

  	
  (a)(2)

  	
  6.10

  
	
   

  	
  (b)

  	
  2.4

  
	
  318

  	
  (a)

  	
  13.1

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)

  	
  13.1

  
				

 

N.A. means not applicable.

 

*                                         This
Cross-Reference Table shall not, for any purpose, be deemed a part of the
Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I.

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS
  AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Definitions.

  	
   

  
	
  Section 1.2.

  	
  Other Definitions.

  	
   

  
	
  Section 1.3.

  	
  Incorporation
  by Reference of Trust Indenture Act.

  	
   

  
	
  Section 1.4.

  	
  Rules of Construction.

  	
   

  
	
  Section 1.5.

  	
  Acts of Holders.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Form and Dating.

  	
   

  
	
  Section 2.2.

  	
  Execution and
  Authentication.

  	
   

  
	
  Section 2.3.

  	
  Registrar and Paying Agent.

  	
   

  
	
  Section 2.4.

  	
  Paying Agents to
  Hold Money in Trust.

  	
   

  
	
  Section 2.5.

  	
  Holder Lists.

  	
   

  
	
  Section 2.6.

  	
  Transfer and Exchange.

  	
   

  
	
  Section 2.7.

  	
  Replacement Notes.

  	
   

  
	
  Section 2.8.

  	
  Outstanding Notes.

  	
   

  
	
  Section 2.9.

  	
  Treasury Notes.

  	
   

  
	
  Section 2.10.

  	
  Temporary Notes.

  	
   

  
	
  Section 2.11.

  	
  Cancellation.

  	
   

  
	
  Section 2.12.

  	
  Defaulted Interest.

  	
   

  
	
  Section 2.13.

  	
  Persons Deemed Owners.

  	
   

  
	
  Section 2.14.

  	
  CUSIP Numbers.

  	
   

  
	
  Section 2.15.

  	
  Designation.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  
	
   

  	
   

  	
   

  
	
  REDEMPTION AND REPURCHASE

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Notices to Trustee.

  	
   

  
	
  Section 3.2.

  	
  Selection of Notes.

  	
   

  
	
  Section 3.3.

  	
  Notice of
  Optional or Special Redemption.

  	
   

  
	
  Section 3.4.

  	
  Effect of Notice of
  Redemption.

  	
   

  
	
  Section 3.5.

  	
  Deposit
  of Redemption Price or Purchase Price.

  	
   

  
	
  Section 3.6.

  	
  Notes Redeemed
  or Repurchased in Part.

  	
   

  
	
  Section 3.7.

  	
  Optional Redemption.

  	
   

  
	
  Section 3.8.

  	
  Special Redemption.

  	
   

  
	
  Section 3.9.

  	
  Repurchase
  upon Change of Control Offer.

  	
   

  
	
  Section 3.10.

  	
  Repurchase
  upon Application of Excess Proceeds.

  	
   

  
	
  Section 3.11.

  	
  Mandatory Redemption

  	
   

  

 

i

 

	
  ARTICLE IV.

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Payment of Principal
  and Interest.

  	
   

  
	
  Section 4.2.

  	
  Maintenance of Office
  or Agency.

  	
   

  
	
  Section 4.3.

  	
  Reports.

  	
   

  
	
  Section 4.4.

  	
  Compliance Certificate.

  	
   

  
	
  Section 4.5.

  	
  Taxes.

  	
   

  
	
  Section 4.6.

  	
  Stay, Extension and
  Usury Laws.

  	
   

  
	
  Section 4.7.

  	
  Limitation on
  Restricted Payments.

  	
   

  
	
  Section 4.8.

  	
  Limitation
  on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

  	
   

  
	
  Section 4.9.

  	
  Limitation
  on Incurrence of Additional Indebtedness.

  	
   

  
	
  Section 4.10.

  	
  Limitation on Asset Sales.

  	
   

  
	
  Section 4.11.

  	
  Limitations
  on Transactions with Affiliates.

  	
   

  
	
  Section 4.12.

  	
  Limitation on Liens.

  	
   

  
	
  Section 4.13.

  	
  Continued Existence.

  	
   

  
	
  Section 4.14.

  	
  Insurance Matters.

  	
   

  
	
  Section 4.15.

  	
  Offer to
  Repurchase upon Change of Control.

  	
   

  
	
  Section 4.16.

  	
  Limitation
  on Guarantees by Certain Subsidiaries.

  	
   

  
	
  Section 4.17.

  	
  Conduct of Business.

  	
   

  
	
  Section 4.18.

  	
  Payments for Consent.

  	
   

  
	
  Section 4.19.

  	
  Limitation
  on Preferred Stock of Restricted Subsidiaries.

  	
   

  
	
  Section 4.20.

  	
  Calculation of
  Original Issue Discount.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Merger,
  Consolidation and or Sale of Assets.

  	
   

  
	
  Section 5.2.

  	
  Successor
  Corporation Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  
	
   

  	
   

  	
   

  
	
  DEFAULTS
  AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Events of Default.

  	
   

  
	
  Section 6.2.

  	
  Acceleration.

  	
   

  
	
  Section 6.3.

  	
  Other Remedies.

  	
   

  
	
  Section 6.4.

  	
  Waiver of Past Defaults.

  	
   

  
	
  Section 6.5.

  	
  Control by Majority.

  	
   

  
	
  Section 6.6.

  	
  Limitation on Suits.

  	
   

  
	
  Section 6.7.

  	
  Rights
  of Holders of Notes to Receive Payment.

  	
   

  
	
  Section 6.8.

  	
  Collection Suit by Trustee.

  	
   

  
	
  Section 6.9.

  	
  [Intentionally Omitted].

  	
   

  
	
  Section 6.10.

  	
  Trustee May File
  Proofs of Claim.

  	
   

  
	
  Section 6.11.

  	
  Priorities.

  	
   

  
	
  Section 6.12.

  	
  Undertaking for Costs.

  	
   

  

 

ii

 

	
  ARTICLE VII.

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Duties of Trustee.

  	
   

  
	
  Section 7.2.

  	
  Rights of Trustee.

  	
   

  
	
  Section 7.3.

  	
  Individual Rights of
  Trustee.

  	
   

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer.

  	
   

  
	
  Section 7.5.

  	
  Notice of Defaults.

  	
   

  
	
  Section 7.6.

  	
  Reports by
  Trustee to Holder of the Notes.

  	
   

  
	
  Section 7.7.

  	
  Compensation,
  Reimbursement and Indemnity.

  	
   

  
	
  Section 7.8.

  	
  Replacement of Trustee.

  	
   

  
	
  Section 7.9.

  	
  Successor Trustee by
  Merger, Etc.

  	
   

  
	
  Section 7.10.

  	
  Eligibility;
  Disqualification.

  	
   

  
	
  Section 7.11.

  	
  Preferential
  Collection of Claims Against Issuer.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  
	
   

  	
   

  	
   

  
	
  LEGAL
  DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  Option
  to Effect Legal Defeasance or Covenant Defeasance.

  	
   

  
	
  Section 8.2.

  	
  Legal Defeasance and
  Discharge.

  	
   

  
	
  Section 8.3.

  	
  Covenant Defeasance.

  	
   

  
	
  Section 8.4.

  	
  Conditions
  to Legal or Covenant Defeasance.

  	
   

  
	
  Section 8.5.

  	
  Deposited
  Money and U.S. Government Securities to Be Held in Trust; Other Miscellaneous
  Provisions.

  	
   

  
	
  Section 8.6.

  	
  Repayment to the Issuer.

  	
   

  
	
  Section 8.7.

  	
  Reinstatement.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT
  AND WAIVER

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Without Consent of
  Holders of Notes.

  	
   

  
	
  Section 9.2.

  	
  With Consent of
  Holders of Notes.

  	
   

  
	
  Section 9.3.

  	
  Compliance with
  Trust Indenture Act.

  	
   

  
	
  Section 9.4.

  	
  Revocation and
  Effect of Consents.

  	
   

  
	
  Section 9.5.

  	
  Notation on or Exchange
  of Notes.

  	
   

  
	
  Section 9.6.

  	
  Trustee to Sign
  Amendment, Etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  
	
   

  	
   

  	
   

  
	
  [INTENTIONALLY
  OMITTED]

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  
	
   

  	
   

  	
   

  
	
  GUARANTEE

  
	
   

  	
   

  	
   

  
	
  Section 11.1.

  	
  Unconditional Guarantee.

  	
   

  
	
  Section 11.2.

  	
  Severability.

  	
   

  
	
  Section 11.3.

  	
  Limitation of
  Guarantor’s Liability.

  	
   

  
	
  Section 11.4.

  	
  Release of Guarantor.

  	
   

  
	
  Section 11.5.

  	
  Contribution.

  	
   

  

 

iii

 

	
  Section 11.6.

  	
  Waiver of Subrogation.

  	
   

  
	
  Section 11.7.

  	
  Execution of Guarantee.

  	
   

  
	
  Section 11.8.

  	
  Waiver of
  Stay, Extension or Usury Laws.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII.

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
  Satisfaction and Discharge.

  	
   

  
	
  Section 12.2.

  	
  Application of Trust.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII.

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.1.

  	
  Trust Indenture Act
  Controls.

  	
   

  
	
  Section 13.2.

  	
  Notices.

  	
   

  
	
  Section 13.3.

  	
  Communication
  by Holders of Notes with Other Holders of Notes.

  	
   

  
	
  Section 13.4.

  	
  Certificate
  and Opinion as to Conditions Precedent.

  	
   

  
	
  Section 13.5.

  	
  Statements
  Required in Certificate or Opinion.

  	
   

  
	
  Section 13.6.

  	
  Rules by Trustee and
  Agents.

  	
   

  
	
  Section 13.7.

  	
  No
  Personal Liability of Directors, Managers, Officers, Employees, Members and
  Stockholders.

  	
   

  
	
  Section 13.8.

  	
  Governing
  Law; Submission to Jurisdiction; Waiver of Jury Trial.

  	
   

  
	
  Section 13.9.

  	
  No
  Adverse Interpretation of Other Agreements.

  	
   

  
	
  Section 13.10.

  	
  Successors.

  	
   

  
	
  Section 13.11.

  	
  Severability.

  	
   

  
	
  Section 13.12.

  	
  Counterpart Originals.

  	
   

  
	
  Section 13.13.

  	
  Table of Contents,
  Headings, Etc.

  	
   

  
	
  Section 13.14.

  	
  Qualification of Indenture.

  	
   

  

 

EXHIBITS

 

	
   

  	
  Exhibit A

  	
  Form of Series A Note

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit B

  	
  Form of Series B Note

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit C

  	
  Form of Guarantee

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D(1)

  	
  Form of Regulation S Certification

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit D(2)

  	
  Form of Certificate to be Delivered upon Exchange or Registration of
  Transfer of Notes

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit E

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

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibit F

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

  

 

iv

 

INDENTURE

 

INDENTURE dated as of February 4, 2004 between Advanced Accessory
Holdings Corporation, a Delaware corporation (the “Issuer”), and BNY
Midwest Trust Company, an Illinois trust company, as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders (as defined below) of the
Issuer’s 13 1/4% Senior Discount Notes due 2011 Series A and when and if
issued as provided in the Registration Rights Agreement of even date herewith
the Issuer’s 13 1/4% Senior Discount Notes due 2011 Series B:

 

ARTICLE I.

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1.                                   Definitions.

 

“Accreted Value” means, as of any date (the “Specified Date”),
the amount provided below for each $1,000 principal amount at maturity of
Notes:

 

(1)                                  if the Specified Date
occurs on one of the following dates (each, a “Semi-Annual Accrual Date”),
the Accreted Value will equal the amount set forth below for such Semi-Annual
Accrual Date:

 

	
  Semi-Annual Accrual Date

  	
   

  	
  Accreted
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 15, 2004

  	
   

  	
  $

  	
  598.59

  	
   

  
	
  December 15, 2004

  	
   

  	
  $

  	
  638.24

  	
   

  
	
  June 15, 2005

  	
   

  	
  $

  	
  680.53

  	
   

  
	
  December 15, 2005

  	
   

  	
  $

  	
  725.61

  	
   

  
	
  June 15, 2006

  	
   

  	
  $

  	
  773.68

  	
   

  
	
  December 15, 2006

  	
   

  	
  $

  	
  824.94

  	
   

  
	
  June 15, 2007

  	
   

  	
  $

  	
  879.59

  	
   

  
	
  December 15, 2007

  	
   

  	
  $

  	
  937.87

  	
   

  
	
  June 15, 2008

  	
   

  	
  $

  	
  1,000.00

  	
   

  

 

(2)                                  if the Specified Date
occurs before the first Semi-Annual Accrual Date, the Accreted Value will equal
the sum of (A) the original issue price of a Note and (B) an amount equal to
the product of (x) the Accreted Value for the first Semi-Annual Accrual Date
less such original issue price multiplied by (y) a fraction, the numerator of
which is the number of days from the Issue Date to the Specified Date, using a
360-day year of twelve 30-day months, and the denominator of which is the
number of days elapsed from the Issue Date to the first Semi-Annual Accrual
Date, using a 360-day year of twelve 30-day months;

 

(3)                                  if the Specified Date
occurs between two Semi-Annual Accrual Dates, the Accreted Value will equal the
sum of (A) the Accreted Value for the Semi-Annual Accrual Date immediately
preceding such Specified Date and (B) an amount equal to the product of (x) the
Accreted Value for the immediately following Semi-Annual Accrual Date less the
Accreted Value for the Semi-Annual Accrual Date immediately preceding such
Specified Date multiplied by (y) a fraction, the numerator of which is the
number of days from the immediately preceding Semi-Annual Accrual Date to the
Specified Date, using a 360-day year of twelve 30-day months, and the
denominator of which is 180; or

 

(4)                                  if the Specified Date
occurs on or after the Full Accretion Date, the Accreted Value will equal
$1,000.

 

“Acquired Indebtedness” means Indebtedness of a Person or any of
its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary of the Issuer or at the time it merges or consolidates with or into 

 

 

the Issuer or any of its Restricted Subsidiaries or assumed in
connection with the acquisition of assets from such Person and in each case not
incurred by such Person in connection with, or in anticipation or contemplation
of, such Person becoming a Restricted Subsidiary of the Issuer or such
acquisition, merger or consolidation.

 

“Additional Interest” means all additional interest then owing
pursuant to Section 4 of the Registration Rights Agreement.

 

“Affiliate” means, with respect to any specified Person, any
other Person who directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person.  The term “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the foregoing.  A Person shall not be deemed an “Affiliate”
of the Issuer or any of its Restricted Subsidiaries solely as a result of such
Person being a joint venture partner of the Issuer or any of its Subsidiaries.

 

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

 

“Asset Acquisition” means, with respect to any Person,
(1) an Investment by such Person or any Restricted Subsidiary of such
Person in any third Person pursuant to which such third Person shall become a
Restricted Subsidiary of such Person or any Restricted Subsidiary of such
Person, or shall be merged with or into such Person or any Restricted
Subsidiary of such Person, or (2) the acquisition by such Person or any
Restricted Subsidiary of such Person of the assets of any third Person (other
than a Restricted Subsidiary of such Person) which constitute all or substantially
all of the assets of such third Person or comprise any division or line of
business of such third Person or any other properties or assets of such third
Person other than in the ordinary course of business.

 

“Asset Sale” means any direct or indirect sale, issuance,
conveyance, transfer, lease (other than operating leases entered into in the
ordinary course of business), assignment or other transfer for value by the
Issuer or any of its Restricted Subsidiaries (including any Sale and Leaseback
Transaction) to any Person other than the Issuer or a Wholly Owned Restricted
Subsidiary of the Issuer of: 
(1) any Capital Stock of any Restricted Subsidiary of the Issuer;
or (2) any other property or assets of the Issuer or any Restricted
Subsidiary of the Issuer other than in the ordinary course of business; provided,
however, that asset sales or other dispositions shall not include:  (a) a transaction or series of related
transactions for which the Issuer or its Restricted Subsidiaries receive
aggregate consideration of less than $2,500,000; (b) the sale, lease,
conveyance, disposition or other transfer of all or substantially all of the assets
(determined on a consolidated basis) of 
the Issuer as permitted under Article V hereof; (c) any Restricted
Payment permitted by Section 4.7 hereof or that constitutes a Permitted
Investment; (d) sales or other dispositions of inventory, receivables or
other current assets in the ordinary course of business; (e) a Permitted
Lien; (f) a sale or other disposition or abandonment of damaged, worn-out
or obsolete property; (g) the good faith surrender or waiver of contract
rights or the settlement, release or surrender of claims of any kind; and
(h) the sale or other disposal of property or assets pursuant to the exercise
of remedies pursuant to the Credit Agreement or other security documents
relating to any Indebtedness permitted under this Indenture.

 

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

 

“Board of Directors” means, as to any Person, the board of
directors or similar governing body of such Person or any duly authorized committee
thereof.

 

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

 

2

 

“Borrowing Base” means, as of any date, an amount equal to the
sum of:

 

(1)                                  85% of the aggregate
book value of all accounts receivable of the Issuer and its Domestic Restricted
Subsidiaries; plus

 

60% of the aggregate book value of all inventory owned by the Issuer
and its Domestic Restricted Subsidiaries,

 

all calculated on a consolidated basis and in accordance with GAAP.

 

To the extent that information is not available as to the amount of
accounts receivable or inventory as of a specific date, the Issuer shall use
the most recent available information for purposes of calculating the Borrowing
Base.

 

“Business Day” means any day other than a Saturday, a Sunday or
a day on which banking institutions in the City of New York or Chicago are
authorized by law, regulation or executive order to remain closed.  If a payment date is not a Business Day,
payment may be made at that place on the next succeeding day that is a Business
Day, and no interest shall accrue for the intervening period.

 

“Capital Stock” means:

 

(1)           with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred
Stock of such Person, and all options, warrants or other rights to purchase or
acquire any of the foregoing; and

 

(2)           with
respect to any Person that is not a corporation, any and all partnership, membership
or other equity interests of such Person, and all options, warrants or other
rights to purchase or acquire any of the foregoing.

 

“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.

 

“Cash Equivalents” means:

 

(1)           marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States Government, the United Kingdom or The Netherlands or issued by any
agency thereof and backed by the full faith and credit of the United States,
the United Kingdom or The Netherlands, as applicable, in each case maturing
within one year from the date of acquisition thereof;

 

(2)           marketable
direct obligations issued by any state of the United States of America or any
political subdivision of any such state, the United Kingdom or The Netherlands
or any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either Standard & Poor’s Ratings Group, a
division of The McGraw-Hill Companies (“S&P”), or Moody’s Investors
Service, Inc. (“Moody’s”);

 

(3)           commercial
paper maturing no more than one year from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s;

 

3

 

(4)           certificates
of deposit or bankers’ acceptances maturing within one year from the date of acquisition
thereof issued by any bank organized under the laws of the United States of
America or any state thereof or the District of Columbia, the United Kingdom or
The Netherlands or any U.S. branch of a foreign bank having at the date of
acquisition thereof combined capital and surplus of not less than $250.0
million;

 

(5)           repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clause (1) above entered into with any bank
meeting the qualifications specified in clause (4) above; and

 

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

 

“CHAAS” means CHAAS Acquisitions, LLC, a Delaware limited liability
company.

 

“Change of Control” means the occurrence of one or more of the
following events:

 

(1)           any
sale, lease, exchange or other transfer other than a Lien permitted by this
Indenture or by way of consolidation or merger (in one transaction or a series
of related transactions) of all or substantially all of the assets of the
Issuer and its Subsidiaries, taken as a whole, to any Person or group of related
Persons for purposes of Section 13(d) of the Exchange Act (a “Group”),
together with any Affiliates thereof (whether or not otherwise in compliance
with the provisions of this Indenture) other than to the Permitted Holders;

 

(2)           the
approval by the holders of Capital Stock of the Issuer of any plan or proposal
for the liquidation or dissolution of the Issuer (whether or not otherwise in
compliance with the provisions of this Indenture);

 

(3)           any
Person or Group (other than the Permitted Holders and any entity formed for the
purpose of owning Capital Stock of the Issuer) shall become the owner, directly
or indirectly, beneficially or of record, of shares representing more than 50%
of the aggregate ordinary voting power represented by the issued and
outstanding Capital Stock of the Issuer;

 

(4)           the
replacement of a majority of the Board of Directors of the Issuer over a
two-year period from the directors who constituted the Board of Directors of
the Issuer at the beginning of such period, and such replacement shall not have
been approved by a vote of at least a majority of the Board of Directors of the
Issuer then still in office who either were members of such Board of Directors
at the beginning of such period or whose election or nomination for election by
the Issuer’s shareholders as a member of such Board of Directors was previously
so approved; or

 

(5)           the
occurrence of any event or series of events that results in a “Change of
Control” under the subordinated promissory notes issued pursuant to the
Securities Purchase Agreement.

 

“Clearstream” means Clearstream Banking, Société Anonyme, Luxembourg.

 

“Commission” means the Securities and Exchange Commission.

 

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

 

4

 

“Consolidated EBITDA” means, with respect to any Person, for any
period, the sum (without duplication) of,

 

(1)                                  Consolidated Net
Income; and

 

(2)                                  to the extent
Consolidated Net Income has been reduced thereby:

 

(a)                                  all
income taxes of such Person and its Restricted Subsidiaries, paid or accrued in
accordance with GAAP for such period (other than income taxes attributable to
extraordinary, unusual or nonrecurring gains or losses or taxes attributable to
sales or dispositions outside the ordinary course of business);

 

(b)                                 Consolidated
Interest Expense; and

 

(c)                                  Consolidated
Non-cash Charges less any non-cash items increasing Consolidated Net Income
for such period,

 

all as determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

 

“Consolidated Fixed Charge Coverage Ratio” means, with respect
to any Person, the ratio of Consolidated EBITDA of such Person during the four
full fiscal quarters (the “Four Quarter Period”) ending prior to the
date of the transaction giving rise to the need to calculate the Consolidated
Fixed Charge Coverage Ratio for which financial statements are available (the “Transaction
Date”) to Consolidated Fixed Charges of such Person for the Four Quarter
Period.  In addition to and without
limitation of the foregoing, for purposes of this definition, “Consolidated
EBITDA” and “Consolidated Fixed Charges” shall be calculated after
giving effect on a pro forma basis for the period of such calculation to:

 

(1)                                  the incurrence or
repayment of any Indebtedness of such Person or any of its Restricted Subsidiaries,
or the issuance, redemption, repurchase or other repayment of any Preferred
Stock by such Person or any of its Restricted Subsidiaries (and, in each case,
the application of the proceeds thereof) giving rise to the need to make such
calculation and any incurrence or repayment of other Indebtedness, or any
issuance, redemption, repurchase or other repayment of any Preferred Stock
(and, in each case, the application of the proceeds thereof), other than the
incurrence or repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to working capital facilities, occurring
during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the
proceeds thereof), occurred on the first day of the Four Quarter Period; and

 

(2)                                  any asset sales or
other dispositions or Asset Acquisitions (including, without limitation, any
Asset Acquisition giving rise to the need to make such calculation as a result
of such Person or one of its Restricted Subsidiaries (including any Person who
becomes a Restricted Subsidiary as a result of the Asset Acquisition)
incurring, assuming or otherwise being liable for Acquired Indebtedness and
also including any Consolidated EBITDA (including any pro forma expense and
cost reductions calculated on a basis consistent with Regulation S-X under the
Exchange Act) attributable to the assets which are the subject of the Asset
Acquisition or asset sale or other disposition during the Four Quarter Period)
occurring during the Four Quarter Period or at any time subsequent to the last
day of the Four Quarter Period and on or prior to the Transaction Date, as if
such asset sale or other disposition or Asset Acquisition (including the
incurrence, assumption or liability for any such Acquired Indebtedness)
occurred on the first day of the Four Quarter Period.

 

Furthermore, in calculating “Consolidated Fixed Charges” for purposes
of determining the denominator (but not the numerator) of this “Consolidated
Fixed Charge Coverage Ratio”,

 

5

 

(1)                                  interest on
outstanding Indebtedness determined on a fluctuating basis as of the
Transaction Date and which will continue to be so determined thereafter shall
be deemed to have accrued at a fixed rate per annum equal to the rate of
interest on such Indebtedness in effect on the Transaction Date; and

 

(2)                                  notwithstanding clause
(1) above, interest on Indebtedness determined on a fluctuating basis, to the
extent such interest is covered by agreements relating to Interest Swap
Obligations, shall be deemed to accrue at the rate per annum resulting after
giving effect to the operation of such agreements.

 

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

 

(1)                                  Consolidated Interest
Expense; plus

 

(2)                                  the product of
(x) the amount of all cash dividend payments on any series of Preferred
Stock of such Person and, to the extent permitted under this Indenture, its
Restricted Subsidiaries paid in cash during such period to any Person other
than such Person or any of its Restricted Subsidiaries times (y) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current effective consolidated federal, state and local income
tax rate of such Person, expressed as a decimal.

 

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

 

(1)                                  the aggregate of the
interest expense of such Person and its Restricted Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP, including without
limitation:  (a) any amortization
of debt discount and amortization or write-off of deferred financing costs;
(b) the net costs under Interest Swap Obligations; (c) all
capitalized interest; and (d) the interest portion of any deferred payment
obligation; and

 

(2)                                  the interest
component of Capitalized Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its Restricted Subsidiaries during such
period as determined on a consolidated basis in accordance with GAAP;

 

provided that there shall be excluded therefrom
any non-cash amortization or write-off of fees and expenses incurred in connection
with the offering of the Notes (it being understood that amortization of debt
discount in respect of the Notes shall not be so excluded when determining the
Consolidated Interest Expense of the Issuer).

 

“Consolidated Net Income” means, with respect to any Person, for
any period, the aggregate net income (or loss) of such Person and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; provided that there shall be excluded therefrom
(without duplication):

 

(1)                                  after-tax gains or
losses from Asset Sales (without regard to the $2,500,000 limitation set forth
in the definition thereof) or abandonments or reserves relating thereto;

 

(2)                                  extraordinary gains
and extraordinary losses;

 

(3)                                  gains and losses due
solely to fluctuations in currency values and the related tax effects according
to GAAP;

 

(4)                                  the net income or
loss of any Person acquired prior to the date it becomes a Restricted
Subsidiary of the referent Person or is merged or consolidated with the
referent Person or any Restricted Subsidiary of the referent Person, it being
understood, however, that, in the case of a Restricted Subsidiary of the Issuer
or CHAAS, the income or loss of such Person for such period may be included in
determining 

 

6

 

the Consolidated Fixed Charge Coverage Ratio of the Issuer or CHAAS, as
the case may be, as a result of the operation of clause (2) of the first paragraph
of the definition of such term;

 

(5)                                  for the purposes of
Section 4.7 hereof only, the net income (but not loss) of any Restricted
Subsidiary (other than a Foreign Restricted Subsidiary) of the referent Person
to the extent that the declaration of dividends or similar distributions by
that Restricted Subsidiary of that income is restricted by a contract,
operation of law or otherwise, except (A) to the extent of cash dividends or
distributions paid to the referent Person or to a Wholly Owned Restricted
Subsidiary of the referent Person by such Restricted Subsidiary and (B) to the
extent such restriction is permitted by Section 4.8 hereof.

 

(6)                                  the net income of any
Person, other than a Restricted Subsidiary of the referent Person, except to
the extent of cash dividends or distributions paid to the referent Person or to
a Restricted Subsidiary of the referent Person by such Person;

 

(7)                                  any restoration to
income of any contingency reserve, except to the extent that provision for such
reserve was made out of Consolidated Net Income accrued at any time following
May 23, 2003;

 

(8)                                  income or loss
attributable to discontinued operations (including, without limitation,
operations disposed of during such period whether or not such operations were
classified as discontinued); and

 

(9)                                  in the case of a
successor to the referent Person by consolidation or merger or as a transferee
of the referent Person’s assets, any earnings of the successor corporation
prior to such consolidation, merger or transfer of assets.

 

“Consolidated Non-cash Charges” means, with respect to any
Person, for any period, the aggregate depreciation, amortization and other
non-cash expenses of such Person and its Restricted Subsidiaries reducing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP (excluding
any such charge which requires an accrual of or a reserve for cash charges for
any future period).

 

“Consolidated Tangible Assets” means the total consolidated
assets, less goodwill and intangibles, of the Issuer and its Restricted
Subsidiaries, as shown on the most recent balance sheet of the Issuer prepared
in accordance with GAAP.

 

“Corporate Trust Office of the Trustee” means the principal
office of the Trustee at which at any time its corporate trust business shall
be administered, which office at the date hereto is located at 2 North LaSalle
Street, Suite 1020, Chicago, Illinois  60602,
Attention:  Corporate Trust Department,
or such other address as the Trustee may designate from time to time by notice
to the Holders and the Issuer, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Holders and the Issuer).

 

“Credit Agreement” means the Amended and Restated Credit
Agreement dated as of May 23, 2003, among certain subsidiaries of the Issuer as
borrowers, the Issuer and certain other subsidiaries and affiliates as
guarantors, the lenders party thereto in their capacities as lenders and/or
agents thereunder, together with the documents related thereto (including,
without limitation, any instruments, guarantee agreements and pledge and/or
security documents), in each case as such documents may be amended (including,
without limitation, any amendment and restatement thereof), supplemented or
otherwise modified from time to time, including any agreement extending the
maturity of, refinancing, replacing or otherwise restructuring (including,
without limitation, increasing the amount of available borrowings thereunder (provided
that such increase in borrowings is permitted by Section 4.9 hereof) or
adding Subsidiaries of the Issuer as additional borrowers or guarantors thereunder)
all or any portion of the Indebtedness under such agreement or any successor or
replacement agreement and whether by the same or any other agent, lender or
group of lenders.

 

7

 

“Currency Agreement” means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement.

 

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

 

“Depositary” means, with respect to the Notes issuable in whole
or in part in global form, the Person specified in Section 2.6(g) hereof
as the Depositary with respect to the Notes, until a successor shall have been
appointed and become such pursuant to the applicable provisions or this
Indenture, and, thereafter, “Depositary” shall mean or include such successor.

 

“Disqualified Capital Stock” means that portion of any Capital
Stock which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event (other than an event which would
constitute a Change of Control), matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or is redeemable at the sole option
of the holder thereof (except, in each case, upon the occurrence of a Change of
Control or to the extent such Capital Stock is only so redeemable or
exchangeable into Qualified Capital Stock) on or prior to the final maturity
date of the Notes, provided that any Capital Stock that would not
constitute Disqualified Capital Stock but for provisions thereof giving holders
thereof the right to require such Person to repurchase or redeem such Capital
Stock upon the occurrence of an “asset sale” or “change of control” occurring
prior to the stated maturity of the Notes shall not constitute Disqualified
Capital Stock if the “asset sale” or “change of control” provisions applicable
to such Capital Stock are no more favorable to the holders of such Capital
Stock than the provisions contained in Sections 4.10 and 4.15 hereof and
such Capital Stock specifically provides that such Person will not repurchase
or redeem any such stock pursuant to such provisions prior to the Issuer’s
repurchase of such Notes as are required to be repurchased pursuant to such
covenants.

 

“Domestic Restricted Subsidiary” means a Restricted Subsidiary
of the Issuer incorporated or otherwise organized or existing under the laws of
the United States, any state thereof or any territory or possession of the
United States.

 

“Euroclear” means Euroclear Bank, S.A./N.V., as operator of the
Euroclear System.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.

 

“Exchange Offer” means the offer that shall be made by the
Issuer pursuant to the Registration Rights Agreement to exchange Series A Notes
for Series B Notes.

 

“Existing Notes” means the 10 3/4% Senior Notes due 2011 of
Advanced Accessory Systems, LLC and AAS Capital Corporation.

 

“fair market value” means, with respect to any asset or
property, the price which could be negotiated in an arm’s-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction.  Fair market value shall be
determined by the Board of Directors of the Issuer acting reasonably and in
good faith and, if such value exceeds $5.0 million, shall be evidenced by a
Board Resolution of the Board of Directors of the Issuer delivered to the
Trustee.

 

“Final Memorandum” means the Issuer’s final offering memorandum
dated January 28, 2004, whereby the Issuer offered $88,000,000 aggregate
principal amount at maturity of Series A Notes.

 

“Foreign Restricted Subsidiary” means any Restricted Subsidiary
of the Issuer other than a Domestic Restricted Subsidiary.

 

8

 

“Foreign Restricted Subsidiary Borrowing Base” means, as of any
date, an amount equal to the sum of

 

(1)                                  85% of the aggregate
book value of all accounts receivable of the Foreign Restricted Subsidiaries; plus

 

(2)                                  60% of the aggregate
book value of all inventory owned by the Foreign Restricted Subsidiaries,

 

all calculated on a consolidated basis and in accordance with GAAP.

 

“GAAP” means generally accepted accounting principles set forth
in the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect from time
to time.

 

“Guarantee” means a guarantee of the Notes by a Guarantor
required after the Issue Date by Section 4.16 hereof.

 

“Guarantors” means each of the Issuer’s Restricted Subsidiaries
that in the future executes a supplemental indenture in which such Restricted
Subsidiary agrees to be bound by the terms of this Indenture as a Guarantor; provided
that any Person constituting a Guarantor as described above shall cease to
constitute a Guarantor when its respective Guarantee is released in accordance
with the terms of this Indenture.

 

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

 

“Indebtedness” means with respect to any Person, without
duplication:

 

(1)                                  all Obligations of
such Person for borrowed money;

 

(2)                                  all Obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments;

 

(3)                                  all Capitalized Lease
Obligations of such Person;

 

(4)                                  all Obligations of
such Person issued or assumed as the deferred purchase price of property or
services and all Obligations under any conditional sale or title retention
agreement (but excluding any such Obligations that constitute trade accounts
payable and other accrued liabilities arising in the ordinary course of
business that are not overdue by 120 days or more or are being contested in
good faith by appropriate proceedings promptly instituted and diligently
conducted);

 

(5)                                  all Obligations of
such Person for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction, but excluding Obligations
with respect to letters of credit (including trade letters of credit) to the
extent such Obligations are cash collateralized or such letters of credit
secure Obligations (other than Obligations described in clauses (1), (2) and
(3) above) entered into in the ordinary course of business of such Person and
such letters of credit are not drawn upon or, if drawn upon, to the extent any
such drawing is reimbursed no later than three Business Days following receipt
by such Person of a demand for reimbursement;

 

(6)                                  guarantees and other
contingent obligations in respect of Indebtedness of other Persons of the type
referred to in clauses (1) through (5) above and clause (8) below;

 

9

 

(7)                                  all Obligations of
any other Person of the type referred to in clauses (1) through (6) which are
secured by any Lien on any property or asset of such Person, the amount of such
Obligation being deemed to be the lesser of the fair market value of such
property or asset and the amount of the Obligation so secured;

 

(8)                                  all net Obligations
under Currency Agreements and Interest Swap Agreements of such Person; and

 

(9)                                  all Disqualified
Capital Stock issued by such Person with the amount of Indebtedness represented
by such Disqualified Capital Stock being equal to its maximum fixed repurchase
price, but excluding accrued dividends, if any.

 

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 shall be determined
reasonably and in good faith by the Board of Directors of the issuer of such
Disqualified Capital Stock.  The amount
of Indebtedness of any Person at any date shall be the outstanding balance at
such date of all unconditional Obligations as described above and, with respect
to contingent Obligations, the maximum liability upon the occurrence of the contingency
giving rise to the Obligation; provided that the amount outstanding at
any time of any Indebtedness issued with original issue discount is the
original issue price of such Indebtedness.

 

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

 

“Independent Financial Advisor” means a firm which, in the
judgment of the Board of Directors of the Issuer, is otherwise independent and
qualified to perform the task for which it is to be engaged.

 

“Initial Purchaser” means Bear, Stearns & Co. Inc.

 

“Interest Swap Obligations” means the obligations of any Person
pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such
other Person calculated by applying a fixed or a floating rate of interest on
the same notional amount and shall include, without limitation, interest rate
swaps, caps, floors, collars and similar agreements, in each case determined as
if such agreement were terminated on the date such obligations were being
determined for purposes of this Indenture.

 

“Investment” means, with respect to any Person, any direct or
indirect loan or other extension of credit (including, without limitation, a
guarantee) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition by such Person of any
Capital Stock, bonds, notes, debentures or other securities or evidences of
Indebtedness issued by, any other Person. 
“Investment” shall exclude extensions of trade credit by the Issuer and
its Restricted Subsidiaries on commercially reasonable terms in accordance with
normal trade practices of the Issuer or such Restricted Subsidiary, as the case
may be.  If the Issuer or any Restricted
Subsidiary of the Issuer sells or otherwise disposes of any Capital Stock of any
Restricted Subsidiary of the Issuer such that, after giving effect to any such
sale or disposition, such Restricted Subsidiary is no longer a Restricted
Subsidiary of the Issuer, the Issuer shall be deemed to have made an Investment
on the date of any such sale or disposition equal to the fair market value of
the Common Stock of such Restricted Subsidiary not sold or disposed of or, with
respect to any Restricted Subsidiary of the Issuer acquired or created after
the Issue Date, if less, the value of the Investment when made by the Issuer
and its Restricted Subsidiaries in the portion of such Restricted Subsidiary represented
by such Common Stock.

 

“Issue Date” means February 4, 2004, the date of original issuance
of the Notes.

 

10

 

“Issuer”  means the
Person named in the introductory paragraph to this Indenture until a successor
Person or Persons shall have become such in accordance with the applicable
provisions of this Indenture, and thereafter means such successor Person or
Persons.

 

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

 

“Management Agreement” means the management agreement dated as
of April 15, 2003 among CHAAS, the Subsidiaries of CHAAS listed therein
and Castle Harlan, Inc., as in effect on the Issue Date.

 

“Material Domestic Restricted Subsidiary” means a Domestic
Restricted Subsidiary of the Issuer having total assets with a book value in
excess of $500,000.

 

“Net Cash Proceeds” means, with respect to any Asset Sale, the
proceeds in the form of cash or Cash Equivalents including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Issuer or any of its Restricted Subsidiaries from
such Asset Sale net of:

 

(1)                                  reasonable
out-of-pocket commissions, expenses and fees relating to such Asset Sale
(including, without limitation, legal, accounting and investment banking fees
and sales commissions and severance and relocation costs and expenses);

 

(2)                                  net taxes paid or
payable as a result of such Asset Sale;

 

(3)                                  repayment of
Indebtedness that is secured by the property or assets that are the subject of
such Asset Sale or that is required by applicable law to be repaid out of the
proceeds of such Asset Sale;

 

(4)                                  amounts required to
be paid to any Person (other than the Issuer or any of its Restricted
Subsidiaries) owning a beneficial interest in the assets which are subject to
the Asset Sale; and

 

(5)                                  appropriate amounts
to be provided by the Issuer or any Restricted Subsidiary, as the case may be,
as a reserve, in accordance with GAAP, against any liabilities associated with
such Asset Sale and retained by the Issuer or any Restricted Subsidiary, as the
case may be, after such Asset Sale, including, without limitation, pension and
other post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated with
such Asset Sale.

 

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

 

“Notes” means the Series A Notes and the Series B Notes, if any,
that are issued under this Indenture, as amended or supplemented from time to
time.

 

“Obligations” means all obligations for principal, premium,
interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

 

“Officer” means (a) with respect to any Person that is a
corporation, the Chairman of the Board, the Chief Executive Officer, the
President, the Chief Operating Officer, any Vice President, the Chief Financial
Officer, the Treasurer, the Controller, the Secretary or any Assistant
Treasurer or Assistant Secretary of such Person and (b) with respect to any
other Person, the individuals selected by such Person to perform functions
similar to those of the officers listed in clause (a).

 

11

 

“Officers’ Certificate” means, with respect to any Person, a
certificate signed by two Officers of such Person, one of whom must be the
Chairman of its Board, the Chief Executive Officer, the Chief Financial
Officer, the Treasurer or any principal accounting officer of such Person, that
meets the requirements of Sections 13.4 and 13.5 hereof.

 

“Opinion of Counsel” means an opinion from legal counsel that
meets the requirements of Sections 13.4 and 13.5 hereof.  The counsel may be an employee of or
in-house counsel to an Issuer or any Subsidiary of the Issuer.

 

“Pari Passu Indebtedness” means any Indebtedness of the Issuer
that ranks pari  passu  in right of   payment with the Notes.

 

“Permitted Business” means any business that is the same,
similar, reasonably related, complementary or incidental to the business in
which the Issuer or any of its Restricted Subsidiaries is engaged on the Issue
Date.

 

“Permitted Holders” means (1) Castle Harlan Partners IV, L.P.
and any Person controlling, controlled by, or under common control with, and
any account controlled or managed by or under common control or management with
Castle Harlan Partners IV, L.P. and (2) Castle Harlan Inc. and employees,
management and directors of, and Persons owning accounts managed or advised by,
any of the foregoing and their respective Affiliates.

 

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

 

(1)                                  Indebtedness under
the Notes issued on the Issue Date and any Guarantees thereof;

 

(2)                                  Indebtedness incurred
pursuant to the Credit Agreement in an aggregate principal amount at any time
outstanding not to exceed (x) the greater of (a) $60.0 million and
(b) the sum of (A) $10.0 million and (B) the Borrowing Base plus
(y) an amount not exceeding the aggregate amount of Indebtedness that is permitted
to be incurred, but has not been incurred, under clauses (10), (11), (12) and
(17) of this definition;

 

(3)                                  other Indebtedness of
the Issuer and its Restricted Subsidiaries outstanding on the Issue Date
reduced by the amount of any scheduled amortization payments or mandatory
prepayments, in each case, when actually paid, or permanent reductions thereon;

 

(4)                                  Interest Swap
Obligations of the Issuer or any Restricted Subsidiary of the Issuer covering
Indebtedness of the Issuer or any of its Restricted Subsidiaries; provided, however,
that such Interest Swap Obligations are entered into to protect the Issuer and
its Restricted Subsidiaries from fluctuations in interest rates;

 

(5)                                  Indebtedness under
Currency Agreements; provided that (x) in the case of Currency Agreements
which relate to Indebtedness, such Currency Agreements do not increase the
Indebtedness of the Issuer and its Restricted Subsidiaries outstanding other
than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder and
(y) such Currency Agreements are designed to protect the Issuer or any
Restricted Subsidiary of the Issuer against fluctuations in currency values;

 

(6)                                  Indebtedness of a
Restricted Subsidiary of the Issuer to the Issuer or to a Restricted Subsidiary
of the Issuer for so long as such Indebtedness is held by the Issuer or a
Restricted Subsidiary of the Issuer or the holder of a Permitted Lien thereon,
in each case subject to no Lien held by a Person other than the Issuer or a
Restricted Subsidiary of the Issuer or the holder of a 

 

12

 

Permitted Lien thereon; provided that if as of any date any Person
other than the Issuer or a Restricted Subsidiary of the Issuer or the holder of
a Permitted Lien thereon owns or holds any such Indebtedness or holds a Lien in
respect of such Indebtedness, such date shall be deemed the incurrence of
Indebtedness not constituting Permitted Indebtedness under this clause (6) by
the issuer of such Indebtedness;

 

(7)                                  Indebtedness of the
Issuer to a Restricted Subsidiary of the Issuer for so long as such
Indebtedness is held by a Restricted Subsidiary of the Issuer and subject to no
Lien, other than a Permitted Lien; provided that (a) any Indebtedness of
the Issuer to any Restricted Subsidiary of the Issuer that is not a Guarantor
is unsecured and subordinated, pursuant to a written agreement, to the Issuer’s
obligations under this Indenture and the Notes and (b) if as of any date
any Person other than a Restricted Subsidiary of the Issuer or the holder of a
Permitted Lien thereon owns or holds any such Indebtedness or holds a Lien in
respect of such Indebtedness, such date shall be deemed the incurrence of
Indebtedness not constituting Permitted Indebtedness under this clause (7) by
the Issuer;

 

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

 

(9)                                  Indebtedness of the
Issuer or any of its Restricted Subsidiaries in respect of performance bonds,
bankers’ acceptances, workers’ compensation claims, surety or appeal bonds,
payment obligations in connection with self-insurance or similar obligations
and bank overdrafts (and letters of credit in respect thereof) incurred in the
ordinary course of business;

 

(10)                            Indebtedness represented by
Capitalized Lease Obligations and Purchase Money Indebtedness of the Issuer and
its Restricted Subsidiaries incurred in the ordinary course of business not to
exceed the greater of (a) $15.0 million and (b) 5% of Consolidated
Tangible Assets (reduced by the aggregate amount of additional Indebtedness
incurred under clause (2) hereof in reliance on this clause (10));

 

(11)                            Indebtedness consisting of
guarantees by the Issuer or any of its Restricted Subsidiaries of Indebtedness
permitted to be incurred under this Indenture;

 

(12)                            Indebtedness of the
Issuer’s Foreign Restricted Subsidiaries in an aggregate principal amount not
to exceed the greater of (a) $50.0 million and (b) the Foreign Restricted
Subsidiary Borrowing Base (reduced by the aggregate amount of additional
Indebtedness incurred under clause (2) hereof in reliance on this clause (12));

 

(13)                            Refinancing Indebtedness;

 

(14)                            Indebtedness of the Issuer
or any of its Restricted Subsidiaries consisting of guarantees, indemnities or
other obligations in respect of purchase price adjustments in connection with
the acquisition or disposition of property or assets;

 

(15)                            Indebtedness of the Issuer
or any of its Restricted Subsidiaries to the extent the net proceeds thereof
are promptly used to redeem the Notes in full or deposited to defease or discharge
the Notes, in each case in accordance with this Indenture;

 

(16)                            Indebtedness of the Issuer
and its Restricted Subsidiaries consisting of Capitalized Lease Obligations not
exceeding $15.0 million at any one time outstanding and incurred in connection
with one or more Permitted Sale and Leaseback Transactions involving one or
more properties that are owned on May 23, 2003 by one or more such Restricted
Subsidiaries and that are located in Staphorst, The Netherlands, Hoogeveen, The
Netherlands, and Fensmark, Denmark; and

 

13

 

(17)                            additional Indebtedness of
the Issuer and its Restricted Subsidiaries in an aggregate principal amount not
to exceed $15.0 million at any one time outstanding (reduced by the aggregate
amount of additional Indebtedness incurred under clause (2) hereof in reliance
on this clause (17)).

 

For purposes of determining compliance with Section 4.9 hereof, in
the event that an item of Indebtedness meets the criteria of more than one of
the categories of Permitted Indebtedness described in clauses (1) through (17)
above or is entitled to be incurred pursuant to the Consolidated Fixed Charge
Coverage Ratio provisions of such Section, the Issuer shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any
manner that complies with such Section. 
Accrual of interest, accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of additional
Indebtedness with the same terms, and the payment of dividends on Disqualified
Capital Stock in the form of additional shares of the same class of
Disqualified Capital Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Capital Stock for purposes of
Section 4.9 hereof.

 

“Permitted Investments” means:

 

(1)                                  Investments by the
Issuer or any Restricted Subsidiary of the Issuer in any Person that is or will
become immediately after such Investment a Restricted Subsidiary of the Issuer
or that will merge or consolidate into the Issuer or a Restricted Subsidiary of
the Issuer;

 

(2)                                  Investments in the
Issuer by any Restricted Subsidiary of the Issuer; provided that any
Indebtedness evidencing such Investment and held by a Restricted Subsidiary of
the Issuer is unsecured and subordinated, pursuant to a written agreement, to
the Issuer’s obligations under the Notes and this Indenture;

 

(3)                                  Investments in cash
and Cash Equivalents;

 

(4)                                  loans and advances to
directors, employees and officers of the Issuer and its Restricted Subsidiaries
in the ordinary course of business for bona fide business purposes not in
excess of $3.0 million at any one time outstanding;

 

(5)                                  Currency Agreements
and Interest Swap Obligations entered into in the ordinary course of the
Issuer’s or its Restricted Subsidiaries’ businesses and not for speculative
purposes and otherwise in compliance with this Indenture;

 

(6)                                  additional
Investments having an aggregate fair market value at any time outstanding not
to exceed $15.0 million;

 

(7)                                  Investments in
securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers or in good faith settlement of delinquent obligations
of such trade creditors or customers;

 

(8)                                  Investments made by
the Issuer or its Restricted Subsidiaries as a result of consideration received
in connection with an Asset Sale made in compliance with Section 4.10
hereof;

 

(9)                                  Investments existing
on the Issue Date;

 

(10)                            any acquisition of assets
solely in exchange for the issuance of Qualified Capital Stock of the Issuer or
any of its Restricted Subsidiaries;

 

(11)                            Investments made by the
Issuer or any of its Restricted Subsidiaries with the proceeds of a
substantially concurrent offering of Qualified Capital Stock of the Issuer or
any other holding company of 

 

14

 

the Issuer (which proceeds of any such offering of Qualified Capital
Stock shall not have been, and shall not be, included in the calculation of the
Restricted Payments Basket, except to the extent the proceeds thereof exceed
the amounts used to effect such Investments);

 

(12)                            Investments represented by
guarantees that are otherwise permitted under this Indenture; and

 

(13)                            advances to suppliers and
customers in the ordinary course of business.

 

“Permitted Liens” means the following types of Liens:

 

(1)                                  Liens existing on the
Issue Date;

 

(2)                                  Liens securing the
Notes and any Guarantees;

 

(3)                                  Liens securing
Indebtedness under the Credit Agreement that is permitted to be incurred under
Section 4.09 hereof;

 

(4)                                  Liens in favor of the
Issuer or any Restricted Subsidiary of the Issuer;

 

(5)                                  Liens securing
Refinancing Indebtedness which is incurred to Refinance any Indebtedness which
has been secured by a Lien permitted under this Indenture and which has been
incurred in accordance with the provisions of this Indenture; provided,
however, that such Liens:  (i) taken
as a whole are no less favorable to the Holders and are not more favorable to
the lienholders with respect to such Liens than the Liens in respect of the
Indebtedness being Refinanced; and (ii) do not extend to or cover any property
or assets of the Issuer or any of its Restricted Subsidiaries not securing the
Indebtedness so Refinanced;

 

(6)                                  Liens for taxes,
assessments or governmental charges or claims either (a) not delinquent or (b)
being contested in good faith by appropriate proceedings and as to which the
Issuer or its Restricted Subsidiaries shall have set aside on its books such
reserves as may be required pursuant to GAAP;

 

(7)                                  statutory Liens of
landlords and Liens of carriers, warehousemen, mechanics, suppliers,
materialmen, repairmen and other Liens imposed by law incurred in the ordinary
course of business for sums not yet delinquent or being contested in good
faith, if such reserve or other appropriate provision, if any, as shall be
required by GAAP shall have been made in respect thereof;

 

(8)                                  Liens incurred or
deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security,
including any Lien securing letters of credit issued in the ordinary course of
business in connection therewith, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);

 

(9)                                  Liens arising by
reward of any judgment, decree or order of any court but not giving rise to an
Event of Default so long as such Liens are adequately bonded and any
appropriate legal proceedings which may have been duly initiated for the review
of such judgment, decree or order shall not have been finally terminated or the
period within which such proceedings may be initiated shall not have expired;

 

(10)                            survey exceptions,
easements, rights-of-way, zoning restrictions and other similar charges or
encumbrances in respect of real property not interfering in any material
respect with the ordinary conduct of the business of the Issuer or any of its
Restricted Subsidiaries;

 

15

 

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

 

(12)                            Liens securing
reimbursement obligations with respect to commercial letters of credit which
encumber documents and other property relating to such letters of credit and
products and proceeds thereof;

 

(13)                            Liens encumbering deposits
made to secure obligations arising from statutory, regulatory, contractual, or
warranty requirements of the Issuer or any of its Restricted Subsidiaries,
including rights of offset and set-off;

 

(14)                            Liens securing Interest
Swap Obligations which Interest Swap Obligations relate to Indebtedness that is
otherwise permitted pursuant to clause (4) of the definition of “Permitted
Indebtedness”;

 

(15)                            Liens securing Capitalized
Lease Obligations and Purchase Money Indebtedness permitted to be incurred
under this Indenture; provided, however, that in the case of Capitalized Lease
Obligations, such Liens do not extend to any property or assets which are not
leased property subject to such Capitalized Lease Obligations;

 

(16)                            Liens securing Indebtedness
under Currency Agreements permitted to be incurred pursuant to clause (5) of
the definition of “Permitted Indebtedness”;

 

(17)                            Liens securing Acquired
Indebtedness incurred in accordance with Section 4.9; provided that:

 

(a)                                  such Liens secured
such Acquired Indebtedness at the time of and prior to the incurrence of such
Acquired Indebtedness by the Issuer or a Restricted Subsidiary of the Issuer
and were not granted in connection with, or in anticipation of, the incurrence
of such Acquired Indebtedness by the Issuer or a Restricted Subsidiary of the
Issuer; and

 

(b)                                 such Liens do not
extend to or cover any property or assets of the Issuer or of any of its
Restricted Subsidiaries other than the property or assets that secured the
Acquired Indebtedness prior to the time such Indebtedness became Acquired
Indebtedness of the Issuer or a Restricted Subsidiary of the Issuer and are no
more favorable to the lienholders than those securing the Acquired Indebtedness
prior to the incurrence of such Acquired Indebtedness by the Issuer or a
Restricted Subsidiary of the Issuer;

 

(18)                            Liens securing Indebtedness
incurred pursuant to clause (12), (14) (but in the case of clause (14) such
Liens shall only be on the assets that are the subject of the transaction
permitted by clause (14)), (15), (16) or (17) of the definition of “Permitted
Indebtedness”;

 

(19)                            any provision for the
retention of title to an asset by the vendor or transferor of such asset which
asset is acquired by the Issuer or any Restricted Subsidiary of the Issuer in a
transaction entered into in the ordinary course of business of the Issuer or
such Restricted Subsidiary;

 

(20)                            Liens incurred in the
ordinary course of business of the Issuer or any Restricted Subsidiary of the
Issuer with respect to Obligations that do not exceed $15.0 million at any one
time outstanding and that (a) are not incurred in connection with the borrowing
of money or the obtaining of advances or credit (other than trade credit in the
ordinary course of business) and (b) do not in the aggregate materially 

 

16

 

detract from the value of the property or materially impair the use
thereof in the operation of business by the Issuer or such Restricted
Subsidiary;

 

(21)                            Liens arising from filing
Uniform Commercial Code financing statements regarding leases;

 

(22)                            Liens in favor of customs
and revenue authorities arising as a matter of law to secure payments of
customs duties in connection with the importation of goods;

 

(23)                            deposits made in the
ordinary course of business to secure liability to insurance carriers;

 

(24)                            rights of a licensor of
intellectual property;

 

(25)                            leases, subleases, licenses
and sublicenses granted to others that do not materially interfere with the
ordinary course of business of the Issuer and its Restricted Subsidiaries;

 

(26)                            banker’s Liens, rights of
setoff and similar Liens with respect to cash and Cash Equivalents on deposit
in one or more bank accounts in the ordinary course of business;

 

(27)                            any interest or title of a
lessor in the property subject to any capitalized lease or operating lease;

 

(28)                            Liens on property of, or on
shares of Capital Stock or Indebtedness of, any Person existing at the time
such Person becomes, a Restricted Subsidiary of the Issuer, provided that such
Liens do not (a) extend to or cover any property or assets of the Issuer
or any of its Restricted Subsidiaries other than the property or assets
acquired or (b) secure Indebtedness (including Acquired Indebtedness);

 

(29)                            Liens securing Indebtedness
of a Restricted Subsidiary of the Issuer that is permitted to be incurred under
Section 4.9 hereof; and

 

(30)                            any extension, renewal or
replacement, in whole or in part, of any Lien described in clause (1), (15) or
(17) of the definition of “Permitted Liens”; provided that any such extension,
renewal or replacement is no more restrictive in any material respect that the
Lien so extended, renewed or replaced and does not extend to any additional
property or assets.

 

“Permitted Sale and Leaseback Transaction” means any Sale and
Leaseback Transaction entered into by any Restricted Subsidiary of the Issuer
with respect to any facility (including, without limitation, any manufacturing,
engineering, warehousing or administration facility), owned or leased by such
Restricted Subsidiary on the Issue Date.

 

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

 

“PORTAL Market” means the Portal Market operated by the National
Association of Securities Dealers, Inc. or any successor thereto.

 

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

 

“Public Equity Offering” means an underwritten public offering
of Qualified Capital Stock of the Issuer or any other holding company of the
Issuer or any Restricted Subsidiary of the Issuer (to the extent otherwise
permitted by this Indenture) pursuant to a registration statement filed with
the Commission in accordance with the 

 

17

 

Securities Act;  provided that in the case of any
other such holding company, such holding company shall contribute to the
capital of the Issuer, and in the case of a Restricted Subsidiary of the
Issuer, such Restricted Subsidiary shall pay by dividend or distribution to the
Issuer, the portion of the net cash proceeds of such Public Equity Offering
necessary to pay the aggregate redemption price of the Notes to be redeemed
pursuant to paragraph 6 of the Note.

 

“Purchase Date” means, with respect to any Note to be
repurchased, the date fixed for such repurchase by or pursuant to this
Indenture.

 

“Purchase Money Indebtedness” means Indebtedness of the Issuer
and its Restricted Subsidiaries incurred in the normal course of business for
the purpose of financing all or any part of the purchase price, or the cost of
design, development, installation, construction or improvement, of property or
equipment; provided, however, that (i) the amount
of such Indebtedness shall not exceed such purchase price or cost and
(ii) such Indebtedness shall not be secured by any asset other than the
specified asset being financed or, in the case of real property or fixtures,
including additions and improvements, the real property to which such asset is
attached.

 

“Purchase Price” means the amount payable for the repurchase of
any Note on a Purchase Date, exclusive of accrued and unpaid interest and
Additional Interest (if any) thereon to the Purchase Date, unless otherwise
specifically provided herein.

 

“QIB” means a qualified institutional buyer as defined in Rule
144A under the Securities Act.

 

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

 

 “Redemption Date” means,
with respect to any Note to be redeemed, the date fixed for such redemption by
or pursuant to this Indenture.

 

“Redemption Price” means the amount payable for the redemption
of any Note on a Redemption Date, exclusive of accrued and unpaid interest and
Additional Interest (if any) thereon to the Redemption Date, unless otherwise
specifically provided herein.

 

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

 

“Refinancing Indebtedness” means any Refinancing by the Issuer
or any Restricted Subsidiary of the Issuer of Indebtedness incurred in
accordance with Section 4.9 hereof (other than pursuant to clause (2),
(4), (5), (6), (7), (8), (9), (10), (11), (12), (14), (15), (16) or (17) of the
definition of “Permitted Indebtedness”), in each case, other than Refinancing
Indebtedness incurred to Refinance all of the Notes, that does not:

 

(1)                                  result in an increase
in the aggregate principal amount of Indebtedness of such Person as of the date
of such proposed Refinancing (plus accrued interest on the Indebtedness being
Refinanced plus the amount of any premium required to be paid under the terms
of the instrument governing such Indebtedness and plus the amount of reasonable
fees and expenses incurred by the Issuer and its Restricted Subsidiaries in connection
with such Refinancing); or

 

(2)                                  create Indebtedness
with:  (a) a Weighted Average Life
to Maturity that is less than the Weighted Average Life to Maturity of the
Indebtedness being Refinanced; or (b) a final maturity earlier than the
final maturity of the Indebtedness being Refinanced; provided that (x) if
such Indebtedness being Refinanced is Indebtedness solely of the Issuer, then
such Refinancing Indebtedness shall be Indebtedness solely of the Issuer and
(y) if such Indebtedness being Refinanced is subordinate or junior to the
Notes, 

 

18

 

then such Refinancing Indebtedness shall be subordinate to the Notes at
least to the same extent and in the same manner as the Indebtedness being Refinanced.

 

“Registration Rights Agreement” means the registration rights
agreement dated as of the Issue Date between the Issuer and the Initial Purchaser.

 

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

 

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

 

“Restricted Subsidiary” of any Person means any Subsidiary of
such Person which at the time of determination is not an Unrestricted
Subsidiary.

 

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

 

“Sale and Leaseback Transaction” means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Issuer or a Restricted Subsidiary of the Issuer of any
property, whether owned by the Issuer or any Restricted Subsidiary of the
Issuer at the Issue Date or later acquired, which has been or is to be sold or
transferred by the Issuer or such Restricted Subsidiary to such Person or to
any other Person from whom funds have been or are to be advanced by such Person
on the security of such Property.

 

“Securities Act” means the Securities Act of 1933, as amended,
or any successor statute or statutes thereto.

 

“Securities Purchase Agreement” means the Securities Purchase
Agreement dated April 15, 2003, among CHAAS, CHAAS Holdings, LLC and each
of the seller parties listed on the signature pages thereto, as such agreement
may be amended (including any amendment and restatement thereof), supplemented
or otherwise modified from time to time; provided that any Indebtedness
incurred pursuant to such amendment or modification shall not result in any
payments of principal thereunder prior to any scheduled final maturity,
scheduled repayment or scheduled sinking fund payment thereunder as in effect
on the Issue Date.

 

“Series A Notes” means the Issuer’s 13 1/4% Senior Discount
Notes due 2011.

 

“Series B Notes” means notes issued by the Issuer hereunder
containing terms identical to the Series A Notes (except that (i) interest
thereon shall accrue from the last date on which interest was paid on the
Series A Notes or, if no such interest has been paid, from the date of original
issuance, (ii) the legend or legends relating to transferability and other
related matters set forth on the Series A Notes, including the text referred to
in footnote 2 of Exhibit A hereto, shall be removed or appropriately altered,
and (iii) as otherwise set forth herein), to be offered to Holders of Series A
Notes in exchange for Series B Notes pursuant to the Exchange Offer.

 

“Significant Subsidiary”, with respect to any Person, means
(1) any Restricted Subsidiary of such Person that satisfies the criteria
for a “significant subsidiary” set forth in Rule 1.02(w) of Regulation S-X
under the Exchange Act as such Regulation is in effect on the Issue Date and
(2) any Restricted Subsidiary of such Person that, when aggregated with all
other Restricted Subsidiaries of such Person that are not otherwise Significant
Subsidiaries and as to which any event described in clause (f) or (g) of
Section 6.1 hereof has occurred and is continuing, would constitute a
Significant Subsidiary under clause (1) of this definition.

 

19

 

“Subordinated Indebtedness” means Indebtedness of the Issuer or
a Guarantor, if any, that is subordinated or junior in right of payment to the
Notes or such Guarantee, as the case may be.

 

“Subsidiary”, with respect to any Person, means:

 

(1)                                  any corporation of
which the outstanding Capital Stock having at least a majority of the votes
entitled to be cast in the election of directors under ordinary circumstances
shall at the time be owned, directly or indirectly, by such Person or one or
more Subsidiaries of such Person (or any combination thereof); or

 

(2)                                  any other Person of
which at least a majority of the voting interest under ordinary circumstances
is at the time, directly or indirectly, owned by such Person or one or more
Subsidiaries of such Person (or any combination thereof).

 

“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; provided that in the event the Trust Indenture
Act of 1939 is amended after such date, “TIA” means, to the extent required by
any such amendment, the Trust Indenture Act of 1939 as so amended.

 

“Transfer Restricted Security” means a Note that is a restricted
security as defined in Rule 144(a)(3) under the Securities Act.

 

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

 

“Unrestricted Subsidiary” of any Person means:

 

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

 

(2)                                  any Subsidiary of an
Unrestricted Subsidiary.

 

The Board of Directors of the Issuer may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds
any Lien on any property of, the Issuer or any other Restricted Subsidiary of
the Issuer that is not a Subsidiary of the Subsidiary to be so designated; provided
that:

 

(1)                                  the Issuer certifies
to the Trustee that such designation complies with Section 4.7 hereof; and

 

(2)                                  each Subsidiary to be
so designated and each of its Subsidiaries has not at the time of designation,
and does not thereafter, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable with respect to any Indebtedness pursuant
to which the lender has recourse to any of the assets of the Issuer or any of
its Restricted Subsidiaries.

 

For purposes of making the determination of whether any such
designation of a Subsidiary as an Unrestricted Subsidiary complies with
Section 4.7 hereof, the portion of the fair market value of the net assets
of such Subsidiary of the Issuer at the time that such Subsidiary is designated
as an Unrestricted Subsidiary that is represented by the interest of the Issuer
and its Restricted Subsidiaries in such Subsidiary, in each case as determined
in good faith by the Board of Directors of the Issuer, or, with respect to any
Restricted Subsidiary acquired or created after the Issue Date, if less, the
amount of the value of the Investment in such Subsidiary when made, shall be 

 

20

 

deemed to be an Investment. 
Such designation will be permitted only if such Investment would be
permitted at such time under Section 4.7 hereof.

 

The Board of Directors of the Issuer may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary only if:

 

(1)                                  immediately after
giving effect to such designation, (A) in the case of any Subsidiary of the
Issuer that is not also a Subsidiary of CHAAS, the Issuer would have been
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated Fixed Charge Coverage Ratio test set forth in clause (a)(i) of the
first paragraph of Section 4.9 hereof or (B) in the case of CHAAS and any
Restricted Subsidiary of CHAAS, CHAAS and any Restricted Subsidiary of CHAAS
would have been permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Consolidated Fixed Charge Coverage Ratio test set forth in
clause (a)(ii) of the first paragraph of Section 4.9 hereof; and

 

(2)                                  immediately before
and immediately after giving effect to such designation, no Default or Event of
Default shall have occurred and be continuing.

 

Any such designation by the Board of Directors of the Issuer shall be
evidenced to the Trustee by promptly filing with the Trustee a copy of the
Board Resolution giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the foregoing provisions.

 

“U.S. Government Securities” means securities which are
(i) direct obligations of the United States of America for the payment of
which its full faith and credit is pledged or (ii) obligations of a person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America, the payment of which is unconditionally guaranteed as
a full faith and credit obligation by the United States of America, which, in
either case, are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Securities or a
specific payment of interest on or principal of any such U.S. Government
Securities held by such custodian for the account of the holder of a depository
receipt; provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depository receipt from any amount received by the custodian in respect of the
U.S. Government Securities or the specific payment of interest on or principal
of the U.S. Government Securities evidenced by such depository receipt.

 

“U.S. Person” means any U.S. Person as defined in Regulation S.

 

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

 

“Wholly Owned Restricted Subsidiary” of any Person means any
Wholly Owned Subsidiary of such Person which at the time of determination is a
Restricted Subsidiary of such Person.

 

“Wholly Owned Subsidiary” of any Person means any Subsidiary of
such Person of which all the outstanding securities which confer on the holders
thereof the right to elect directors or their functional equivalents (other
than in the case of a foreign Subsidiary, directors’ qualifying shares or an
immaterial amount of shares required to be owned by other Persons pursuant to
applicable law) are owned by such Person or any Wholly Owned Subsidiary of such
Person.

 

21

 

Section 1.2.                                   Other
Definitions.

 

	
  Term

  	
   

  	
   

  	
  Defined in
  Section

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  
	
  “Agent Members”

  	
   

  	
  2.6

  
	
  “Certificated Notes”

  	
   

  	
  2.1

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  
	
  “Change of Control Offer Period”

  	
   

  	
  3.9

  
	
  “Change of Control Redemption”

  	
   

  	
  3.8

  
	
  “Covenant Defeasance”

  	
   

  	
  8.3

  
	
  “Event of Default”

  	
   

  	
  6.1

  
	
  “Excluded Sale and Leaseback Transactions”

  	
   

  	
  4.10

  
	
  “Foreign Person”

  	
   

  	
  2.6

  
	
  “Global Notes”

  	
   

  	
  2.1

  
	
  “incur”

  	
   

  	
  4.9

  
	
  “Institutional Accredited Investors”

  	
   

  	
  2.1

  
	
  “Legal Defeasance”

  	
   

  	
  8.2

  
	
  “Mandatory Principal Redemption Amount”

  	
   

  	
  3.11

  
	
  “Net Proceeds Offer”

  	
   

  	
  4.10

  
	
  “Net Proceeds Offer Amount”

  	
   

  	
  4.10

  
	
  “Net Proceeds Offer Trigger Date”

  	
   

  	
  4.10

  
	
  “Notice of Acceleration”

  	
   

  	
  6.2

  
	
  “Offshore Certificated Notes”

  	
   

  	
  2.1

  
	
  “Paying Agent”

  	
   

  	
  2.3

  
	
  “Permanent Regulation S Global Note”

  	
   

  	
  2.1

  
	
  “Private Placement Legend”

  	
   

  	
  2.6

  
	
  “Reference Date”

  	
   

  	
  4.7

  
	
  “Registrar”

  	
   

  	
  2.3

  
	
  “Regulation S Global Note”

  	
   

  	
  2.1

  
	
  “Replacement Assets”

  	
   

  	
  4.10

  
	
  “Restricted Payment”

  	
   

  	
  4.7

  
	
  “Restricted Payment Basket”

  	
   

  	
  4.7

  
	
  “Rule 144A Global Note”

  	
   

  	
  2.1

  
	
  “Special Redemption”

  	
   

  	
  3.8

  
	
  “Surviving Entity”

  	
   

  	
  5.1

  
	
  “Temporary Regulation S Global Note”

  	
   

  	
  2.1

  
	
  “U.S. Certificated Notes”

  	
   

  	
  2.1

  

 

Section 1.3.                                   Incorporation
by Reference of Trust Indenture Act.

 

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

 

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

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Holder;

 

“indenture to be qualified” means this Indenture;

 

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

 

22

 

“obligor” on the Notes means the Issuer and any successor
obligor upon 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.

 

Section 1.4.                                   Rules
of Construction.

 

Unless the context otherwise requires:

 

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

 

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

 

(c)                                  “or” is not
exclusive;

 

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

 

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

 

(f)                                    references to
sections of or rules under the Securities Act, the Exchange Act and the TIA
shall be deemed to include substitute, replacement and successor sections or
rules adopted by the Commission from time to time.

 

Section 1.5.                                   Acts
of Holders.

 

(a)                                  Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where it is hereby expressly required, to the Issuer.  Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the “Act” of Holders signing such instrument or instruments.  Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 7.1) conclusive in favor of the
Trustee and the Issuer, if made in the manner provided in this Section.

 

(b)                                 The
fact and date of the execution by any Person of any such instrument or writing
may be proved by the affidavit of a witness of such execution or by the
certificate of any notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him or her the execution thereof.  Where such execution is by an officer of a
corporation or a member of a partnership, on behalf of such corporation or
partnership, such certificate or affidavit shall also constitute sufficient
proof of his or her authority.

 

(c)                                  The
ownership of Notes shall be proved by the register maintained by the Registrar.

 

(d)                                 Any
request, demand, authorization, direction, notice, consent, waiver or other Act
of the Holder of any Note shall bind every future Holder of the same Note and
the Holder of every Note issued upon the registration of transfer thereof or in
exchange therefor or in lieu thereof in respect of anything done or suffered to
be done by the Trustee or the Issuer in reliance thereon, whether or not
notation of such action is made upon such Note.

 

23

 

ARTICLE II.

 

THE NOTES

 

Section 2.1.                                   Form
and Dating.

 

The Series A Notes and the Trustee’s certificate of authentication
relating thereto 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 in addition to those set forth in
Exhibit A hereto.  The Series B
Notes shall be substantially in the form of Exhibit B hereto.  The notation on each Note relating to the
Guarantees, if any, shall be substantially in the form set forth on
Exhibit C hereto.  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 and Guarantees, if any,
shall constitute, and are hereby expressly made, a part of this Indenture and
the Issuer, the Guarantors, if any, and the Trustee, by their execution and
delivery of this Indenture, expressly agree to such terms and provisions and to
be bound thereby.

 

Notes offered and sold in reliance on Rule 144A shall be issued
initially in the form of a single permanent global Note in registered form,
substantially in the form set forth in Exhibit A (the “Rule 144A Global Note”),
deposited with the Trustee, as custodian for the Depositary or its nominee,
duly executed by the Issuer and authenticated by the Trustee as hereinafter
provided and shall bear the legend set forth in Section 2.6(h).  The aggregate principal amount at maturity
of the Rule 144A Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary
or its nominee, as hereinafter provided.

 

Notes offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of a single temporary global
Note in registered form, substantially in the form set forth in Exhibit A (the
“Temporary Regulation S Global Note”), deposited with the Trustee, as
custodian for the Depositary or its nominee, duly executed by the Issuer and
authenticated by the Trustee as hereinafter provided and shall bear the legend
set forth in Section 2.6(h).  At
any time following 40 days after the later of the commencement of the offering
of the Notes and the Issue Date, upon receipt by the Trustee and the Issuer of
a duly executed certificate substantially in the form of Exhibit D(1) hereto, a
single permanent Global Note in registered form substantially in the form set
forth in Exhibit A (the “Permanent Regulation S Global Note,” and
together with the Temporary Regulation S Global Note, the “Regulation S
Global Note”) duly executed by the Issuer and authenticated by the Trustee
as hereinafter provided shall be deposited with the Trustee, as custodian for
the Depositary or its nominee, and the Registrar shall reflect on its books and
records the date and a decrease in the principal amount at maturity of the
Regulation S Global Note in an amount equal to the principal amount at maturity
of the beneficial interest in the Regulation S Global Note transferred.

 

Notes offered and sold to institutional accredited investors (as
defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) (“Institutional
Accredited Investors”) shall be issued in the form of permanent U.S.
Certificated Notes in registered form in substantially the form set forth in
Exhibit A (the “U.S. Certificated Notes”).  Securities issued pursuant to Section 2.6 hereof in exchange
for interests in the Rule 144A Global Note or the Regulation S Global Note
shall be in the form of permanent Certificated Notes in registered form
substantially in the form set forth in Exhibit A (the “Offshore Certificated
Notes”).

 

The Offshore Certificated Notes and U.S. Certificated Notes are
sometimes collectively herein referred to as the “Certificated Notes.”  The Rule 144A Global Note and the Regulation
S Global Note are sometimes referred to herein as the “Global Notes.”

 

Section 2.2.                                   Execution
and Authentication.

 

Two Officers of the Issuer shall sign the Notes for the Issuer by
manual or facsimile signature.

 

24

 

If an Officer whose signature is on a Note was an Officer at the time
of such execution but no longer holds that office or position 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, upon a written order of the Issuer signed by two Officers
of the Issuer, together with the other documents required by Sections 13.4 and
13.5 hereof, shall authenticate Series A Notes for original issue on the Issue
Date in the aggregate principal amount at maturity not to exceed
$88,000,000.  The Trustee, upon written
order of the Issuer signed by two Officers of the Issuer, together with the
other documents required by Sections 13.4 and 13.5 hereof, shall authenticate
Series B Notes; provided that such Series B Notes shall be issuable only
upon the valid surrender for cancellation of Series A Notes of a like aggregate
principal amount at maturity in accordance with the Exchange Offer.  Such written order of the Issuer shall
specify the amount of Notes to be authenticated and the date on which the
original issue of Notes is to be authenticated.

 

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

 

Section 2.3.                                   Registrar
and Paying Agent.

 

The Issuer shall maintain an office or agency where Notes may be presented
or surrendered 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.  At the option of the Issuer, payment of interest
and Additional Interest may be made by check mailed to the Holders at their
addresses set forth in the register of Holders, provided that payment by
wire transfer of immediately available funds will be required with respect to
principal, Redemption Price and Purchase Price of, and interest and Additional
Interest (if any) on, all Global Notes and all other Notes the Holders of which
shall have provided wire transfer instructions to the Trustee or the Paying
Agent.  The Issuer 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 Issuer may change any Paying
Agent or Registrar without notice to any Holder.  The Issuer shall notify the Trustee in writing of the name and
address of any Paying Agent not a party to this Indenture.  If the Issuer fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as
such.  The Issuer may act as Paying
Agent or Registrar.  The Depositary
shall, by acceptance of a Global Note, agree that transfers of beneficial
interests in such Global Note may be effected only through a book-entry system
maintained by the Depositary (or its agent), and that ownership of a beneficial
interest in the Note shall be required to be reflected in a book entry.

 

In the event that the Issuer is required to pay Additional Interest to
holders of Notes pursuant to the Registration Rights Agreement, the Issuer will
provide written notice (“Additional Interest Notice”) to the Trustee of their
obligation to pay Additional Interest no later than fifteen days prior to the
proposed payment date for the Additional Interest, and the Additional Interest
Notice shall set forth the amount of Additional Interest to be paid by the
Issuer on such payment date.  The
Trustee shall not at any time be under any duty or responsibility to any holder
of Notes to determine the Additional Interest, or with respect to the nature,
extent, or calculation of the amount of Additional Interest when made, or with
respect to the method employed in such calculation of the Additional Interest.

 

The Issuer initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Note Custodian with respect to the Global Notes,
until such time as the Trustee has resigned or a successor has been appointed.

 

25

 

Section 2.4.                                   Paying
Agents to Hold Money in Trust.

 

The Issuer shall require each Paying Agent other than the Trustee to
agree in writing that such the Paying Agent shall hold in trust for the benefit
of Holders or the Trustee all money held by the Paying Agent for the payment of
principal and of any premium, if any, interest and Additional Interest, if any,
on the Notes, and shall notify the Trustee of any default by the Issuer 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 Issuer at any
time may require a Paying Agent to pay all money held by it to the Trustee and
account for any money disbursed.  Upon
payment over to the Trustee, the Paying Agent (if other than the Issuer) shall
have no further liability for the money. 
If the Issuer 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 Issuer, 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
Issuer shall furnish or cause the Registrar to furnish to the Trustee at least
five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of the Holders of
Notes, and the Issuer shall otherwise comply with TIA § 312(a).

 

Section 2.6.                                   Transfer
and Exchange.

 

(a)                                  Transfer
and Exchange Generally:  Book Entry
Provisions.  Upon surrender for
registration of transfer of any Note to the Registrar, and satisfaction of the
requirements for such transfer set forth in this Section 2.6, the Issuer
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Notes of any
authorized denominations and of a like aggregate principal amount at maturity
and bearing such restrictive legends as may be required by this Indenture.

 

Notes may be exchanged for other Notes of any authorized denominations
and of a like aggregate principal amount at maturity, upon surrender of the
Notes to be exchanged at any such office or agency maintained by the Issuer
pursuant to Section 4.2 hereof. 
Whenever any Notes are so surrendered for exchange, the Issuer shall
execute, and the Trustee shall authenticate and deliver, the Notes which the
Holder making the exchange is entitled to receive bearing registration numbers
not contemporaneously outstanding.

 

All Notes presented or surrendered for registration of transfer or
exchange shall be duly endorsed, or be accompanied by a written instrument or
instruments of transfer in form satisfactory to the Issuer and the Registrar,
and the Notes shall be duly executed by the Holder thereof or his attorney duly
authorized in writing.  Except as
otherwise provided in this Indenture, and in addition to the requirements set
forth in the legend referred to in Section 2.6(h)(i) hereof, in connection
with any transfer of Transfer Restricted Securities any request for transfer
shall be accompanied by a certification to the Trustee relating to the manner
of such transfer substantially in the form of Exhibit D(2) hereto.

 

(b)                                 Book-Entry
Provisions for the Global Notes. 
The Rule 144A Global Note and Regulation S Global Note initially shall
(i) be registered in the name of the Depositary or the nominee of such
Depositary, (ii) be delivered to the Trustee as custodian for the Depositary or
its nominee and (iii) bear legends as set forth in Section 2.6(h) hereof.

 

Members of, or participants in, the Depositary (“Agent Members”)
shall have no rights under this Indenture with respect to any Rule 144A Global
Note or Regulation S Global Note, as the case may be, held on their behalf by
the Depositary, or the Trustee as its custodian, or under the Rule 144A Global
Note or Regulation S Global Note, as the case may be, and the Depositary may be
treated by the Issuer, the Trustee and any agent of the 

 

26

 

Issuer or the Trustee as the absolute owner of Rule 144A Global Note or
Regulation S Global Note, as the case may be, for all purposes whatsoever.  Notwithstanding the foregoing, nothing
herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the
Trustee, from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Agent Members, the operation of customary practices governing the
exercise of the rights of a holder of any Note.

 

Transfers of the Rule 144A Global Note and the Regulation S Global Note
shall be limited to transfers of such Rule 144A Global Note or Regulation S
Global Note in whole, but not in part, to the Depositary, its successors or
their respective nominees.  Beneficial
interests in the Rule 144A Global Note and the Regulation S Global Note may be
transferred in accordance with the applicable rules and procedures of the
Depositary and the provisions of this Section 2.6.  The registration of transfer and exchange of
beneficial interests in the Global Note, which does not involve the issuance of
a Certificated Note, shall be effected through the Depositary, in accordance
with this Indenture (including the restrictions on transfer set forth herein)
and the procedures of the Depositary therefor. 
The Trustee shall have no responsibility or liability for any act or
omission of the Depositary.

 

At any time at the request of the beneficial holder of an interest in
the Rule 144A Global Note or Permanent Regulation S Global Note to obtain a
Certificated Note, such beneficial holder shall be entitled to obtain a
Certificated Note upon written request to the Trustee and the Note Custodian in
accordance with the standing instructions and procedures existing between the
Note Custodian and Depositary for the issuance thereof.  Upon receipt of any such request, the
Trustee, or the Note Custodian at the direction of the Trustee, will cause, in
accordance with the standing instructions and procedures existing between the
Depositary and the Note Custodian, the aggregate principal amount at maturity
of the Rule 144A Global Note or Permanent Regulation S Global Note, as
appropriate, to be reduced by the principal amount at maturity of the
Certificated Note issued upon such request to such beneficial holder and,
following such reduction, the Issuer will execute and the Trustee will
authenticate and deliver to such beneficial holder (or its nominee) a
Certificated Note or Certificated Notes in the appropriate aggregate principal
amount at maturity in the name of such beneficial holder (or its nominee) and
bearing such restrictive legends as may be required by this Indenture.

 

(c)                                  Transfers
to Non-QIB Institutional Accredited Investors.  The following provisions shall apply with respect to the
registration of any proposed transfer of a Transfer Restricted Security to any
Institutional Accredited Investor that is not a QIB (other than any Person that
is not a U.S. Person as defined under Regulation S, a “Foreign Person”):

 

(i)                  the
Registrar shall register the transfer of any Note, whether or not such Note
bears the Private Placement Legend, if (x) (A) the requested transfer is at
least two years after the Issue Date of the Notes and (B) the proposed
transferee has certified to the Registrar that the requested transfer is at
least two years after last date on which such Note was held by an Affiliate of
the Issuer, or (y) the proposed transferee has delivered to the Registrar (A) a
certificate substantially in the form of Exhibit E hereto and (B) such
certifications, legal opinions and other information as the Trustee and the
Issuer may reasonably request to confirm that such transaction is in compliance
with the Securities Act; and

 

(ii)               if
the proposed transferor is an Agent Member holding a beneficial interest in the
Global Note, upon receipt by the Registrar of (x) the documents, if any,
required by clause (i) and (y) instructions given in accordance with the
Depositary’s and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount at maturity
of the Global Note in an amount equal to the principal amount at maturity of
the beneficial interest in the Global Note to be transferred, and the Issuer
shall execute, and the Trustee shall authenticate and deliver, one or more
Certificated Notes of like tenor and amount.

 

(d)                                 Transfers
to QIBs.  The following provisions
shall apply with respect to the registration of any proposed transfer of a
Transfer Restricted Security to a QIB (other than Foreign Persons):

 

27

 

(i)                  if
the Note to be transferred consists of Certificated Notes or an interest in the
Regulation S Global Note, the Registrar shall register the transfer if such
transfer is being made by a proposed transferor who has checked the box
provided for on a certificate substantially in the form of Exhibit D(2) stating,
or has otherwise advised the Issuer and the Registrar in writing, that the sale
has been made in compliance with the provisions of Rule 144A to a transferee
who is a QIB within the meaning of Rule 144A and is aware that the sale to it
is being made in reliance on Rule 144A; and

 

(ii)               if
the proposed transferee is an Agent Member, and the Note to be transferred consists
of Certificated Notes or an interest in the Regulation S Global Note, upon
receipt by the Registrar of the documents referred to in clause (i) and
instructions given in accordance with the Depositary’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount at maturity of the Rule 144A Global Note in
an amount equal to the principal amount at maturity of the Certificated Notes
or the interest in the Regulation S Global Note, as the case may be, to be
transferred, and the Trustee shall cancel the Certificated Notes or decrease
the amount of the Regulation S Global Note so transferred.

 

(e)                                  Transfers
of Interests in the Temporary Regulation S Global Note.  The following provisions shall apply with
respect to the registration of any proposed transfer of interests in the Temporary
Regulation S Global Note:

 

(i)                  the
Registrar shall register the transfer of an interest in the Temporary Regulation
S Global Note if (x) the proposed transferor has delivered to the Registrar a
certificate substantially in the form of Exhibit F hereto stating, among other
things, that the proposed transferee is a Foreign Person or (y) the proposed
transferee is a QIB and the proposed transferor has checked the box provided
for on a certificate substantially in the form of Exhibit D(2) stating, or has
otherwise advised the Issuer and the Registrar in writing, that the sale has
been made in compliance with the provisions of Rule 144A to a transferee who is
a QIB within the meaning of Rule 144A, and is aware that the sale to it is being
made in reliance on Rule 144A; and

 

(ii)               if
the proposed transferee is an Agent Member, upon receipt by the Registrar of
the documents referred to in clause (i)(y) above and instructions given in
accordance with the Depositary’s and the Registrar’s procedures, the Registrar
shall reflect on its books and records the date and an increase in the
principal amount at maturity of the Rule 144A Global Note in an amount equal to
the principal amount at maturity of the Temporary Regulation S Global Note to
be transferred, and the Trustee, as Note Custodian, shall decrease the amount
of the Temporary Regulation S Global Note.

 

(f)                                    Transfers
to Foreign Persons.  The following
provisions shall apply with respect to any transfer of a Transfer Restricted
Security to a Foreign Person:

 

(i)                  the
Registrar shall register any proposed transfer of a Note to a Foreign Person
upon receipt of a certificate substantially in the form of Exhibit F hereto
from the proposed transferor and such certifications, legal opinions and other
information as the Trustee or the Issuer may reasonably request; and

 

(ii)               (a) if
the proposed transferor is an Agent Member holding a beneficial interest in the
Rule 144A Global Note or the Note to be transferred consists of Certificated
Notes, upon receipt by the Registrar of (x) the documents, if any, required by
paragraph (i) and (y) instructions in accordance with the Depositary’s and the
Registrar’s procedures, the Registrar shall reflect on its books and records
the date and a decrease in the principal amount at maturity of the Rule 144A
Global Note in an amount equal to the principal amount at maturity of the
beneficial interest in the Rule 144A Global Note or cancel the Certificated
Notes, as the case may be, to be transferred, and (b) if the proposed
transferee is an Agent Member, upon receipt by the Registrar of instructions
given in accordance with the Depositary’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount at maturity of the Regulation S Global Note in an amount
equal to the principal amount at maturity 

 

28

 

of the Certificated Notes to be transferred, and the Trustee shall
decrease the amount of the Rule 144A Global Note.

 

(g)                                 The
Depositary.  The Depositary shall be
a clearing agency registered under the Exchange Act.  The Issuer initially appoints The Depository Trust Company to act
as Depositary with respect to the Global Note. 
Initially, the Rule 144A Global Note and the Regulation S Global Note
shall be issued to the Depositary, registered in the name of Cede & Co., as
the nominee of the Depositary, and deposited with the Note Custodian for Cede
& Co.

 

Notes in Certificated form issued in exchange for all or a part of a
Global Note pursuant to this Section 2.6 shall be registered in such names
and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee.  Upon execution
and authentication, the Trustee shall deliver such Certificated Notes in
Certificated form to the persons in whose names such Notes in Certificated form
are so registered.

 

Certificated Notes shall be transferred to all beneficial owners in
exchange for their beneficial interests in the Rule 144A Global Note or the
Permanent Regulation S Global Note, as the case may be, if at any time:

 

(i)                  the
Depositary for the Notes notifies the Issuer that the Depositary is unwilling
or unable to continue as Depositary for the Rule 144A Global Note or the
Permanent Regulation S Global Note, as the case may be, and a successor Depositary
is not appointed by the Issuer within 90 days after delivery of such notice; or

 

(ii)               the
Issuer, at its sole discretion, notify the Trustee in writing that they elect
to cause the issuance of Certificated Notes under this Indenture,

 

and the Issuer shall execute, and the Trustee shall, upon receipt of an
authentication order in accordance with Section 2.2 hereof, authenticate
and deliver Certificated Notes in an aggregate principal amount at maturity
equal to the principal amount at maturity of the Rule 144A Global Note or the
Permanent Regulation S Global Note, as the case may be, in exchange for such
Global Notes.

 

(h)                                 Legends.

 

(i)                  Except as permitted by the following
paragraphs (ii) and (iii), each Note certificate evidencing Global Notes and
Certificated Notes (and all Notes issued in exchange therefor or substitution
thereof) shall (x) be subject to the restrictions on transfer set forth in this
Section 2.6 (including those set forth in the legend below) unless such
restrictions on transfer shall be waived by written consent of the Issuer, and
the Holder of each Transfer Restricted Security, by such Holder’s acceptance
thereof, agrees to be bound by all such restrictions on transfer and (y) bear
the legend set forth below (the “Private Placement Legend”):

 

THIS NOTE HAS
NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS
SET FORTH BELOW.  BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A
U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL
NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE RESELL OR
OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO ADVANCED ACCESSORY HOLDINGS
CORPORATION OR ANY OF ITS SUBSIDIARIES, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE 

 

29

 

THE UNITED
STATES TO AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR
(7) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) THAT, PRIOR TO SUCH
TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO
THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS NOTE), (D) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL IF ADVANCED ACCESSORY HOLDINGS
CORPORATION SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH
PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND.  IN CONNECTION WITH ANY
TRANSFER OF THIS NOTE WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
NOTE, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST,
PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE, ADVANCED ACCESSORY HOLDINGS
CORPORATION SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS ANY OF
THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.  AS
USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
ACT.

 

(ii)               Upon any sale or transfer of a Transfer
Restricted Security (including any Transfer Restricted Security represented by
a Global Note) pursuant to Rule 144 under the Securities Act or pursuant to an
effective registration statement under the Securities Act:

 

(a)                                  in
the case of any Transfer Restricted Security that is a Certificated Note, the
Registrar shall permit the Holder thereof to exchange such Transfer Restricted
Security for a Certificated Note that does not bear the legend set forth in (i)
above and rescind any restriction on the transfer of such Transfer Restricted
Security; and

 

(b)                                 in
the case of any Transfer Restricted Security represented by a Global Note, such
Transfer Restricted Security shall not be required to bear the legend set forth
in (i) above, but shall continue to be subject to the provisions of Section 2.6(b)
hereof; provided, however, that with respect to any request for
an exchange of a Transfer Restricted Security that is represented by a Global
Note for a Certificated Note that does not bear the legend set forth in (i)
above, which request is made in reliance upon Rule 144, the Holder thereof
shall certify in writing to the Registrar that such request is being made
pursuant to Rule 144 (such certifications to be substantially in the form of
Exhibit D(2) hereto).

 

(iii)            Notwithstanding the foregoing, upon
consummation of the Exchange Offer, the Issuer shall issue and, upon receipt of
an authentication order in accordance with Section 2.2 hereof, the Trustee
shall authenticate Series B Notes in exchange for Series A Notes accepted for
exchange in the Exchange Offer, which Series B Notes shall not bear the legend
set forth in (i) above, and the Registrar shall rescind any restriction on the
transfer of such Series A Notes, in each case unless the Issuer has notified
the Registrar in writing that the Holder of such Series A Notes is either (A) a
broker-dealer, (B) a Person participating in the distribution of the Series A
Notes or (C) a Person who is an affiliate (as defined in Rule 144A) of the
Issuer.

 

30

 

(iv)           Each Global Note, whether or not a Transfer
Restricted Security, shall also bear the following legend on the face thereof:

 

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

 

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

 

(v)              Any Global Note may be endorsed with or
have incorporated in the text thereof such legends or recitals or changes not
inconsistent with the provisions of this Indenture as may be required by the
Note Custodian, the Depositary or by the National Association of Securities
Dealers, Inc. in order for the Notes to be tradable on the PORTAL Market or
tradable on Euroclear or Clearstream or as may be required for the Notes to be
tradable on any other market developed for trading of securities pursuant to
Rule 144A or Regulation S under the Securities Act or required to comply with
any applicable law or any regulation thereunder or with the rules and
regulations of any securities exchange or automated quotation system upon which
the Notes may be listed or traded or to conform with any usage with respect
thereto, or to indicate any special limitations or restrictions to which any particular
Notes are subject.

 

(i)                                     Cancellation
and/or Adjustment of Global Notes. 
At such time as all beneficial interests in Global Notes have been
exchanged for Certificated Notes, redeemed, repurchased or canceled, all Global
Notes shall be returned to or retained and canceled by the Trustee in
accordance with Section 2.11 hereof. 
At any time prior to such cancellation, if any beneficial interest in a
Global Note is exchanged for Certificated Notes, redeemed, repurchased or
canceled, the principal amount at maturity of Notes represented by such Global
Notes shall be reduced accordingly and an endorsement shall be made on such
Global Note by the Trustee or the Note Custodian, at the direction of the
Trustee, to reflect such reduction.  In
the event of any transfer of any beneficial interest between the Rule 144A
Global Note and the Regulation S Global Note in accordance with the standing
procedures and instructions between the Depositary and the Note Custodian and
the transfer restrictions set forth herein, the aggregate principal amount at
maturity of each of the Rule 144A Global Note and the Regulation S Global Note
shall be appropriately increased or decreased, as the case may be, and an
endorsement shall be made on each of the Rule 144A Global Note and the
Regulation S Global Note by the Trustee or the Note Custodian, at the direction
of the Trustee, to reflect such reduction or increase.

 

(j)                                     General
Provisions Relating to Transfers and Exchanges.

 

(i)                  To permit registrations of transfers
and exchanges, the Issuer shall execute and the Trustee shall authenticate
Certificated Notes and Global Notes at the Registrar’s request.

 

31

 

(ii)               No service charge shall be made to a
Holder for any registration of transfer, fee or exchange, but the Issuer 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 3.6 and 9.5 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 Certificated Notes and Global Notes
issued upon any registration of transfer or exchange of Certificated Notes or
Global Notes shall be the valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the
Certificated Notes or Global Notes surrendered upon such registration of
transfer or exchange.

 

(v)              The Issuer shall not be required:

 

(a)                                  to
issue, to register the transfer of or to exchange 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; or

 

(b)                                 to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part; 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 of the registration
of a transfer of any Note, the Trustee, any Agent and the Issuer may deem and
treat the Person in whose name any Note is registered as the absolute owner of
such Note for the purpose of all payments with respect to such Notes, and none
of the Trustee, any Agent or the Issuer shall be affected by notice to the
contrary.

 

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

 

(viii)     Each Holder of a Note agrees to indemnify the
Issuer and the Trustee against any liability that may result from the transfer,
exchange or assignment of such Holder’s Note in violation of any provision of
this Indenture and/or applicable United States federal or state securities law.

 

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

 

Section 2.7.                                   Replacement
Notes.

 

If any mutilated Note is surrendered to the Trustee or the Issuer or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Note, the Issuer shall issue and the Trustee, upon receipt of an
authentication order in accordance with Section 2.2 hereof, shall
authenticate a replacement Note if the Trustee’s requirements for replacement
of Notes are met.  An indemnity bond
must be supplied by the Holder that is sufficient in the judgment of the
Trustee and the Issuer to protect the Issuer, the Trustee, any Agent and any authenticating

 

32

 

agent from any loss that any of them may suffer if a Note is replaced.  The Trustee and the Issuer each may charge
such Holder for their expenses in replacing such Note.

 

Every replacement Note is an additional obligation of the Issuer 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 that have been
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee or the Note Custodian in accordance with the provisions
hereof, and those described in this Section as not outstanding.  Except as set forth in Section 2.9
hereof, a Note does not cease to be outstanding because the Issuer or any of
its Affiliates holds the Note.

 

If a Note is replaced pursuant to Section 2.7 hereof, it shall
cease to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Note is held by a bona fide purchaser for value.

 

If the principal amount at maturity 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 Issuer, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay all of the Accreted Value of, premium, if any, and interest
due on the 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 at
maturity of Notes have concurred in any direction, waiver or consent, Notes
owned by the Issuer or by any Affiliate thereof 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 of consent,
only Notes that a Responsible Officer of the Trustee actually knows are so
owned shall be so disregarded.  The
Issuer agrees to notify the Trustee of the existence of any such treasury Notes
or Notes owned by the Issuer or an Affiliate thereof.

 

Section 2.10.                             Temporary
Notes.

 

Until Certificated Notes are ready for delivery, the Issuer may prepare
and the Trustee, upon receipt of an authentication order in accordance with Section 2.2
hereof, shall authenticate temporary Notes. 
Temporary Notes shall be substantially in the form of Certificated
Notes, but may have such variations as the Issuer considers appropriate for
temporary Notes and as shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Issuer shall
prepare and the Trustee shall authenticate Certificated Notes in exchange for
temporary Notes.

 

Holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.

 

Section 2.11.                             Cancellation.

 

The Issuer 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 Paying
Agent, and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall dispose of
all canceled Notes in accordance with the Trustee’s usual procedures.  The Trustee shall maintain a record of all 

 

33

 

canceled Notes.  All cancelled
Notes shall be delivered to the Issuer. 
Subject to Section 2.7 hereof the Issuer may not issue new Notes to
replace Notes that have been paid or that have been delivered to the Trustee
for cancellation.

 

Section 2.12.                             Defaulted
Interest.

 

If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay the defaulted interest in any lawful manner plus, to
the extent lawful, interest payable on the defaulted interest, to the Persons
who are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 4.1 hereof.  The Issuer shall notify the Trustee in writing of the amount of
defaulted interest proposed to be paid on each Note and the date of the
proposed payment.  The Issuer shall fix
or cause to be fixed each such special record date and payment date, provided
that no such special record date shall be less than 10 days prior to the
related payment date for such defaulted interest.  At least 15 days before the special record date, the Issuer (or,
upon the written request of the Issuer, the Trustee in the name and at the
expense of the Issuer) shall mail or cause to be mailed to Holders a notice
that states the special record date, the related payment date and the amount of
such interest to be paid.

 

Section 2.13.                             Persons
Deemed Owners.

 

Prior to due presentment of a Note for registration of transfer and
subject to Section 2.12 hereof, the Issuer, the Trustee, any Paying Agent,
any co-registrar and any Registrar may deem and treat the person in whose name
any Note shall be registered upon the register of Notes kept by the Registrar
as the absolute owner of such Note (whether or not such Note shall be overdue
and notwithstanding any notation of the ownership or other writing thereon made
by anyone other than the Issuer, any co-registrar or any Registrar) for the
purpose of receiving all payments with respect to such Note and for all other
purposes, and none of the Issuer, the Trustee, any Paying Agent, any
co-registrar or any Registrar shall be affected by any notice to the contrary.

 

Section 2.14.                             CUSIP
Numbers.

 

The Issuer in issuing the Notes may use a “CUSIP” number, and if so,
the Trustee shall use the CUSIP number in notices of redemption or exchange as
a convenience to Holders; provided that any such notice may state that
no representation is made as to the correctness or accuracy of the CUSIP number
printed in the notice or on the Notes, 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 Issuer shall promptly notify the Trustee
of any change to the CUSIP numbers.

 

Section 2.15.                             Designation.

 

The Indebtedness evidenced by the Notes is hereby irrevocably
designated as “Senior Indebtedness” as defined and for purposes of the
Securities Purchase Agreement and as “senior indebtedness” or such other term
denoting seniority for the purposes of any other existing or future
Indebtedness of the Issuer which the Issuer makes subordinate to any senior (or
such other term denoting seniority) indebtedness of such Person.

 

ARTICLE III.

 

REDEMPTION AND REPURCHASE

 

Section 3.1.                                   Notices
to Trustee.

 

If the Issuer elects or is required to redeem Notes pursuant to the
provisions of Section 3.7, 3.8 or 3.11 hereof, it shall furnish to the
Trustee, at least 30 days but not more than 60 days before the Redemption Date
(unless a shorter notice period shall be satisfactory to the Trustee), an
Officers’ Certificate setting forth the Section of this Indenture or the
Notes, as applicable, pursuant to which the redemption shall occur, the Redemption
Date, the principal amount at maturity of Notes to be redeemed and the
Redemption Price.

 

34

 

If the Issuer is required to offer to repurchase Notes pursuant to the
provisions of Section 4.10 or 4.15 hereof, it shall notify the Trustee in
writing, at least 45 days but not more than 60 days before the Purchase Date,
of the Section of this Indenture pursuant to which the repurchase shall
occur, the Purchase Date, the principal amount at maturity of Notes required to
be repurchased and the Purchase Price and shall furnish to the Trustee an Officers’
Certificate to the effect that (a) the Issuer is required to make or has
made a Net Proceeds Offer or a Change of Control Offer, as the case may be, and
(b) the conditions set forth in Section 4.10 or 4.15 hereof, as the
case may be, have been satisfied.

 

If the Registrar is not the Trustee, the Issuer shall, concurrently
with each notice of redemption or repurchase, cause the Registrar to deliver to
the Trustee a certificate (upon which the Trustee may rely) setting forth the
principal amounts at maturity of Notes held by each Holder.

 

Section 3.2.                                   Selection
of Notes.

 

Except as set forth below, if less than all of the Notes are to be
redeemed, the Trustee shall select the Notes or portions thereof to be redeemed
in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not then
listed on a national securities exchange, on a pro  rata basis, by
lot  or
by such method as the Trustee shall deem fair and appropriate.  In the event of partial redemption by lot,
the particular Notes or portions thereof 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.

 

If less than all of the Notes tendered are to be repurchased pursuant
to the provisions of Section 4.10 hereof, the Trustee shall select the
Notes or portions thereof to be repurchased in compliance with
Section 4.10.  In the event of
partial repurchase by lot, the particular Notes or portions thereof to be
repurchased shall be selected at the close of business of the last Business Day
prior to the Purchase Date.  If less
than all of the Notes tendered are to be repurchased pursuant to the provisions
of Section 3.8 hereof, the Trustee shall select the Notes only on a pro
rata basis or on as nearly a pro  rata basis as is
practicable (subject to DTC procedures), unless such method is otherwise
prohibited.

 

The Trustee shall promptly notify the Issuer in writing of the Notes or
portions thereof selected for redemption or repurchase and, in the case of any
Note selected for partial redemption or repurchase, the principal amount at
maturity thereof to be redeemed or repurchased.  Notes and portions thereof 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 a multiple of $1,000, shall be redeemed.  No Notes of a principal amount at maturity of $1,000 or less
shall be redeemed in part.

 

Section 3.3.                                   Notice
of Optional or Special Redemption.

 

In the event Notes are to be redeemed pursuant to Section 3.7, 3.8
or 3.11 hereof, at least 30 days but not more than 60 days before the
Redemption Date, the Issuer shall mail a notice of redemption to each Holder
whose Notes are to be redeemed in whole or in part, with a copy to the Trustee.

 

The notice shall identify the Notes or portions thereof to be redeemed
(including the CUSIP number, if any) and shall state:

 

(a)                                  the Redemption Date;

 

(b)                                 the Redemption Price;

 

35

 

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

 

(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, Additional Interest, if any, and, unless the Redemption Date is after a
record date and or before the succeeding interest payment date, accrued
interest thereon to the Redemption Date;

 

(f)                                    that, unless the
Issuer defaults in making the redemption payment, interest and any Additional
Interest on Notes called for redemption will cease to accrue on and after the Redemption
Date, and the only remaining right of the Holders of such Notes is to receive
payment of the Redemption Price, any Additional Interest and, unless the
Redemption Date is after a record date and on or before the succeeding interest
payment date, accrued interest thereon to the Redemption Date upon surrender to
the Paying Agent of the Notes redeemed;

 

(g)                                 if fewer than all the
Notes are to be redeemed, the identification of the particular Notes (or
portions thereof) to be redeemed, as well as the aggregate principal amount at
maturity of the Notes to be redeemed and the aggregate principal amount at
maturity of Notes to be outstanding after such partial redemption;

 

(h)                                 the paragraph of the Notes
pursuant to which the Notes called for redemption are being redeemed; and

 

(i)                                     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 and that reliance may be
placed only on the other identification numbers printed on the Notes.

 

At the Issuer’s request, the Trustee shall give the notice of
redemption in the Issuer’s name and at its expense; provided that the
Issuer shall deliver to the Trustee, at least 40 days prior to the Redemption
Date, 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, Notes or portions thereof called
for redemption become due and payable on the Redemption Date at the Redemption
Price.  Upon surrender to any Paying
Agent, such Notes or portions thereof shall be paid at the Redemption Price, plus
Additional Interest, if any, and accrued interest to the Redemption Date; provided,
however, that installments of interest which are due and payable on or
prior to the Redemption Date shall be payable to the Holders of such Notes,
registered as such, at the close of business on the relevant record date for
the payment of such installment of interest.

 

Section 3.5.                                   Deposit
of Redemption Price or Purchase Price.

 

On or before 10:00 a.m. Eastern Time on each Redemption Date or
Purchase Date, the Issuer shall irrevocably deposit with the Trustee or with
the Paying Agent money sufficient to pay the aggregate amount due on all Notes
to be redeemed or repurchased on that date, including without limitation any
accrued and unpaid interest and Additional Interest, if any, to the Redemption
Date or Repurchase Date.  Upon written
request by the Issuer, the Trustee or the Paying Agent shall promptly return to
the Issuer any money not required for that purpose.

 

36

 

Unless the Issuer defaults in making such payment, Accreted Value or
interest and any Additional Interest on the Notes to be redeemed or repurchased
will cease to accrete or accrue, as applicable, on the applicable Redemption
Date or Purchase Date, whether or not such Notes are presented for
payment.  If any Note called for
redemption shall not be so paid upon surrender because of the failure of the
Issuer to comply with the preceding paragraph, the Accreted Value of the Notes
to be redeemed will continue to accrete and interest on the Notes to be
redeemed will continue to accrue, as applicable, from the applicable Redemption
Date or Purchase Date until such Accreted Value or principal amount at
maturity, as applicable, is paid, and on any interest not paid on such unpaid
principal amount at maturity or Accreted Value, in each case at the rate
provided in the Notes and in Section 4.1 hereof.

 

Section 3.6.                                   Notes
Redeemed or Repurchased in Part.

 

Upon surrender of a Note that is redeemed or repurchased in part, the
Issuer shall issue and the Trustee shall authenticate for the Holder at the
expense of the Issuer a new Note equal in principal amount at maturity to the
portion of the Note surrendered that is not to be redeemed or repurchased.

 

Section 3.7.                                   Optional
Redemption.

 

The Issuer may redeem any or all of the Notes at any time on or after
February 15, 2009 at the Redemption Prices set forth in the Notes (an “Optional
Redemption”).  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.                                   Special
Redemption.

 

In the event of one or more Public Equity Offerings are completed on or
before June 15, 2007, the Issuer, at its option, may use the net cash
proceeds from any such Public Equity Offering to redeem up to 35% of the
principal amount at maturity of the Notes (a “Special Redemption”) at a
Redemption Price of 113.25% of the Accreted Value thereof; provided, however,
that at least 65% of the principal amount at maturity of the Notes will remain
outstanding immediately after each such Special Redemption; and provided,
further, that such Special Redemption shall occur within 90 days after
the date of the closing of the applicable Public Equity Offering.

 

In addition, prior to June 15, 2007, upon the occurrence of a
Change of Control, the Notes may be redeemed by the Issuer or the acquiring
party, in whole but not in part, at a redemption price equal to 113.25% of the
Accreted Value thereof on the redemption date; provided,
that such redemption (the “Change of Control Redemption”) occurs
within 75 days of the occurrence of such Change of Control.

 

Any redemption pursuant to this Section 3.8 shall be made pursuant
to the provisions of Sections 3.1 through 3.6 hereof.

 

Section 3.9.                                   Repurchase
upon Change of Control Offer.

 

In the event that, pursuant to Section 4.15 hereof, the Issuer
shall be required to commence a Change of Control Offer, it shall follow the
procedures specified below.

 

The Change of Control Offer shall remain open for a period from the
date of the mailing of the notice of the Change of Control Offer described in
the next paragraph until a date determined by the Issuer which is at least 30
but no more than 45 days from the date of mailing of such notice and no longer,
except to the extent that a longer period is required by applicable law (the “Change
of Control Offer Period”).  On the
Purchase Date, which shall be no later than the last day of the Change of
Control Offer Period, the Issuer shall purchase the principal amount at maturity
of Notes properly tendered in response to the Change of Control Offer.  Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

 

37

 

Within 30 days following any Change of Control for which the Issuer is
required to make a Change of Control Offer, the Issuer shall send, by first
class mail, a notice to the Trustee and each of the Holders.  The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Change of Control Offer.  The Change of
Control Offer shall be made to all Holders. 
The notice, which shall govern the terms of the Change of Control Offer,
shall state:

 

(a)                                  the transaction or
transactions that constitute the Change of Control, providing information, to
the extent publicly available, regarding the Person or Persons acquiring
control, and stating that the Change of Control Offer is being made pursuant to
this Section 3.9 and Section 4.15 hereof and that, to the extent
lawful, all Notes tendered will be accepted for payment;

 

(b)                                 the Purchase Price,
the last day of the Change of Control Offer Period, and the Purchase Date;

 

(c)                                  that any Note not
properly tendered or otherwise not accepted for repurchase will continue to
increase in Accreted Value or accrue interest and Additional Interest, if any,
as applicable;

 

(d)                                 that, unless the
Issuer defaults in the payment of the amount due on the Purchase Date, all
Notes or portions thereof accepted for repurchase pursuant to the Change of
Control Offer shall cease to increase in Accreted Value or accrue interest and
Additional Interest, if any, as applicable, after the Purchase Date;

 

(e)                                  that Holders electing
to have any Notes purchased pursuant to the Change of Control Offer will be
required to tender the Notes, with the form entitled Option of Holder To Elect
Purchase on the reverse of the Notes completed, or transfer by book-entry
transfer, to the Issuer, a Depositary, if appointed by the Issuer, or a Paying
Agent at the address specified in the notice not later than the third Business
Day preceding the Purchase Date;

 

(f)                                    that Holders will
be entitled to withdraw their election if the Issuer, the Depositary or the
Paying Agent, as the case may be, receives, not later than the expiration of
the Change of Control Offer Period, a facsimile transmission or letter setting
forth the name of the Holder, the principal amount at maturity of Notes
delivered for repurchase, and a statement that such Holder is withdrawing his
election to have the Notes redeemed in whole or in part; and

 

(g)                                 that Holders whose
Notes are being repurchased only in part will be issued new Notes equal in
principal amount at maturity to the portion of the Notes tendered (or
transferred by book-entry transfer) that is not to be repurchased, which
portion must be equal to $1,000 in principal amount at maturity or an integral
multiple thereof.

 

On or before the Purchase Date, the Issuer shall to the extent lawful,
(i) accept for payment all Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an
amount equal to the Purchase Price, together with accrued and unpaid interest
and Additional Interest, if any, thereon to the Purchase Date in respect of all
Notes or portions thereof so tendered and accepted for repurchase and
(iii) deliver or cause to be delivered to the Trustee the Notes so
accepted together with an Officers’ Certificate stating the aggregate principal
amount at maturity of Notes or portions thereof being repurchased by the
Issuer.  The Paying Agent shall promptly
(but in any case not later than five days after the Purchase Date) mail to each
Holder of Notes so repurchased the amount due in connection with such Notes,
and the Issuer shall promptly issue a new Note, and the Trustee, upon written
request from the Issuer in the form of an Officers’ Certificate shall
authenticate and mail or deliver (or cause to transfer by book entry) to each
relevant Holder a new Note, in a principal amount at maturity equal to any
unpurchased portion of the Notes surrendered to the Holder thereof; provided,
that each such new Note shall be in a principal amount at maturity of $l,000 or
and integral multiple thereof.  The
Issuer shall publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Purchase Date.

 

38

 

If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest and
Additional Interest, if any, in each case to the Purchase Date, shall be paid
to the Person in whose name a Note is registered at the close of business on
such record date, and no additional interest shall be payable to Holders
pursuant to the Change of Control Offer.

 

Section 3.10.                             Repurchase
upon Application of Excess Proceeds.

 

In the event that, pursuant to Section 4.10 hereof, the Issuer
shall be required to commence a Net Proceeds Offer, it shall follow the
procedures specified below.

 

The notice shall contain all instructions and materials necessary to
enable such Holders to tender Notes pursuant to the Net Proceeds Offer.  The Net Proceeds Offer shall be made to all
Holders.  Each Net Proceeds Offer will
be mailed to the record Holders as shown on the register of Holders within 25
days following the Net Proceeds Offer Trigger Date, with a copy to the Trustee,
and shall comply with the procedures set forth in this Indenture.  Upon receiving notice of the Net Proceeds
Offer, Holders may elect to tender their Notes in whole or in part in integral
multiples of $1,000 in exchange for cash. 
A Net Proceeds Offer shall remain open for a period of 20 business days
or such longer period as may be required by law.  The notice, which shall govern the terms of the Net Proceeds Offer,
shall state:

 

(a)                                  that the Net Proceeds
Offer is being made pursuant to this Section 3.10 and Section 4.10
hereof;

 

(b)                                 the Net Proceeds Offer
Amount, the Purchase Price and the Purchase Date;

 

(c)                                  that any Note not
properly tendered or otherwise not accepted for repurchase shall continue to
increase in Accreted Value or accrue interest and Additional Interest, if any,
as applicable;

 

(d)                                 that, unless the
Issuer defaults in the payment of the amount due on the Purchase Date, all
Notes or portions thereof accepted for repurchase pursuant to the Net Proceeds
Offer shall cease to increase in Accreted Value or accrue interest and Additional
Interest, if any, as applicable, after the Purchase Date;

 

(e)                                  that Holders electing
to have any Notes repurchased pursuant to any Net Proceeds Offer shall be
required to tender the Notes, with the form entitled Option of Holder To Elect
Purchase on the reverse of the Notes completed, or transfer by book-entry
transfer, to the Issuer, a Depositary, if appointed by the Issuer, or a Paying
Agent at the address specified in the notice prior to the close of business on
the third Business Day preceding the Purchase Date;

 

(f)                                    that Holders will
be entitled to withdraw their election if the Issuer, the Depositary or the
Paying Agent, as the case may be, receives, not later than the Purchase Date, a
facsimile transmission or letter setting forth the name of the Holder, the
principal amount at maturity of the Notes delivered for repurchase and a
statement that such Holder is withdrawing his election to have such Notes repurchased
in whole or in part;

 

(g)                                 that, to the extent
Holders properly tender Notes and holders of Pari Passu Indebtedness properly
tender such Indebtedness in an amount exceeding the Net Proceeds Offer Amount,
the tendered Notes and Pari Passu Indebtedness will be purchased on a pro
rata basis based on the aggregate amounts of Notes and Pari Passu
Indebtedness tendered (and the Trustee shall select the tendered Notes of
tendering Holders on a pro  rata basis based on the amount of
Notes tendered); and

 

(h)                                 that Holders whose
Notes are being repurchased only in part will be issued new Notes equal in
principal amount at maturity to the portion of the Notes tendered (or
transferred by book-entry 

 

39

 

transfer) that is not to be
repurchased, which portion must be equal to $1,000 in principal amount at
maturity or an integral multiple thereof.

 

On or before the Purchase Date, the Issuer shall to the extent lawful,
(i) accept for payment, on a pro  rata  basis in accordance with
this Indenture to the extent necessary, the Net Proceeds Offer Amount of (A)
Notes or portions thereof properly tendered pursuant to the Net Proceeds Offer
and (B) properly tendered Pari Passu Indebtedness, or if less than the Net
Proceeds Offer Amount has been tendered, all Notes and Pari Passu Indebtedness
properly tendered, (ii) deposit with the Paying Agent an amount equal to
the Purchase Price, plus accrued and unpaid interest and Additional
Interest, if any, thereon to the Purchase Date in respect of all Notes or portions
thereof so tendered and accepted for repurchase and (iii) deliver or cause
to be delivered to the Trustee the Notes so accepted together with an Officers’
Certificate stating the aggregate principal amount at maturity of Notes or
portions thereof being repurchased by the Issuer.  The Paying Agent shall promptly (but in any case not later than
five days after the Purchase Date) mail to each Holder of Notes so repurchased
the amount due in connection with such Notes, and the Issuer shall promptly
issue a new Note, and the Trustee, upon written request from the Issuer in the
form of an Officers’ Certificate shall authenticate and mail or deliver such
new Note to such Holder, in a principal amount at maturity equal to any
unpurchased portion to the Holder thereof; provided, that each such new
Note shall be in a principal amount at maturity of $1,000 or an integral multiple
thereof.  The Issuer shall publicly
announce the results of the Net Proceeds Offer on or as soon as practicable
after the Purchase Date.

 

If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest and
Additional Interest, if any, in each case to the Purchase Date, shall be paid
to the Person in whose name a Note is registered at the close of business on
such record date, and no additional interest shall be payable to Holders
pursuant to the Net Proceeds Offer.

 

Section 3.11.                             Mandatory
Redemption

 

On June 15, 2009, if any Notes are outstanding, the Issuer
will be required to redeem 35.5% of each Note (provided that if such redemption
results in any unredeemed portion of a Note having a principal amount that is
not a round multiple of $1,000, the Issuer shall redeem an additional portion
of such Note so as to reduce the principal amount to a round multiple of
$1,000) then outstanding (the “Mandatory Principal Redemption Amount”)
($31.2 million aggregate Accreted Value of the Notes, assuming all of the Notes
remain outstanding on such date) at a redemption price of 100% of the Accreted
Value of the portion of the Notes so redeemed; provided, that the Issuer shall simultaneously be required
to redeem an additional portion of each Note to the extent required to prevent
such Note from being treated as an “Applicable High Yield Discount Obligation”
within the meaning of Section 163(i)(1) of the Internal Revenue Code of
1986, as amended. The Mandatory Principal Redemption Amount represents an
amount approximately equal to (i) the excess of the aggregate Accreted Value of
all Notes outstanding on June 15, 2009 over the aggregate original issue
price thereof less (ii) an amount equal to one year’s simple uncompounded
interest on the aggregate original issue price of such Notes at a rate per
annum equal to the yield to maturity on the Notes.

 

ARTICLE IV.

 

COVENANTS

 

Section 4.1.                                   Payment
of Principal and Interest.

 

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

 

40

 

The Issuer shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal, Redemption Price and
Purchase Price at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; the Issuer shall
also pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest and Additional Interest
(without regard to any applicable grace period) at the same rate to the extent
lawful.

 

Section 4.2.                                   Maintenance
of Office or Agency.

 

The Issuer 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 Issuer in respect of the Notes and this Indenture may be
served.  The Issuer 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 Issuer 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 office of the
Trustee in the City of New York.

 

The Issuer 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 Issuer of its obligations to maintain an office or agency in the
Borough of Manhattan, the City of New York, for such purposes.  The Issuer 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.

 

The Issuer hereby designates the office of the Trustee as one such
office or agency of the Issuer in accordance with Section 2.3 hereof.  The Trustee may resign such agency at any
time by giving written notice to the Issuer no later than 30 days prior to the
effective date of such resignation.

 

Section 4.3.                                   Reports.

 

Whether or not required by the rules and regulations of the Commission,
so long as any Notes are outstanding and prior to the Issuer being subject to
the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Issuer will deliver to the Trustee, within the time periods specified in the Commission’s
rule and regulations:

 

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

 

(ii)               all
current reports that would be required to be filed with the Commission on Form
8-K if the Issuer was required to file such reports, in each case within the
time periods specified in the Commission’s rules and regulations.

 

In addition, following the consummation of the Exchange Offer, whether
or not required by the rules and regulations of the Commission, the Issuer will
file a copy of all such information and reports with the Commission for public
availability within the time periods specified in the Commission’s rules and
regulations (unless the Commission will not accept such a filing).  In addition, the Issuer has agreed that, for
so long as any Notes remain outstanding, it will furnish to the Holders and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.  Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from 

 

41

 

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

 

Section 4.4.                                   Compliance
Certificate.

 

The Issuer shall deliver to the Trustee, within 120 days after the end
of each fiscal year, a certificate from its principal executive officer,
principal financial officer or principal accounting officer further stating
that a review of the activities of the Issuer during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Issuer has kept, observed, performed and fulfilled its
obligations under this Indenture in all material respects, and further stating,
as to each such Officer signing such certificate, that to the best of his or
her knowledge the Issuer has kept, observed, performed and fulfilled each and
every covenant contained in this Indenture in all material respects and are not
in Default in the performance or observance of any of the terms, provisions and
conditions of this Indenture (and, if a Default or Event of Default shall have
occurred, describing all such Defaults or Events of Default) of which he or she
may have knowledge, and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which, payments on account of
the principal of or interest, if any, on the Notes is prohibited or if such
event has occurred, a description of the event.

 

So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.3 above shall be accompanied by
a written statement of the Issuer’s independent public accountants (who shall
be a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Issuer has violated
any provisions of Article IV or Article V hereof or, if any such
violation has occurred, specifying the nature and period of existence thereof,
it being understood that such accountants shall not be liable directly or
indirectly to any Person for any failure to obtain knowledge of any such
violation.

 

The Issuer shall, so long as any of the Notes are outstanding, deliver
to the Trustee, forthwith upon any Officer of the Issuer becoming aware of any
Default or Event of Default an Officers’ Certificate specifying such Default or
Event of Default; provided that the Issuer shall provide such Officers’
Certificate at least annually whether or not any officer knows of any Default
or Event of Default.

 

Section 4.5.                                   Taxes.

 

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

 

Section 4.6.                                   Stay,
Extension and Usury Laws.

 

The Issuer 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 Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants 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 such law has not
been enacted.

 

42

 

Section 4.7.                                   Limitation
on Restricted Payments.

 

The Issuer will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly,

 

(1)                                  declare or pay any
dividend or make any distribution on or in respect of shares of Capital Stock
of the Issuer or any Restricted Subsidiary to holders of such Capital Stock,
other than (a) dividends or distributions payable in Qualified Capital Stock of
the Issuer and (b) in the case of a Restricted Subsidiary, dividends or
distributions payable (i) in Qualified Capital Stock of such Restricted
Subsidiary and (ii) to the Issuer and to any other Restricted Subsidiary and pro  rata
dividends or distributions payable to minority stockholders of such Restricted
Subsidiary;

 

(2)                                  purchase, redeem or
otherwise acquire or retire for value any Capital Stock of the Issuer or any
Restricted Subsidiary, other than such Capital Stock held by the Issuer or any
Restricted Subsidiary;

 

(3)                                  make any principal
payment on, purchase, defease, redeem, prepay, decrease or otherwise acquire or
retire for value, prior to any scheduled final maturity, scheduled repayment or
scheduled sinking fund payment, any Subordinated Indebtedness; or

 

(4)                                  make any Investment (other
than Permitted Investments)

 

(each of the foregoing actions set forth in clauses (1), (2), (3) and
(4) being referred to as a “Restricted Payment”), if at the time of such
Restricted Payment or immediately after giving effect thereto,

 

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

 

(ii)               (A)
with respect to a Restricted Payment by the Issuer, the Issuer is not able to incur
at least $1.00 of additional Indebtedness (other than Permitted Indebtedness)
in compliance with clause (a)(i) of Section 4.9 hereof or (B) with respect
to a Restricted Payment by CHAAS or any Restricted Subsidiary of CHAAS, CHAAS
is not able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with clause (a)(ii) of Section 4.9
hereof; or

 

(iii)            the
aggregate amount of Restricted Payments (including such proposed Restricted
Payment) made subsequent to May 23, 2003 (the amount expended for such
purposes, if other than in cash, being the fair market value of such property
as determined in good faith by the Board of Directors of the Issuer) shall
exceed the sum (the “Restricted Payments Basket”) of

 

(u)                                 50% of the cumulative
Consolidated Net Income (or if cumulative Consolidated Net Income shall be a
loss, minus 100% of such loss) of the Issuer earned from May 23, 2003
(taking into account, without duplication, the Consolidated Net Income of CHAAS
and its Restricted Subsidiaries from such date notwithstanding that the Issuer
was incorporated after such date) and ending on the date of such proposed
Restricted Payment (the “Reference Date”) (treating such period as a
single accounting period) (it being understood that for purposes of determining
cumulative Consolidated Net Income of the Issuer pursuant to this clause
(iii)(u) only, the Issuer’s noncash interest expense and amortization of
original issue discount shall be excluded); plus

 

(v)                                 100% of the aggregate
net cash proceeds and 100% of the fair market value of property other than cash
received by the Issuer from any Person (other than a Restricted Subsidiary of
the Issuer) from the issuance and sale subsequent to May 23, 2003 and on
or prior to the Reference Date of Qualified Capital Stock of the Issuer (but
excluding (1) any debt security that is convertible into, or exchangeable for,
Qualified Capital Stock and (2) any net cash proceeds from 

 

43

 

a Public Equity Offering to the extent used
to redeem the Notes in compliance with the provisions set forth under the first
paragraph of Section 3.8 hereof; plus

 

(w)                               without duplication of
any amounts included in clause (iii)(v) above, 100% of the aggregate net cash
proceeds of any equity contribution received by the Issuer from a holder of the
Issuer’s Capital Stock subsequent to May 23, 2003 and on or prior to the
Reference Date (excluding any net cash proceeds from a Public Equity Offering
to the extent used to redeem the Notes in compliance with the provisions set
forth under the first paragraph of Section 3.8 hereof; plus

 

(x)                                   100% of the
aggregate net cash proceeds received by the Issuer or any of its Restricted
Subsidiaries from any Person (other than a Restricted Subsidiary of the Issuer)
from the issuance and sale (subsequent to May 23, 2003) of Indebtedness (including
Disqualified Capital Stock) that has been converted into or exchanged for
Qualified Capital Stock of the Issuer, together with the aggregate cash
received by the Issuer at the time of such conversion or exchange and the
amount of any accrued interest then outstanding on any such Indebtedness that
is not paid in cash; plus

 

(y)                                 without duplication,
the sum of

 

(1)                                  the aggregate amount
paid in cash or Cash Equivalents to the Issuer or any Restricted Subsidiary of
the Issuer on or with respect to Investments (other than Permitted Investments)
made subsequent to May 23, 2003 whether through interest payments, principal
payments, dividends or other distributions or payments;

 

(2)                                  the net cash proceeds
received by the Issuer or any of its Restricted Subsidiaries from the
disposition of all or any portion of such Investments (other than to a
Restricted Subsidiary of the Issuer); and

 

(3)                                  upon redesignation of
an Unrestricted Subsidiary as a Restricted Subsidiary, the fair market value of
such Subsidiary;

 

provided, however,
that the sum of clauses (1), (2) and (3) above shall not exceed the aggregate
amount of all such Investments made subsequent to May 23, 2003; plus

 

(z)                                   $15.0 million.

 

Notwithstanding the foregoing, the provisions set forth in the immediately
preceding paragraph do not prohibit

 

(1)                                  the payment of any
dividend or other distribution or redemption within 60 days after the date of
declaration of such dividend or call for redemption if such payment would have
been permitted on the date of declaration or call for redemption;

 

(2)                                  the repurchase,
redemption or other acquisition or retirement of any shares of Capital Stock of
the Issuer or any Restricted Subsidiary of the Issuer, either (i) solely in
exchange for shares of Qualified Capital Stock of the Issuer or (ii) through
the application of net proceeds of a substantially concurrent sale for cash
(other than to a Restricted Subsidiary of the Issuer) of shares of Qualified
Capital Stock of the Issuer;

 

(3)                                  the payment of
principal, the repurchase, retirement, redemption or other repayment of any
Subordinated Indebtedness either (i) solely in exchange for shares of Qualified
Capital Stock of the 

 

44

 

Issuer, or (ii) through the application of net proceeds of a
substantially concurrent sale for cash (other than to a Restricted Subsidiary
of the Issuer) of (a) shares of Qualified Capital Stock of the Issuer or
(b) if no Default or Event of Default shall have occurred and be
continuing, Refinancing Indebtedness;

 

(4)                                  if no Default or
Event of Default shall have occurred and be continuing, a Restricted Payment to
pay for the repurchase of Capital Stock of CHAAS or any of its direct or
indirect parent corporations or limited liability companies from directors,
officers or employees or former directors, officers or employees of CHAAS
Holdings, LLC or any of its Subsidiaries or their authorized representatives, estates
or beneficiaries upon the death, disability or termination of employment of
such employees, or termination of their seat on the Board of Directors of CHAAS
Holdings, LLC or any of its Subsidiaries, or pursuant to the terms of any
agreement under which such Capital Stock was issued in an aggregate amount not
to exceed in any fiscal year $2.0 million plus up to $1.0 million of the
unused amount permitted under this clause (4) for the immediately preceding
fiscal year;

 

(5)                                  the repurchase,
redemption or other repayment of any Subordinated Indebtedness in the event of
a change of control in accordance with provisions similar to Section 4.15
hereof; provided that, prior to such repurchase, redemption or other
repayment, the Issuer has made the Change of Control Offer as provided in such
covenant with respect to the Notes and prior to or concurrently with such redemption
or other repayment have repurchased all Notes validly tendered for payment in
connection with such Change of Control Offer;

 

(6)                                  the payment or
distribution, to dissenting holders of Capital Stock pursuant to applicable
law, pursuant to or in connection with a consolidation, merger or transfer of
assets that complies with the provisions of the Indenture applicable to
mergers, consolidations and transfers of all or substantially all of the
property and assets of the Issuer or any of its Restricted Subsidiaries;

 

(7)                                  the declaration or
payment of dividends on the Common Stock of the Issuer or any other holding
company of the Issuer following any Public Equity Offering of such Common Stock
of up to 6% per annum of the net cash proceeds received by the Issuer in all
Public Equity Offerings; and

 

(8)                                  the application of
the proceeds received by the Issuer from the sale of the Notes for any one or
more of the following purposes: (i) to make a distribution to the equity
holders of the Issuer’s parent, CHAAS Holdings, LLC, (ii) to redeem or
otherwise purchase a portion of the equity interests of the Issuer’s parent,
CHAAS Holdings, LLC and/or (iii) to purchase, repay or prepay, on such terms as
may be negotiated, not less than $5.0 million in aggregate principal amount of
indebtedness of one or more Restricted Subsidiaries of the Issuer.

 

In determining the aggregate amount of Restricted Payments made
subsequent to May 23, 2003 in accordance with clause (iii) of the second
preceding paragraph, amounts expended pursuant to clauses (1), (4), (5), (6)
and (7) of the immediately preceding paragraph shall be included in such
calculation.  No issuance and sale of
Qualified Capital Stock pursuant to clause (2) or (3) of the immediately
preceding paragraph shall increase the Restricted Payments Basket, except to
the extent the proceeds thereof exceed the amounts used to effect the
transactions described therein.

 

For the purposes of determining compliance with this Section 4.7,
the amount, if other than in cash, of any property referred to in clause
(iii)(v) above or of any Restricted Payment shall be determined in good faith
by the Board of Directors of the Issuer, whose determination shall be
conclusive and evidenced by a Board Resolution.

 

45

 

Section 4.8.                                   Limitation
on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

The Issuer will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or permit to
exist or become effective any consensual encumbrance or restriction on the
ability of any such Restricted Subsidiary of the Issuer to:

 

(1)                                  pay dividends or make
any other distributions on or in respect of its Capital Stock owned by the
Issuer or any Restricted Subsidiary of the Issuer;

 

(2)                                  make loans or
advances to the Issuer or any Restricted Subsidiary of the Issuer that owns
Capital Stock of such Restricted Subsidiary of the Issuer or pay any
Indebtedness or other obligation owed to the Issuer or any other Restricted
Subsidiary of the Issuer that owns Capital Stock of such Restricted Subsidiary
of the Issuer; or

 

(3)                                  transfer any of its
property or assets to the Issuer or any other Restricted Subsidiary of the
Issuer that owns Capital Stock of such Restricted Subsidiary of the Issuer,
except for such encumbrances or restrictions existing under or by reason of

 

(a)                                  applicable
law;

 

(b)                                 this Indenture, the
Notes and the Guarantees, if any;

 

(c)                                  the Credit Agreement
and the loan and security documents relating thereto;

 

(d)                                 in the case of clause
(3) above, (A) agreements or instruments that restrict in a customary manner
the subletting, assignment or transfer of any property or asset that is a
lease, license, conveyance or contract or similar property or asset, (B) any
transfer of, agreement to transfer, option or right with respect to, or Lien
on, any property or assets of the Issuer, or any Restricted Subsidiary not
otherwise prohibited by this Indenture or (C) provisions arising or agreed to
in the ordinary course of business, not relating to any Indebtedness, that do
not, individually or in the aggregate, detract from the value of property or assets
of the Issuer or any of its Restricted Subsidiaries in any manner material to
the Issuer or any of its Restricted Subsidiaries;

 

(e)                                  any agreement or
instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other
than the Person or the properties or assets of the Person so acquired;

 

(f)                                    agreements or
instruments existing on the Issue Date including, without limitation, the
indenture governing the Existing Notes, to the extent and in the manner such
encumbrances and restrictions are in effect on the Issue Date;

 

(g)                                 an agreement that has
been entered into for the sale or disposition of all or substantially all of
the Capital Stock of, or property and assets of, any Restricted Subsidiary of
the Issuer or provisions with respect to the disposition or distribution of
assets or property in joint venture agreements or other similar agreements or
arrangements entered into in the ordinary course of business;

 

(h)                                 provisions in
agreements or instruments which prohibit the payment of dividends or the making
of other distributions with respect to any class of Capital Stock of a Person
other than on a pro rata basis;

 

46

 

(i)                                     provisions in
agreements or instruments relating to Purchase Money Indebtedness or
Capitalized Lease Obligations incurred in compliance with Section 4.9
hereof that impose restrictions of the nature described in clause (3) above on
the property acquired;

 

(j)                                     restrictions on
cash or other deposits imposed by customers under contracts or other
arrangements entered into or agreed to in the ordinary course of business;

 

(k)                                  restrictions on the
ability of any Foreign Restricted Subsidiary to make dividends or other
distributions resulting from the operation of reasonable financial covenants
contained in documentation governing Indebtedness of such Subsidiary permitted
under this Indenture;

 

(l)                                     restrictions in
other Indebtedness incurred in compliance with Section 4.9 hereof; provided,
that such restrictions, taken as a whole, are, in the good faith judgment of
the Issuer’s Board of Directors, no more materially restrictive with respect to
such encumbrances and restrictions than those contained in the existing
agreements referenced in clauses (b), (c) and (f) above

 

(m)                               restrictions on the
transfer of assets subject to any Lien permitted under this Indenture imposed
by the holder of such Lien; or

 

(n)                                 an agreement governing
Indebtedness incurred to Refinance the Indebtedness issued, assumed or incurred
pursuant to an agreement referred to in clause (b), (e), (f), (i), (k) or (l)
above; provided, however, that the provisions relating to such encumbrance
or restriction contained in any such Indebtedness are no less favorable to the
Issuer in any material respect as determined by the Board of Directors of the Issuer
in their reasonable and good faith judgment than the provisions relating to
such encumbrance or restriction contained in agreements referred to in such
clause (b), (e), (f), (i), (k) or (l).

 

Nothing contained in this Section 4.8 shall prevent the Issuer or
any of its Restricted Subsidiaries from creating, incurring, assuming or
suffering to exist any Liens otherwise permitted in Section 4.12 hereof.

 

Section 4.9.                                   Limitation
on Incurrence of Additional Indebtedness.

 

(a)                                  The
Issuer will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume, guarantee, acquire, become
liable, contingently or otherwise, with respect to, or otherwise become
responsible for payment of (collectively, “incur”) any Indebtedness
(other than Permitted Indebtedness); provided, however, that (i)
the Issuer or any Restricted Subsidiary of the Issuer (other than CHAAS or any
Restricted Subsidiary of CHAAS) may incur Indebtedness (including, without
limitation, Acquired Indebtedness) if on the date of the incurrence of such
Indebtedness, after giving effect to the incurrence thereof and the application
of the proceeds thereof, the Consolidated Fixed Charge Coverage Ratio of the
Issuer is greater than 2.00 to 1.0 if such Indebtedness is incurred on or prior
to May 23, 2005 or 2.25 to 1.0 if such Indebtedness is incurred thereafter
and (ii) CHAAS or any Restricted Subsidiary of CHAAS may incur Indebtedness
(including, without limitation, Acquired Indebtedness) if on the date of the
incurrence of such Indebtedness, after giving effect to the incurrence thereof
and the application of the proceeds thereof, the Consolidated Fixed Charge
Coverage Ratio of CHAAS is greater than 2.00 to 1.0 if such Indebtedness is
incurred on or prior to May 23, 2005 or 2.25 to 1.0 if such Indebtedness
is incurred thereafter.

 

For purposes of determining compliance with this Section 4.9, (i)
Acquired Indebtedness shall be deemed to have been incurred by the Issuer,
CHAAS or one of the Issuer’s Restricted Subsidiaries, as the case may be, at
the time an acquired Person becomes such a Restricted Subsidiary (or is merged
into the Issuer, CHAAS or such a Restricted Subsidiary) or at the time of the
acquisition of assets, as the case may be, and (ii) the maximum amount of
Indebtedness that the Issuer, CHAAS and the Issuer’s Restricted Subsidiaries
may incur pursuant to this covenant shall not be deemed to be exceeded, with
respect to any outstanding Indebtedness, due solely to the result of fluctuations
in the exchange rates of currencies.

 

47

 

(b)                                 The
Issuer will not, directly or indirectly, incur any Indebtedness which by its
terms (or by the terms of any agreement governing such Indebtedness) is
subordinated in right of payment to any other Indebtedness of the Issuer,
unless such Indebtedness is also by its terms (or by the terms of any agreement
governing such Indebtedness) made expressly subordinate to the Notes to the
same extent and in the same manner as such Indebtedness is subordinated to
other Indebtedness of the Issuer.

 

Section 4.10.                             Limitation
on Asset Sales.

 

(A)                              The
Issuer will not, and will not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless

 

(1)                                  the Issuer or the
applicable Restricted Subsidiary, as the case may be, receives consideration at
the time of such Asset Sale at least equal to the fair market value of the
assets sold or otherwise disposed of;

 

(2)                                  at least 75% of the
consideration received by the Issuer or the Restricted Subsidiary, as the case
may be, from such Asset Sale shall be in the form of cash or Cash Equivalents
and is received at the time of such disposition; provided that
(a) the amount of any Indebtedness or other liabilities of the Issuer or
any such Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Notes) that are assumed by the transferee of any such
assets and (b) the fair market value of any marketable securities,
currencies, notes or other obligations received by the Issuer or any such
Restricted Subsidiary in exchange for any such assets that are promptly
converted into cash or Cash Equivalents within 180 days after the consummation
of such Asset Sale (to the extent of the cash received) shall be deemed to be
cash for purposes of this provision; and

 

(3)                                  upon the consummation
of an Asset Sale, the Issuer shall, subject to paragraph (B) below, apply,
or cause any Restricted Subsidiary to apply, the Net Cash Proceeds relating to
such Asset Sale within 395 days of receipt thereof either

 

(a)                                  to repay or prepay
any Indebtedness under the Credit Agreement, any other Indebtedness of a
Restricted Subsidiary of the Issuer or any secured Indebtedness of the Issuer
(provided the principal amount of such secured Indebtedness of the Issuer to be
repaid does not exceed $15.0 million in the aggregate) and, in the case of any
such Indebtedness under any revolving credit facility, effect a permanent
reduction in the availability under such revolving credit facility; provided that, if an offer to
purchase any Indebtedness of CHAAS or any of its Restricted Subsidiaries is
made in accordance with the terms of such Indebtedness, such Indebtedness of
such Restricted Subsidiary will be deemed to have been paid or prepaid to the
extent of the amount of the offer, whether or not accepted by the holders
thereof, and the Net Proceeds Offer Amount will be reduced by the amount of
such offer;

 

(b)                                 to make an Investment
in properties and assets that replace the properties and assets that were the
subject of such Asset Sale or in properties and assets that will be used, or
Capital Stock of a Person engaged, in a Permitted Business (“Replacement
Assets”); and/or

 

(c)                                  a combination of
prepayment and investment permitted by the foregoing clauses (3)(a) and (3)(b);

 

(B)                                On
the 396th day after an Asset Sale (each, a “Net Proceeds Offer Trigger Date”),
such aggregate amount of Net Cash Proceeds which have not been applied on or
before such Net Proceeds Offer Trigger Date as permitted in clauses (3)(a),
(3)(b) and (3)(c) of paragraph (A) above (each, a “Net Proceeds Offer Amount”)
shall be applied by the Issuer or such Restricted Subsidiary to allow the
Issuer to make an offer to purchase (the “Net Proceeds Offer”) to all
Holders and, to the extent required by the terms of any Pari Passu
Indebtedness, an offer to purchase to all holders of such Pari Passu  Indebtedness,
on a Purchase Date not less than 30 nor more than 45 

 

48

 

days following
the applicable Net Proceeds Offer Trigger Date, from all Holders (and holders
of any such Pari Passu Indebtedness) on a pro  rata basis, that
amount of Notes (and Pari Passu Indebtedness) equal to the Net Proceeds Offer
Amount at a price equal to 100% of the Accreted Value of the Notes (and Pari
Passu Indebtedness) to be purchased, plus accrued and unpaid interest thereon,
if any, to the date of purchase.

 

(C)                                If
at any time any non-cash consideration received by the Issuer or any Restricted
Subsidiary of the Issuer, as the case may be, in connection with any Asset Sale
is converted into or sold or otherwise disposed of for cash (other than
interest received with respect to any such non-cash consideration), then such
conversion or disposition shall be deemed to constitute an Asset Sale hereunder
and the Net Cash Proceeds thereof shall be applied in accordance with this
Section 4.10.

 

(D)                               The
Issuer may defer the Net Proceeds Offer until there is an aggregate unutilized
Net Proceeds Offer Amount equal to or in excess of $10.0 million resulting from
one or more Asset Sales (at which time, the entire unutilized Net Proceeds
Offer Amount, and not just the amount in excess of $10.0 million, shall be
applied as required pursuant to this Section 4.10).

 

(E)                                 In
the event of the transfer of substantially all (but not all) of the property
and assets of the Issuer and its Restricted Subsidiaries as an entirety to a
Person in a transaction permitted under Article V hereof, which
transaction does not constitute a Change of Control, the successor corporation
shall be deemed to have sold the properties and assets of the Issuer and its
Restricted Subsidiaries not so transferred for purposes of this
Section 4.10, and shall comply with the provisions of this
Section 4.10 with respect to such deemed sale as if it were an Asset
Sale.  In addition, the fair market
value of such properties and assets of the Issuer or its Restricted Subsidiaries
deemed to be sold shall be deemed to be Net Cash Proceeds for purposes of this
Section 4.10.

 

(F)                                 With
respect to any Permitted Sale and Leaseback Transaction, (1) the reference
to “395 days” in clause (A)(3) above shall mean “575 days” and (2) the
reference to the “396th day” in paragraph (B) above shall mean the “576th day.”

 

(G)                                To
the extent that the aggregate Accreted Value of Notes tendered pursuant to such
Net Proceeds Offer is less than the Net Proceeds Offer Amount, the Issuer may
use the remaining amounts for general corporate purposes.  Upon completion of such Net Proceeds Offer,
the Net Proceeds Offer Amount will be reset to zero.

 

(H)                               Notwithstanding
paragraphs (A) and (B) of this Section 4.10, the Issuer and its Restricted
Subsidiaries will be permitted to consummate an Asset Sale without complying
with such paragraphs to the extent that

 

(1)                                  the consideration for such Asset Sale
constitutes Replacement Assets; and

 

(2)                                  such Asset Sale is for fair market value;
provided that any cash or Cash Equivalents received by the Issuer or any
of its Restricted Subsidiaries in connection with any Asset Sale permitted to
be consummated under this paragraph shall constitute Net Cash Proceeds subject
to the provisions of paragraphs (A) and (B) of this Section 4.10.

 

(I)                                    The
Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Net Proceeds Offer.  To the extent
that the provisions of any securities laws or regulations conflict with this
Section 4.10, the Issuer shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.10 by virtue thereof. 
The Net Proceeds Offer shall be made in compliance with the applicable
procedures set forth in Article III hereof and shall include all instructions
and materials necessary to enable Holders to tender their Notes.

 

49

 

Section 4.11.                             Limitations
on Transactions with Affiliates.

 

The Issuer will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction or series of related transactions (including, without limitation,
the purchase, sale, lease or exchange of any property or the rendering of any
service) with, or for the benefit of, any of its Affiliates (each, an “Affiliate
Transaction”), other than (x) Affiliate Transactions permitted under the
third paragraph of this covenant and (y) Affiliate Transactions on terms that
are no less favorable than those that might reasonably have been obtained in a
comparable transaction at such time on an arm’s-length basis from a Person that
is not an Affiliate of the Issuer or such Restricted Subsidiary.

 

All Affiliate Transactions (and each series of related Affiliate
Transactions which are similar or part of a common plan) involving aggregate
payments or other property with a fair market value in excess of $2.5 million
shall be approved by the Board of Directors of the Issuer or such Restricted
Subsidiary, as the case may be, such approval to be evidenced by a Board
Resolution stating that such Board of Directors has determined that such
transaction complies with the foregoing provisions.  If the Issuer or any Restricted Subsidiary of the Issuer enters
into an Affiliate Transaction (or a series of related Affiliate Transactions
related to a common plan) that involves an aggregate fair market value of more
than $10.0 million, the Issuer or such Restricted Subsidiary, as the case may
be, shall, prior to the consummation thereof, obtain a favorable opinion as to
the fairness of such transaction or series of related transactions to the
Issuer or the relevant Restricted Subsidiary, as the case may be, from a
financial point of view, issued by an Independent Financial Advisor and file
the same with the Trustee.

 

The restrictions set forth in the first paragraph of this
Section 4.11 shall not apply to

 

(1)                                  reasonable fees and
compensation paid to and indemnity and reimbursement provided on behalf of,
officers, directors, employees or consultants of the Issuer or any Restricted
Subsidiary of the Issuer as determined in good faith by the Issuer’s Board of
Directors or senior management;

 

(2)                                  transactions exclusively
between or among the Issuer and any of its Restricted Subsidiaries or exclusively
between or among such Restricted Subsidiaries;

 

(3)                                  any agreement (other
than the Management Agreement) as in effect as of the Issue Date or any
amendment thereto or any transaction contemplated thereby (including pursuant
to any amendment thereto) in any replacement agreement thereto so long as any
such amendment or replacement agreement is not materially more disadvantageous
to the Holders, taken as a whole, in any material respect than the original
agreement as in effect on the Issue Date;

 

(4)                                  the payment to Castle
Harlan, Inc. of management fees pursuant to and in accordance with the
Management Agreement not to exceed the amount per year specified in the
Management Agreement; provided that, in the event the full amount
thereof is not paid in any year, the deficiency may cumulate and may be paid
together with the then current management fee for such subsequent year; and provided
further that no Default or Event of Default shall have occurred and be
continuing at the time of payment;

 

(5)                                  Restricted Payments
permitted by this Indenture;

 

(6)                                  any employment, stock
option, stock repurchase, employee benefit, compensation, business expense
reimbursement, severance, termination or other employment-related agreements,
arrangements or plans entered into by the Issuer or any of its Restricted
Subsidiaries in the ordinary course of business;

 

(7)                                  loans or advances to
employees or directors in the ordinary course of business of the Issuer or any
of its Restricted Subsidiaries to the extent permitted under this Indenture;

 

50

 

(8)                                  any payments or other
transactions pursuant to any tax-sharing agreement between the Issuer and any
other Person with which it files a consolidated tax return or with which the
Issuer is part of a consolidated group for tax purposes;

 

(9)                                  any Affiliate
Transaction which constitutes a Permitted Investment;

 

(10)                            any transaction on arm’s
length terms with non-Affiliates that become Affiliates as a result of such
transaction;

 

(11)                            the issuance of Qualified
Capital Stock of the Issuer or any of its Restricted Subsidiaries; and

 

(12)                            transactions with
customers, suppliers or purchasers or sellers of goods or services which are
fair to the Issuer and its Restricted Subsidiaries as determined by the Board
of Directors of the Issuer.

 

Section 4.12.                             Limitation
on Liens.

 

The Issuer will not, and will not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, assume or permit or
suffer to exist any Liens (other than Permitted Liens) of any kind against or
upon any property or assets of the Issuer or any of its Restricted Subsidiaries
whether owned on the Issue Date or acquired after the Issue Date, or any
proceeds therefrom, or assign or otherwise convey any right to receive income
or profits therefrom unless

 

(1)                                  in the case of Liens
securing Subordinated Indebtedness, the Notes are secured by a Lien on such
property, assets or proceeds that is senior in priority to such Liens; and

 

(2)                                  in all other cases,
the Notes are equally and ratably secured by a Lien on such property, assets,
proceeds, income or profit.

 

In the event that all Liens, the existence of any of which gives rise to
a Lien securing the Notes pursuant to the provisions of this Section 4.12,
cease to exist, the Lien securing the Notes required by this Section 4.12
shall automatically be released and the Trustee shall execute appropriate
documentation.

 

Section 4.13.                             Continued
Existence.

 

Subject to Article V hereof, the Issuer shall do or cause to be
done all things necessary to preserve and keep in full force and effect (i) its
corporate existence in accordance with its organizational documents (as the
same may be amended from time to time) and (ii) the material rights (charter
and statutory), licenses and franchises of the Issuer, except to the extent
that the Board of Directors of the Issuer determines in good faith that the
preservation of such right, license or franchise is no longer necessary or
desirable in the conduct of the business of the Issuer.

 

Section 4.14.                             Insurance
Matters.

 

The Issuer shall provide or cause to be provided, for itself and each
of its Restricted Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds that, in the reasonable,
good faith opinion of the Issuer, are adequate and appropriate for the conduct
of the business of the Issuer and its Restricted Subsidiaries in a prudent
manner, with reputable insurers or with the government of the United States of
America or an agency or instrumentality thereof, in such amounts, with such
deductibles, and by such methods as shall be either (i) consistent with
past practices of the Issuer or the applicable Restricted Subsidiary or (ii)
customary, in the reasonable, good faith opinion of the Issuer, for
corporations similarly situated in the industry, unless the failure to provide
such insurance (together with all other such failures) would not have a
material adverse effect on the financial condition or results of operations of
the Issuer and its Restricted Subsidiaries, taken as a whole.

 

51

 

Section 4.15.                             Offer
to Repurchase upon Change of Control.

 

Upon the occurrence of a Change of Control, each Holder of Notes shall
have the right to require the Issuer to repurchase all or any part (equal to
$1,000 or an integral multiple thereof) of such Holder’s Notes (a “Change of
Control Offer”) at a Purchase Price in cash equal to 101% of the Accreted
Value thereof, together with accrued and unpaid interest and Additional
Interest, if any, thereon to the Purchase Date.  The Change of Control Offer shall be made in compliance with the
applicable procedures set forth in Article III hereof and shall include
all instructions and materials necessary to enable Holders to tender their
Notes.

 

The Issuer will not be required to make a Change of Control Offer as
described in this paragraph if it has provided a notice of redemption to the
Trustee pursuant to the provisions of Sections 3.7 or 3.8 of this
Indenture.  Additionally, the Issuer
will not be required to make a Change of Control Offer upon a Change of Control
if a third party makes the Change of Control Offer in the manner, at the times
and otherwise in compliance with the requirements set forth in this Indenture
applicable to a Change of Control Offer made by the Issuer and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.

 

The Issuer will comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations to the extent such laws and
regulations are applicable in connection with the repurchase of Notes pursuant
to a Change of Control Offer.  To the
extent that the provisions of any securities laws or regulations conflict with
this Section 4.15, the Issuer shall comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Section 4.15 by virtue hereof.

 

Section 4.16.                             Limitation on Guarantees by Certain
Subsidiaries.

 

Upon the occurrence of the guarantee of any Indebtedness of the Issuer
in a principal amount greater than $2.5 million individually or in the
aggregate by any Restricted Subsidiary of the Issuer, the Issuer will cause
such Restricted Subsidiary to execute a guarantee, satisfactory in form and
substance to the Trustee (and with such documentation relating thereto as the
Trustee shall require, including, without limitation, the execution of a supplemental
indenture and opinions of counsel as to the enforceability of such guarantee),
pursuant to which such Restricted Subsidiary will fully and unconditionally
guarantee the Notes on the same basis and terms as such guarantee; provided, however, that
if such assumption, guarantee or other liability of such Restricted Subsidiary
is provided in respect of Indebtedness that is expressly subordinated to the
Notes, the guarantee or other instrument provided by such Restricted Subsidiary
in respect of such subordinated Indebtedness shall be subordinated to the guarantee
of the Notes pursuant to customary subordination provisions.

 

Notwithstanding the foregoing and the other provisions of this
Indenture, any guarantee by a Restricted Subsidiary shall provide by its terms
that it shall be automatically and unconditionally released and discharged upon
(i) any sale, exchange or transfer to any Person not an Affiliate of the Issuer
of a majority of the Capital Stock or all or substantially all of the assets of
any such Restricted Subsidiary (which sale, exchange or transfer is not
prohibited by this Indenture), (ii) the release or discharge of the
Indebtedness or the foregoing guarantee that resulted in the creation of such
guarantee (except a discharge or release by or as a result of payment under
such guarantee), (iii) the designation of such Restricted Subsidiary as an
Unrestricted Subsidiary in accordance with the terms of this Indenture, (iv)
the release and discharge of this Indenture in accordance with its terms or (v)
a covenant defeasance or legal defeasance in accordance with this Indenture.

 

Section 4.17.                             Conduct
of Business.

 

The Issuer and its Restricted Subsidiaries will not engage in any
business which is not a Permitted Business.

 

52

 

Section 4.18.                             Payments
for Consent.

 

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

 

Section 4.19.                             Limitation
on Preferred Stock of Restricted Subsidiaries.

 

The Issuer will not permit any of its Restricted Subsidiaries to issue
any Preferred Stock (other than to the Issuer or to a Wholly Owned Restricted
Subsidiary of the Issuer) or permit any Person (other than the Issuer or a
Wholly Owned Restricted Subsidiary of the Issuer) to own any Preferred Stock of
any Restricted Subsidiary of the Issuer.

 

Section 4.20.                             Calculation
of Original Issue Discount.

 

The Issuer will file with the Trustee promptly at the end of each
calendar year (i) a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on the Notes as of
the end of such year and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Internal Revenue Code
of 1986, as amended from time to time.

 

ARTICLE V.

 

SUCCESSORS

 

Section 5.1.                                   Merger,
Consolidation and or Sale of Assets.

 

The Issuer will not, in a single transaction or series of related
transactions, consolidate or merge with or into any Person, or sell, assign,
transfer, lease, convey or otherwise dispose of (or cause or permit any
Restricted Subsidiary of the Issuer to sell, assign, transfer, lease, convey or
otherwise dispose of) all or substantially all of the assets of the Issuer
(determined on a consolidated basis for the Issuer) whether as an entirety or
substantially as an entirety to any Person unless

 

(1)                                  either

 

(a)                                  the Issuer shall be
the surviving or continuing Person; or

 

(b)                                 the Person (if other
than the Issuer) formed by such consolidation or into which the Issuer is
merged or the Person which acquires by sale, assignment, transfer, lease,
conveyance or other disposition the properties and assets of the Issuer and its
Restricted Subsidiaries substantially as an entirety (the “Surviving Entity”)

 

(x)                                   shall be a
corporation or a partnership or a limited liability company, in each case,
organized and validly existing under the laws of the United States or any State
thereof or the District of Columbia; and

 

(y)                                 shall expressly
assume, by supplemental indenture (in form and substance reasonably
satisfactory to the Trustee in all respects), executed and delivered to the
Trustee, the due and punctual payment of the principal of, and premium, if any,
and interest on all of the Notes and the performance of every covenant of the
Notes, this Indenture and the Registration Rights Agreement on the part of the
Issuer to be performed or 

 

53

 

observed; provided that at any time
the Issuer or its successor is a partnership or a limited liability company,
there shall be a co-issuer of the Notes that is a corporation;

 

(2)                                  except in the case of
a consolidation or merger of the Issuer with or into a Wholly Owned Restricted
Subsidiary of the Issuer, or a sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Issuer to a
Wholly Owned Restricted Subsidiary of the Issuer, immediately after giving
effect to such transaction and the assumption contemplated by clause (1)(b)(y)
above (including giving effect to any Indebtedness (including Acquired
Indebtedness) incurred or anticipated to be incurred in connection with or in
respect of such transaction), the Issuer or such Surviving Entity, as the case
may be, shall be able to incur at least $1.00 of additional Indebtedness (other
than Permitted Indebtedness) pursuant to clause (a)(i) of Section 4.9
hereof;

 

(3)                                  immediately after
giving effect to such transaction and the assumption contemplated by clause
(1)(b)(y) above (including, without limitation, giving effect to any Indebtedness
(including Acquired Indebtedness) incurred and any Lien granted in connection
with or in respect of the transaction), no Default or Event of Default shall
have occurred or be continuing; and

 

(4)                                  the Issuer or the
Surviving Entity shall have delivered to the Trustee an Officers’ Certificate
and an Opinion of Counsel, each stating that such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with the applicable provisions of this Indenture
and that all conditions precedent in this Indenture relating to such
transaction have been satisfied.

 

For purposes of the foregoing, (i) the transfer (by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries of the Issuer, the Capital Stock of which
constitutes all or substantially all of the properties and assets of the
Issuer, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Issuer, and (ii) the Issuer, if surviving,
will be automatically discharged from all of its Obligations under this
Indenture and the Notes so long as the requirements set forth above are satisfied.

 

Upon any consolidation, combination or merger or any transfer of all or
substantially all of the assets of the Issuer, in accordance with the foregoing,
in which the Issuer is not the continuing corporation, the Surviving Entity
formed by such consolidation or into which the Issuer is merged or to which
such conveyance, lease or transfer is made shall succeed to, and be substituted
for, and may exercise every right and power of the Issuer under this Indenture
and the Notes with the same effect as if such Surviving Entity had been named
as such.

 

Any merger or consolidation, or sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the property or
assets of the Issuer with an Affiliate incorporated solely for the purpose of
reincorporating the Issuer in another jurisdiction in the United States or any
state thereof or the District of Columbia, need only comply with clause (4) of
the first paragraph of this Section 5.1.

 

Section 5.2.                                   Successor
Corporation Substituted.

 

Upon any consolidation or merger, or any sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Issuer, in accordance
with Section 5.1 hereof, the Surviving Entity shall succeed to and be
substituted for, and may exercise every right and power of, the Issuer under
this Indenture with the same effect as if such Surviving Entity had been named
as the Issuer, herein; provided, however, that the predecessor
Issuer shall not be relieved from the obligation to pay the principal, Purchase
Price or Redemption Price of or interest or Additional Interest, if any, on the
Notes except in the case of a sale of all of the Issuer’s assets that meets the
requirements of Section 5.1 hereof.

 

54

 

ARTICLE VI.

 

DEFAULTS AND REMEDIES

 

Section 6.1.                                   Events
of Default.

 

Each of the following constitutes an “Event of Default”:

 

(a)                                  the failure to pay
interest on any Note when the same becomes due and payable and the default continues
for a period of 30 days;

 

(b)                                 the failure to pay the
principal of any Note, when such principal becomes due and payable, at
maturity, upon redemption or otherwise (including the failure to make a payment
to purchase Notes tendered pursuant to a Change of Control Offer or a Net
Proceeds Offer);

 

(c)                                  a default by the
Issuer in the observance or performance of any other covenant or agreement
contained herein which default continues for a period of 45 days after the
Issuer receives written notice specifying the default (and demanding that such
default be remedied and stating that such notice is a “Notice of Default”) from
the Trustee or the Holders of at least 25% of the outstanding principal amount
at maturity of the Notes (except in the case of a default with respect to
Section 5.1 hereof, which will constitute an Event of Default with such
notice requirement but without such passage of time requirement);

 

(d)                                 the failure to pay at
final maturity (giving effect to any applicable grace periods and any
extensions thereof) the principal amount of any Indebtedness of the Issuer or
any Restricted Subsidiary of the Issuer (other than a Foreign Restricted
Subsidiary that is not a Significant Subsidiary), or the acceleration of the
final stated maturity of any such Indebtedness, if the aggregate principal
amount of such Indebtedness, together with the principal amount of any other
such Indebtedness in default for failure to pay principal at final maturity or
which has been accelerated, aggregates $10.0 million or more at any time and
such failure shall not have been cured or waived within 30 days thereof;

 

(e)                                  one or more judgments
(not covered by insurance as to which the carrier has assumed the defense or
acknowledged coverage) in an aggregate amount in excess of $10.0 million shall
have been rendered against the Issuer or any of its Restricted Subsidiaries
(other than a Foreign Restricted Subsidiary that is not a Significant
Subsidiary) and such judgments shall remain undischarged, unpaid or unstayed
for a period of 60 consecutive days after such judgment or judgments become
final and non-appealable;

 

(f)                                    the Issuer or any
Significant Subsidiary of the Issuer:

 

(i)                  commences
a voluntary case under any Bankruptcy Law,

 

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

 

(iii)            consents
to the appointment of a custodian or receiver of it or for all or
substantially, all of its property,

 

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

 

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

 

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

 

55

 

(i)                  is
for relief in an involuntary case against the Issuer or any Significant
Subsidiary of the Issuer;

 

(ii)               appoints
a custodian or receiver of the Issuer or any Significant Subsidiary of the
Issuer or for all or substantially all of the property of any of the foregoing;

 

(iii)            orders
the liquidation of the Issuer or any Significant Subsidiary of the Issuer;

 

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

 

Section 6.2.                                   Acceleration.

 

If any Event of Default (other than an Event of Default specified in
clause (f) or (g) of Section 6.1 hereof with respect to the Issuer) shall
occur and be continuing, the Trustee or the Holders of at least 25% in
principal amount at maturity of the then outstanding Notes by written notice to
the Issuer (and the Trustee, if such notice is given by such Holders) may
declare the Accreted Value of and accrued and unpaid interest on the Notes to
be due and payable immediately, which notice shall specify the respective
Events of Default and that it is a “Notice of Acceleration”.  Upon any such declaration, the Accreted
Value of, and accrued and unpaid interest and Additional Interest, if any, on
the Notes shall become immediately due and payable.

 

Notwithstanding the foregoing, if an Event of Default specified in
clause (f) or (g) of Section 6.1 hereof occurs with respect to the Issuer,
the Accreted Value of, and accrued and unpaid interest and Additional Interest,
if any, on the Notes shall be due and payable immediately without further
action or notice.

 

The Holders of not less than a majority in aggregate principal amount
at maturity of the then outstanding Notes by written notice to the Issuer and
the Trustee may, on behalf of the Holders of all of the Notes, rescind an
acceleration and its consequences:

 

(1)                                  if the rescission
would not conflict with any judgment or decree; and

 

(2)                                  if all existing
Events of Default have been cured or waived except nonpayment of principal or
interest that has become due solely because of the acceleration.

 

No such rescission shall affect any subsequent Default or impair any
right consequent thereto.

 

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,
interest or Additional Interest, if any, 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, and any
recovery or judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the Holders of the Notes.  A delay or omission by the Trustee or any
Holder in exercising any right or remedy accruing upon an Event of Default
shall not impair the right or remedy or constitute a waiver of or acquiescence
in the Event of Default.  All remedies
are cumulative to the extent permitted by law.

 

56

 

Section 6.4.                                   Waiver
of Past Defaults.

 

The Holders of a majority in principal amount at maturity of the Notes
may waive any existing or past Default or Event of Default under this
Indenture, and its consequences, except a default in the payment of the principal
of or interest on any Notes.  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 consequent thereon.

 

Section 6.5.                                   Control
by Majority.

 

Holders of a majority in principal amount at maturity 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 applicable law or this
Indenture that the Trustee reasonably determines may be unduly prejudicial to
the rights of other Holders of Notes or that may subject the Trustee to
personal liability and shall be entitled to the benefit of Sections 7.1(c)(iii)
and (e) hereof.

 

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 principal amount at maturity of the then outstanding Notes make a
written request to the Trustee to pursue the remedy;

 

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

 

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

 

(e)                                  during such 60-day
period the Holders of a majority in principal amount at maturity 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, the right of any
Holder of a Note to receive payment of principal of, or premium, if any,
interest or Additional Interest, if any, on the Note, on or after the
respective due dates thereon (including in connection with an offer to repurchase),
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 written consent
of such Holder.

 

Section 6.8.                                   Collection
Suit by Trustee.

 

If an Event of Default specified in Section 6.l (a) or (b)
occurs and is continuing, the Trustee is authorized to recover judgment in its
own name and as trustee of an express trust against the Issuer for the whole
amount of principal of, premium and Additional Interest, if any, and interest
remaining unpaid on the Notes and interest on overdue principal and, to the extent
lawful, interest and Additional Interest, if any, and such further 

 

57

 

amounts as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expense, disbursements and
advances of the Trustee, its agents and counsel.

 

Section 6.9.                                   [Intentionally
Omitted].

 

Section 6.10.                             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 (including accountants,
experts or such other processionals as the Trustee deems necessary, advisable
or appropriate) and counsel and the Holders of the Notes allowed in any
judicial proceedings relative to the Issuer (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.

 

Section 6.11.                             Priorities.

 

If the Trustee collects any money pursuant to this Article, 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;

 

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

 

Third:  to the Issuer, the Guarantors, if any, or to
such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a special record date and payment date for any
payment to Holders of Notes pursuant to this Section 6.11.

 

Section 6.12.                             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 

 

58

 

reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant.  This Section does not apply to a suit
by the Trustee, a suit by a Holder pursuant to Section 6.7 hereof, or a
suit by Holders of more than 10% in principal amount at maturity of the then
outstanding Notes.

 

ARTICLE VII.

 

TRUSTEE

 

Section 7.1.                                   Duties
of Trustee.

 

(a)                                  If
an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in its exercise thereof, 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:

 

(i)                  the
duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the TIA 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 or the TIA against
the Trustee; and

 

(ii)               in
the absence of bad faith on its part, the Trustee may conclusively rely,
without investigation, as to the truth or the statements and the correctness of
the opinions expressed therein, upon and statements, certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture.

 

However, in the case of any such certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not
they conform on their face to the requirements of this Indenture.

 

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

 

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

 

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

 

(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 this Section 7.1.

 

(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, pursuant to the provisions
of this Indenture, including, without limitation, Section 6.5 hereof,
unless such Holder shall have offered to the Trustee security and indemnity
satisfactory to it against any loss, liability or expense which might be
incurred by it in compliance with such request or direction.

 

59

 

(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 Issuer.  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)                                  The
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any document (whether in original or facsimile form) 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 refrain from acting, 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 of its own selection and the advice of such counsel and Opinions 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, accountants, experts and such other
agents or professionals as the Trustee deems necessary, advisable or appropriate
and shall not be responsible for the misconduct or negligence of any attorney,
accountant, expert or other such agent or professional 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 Issuer shall be sufficiently evidenced by a
written order signed by two Officers of an Issuer.

 

(f)                                    The
Trustee shall not be charged with knowledge of any Default or Event of Default
under Section 6.1 hereof (other than under Section 6.1(a) (subject to
the following sentence) or Section 6.1(b) hereof) unless either (i) a
Responsible Officer shall have actual knowledge thereof, or (ii) the Trustee
shall have received notice thereof in accordance with Section 13.2 hereof
from the Issuer or any Holder of the Notes. 
The Trustee shall not be charged with knowledge of the Issuer’s
obligation to pay Additional Interest, or the cessation of such obligation,
unless the Trustee receives written notice thereof from the Issuer or any
Holder.

 

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

 

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

 

(i)                                     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 pursuant to this Indenture, unless such Holders shall have offered to
the Trustee security or indemnity reasonably satisfactory to the Trustee
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction.

 

(j)                                     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, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit.

 

60

 

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 Issuer or any
Affiliate of the Issuer with the same rights it would have if it were not
Trustee.  However, in the event that the
Trustee acquires any conflicting interest within the meaning of the TIA it must
eliminate such conflict within 90 days, apply (subject to the consent of the
Issuer) to the Commission for permission to continue as trustee or resign.  Any Agent may do the same with like rights
and duties.  The Trustee is also subject
to Sections 7.10 and 7.11 hereof.

 

Section 7.4.                                   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 Issuer’s use of the proceeds from the Notes or any money
paid to the Issuer or upon the Issuer’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, the Trustee shall mail to Holders of
Notes a notice of the Default or Event of Default known to it within 90 days
after it occurs.  Except in the case of
a Default in payment on any Note (including the failure to make a mandatory
repurchase pursuant hereto), the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.

 

Section 7.6.                                   Reports
by Trustee to Holder of the Notes.

 

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

 

A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed to the Issuer and filed with the Commission and each
stock exchange on which the Notes are listed in accordance with TIA
§ 313(d).  The Issuer shall
promptly notify the Trustee when the Notes are listed on any stock exchange or
delisted therefrom.

 

Section 7.7.                                   Compensation,
Reimbursement and Indemnity.

 

The Issuer shall pay to the Trustee from time to time such compensation
for its acceptance of this Indenture and the rendering by it of the services
required hereunder as shall be agreed upon in writing by the Issuer and the
Trustee.  The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express
trust.  The Issuer shall reimburse the
Trustee promptly upon request for all reasonable disbursements, advances and
expenses incurred or made by or on behalf of it in addition to the compensation
for its services.  Such expenses shall
include the reasonable compensation, disbursements and expenses of the
Trustee’s attorneys, accountants, experts and such other professionals as the
Trustee deems necessary, advisable or appropriate.

 

The Issuer shall indemnify the Trustee and any predecessor Trustee
against any and all losses, liabilities, claims, damages or expenses, including
taxes (other than taxes based upon, measured by or determined by the income of
the Trustee), incurred by it arising out of or in connection with the
acceptance or administration of its 

 

61

 

duties under this Indenture (including its duties under
Section 9.6 hereof), including the costs and expenses of enforcing this
Indenture or any Guarantee against the Issuer or a Guarantor (including this
Section 7.7) and defending itself against or investigating any claim
(whether asserted by the Issuer, any Guarantor, 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 or willful misconduct.  The Trustee shall notify the Issuer promptly
of any claim for which it may seek indemnity. 
Failure by the Trustee to so notify the Issuer shall not relieve the
Issuer of its obligations hereunder. 
The Issuer shall defend any claim or threatened claim asserted against
the Trustee, and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and
the Issuer shall pay the reasonable fees and expenses of such counsel.  The Issuer need not pay for any settlement
made without their consent, which consent shall not be unreasonably withheld.

 

The obligations of the Issuer under this Section 7.7 shall survive
the resignation or removal of the Trustee, the satisfaction and discharge of
this Indenture and the termination of this Indenture.

 

To secure the Issuer’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, Redemption
Price or Purchase Price of or Additional Interest, if any, or interest on,
particular Notes.  Such Lien shall
survive the resignation or removal of the Trustee, the satisfaction and
discharge of this Indenture and the termination of this Indenture.

 

When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(f) or (g) 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.

 

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.

 

The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Issuer.  The Holders of Notes of a majority in principal amount at
maturity of the then outstanding Notes may remove the Trustee by so notifying
the Trustee and the Issuer in writing. 
The Issuer 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, receiver
or public officer takes charge of the Trustee or its property for the purpose
of rehabilitation, conversation or liquidation; 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 Issuer shall promptly appoint a successor
Trustee.  Within one year after the date
on which the successor Trustee takes office, the Holders of a majority in
principal amount at maturity of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuer.

 

If a successor Trustee does not take office within 30 days after the
retiring trustee resigns or is removed, the retiring Trustee, the Issuer, or
the Holders of Notes of at least 10% in principal amount at maturity of the 

 

62

 

then outstanding Notes may petition any court of competent jurisdiction,
in the case of the Trustee, at the expense of the Issuer, for the appointment
of a successor Trustee.

 

If the Trustee, after written request by any Holder of a Note who has
been a bona fide holder of a Note or Notes 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 Issuer.  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 Issuer shall mail a notice of its
succession to Holder 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 Issuer’s obligations under
Section 7.7 hereof shall continue for the benefit of the retiring Trustee.

 

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
that is eligible under Section 7.10 hereof, 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
organized and doing business under the laws of the United States of America or
of any state thereof (including the District of Columbia) that is authorized
under such laws to exercise corporate trust power, that is subject to
supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition.

 

This Indenture 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 Issuer.

 

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

 

Section 8.1.                                   Option
to Effect Legal Defeasance or Covenant Defeasance.

 

The Issuer 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 Issuer’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.2, the Issuer shall, subject to the
satisfaction of the conditions set forth in Section 8.4 hereof, be deemed
to have been discharged from its and any Guarantors’ obligations with respect
to all outstanding Notes on the date the conditions set 

 

63

 

forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means
that the Issuer shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, which shall thereafter be
deemed to the “outstanding” only for the purposes of Section 8.5 hereof
and the other Sections of this Indenture referred to in clauses (a) through (d)
below, and to have satisfied all its other obligations under such Notes and
this Indenture (and the Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder:

 

(a)                                  the rights of Holders
to receive payments in respect of the principal of, premium, if any, and
interest on the Notes when such payments are due;

 

(b)                                 the Issuer’s
obligations with respect to the Notes concerning issuing temporary Notes, registration
of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an
office or agency for payments;

 

(c)                                  the rights, powers,
trust, duties and immunities of the Trustee and the Issuer’s obligations in
connection therewith; and

 

(d)                                 the Legal Defeasance
provisions of this Article VIII.

 

Subject to compliance with this Article VIII, the Issuer 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 Issuer’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.3, the Issuer shall, subject to the
satisfaction of the conditions set forth in Section 8.4 hereof, be
released from its obligations under the covenants contained in Sections 3.9,
3.10, 4.3, 4.5, 4.7 through 4.12, 4.13 (except with respect to the existence of
the Issuer) and 4.14 through 4.20 hereof, both inclusive, and
Section 5.1(2) with respect to the outstanding Notes on and after the date
the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes 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 Issuer 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 Issuer’s exercise under Section 8.1 hereof of the option
applicable to this Section 8.3, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, Sections 6.1(c) through 6.1(e)
hereof shall not constitute Events of Default.

 

Section 8.4.                                   Conditions
to Legal or Covenant Defeasance.

 

The following are the conditions precedent 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:

 

(1)                                  the Issuer must
irrevocably deposit with the Trustee, in trust, for the benefit of the Holders
cash in U.S. dollars, U.S. Government Securities, or a combination thereof, in
such amounts as will be 

 

64

 

sufficient, in the opinion of a nationally recognized firm of
independent public accountants selected by the Issuer, to pay the principal of,
premium, if any, and interest on the Notes on the stated date for payment
thereof or on the applicable redemption date, as the case may be;

 

(2)                                  in the case of Legal
Defeasance, the Issuer shall have delivered to the Trustee an Opinion of
Counsel in the United States reasonably acceptable to the Trustee confirming
that:

 

(a)                                  the Issuer 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, and based
thereon such opinion of counsel shall confirm that, the Holders 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;

 

(3)                                  in the case of
Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion
of Counsel in the United States reasonably acceptable to the Trustee confirming
that the Holders 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;

 

(4)                                  no Default or Event
of Default shall have occurred and be continuing on the date of such deposit
(other than a Default or Event of Default arising in connection with the
borrowing of funds to fund such deposit and the grant of any Lien securing such
borrowing);

 

(5)                                  such Legal Defeasance
or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under this Indenture (other than a Default or Event of
Default arising in connection with the borrowing of funds to fund such deposit
and the grant of any Lien securing such borrowing) or any other material
agreement or instrument to which the Issuer or any of its Subsidiaries is a
party or by which the Issuer or any of its Subsidiaries is bound;

 

(6)                                  the Issuer shall have
delivered to the Trustee an Officers’ Certificate stating that the deposit was
not made by the Issuer with the intent of preferring the Holders over any other
creditors of the Issuer or with the intent of defeating, hindering, delaying or
defrauding any other creditors of the Issuer or others;

 

(7)                                  the Issuer shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent provided for or relating to the
Legal Defeasance or the Covenant Defeasance have been complied with; and

 

(8)                                  the Issuer shall have
delivered to the Trustee an Opinion of Counsel to the effect that, assuming no
intervening bankruptcy of the Issuer between the date of deposit and the 91st
day following the date of deposit and that no Holder is an insider of the
Issuer, after the 91st day following the date of deposit, the trust funds will
not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally.

 

Notwithstanding the foregoing, the opinion of counsel required by
clause (2) above with respect to a Legal Defeasance need not be delivered if
all Notes not theretofore delivered to the Trustee for cancellation (1) have
become due and payable or (2) will become due and payable on the maturity date
within one year under 

 

65

 

arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Issuer.

 

Section 8.5.                                   Deposited
Money and U.S. Government Securities to Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.6 hereof, all money and U.S. Government
Securities (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 8.5
only, 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 (other than an Issuer) as
the Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal or Redemption Price of, and
Additional Interest, if any, interest on, the Notes, that such money need not
be segregated from other funds except to the extent required by law.

 

The Issuer shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or U.S. Government
Securities 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 Issuer from time to time upon the request
of the Issuer any money or U.S. Government Securities held by it as provided in
Section 8.4 hereof which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under
Section 8.4(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 the Issuer.

 

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

 

Section 8.7.                                   Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any United States
dollars or U.S. Government Securities in accordance with Section 8.2 or
8.3 hereof, as the case may be, by reason of any order of judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of the Issuer under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.2 or 8.3 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with
Section 8.2 or 8.3 hereof, as the case may be; provided, however,
that, if the Issuer makes any payment with respect to any Note following the
reinstatement of its obligations, the Issuer 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.

 

66

 

ARTICLE IX.

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.1.                                   Without
Consent of Holders of Notes.

 

Notwithstanding Section 9.2 of this Indenture, the Issuer and the
Trustee may amend or supplement this Indenture and, the Notes without the
consent of any Holder of a Note:

 

(a)                                  to cure any
ambiguity, defect or inconsistency so long as such changes do not, in the
opinion of the Trustee, adversely affect the rights of any of the Holders in
any material respect.

 

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

 

(c)                                  to provide for the
assumption of the Issuer’s obligations to the Holders of the Notes in the case
of a merger or consolidation  or sale of
all or substantially all of such entity’s assets pursuant to Article V
hereof;

 

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

 

(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 legal rights hereunder of any
Holder of the Notes.

 

Upon the request of the Issuer, accompanied by a resolution of the
Board of Directors of the Issuer (evidenced by an Officers’ Certificate)
authorizing the execution of any such amended or supplemental indenture, and
upon receipt by the Trustee of the documents described in Section 7.2
hereof, the Trustee shall join with the Issuer 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 affects its own rights, duties or
immunities under this Indenture or otherwise.

 

Section 9.2.                                   With
Consent of Holders of Notes.

 

Except as provided below in this Section 9.2, the Issuer and the
Trustee may amend or supplement this Indenture and the Notes, in each case,
with the consent of the Holders of at least a majority in principal amount at
maturity of the Notes then outstanding (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for the Notes),
and, subject to Sections 6.2, 6.4 and 6.7 hereof, any existing Default or Event
of Default or compliance with any provision of this Indenture or the Notes may
be waived with the consent of the Holders of a majority in principal amount at
maturity of the then outstanding Notes (including consents obtained in
connection with a tender offer or exchange offer for the Notes).

 

Without the consent of each Holder affected, an amendment or waiver may
not (with respect to any Notes held by a non-consenting Holder):

 

(1)                                  reduce the principal
amount of Notes at maturity whose Holders must consent to an amendment;

 

(2)                                  reduce the rate of or
change or have the effect of changing the time for payment of interest,
including defaulted interest, on any Notes;

 

(3)                                  change the method of
calculation of Accreted Value;

 

67

 

(4)                                  reduce the principal
or Accreted Value of or change or have the effect of changing the fixed
maturity of any Notes, or change the date on which any Notes may be subject to
redemption or reduce the redemption price therefor;

 

(5)                                  make any Notes
payable in money other than that stated in the Notes;

 

(6)                                  make any change in
provisions of this Indenture protecting the right of each Holder to receive
payment of principal of and interest on such Holder’s Note or Notes on or after
the due date thereof or to bring suit to enforce such payment, or permitting
Holders of a majority in principal amount at maturity of Notes to waive
Defaults or Events of Default;

 

(7)                                  after the Issuer’s
obligation to purchase Notes arises hereunder, amend, change or modify in any
material respect the obligation of the Issuer to make and consummate a Change
of Control Offer in the event of a Change of Control or make and consummate a
Net Proceeds Offer with respect to any Asset Sale that has been consummated or,
after such Change of Control has occurred or such Asset Sale has been consummated,
modify any of the provisions or definitions with respect thereto; or

 

(8)                                  modify or change any
provision of this Indenture or the related definitions affecting the ranking of
the Notes or any Guarantee in a manner which adversely affects the Holders.

 

Upon the written request of the Issuer accompanied by a resolution of
the Board of Directors of the Issuer (evidenced by an Officers’ Certificate)
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 an Officers’ Certificate and an Opinion of Counsel, the Trustee shall join
with the Issuer in the execution of such amended or supplemental indenture
unless such amended or supplemental Indenture affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but 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 Issuer shall mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuer 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 a 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, a consent
to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder’s Note, even if notation of the consent is not
made on any Note.  However, any such
Holder of a Note or subsequent Holder of a Note may revoke the consent as to
its Note if the Trustee receives written notice of revocation before the date
the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes
effective in accordance with its terms and therefore binds every Holder.

 

68

 

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 Issuer 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 Amendment, 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 Issuer may not sign an
amendment or supplemental Indenture until the Board of Directors of the Issuer
approves such amendment or supplemental indenture.  In executing any amended or supplemental indenture, the Trustee
shall receive, in addition to the documents required by Sections 13.4 and 13.5
hereof, and, subject to Section 7.1, shall be fully protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that (i) the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture, (ii) no Event of Default shall occur as a result of the execution
of such Officers’ Certificate or the delivery of such Opinion of Counsel and
(iii) the amended or supplemental indenture complies with the terms of this
Indenture.

 

ARTICLE X.

 

[INTENTIONALLY OMITTED]

 

ARTICLE XI.

 

GUARANTEE

 

Section 11.1.                             Unconditional
Guarantee.

 

Each Person who becomes a Guarantor after the Issue Date pursuant to
the requirements of Section 4.16 of this Indenture shall unconditionally
Guarantee, on a senior basis jointly and severally, to each Holder of a Note
authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, the Notes or the obligations of the Issuer hereunder or
thereunder, that:  (i) the Accreted
Value of and interest on the Notes will be promptly paid in full when due,
subject to any applicable grace period, whether at maturity, by acceleration or
otherwise and interest on the overdue Accreted Value, if any, and interest on
any interest, to the extent lawful, of the Notes and all other obligations of
the Issuer to the Holders or the Trustee hereunder or thereunder will be
promptly paid in full or performed, all in accordance with the terms hereof and
thereof; and (ii) in case of any extension of time of payment or renewal
of any Notes or of any such other obligations, the same will be promptly paid
in full when due or performed in accordance with the terms of the extension or
renewal, subject to any applicable grace period, whether at stated maturity, by
acceleration or otherwise, subject, however, in the case of clauses (i) and
(ii) above, to the limitations set forth in Section 11.3.  Each such Guarantor shall agree that its
obligations 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 provisions hereof or thereof, the recovery of any judgment
against the Issuer, and 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 shall waive
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Issuer, any right to require a
proceeding first against the Issuer, protest, notice and all demands whatsoever
and covenants that such Guarantee will not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and in
such Guarantee.  If any Holder or the
Trustee is required by any court or otherwise to return to the Issuer, any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to the Issuer or any Guarantor, any amount paid by the
Issuer or any Guarantor to the 

 

69

 

Trustee or such Holder, such Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.  Each Guarantor shall further agree that, as
between each Guarantor, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the obligations to be guaranteed may
be accelerated as provided in Article VI for the purposes of such
Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any acceleration of such obligations as provided in
Article VI, such obligations (whether or not due and payable) shall
forthwith become due and payable by each Guarantor for the purpose of such
Guarantee.

 

Section 11.2.                             Severability.

 

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

 

Section 11.3.                             Limitation of Guarantor’s Liability.

 

Each future Guarantor and by its acceptance hereof each Holder hereby
confirms that it is the intention of all such parties that any guarantee by
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 effectuate the foregoing
intention, the Holders and such Guarantor shall irrevocably agree that the obligations
of any such Guarantor under its Guarantee shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Guarantor and after giving effect to any collections from
or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to
Section 11.5, result in the obligations of such Guarantor under the
Guarantee not constituting such fraudulent transfer or conveyance.

 

Section 11.4.                             Release
of Guarantor.

 

The Guarantee of any Guarantor will be automatically and
unconditionally released without any action on the part of the Trustee or the
Holders of the Notes in accordance with the provisions in the second paragraph
of  Section 4.16 hereof.

 

Section 11.5.                             Contribution.

 

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

 

Section 11.6.                             Waiver
of Subrogation.

 

Until all Obligations are paid in full, each future Guarantor shall
irrevocably waive any claims or other rights which it may now or hereafter
acquire against the Issuer that arise from the existence, payment, performance
or enforcement of such Guarantor’s obligations under the Guarantee and this
Indenture, including, without 

 

70

 

limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any
Holder against the Issuer, whether or not such claim, remedy or right arises in
equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Issuer, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights.  If any amount shall be paid to any such
Guarantor in violation of the preceding sentence and the Notes shall not have
been paid in full, such amount shall have been deemed to have been paid to such
Guarantor for the benefit of, and held in trust for the benefit of, the
Holders, and shall, forthwith be paid to the Trustee for the benefit of such
Holders to be credited and applied upon the Notes, whether matured or
unmatured, in accordance with the terms of this Indenture.  Each such Guarantor acknowledges that it
will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this
Section 11.6 is knowingly made in contemplation of such benefits.

 

Section 11.7.                             Execution
of Guarantee.

 

To evidence their guarantee to the Holders set forth in this
Article XI, any future Guarantors shall agree to execute the Guarantee in
substantially the form attached hereto as Exhibit C, which shall be endorsed on
each Note ordered to be authenticated and delivered by the Trustee.  Each such Guarantor shall agree that its Guarantee
set forth in this Article XI shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such
Guarantee.  Each such Guarantee shall be
signed on behalf of each Guarantor by one of its authorized Officers prior to
the authentication of the Note on which it is endorsed, and the delivery of
such Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of such Guarantee on behalf of such Guarantor.  Such signatures upon the Guarantee may be by
manual or facsimile signature of such officers and may be imprinted or
otherwise reproduced on the Guarantee, and in case any such officer who shall
have signed the Guarantee shall cease to be such officer before the Note on
which such Guarantee is endorsed shall have been authenticated and delivered by
the Trustee or disposed of by the Issuer, such Note nevertheless may be authenticated
and delivered or disposed of as though the Person who signed the Guarantee had
not ceased to be such officer of such Guarantor.

 

Section 11.8.                             Waiver
of Stay, Extension or Usury Laws.

 

Each future Guarantor shall covenant (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law that would prohibit or forgive each
such Guarantor from performing its Guarantee as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and (to the extent that it may
lawfully do so) each such Guarantor shall expressly waive all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

 

ARTICLE XII.

 

SATISFACTION AND DISCHARGE

 

Section 12.1.                             Satisfaction
and Discharge.

 

This Indenture will be discharged and will cease to be of further
effect (except as set forth below) and the Trustee, at the expense of the
Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture when:

 

(1)                                  either:

 

(a)                                  all the Notes
theretofore authenticated and delivered (except lost, stolen or destroyed Notes
which have been replaced or paid as provided in Section 2.7 and Notes for
whose 

 

71

 

payment money has theretofore been deposited in trust or segregated and
held in trust by the Issuer and thereafter repaid to the Issuer or discharged
from such trust) have been delivered to the Trustee for cancellation; or

 

(b)                                 all Notes not
theretofore delivered to the Trustee for cancellation (1) have become due
and payable or (2) will become due and payable within one year, or are to
be called for redemption within one year, under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Issuer, and the Issuer has
irrevocably deposited or caused to be deposited with the Trustee funds in an
amount sufficient to pay and discharge the entire Indebtedness on the Notes not
theretofore delivered to the Trustee for cancellation, for principal of, premium,
if any, and interest on the Notes to the date of deposit together with
irrevocable instructions from the Issuer directing the Trustee to apply such
funds to the payment thereof at maturity or redemption, as the case may be;

 

(2)                                  the Issuer has paid all
other sums payable under this Indenture by the Issuer; and

 

(3)                                  the Issuer has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel
stating that all conditions precedent under this Indenture relating to the
satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the
Issuer’s obligations in Sections 2.3, 2.4, 2.6, 2.7, 2.11, 7.7, 7.8, 13.2, 13.3
and 13.4, and the Trustee’s and Paying Agent’s obligations in Section 12.2
shall survive until the Notes are no longer outstanding.  Thereafter, only the Issuer’s obligations in
Section 7.7 shall survive such satisfaction and discharge.

 

Section 12.2.                             Application
of Trust.

 

All money deposited with the Trustee pursuant to Section 12.1
shall be held in trust and, at the written direction of the Issuer, be invested
prior to maturity in U.S. Government Securities, and applied by the Trustee in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent as the Trustee may determine, to
the Persons entitled thereto, of the principal (and premium, if any) and
interest for the payment of which money has been deposited with the Trustee;
but such money need not be segregated from other funds except to the extent required
by law.

 

ARTICLE XIII.

 

MISCELLANEOUS

 

Section 13.1.                             Trust
Indenture Act Controls.

 

If any provision hereof limits, qualifies or conflicts with a provision
of the TIA or another provision that would be required or deemed under such Act
to be part of and govern this Indenture if this Indenture were subject thereto,
the latter provision shall control.  If
any provision of this Indenture modifies or excludes any provision of the TIA
that may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

 

Section 13.2.                             Notices.

 

Any notice or communication by the Issuer or the Trustee to others 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:

 

72

 

If to the Issuer:

 

Advanced Accessory Holdings Corporation

12900 Hall Road, Suite 200

Sterling Heights, Michigan  48313

Attention:  Chief Financial Officer

Fax:  (586) 997-6838

 

With a copy to:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York  10022

Attention:  Michael Littenberg, Esq.

Fax:  (212) 593-5955

 

If to the Trustee:

 

BNY Midwest Trust Company

Attention:  Corporate Trust Department 

2 North LaSalle Street, Suite 1020

Chicago, Illinois  60602

Fax:  (312) 827-8542

 

The Issuer 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:  at
the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder 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 address
receives it.

 

If the Issuer mails a notice or communication to Holders, it shall mail
a copy to the Trustee and each Agent at the same time.

 

Section 13.3.                             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 Issuer, the Trustee, the Registrar and
anyone else shall have the protection of TIA § 312(c).

 

73

 

Section 13.4.                             Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuer to the Trustee to take
any action under this Indenture, except upon the initial issuance of Notes
hereunder, the Issuer shall furnish to the Trustee:

 

(a)                                  an Officers’
Certificate in form and substance reasonably satisfactory to the Trustee
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  stating that, in the opinion of such
counsel, all such conditions precedent and covenants have been satisfied.

 

Section 13.5.                             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.

 

Section 13.6.                             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 13.7.                             No
Personal Liability of Directors, Managers, Officers, Employees, Members and
Stockholders.

 

No past, present or future director, manager, officer, employee,
incorporator (or Person forming any limited liability company), agent, member
or stockholder or Affiliate of the Issuer, as such, shall have any liability
for any obligations of the Issuer under the Notes, this Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder of Notes by accepting a Note
waives and releases all such liabilities. 
The waiver and release are part of the consideration for issuance of the
Notes.  Such waiver may not be effective
to waive liabilities under the federal securities law and it is the view of the
Commission that such a waiver is against public policy.

 

Section 13.8.                             Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, BUT WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE 

 

74

 

LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  EACH OF THE ISSUER AND THE TRUSTEE HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN
THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING
IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE AND THE
NOTES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS.  EACH OF THE ISSUER AND THE TRUSTEE  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
THAT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY
OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT
ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.  NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE OR ANY HOLDER OF THE NOTES TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL
PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE ISSUER IN ANY OTHER JURISDICTION.

 

Section 13.9.                             No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any other indenture, loan
or debt agreement of the Issuer or its Subsidiaries or of any other
Person.  Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

 

Section 13.10.                       Successors.

 

All agreements of the Issuer in this Indenture and the Notes shall bind
its successors.  All agreements of the
Trustee in this Indenture shall bind its successors.

 

Section 13.11.                       Severability.

 

In case any provision in this Indenture or in the Notes shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 13.12.                       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 13.13.                       Table
of Contents, Headings, Etc.

 

The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture, which 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.

 

Section 13.14.                       Qualification
of Indenture.

 

The Issuer shall qualify this Indenture under the TIA in accordance
with the terms and conditions of the Registration Rights Agreement and shall
pay all reasonable costs and expenses (including attorneys’ fees for the
Issuer, the Trustee and the Holders of the Notes) incurred in connection
therewith, including, but not limited to, costs and expenses of qualification
of this Indenture and the Notes and printing this Indenture and the Notes.  The Trustee shall be entitled to receive
from the Issuer any such Officers’ Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.

 

75

 

[Signatures on following page]

 

76

 

SIGNATURES

 

	
   

  	
  ADVANCED ACCESSORY HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Barry
  Steele

  	
   

  
	
   

  	
   

  	
  Name: Barry
  Steele

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNY MIDWEST TRUST COMPANY,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roxane
  J. Ellwanger

  	
   

  
	
   

  	
   

  	
  Name: Roxane
  J. Ellwanger

  
	
   

  	
   

  	
  Title:
  Assistant Vice President

  

 

77

 

EXHIBIT A

 

FORM
OF SERIES A NOTE

 

(Face of Note)

 

ADVANCED ACCESSORY HOLDINGS CORPORATION

 

13 1/4% SENIOR DISCOUNT NOTE DUE 2011

 

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

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](1)

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
PERSONS EXCEPT AS SET FORTH BELOW.  BY
ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
“QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT,
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE
OF THIS NOTE RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO ADVANCED
ACCESSORY HOLDINGS CORPORATION OR ANY OF ITS SUBSIDIARIES (B) INSIDE THE UNITED
STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER
THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR (AS
DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AN
“ACCREDITED INVESTOR”))THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS
FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER
CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS
ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE 

 

(1)                                  To
be included only if the Note is issued in global form.

 

 

A-1

 

OBTAINED FROM THE TRUSTEE FOR THIS NOTE), (D) OUTSIDE THE UNITED STATES
IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT
(IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY
RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH
ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND
BASED UPON AN OPINION OF COUNSEL IF ADVANCED ACCESSORY HOLDINGS CORPORATION SO
REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.  IN CONNECTION WITH ANY TRANSFER OF THIS NOTE
WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE, IF THE PROPOSED
TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE OR ADVANCED ACCESSORY HOLDINGS CORPORATION SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS ANY OF THEM MAY
REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.  AS
USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S.
PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
ACT.

 

A-2

 

ADVANCED ACCESSORY HOLDINGS CORPORATION

 

13 1/4% SENIOR DISCOUNT NOTE DUE 2011

 

THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF
SECTION 1271 ET SEQ. OF THE INTERNAL REVENUE CODE.  FOR EACH $1,000 PRINCIPAL AMOUNT AT MATURITY
OF THIS NOTE, THE ISSUE PRICE IS $571.28. 
THE ISSUE DATE OF THIS NOTE IS FEBRUARY 4, 2004 AND THE YIELD TO
MATURITY IS 13.25%.

 

	
   

  	
  CUSIP No.

  	
   

  
	
  No.

  	
   

  	
   

  	
  $

  	
   

  
						

 

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

 

ADVANCED ACCESSORY HOLDINGS CORPORATION, a Delaware corporation (the “Issuer”),
which term includes any successor entity under the Indenture hereinafter
referred to), for value received, promises to pay to CEDE & CO., or its
registered assigns, the principal sum of
                                          
Dollars on December 15, 2011.

 

Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as set forth at this place.

 

Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Note
shall not be entitled to any benefits under the Indenture referred to on the
reverse hereof or be valid or obligatory for any purpose.

 

[Signatures on following page]

 

A-3

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

 

	
   

  	
  ADVANCED ACCESSORY HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  This is one of the Notes referred to

  	
   

  
	
  in the within-mentioned Indenture:

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  BNY MIDWEST TRUST COMPANY,

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

A-4

 

(Back of Note)

 

13 1/4% Senior Discount Notes due 2011

 

Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

 

1.                                       Interest.  The Issuer promises to pay interest on the
principal amount of this Note at the rate of 13 1/4% per annum and shall
pay the Additional Interest pursuant to Section 4 of the Registration
Rights Agreement referred below. Prior to June 15, 2008, interest on the
Note will accrue in the form of an increase in the Accreted Value of the Note,
and no cash interest shall be paid.  The
Accreted Value of the Note will increase from the date of issuance until
June 15, 2008 at a rate of 13 1/4% per annum compounded
semi-annually as provided in the definition of “Accreted Value” in the
Indenture such that the Accreted Value will equal the principal amount at maturity
on June 15, 2008.  Beginning on
June 15, 2008, cash interest on the Notes will accrue at the rate of
13 1/4% per annum.  The Issuer will
pay interest and Additional Interest, if any, semi-annually on June 15 and
December 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”)
commencing December 15, 2008; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date.  The Issuer shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue payments of the principal, Purchase Price and Redemption Price of
this Note from time to time on demand at a rate that is 1% per annum in excess
of the rate then in effect; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest, if any, (without regard to any applicable
grace periods) hereon 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 Issuer will pay
interest on the Notes (except defaulted interest) and Additional Interest, if
any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 and December 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest.  Any such installment of interest or Additional Interest, if any,
not punctually paid or duly provided for shall forthwith cease to be payable to
the registered Holders on such Interest Payment Date, and may be paid to the
registered Holders at the close of business on a special interest payment date
to be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered Holders not less than 10 days prior to
such special interest payment date, or may be paid at any time 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, all as more fully provided in the Indenture.  The Notes will be payable as to Accreted
Value or principal, Redemption Price, Purchase Price, interest and Additional
Interest, if any, at the office or agency of the Issuer maintained for such
purpose within or without the City and State of New York, or, at the option of
the Issuer, payment of interest and Additional Interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders; provided
that payment by wire transfer of immediately available funds will be required
with respect to Accreted Value or principal, Redemption Price and Purchase
Price of, and interest and Additional Interest (if any) on, all Global Notes
and all other Notes the Holders of which shall have provided wire transfer
instructions to the Trustee or the Paying Agent.  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, BNY
Midwest Trust Company, the Trustee under the Indenture, will act as Paying
Agent and Registrar.  The Issuer may
change any Paying Agent or Registrar without notice to any Holder.  The Issuer may act in any such capacity.

 

4.                                       Indenture.  The Issuer issued $88.0 million in aggregate
principal amount at maturity of the Notes on the Issue Date under an Indenture
dated as of February 4, 2004 (the “Indenture”) between the Issuer
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.C. 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. 
The Notes are general obligations of the Issuer.

 

5.                                       Optional
Redemption.  The Issuer may redeem
any or all of the Notes at any time on or after February 15, 2009, upon
not less than 30 nor more than 60 days’ prior notice in amounts of $1,000 or an
integral multiple thereof at the Redemption Prices (expressed as a percentage
of the Accreted Value) set forth below, if redeemed during the 12-month period
beginning February 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  113.250

  	
  %

  
	
  2010

  	
   

  	
  106.625

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

in each case together with accrued and unpaid interest and Additional
Interest, if any, to the Redemption Date.

 

If less than all the Notes are to be redeemed, the Trustee will select
the particular Notes or portions thereof to be redeemed by lot, pro rata
or by any other method the Trustee shall deem fair and reasonable.

 

6.                                       Special
Redemption.  In the event the Issuer
completes one or more Public Equity Offerings on or before June 15, 2007,
the Issuer, at its option, may use the net cash proceeds from any such Public
Equity Offering to redeem up to 35% of the principal amount at maturity of the
Notes (a “Special Redemption”) at a Redemption Price of 113.25% of the
Accreted Value thereof, provided, however, that at least 65% of
the principal amount at maturity of the Notes will remain outstanding
immediately after each such redemption; and provided, further,
that each such redemption shall occur within 90 days after the date of the
closing of the applicable Public Equity Offering.  If less than all the Notes are to be redeemed, the Trustee will
select the particular Notes or portions thereof to be redeemed by lot, only on
a prorata basis or on as nearly a pro  rata basis as
is practicable (subject to DTC procedures).

 

In addition, prior to June 15, 2007, upon the occurrence of a
Change of Control, the Notes may be redeemed by the Issuer or the acquiring
party, in whole but not in part, at a redemption price equal to 113.25% of the
Accreted Value thereof on the redemption date; provided,
that such redemption (the “Change of Control Redemption”) occurs
within 75 days of the occurrence of such Change of Control.

 

7.                                       Mandatory
Redemption.  On June 15, 2009,
if any Notes are outstanding, the Issuer will be required to redeem 35.5% of
each Note (provided that if such redemption results in any unredeemed portion
of a Note having a principal amount that is not a round multiple of $1,000, the
Issuer shall redeem an additional portion of such Note so as to reduce the
principal amount to a round multiple of $1,000) then outstanding (the “Mandatory
Principal Redemption Amount”) ($31.2 million aggregate Accreted Value of
the Notes, assuming all of the Notes remain outstanding on such date) at a
redemption price of 100% of the Accreted Value of the portion of the Notes so
redeemed; provided, that
the Issuer shall simultaneously be required to redeem an additional portion of
each Note to the extent required to prevent such Note from being treated as an
“Applicable High Yield Discount Obligation” within the meaning of
Section 163(i)(1) of the Internal Revenue Code of 1986, as amended. The
Mandatory Principal Redemption Amount represents an amount approximately equal
to (i) the excess of the aggregate Accreted Value of all Notes outstanding on
June 15, 2009 over the aggregate original issue price thereof less (ii) an
amount equal to one year’s simple uncompounded interest on the aggregate
original issue price of such Notes at a rate per annum equal to the yield to
maturity on the Notes.

 

8.                                       Notice
of Redemption.  Subject to the
provisions of the Indenture, a notice of redemption will be mailed at least 30
days but not more than 60 days (or 45 days in the case of mandatory redemption)
before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address.  Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held 

 

A-5

 

by a Holder are to be redeemed. 
On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

 

9.                                       Repurchase
at Option of Holder.

 

(a)                                  If
there is a Change of Control, the Issuer shall be required to make an offer (a
“Change of Control Offer”) to repurchase all or any part (equal to
$1,000 or an integral multiple thereof) of each Holder’s Notes at a Purchase
Price equal to 101% of the Accreted Value thereof plus accrued and
unpaid interest and Additional Interest, if any, to the date of repurchase, in
accordance with the procedures set forth in the Indenture.  Within 30 days following any Change of
Control, the Issuer shall mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

 

(b)                                 Except
as otherwise provided in the Indenture, on the 396th day after an Asset Sale (a
“Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash
Proceeds which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (3)(a), (3)(b) and (3)(c) of paragraph (A)
of Section 4.10 of the Indenture (each, a “Net Proceeds Offer Amount”)
shall be applied by the Issuer or such Restricted Subsidiary to allow the
Issuer to make an offer to purchase (the “Net Proceeds Offer”) to all
Holders and, to the extent required by the terms of such Pari Passu
Indebtedness, an offer to purchase to all holders of such Pari Passu
Indebtedness, on a Purchase Date not less than 30 nor more than 45 days
following the applicable Net Proceeds Offer Trigger Date, from all Holders (and
holders of any such Pari Passu Indebtedness) on a pro  rata basis,
that amount of Notes (and Pari Passu Indebtedness) equal to the Net Proceeds
Offer Amount at a price equal to 100% of the Accreted Value of the Notes (and
Pari Passu Indebtedness) to be purchased, plus accrued and unpaid interest
thereon, if any, to the date of purchase. 
Each Net Proceeds Offer will be mailed to the record Holders as shown on
the register of Holders within 25 days following the Net Proceeds Offer Trigger
Date, with a copy to the Trustee, and shall comply with the procedures set
forth in the Indenture.  Upon receiving
notice of the Net Proceeds Offer, Holders may elect to tender their Notes in
whole or in part in integral multiples of $1,000 principal amount at maturity
in exchange for cash.  To the extent
Holders properly tender Notes and holders of Pari Passu Indebtedness properly
tender such Indebtedness having an Accreted Value in an amount exceeding the
Net Proceeds Offer Amount, the tendered Notes and Pari Passu Indebtedness will
be purchased on a pro  rata basis based on the Accreted Value of
Notes and Pari Passu Indebtedness tendered (and the Trustee shall select the
tendered Notes of tendering Holders on a pro  rata basis based on
the Accreted Value of Notes tendered). 
A Net Proceeds Offer shall remain open for a period of 20 business days
or such longer period as may be required by law.

 

10.                                 Denominations,
Transfer, Exchange.  The Notes are
in registered form without coupons in denominations of $1,000 principal amount
at maturity and integral multiples of $1,000 principal amount at maturity.  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
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.  The Issuer
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.

 

11.                                 Persons
Deemed Owners.  The registered
Holder of a Note may be treated as its owner for all purposes.

 

12.                                 Amendment,
Supplement and Waiver.  Subject to
certain exceptions, the Indenture, the Notes and the Guarantees, if any, may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount at maturity of the then outstanding Notes, and any existing
default or compliance with any provision of the Indenture or the Notes may be
waived with the consent of the Holders of a majority in principal amount at maturity
of the then outstanding Notes.  Without
the consent of any Holder of a Note, the Indenture, the Notes and the
Guarantees, if any, 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 

 

A-6

 

the Issuer’s or any Guarantor’s obligations to Holders of the Notes in
case of a merger or consolidation, to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely
affect the legal rights under the Indenture of any such Holder, or to comply
with the requirements of the Commission in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act.

 

13.                                 Defaults
and Remedies.  Events of Default
include:  (i) default for 30 days in the
payment when due of interest or Additional Interest, if any, on the Notes; (ii)
default in payment when due of principal, Redemption Price or Purchase Price of
the Notes when the same becomes due and payable at maturity, upon redemption,
repurchase or otherwise (including the failure to make a payment to purchase
Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer);
(iii) failure by the Issuer to comply with any covenant contained in the
Indenture for 45 days after notice to the Issuer by the Trustee or the Holders
of at least 25% of the aggregate principal amount at maturity of the Notes
outstanding; (iv) default under certain other agreements relating to
Indebtedness of the Issuer and certain of its Subsidiaries which default (a) is
caused by a failure to pay any amount due at the stated maturity thereof or (b)
results in the acceleration of such Indebtedness prior to its express maturity
and, in each case, the principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
default for failure to pay principal at final maturity or the maturity of which
has been so accelerated, aggregates $10.0 million or more and such failure
shall not have been cured or waived within 30 days thereof; (v) certain
final judgments for the payment of money that remain undischarged for a period
of 60 days, provided that the aggregate of all such undischarged
judgments exceeds $10.0 million; and (vi) certain events of bankruptcy or
insolvency with respect to the Issuer or any Significant Subsidiary of the
Issuer.  If any Event of Default occurs
and is continuing, the Trustee or the Holders of at least 25% in principal
amount at maturity of the then outstanding Notes may declare all the Notes to
be due and payable immediately.  Upon
any such declaration, the entire the Accreted Value of and accrued and unpaid
interest and Additional Interest, if any, on the Notes shall become immediately
due and payable.  Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, all outstanding Notes will become due and payable
without further action or notice. 
Holders may not enforce the Indenture or the Notes except as provided in
the Indenture.  Subject to certain
limitations, Holders of a majority in principal amount at maturity of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to payment on any Note) if it
determines that withholding notice is in their interest.  The Holders of a majority in principal
amount at maturity of the Notes may waive any existing or past Default or Event
of Default under the Indenture, and its consequences, except a default in the
payment of the principal of, or interest on any Notes.  The Issuer is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Issuer is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

14.                                 Trustee
Dealings with the Issuer.  Subject
to certain limitations, the Trustee under the Indenture, in its individual or
any other capacity, may become owner or pledge of Notes and may otherwise deal
with the Issuer or its Affiliates as if it were not the Trustee.

 

15.                                 No
Recourse Against Others.  No past,
present or future director, manager, officer, employee, incorporator (or Person
forming any limited liability company), agent, member or stockholder of the
Issuer, as such, shall have any liability for any obligations of the Issuer
under the Notes or the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for the issuance of the Notes.

 

16.                                 Authentication.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

 

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

 

A-8

 

18.                                 Discharge
Prior to Maturity.  If the Issuer
deposits with the Trustee or Paying Agent cash or U.S. Government Securities
sufficient to pay the Accreted Value, principal or Redemption Price of, and
interest and Additional Interest, if any, on, the Notes to maturity or a
specified Redemption Date and satisfies certain conditions specified in the
Indenture, the Issuer will be discharged from the Indenture, except for certain
Sections thereof.

 

19.                                 Governing
Law.  The Indenture and this Note
shall be governed by and construed in accordance with the laws of the State of
New York but without giving effect to applicable principles of conflicts of law
to the extent that the application of the law of another jurisdiction would be
required thereby.  Each of the Issuer
and the Trustee hereby irrevocably submits to the jurisdiction of any New York
state court sitting in the Borough of Manhattan in the City of New York or any
federal court sitting in the Borough of Manhattan in the City of New York in
respect of any suit, action or proceeding arising out of or relating to the
Indenture and the Notes, and irrevocably accepts for itself and in respect of
its property, generally and unconditionally, jurisdiction of the aforesaid
courts.  Each of the Issuer, the
Guarantors, if any, and the Trustee irrevocably waive, to the fullest extent
that it may effectively do so under applicable law, trial by jury and any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding brought in any such court and any claim that
any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum.  Nothing
herein shall affect the right of the Trustee or any Holder of the Notes to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against the Issuer in any other jurisdiction.

 

20.                                 CUSIP
Numbers.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer 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 correctness or accuracy of such numbers either as printed on the Notes
or as contained in any notice of redemption or repurchase and reliance may be
placed only on the other identification numbers placed thereon.

 

21.                                 Registration
Rights.  Pursuant to the
Registration Rights Agreement, the Issuer will be obligated upon the occurrence
of certain events to consummate an exchange offer pursuant to which the Holder
of this Note shall have the right to exchange this Series A Note for the
Issuer’s 13 1/4% Senior Discount Notes due 2011, Series B, which have
been registered under the Securities Act, in like principal amount and having
terms identical in all material respects as the Series A Notes.  The Holders shall be entitled to receive
certain additional interest payments in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in accordance
with the terms of the Registration Rights Agreement.

 

The Issuer will furnish to any Holder upon written request and without
charge a copy of the Indenture.  Request
may be made to:

 

Advanced Accessory Holdings Corporation

Sterling Town Center

12900 Hall Road, Suite 200

Sterling Heights, Michigan  48313

Attention:  Secretary

 

A-9

 

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

agent to transfer this Note on the books of the Issuer.  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:

  	
   

  	
   

  
	
   

  	
   

  	
  (Participant
  in recognized signature guarantee medallion program)

  	
   

  
									

 

A-10

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you wish to elect to have all or any portion of this Note purchased
by the Issuer pursuant to Section 4.10 (“Net Proceeds Offer”) or
Section 4.15 (“Change of Control Offer”) of the Indenture, check
the applicable boxes

 

	
  o

  	
  Net Proceeds Offer:

  	
   

  	
  o

  	
  Change of Control Offer:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in whole

  	
  o

  	
   

  	
  in whole

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in part

  	
  o

  	
   

  	
  in part

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Amount to be

  	
   

  	
   

  	
  Amount to be

  	
   

  
	
   

  	
  purchased:$

  	
   

  	
   

  	
   

  	
  purchased:$

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the
  other side of this Note)

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Participant
  in recognized signature guarantee medallion program)

  	
   

  
	
   

  	
   

  
	
  Social Security Number or

  	
   

  	
   

  
	
  Taxpayer Identification Number:

  	
   

  	
   

  
															

 

A-11

 

EXHIBIT B

 

FORM
OF SERIES B NOTE

 

(Face of Note)

 

ADVANCED ACCESSORY HOLDINGS CORPORATION

 

13 1/4% SENIOR DISCOUNT NOTE DUE 2011

 

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

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.](2)

 

(2)                                  To
be included only if the Note is issued in global form.

 

B-1

 

ADVANCED ACCESSORY HOLDINGS CORPORATION

 

13 1/4 % SENIOR DISCOUNT NOTE DUE 2011

 

THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF
SECTION 1271 ET SEQ. OF THE INTERNAL REVENUE CODE.  FOR EACH $1,000 PRINCIPAL AMOUNT AT MATURITY
OF THIS NOTE, THE ISSUE PRICE IS $571.28. 
THE ISSUE DATE OF THIS NOTE IS FEBRUARY 4, 2004 AND THE YIELD TO
MATURITY IS 13.25%.

 

	
   

  	
  CUSIP No.

  	
   

  
	
  No.

  	
   

  	
   

  	
  $

  	
   

  
						

 

Interest Payment Dates: June 15 and December 15

Record Dates: June 1 and December 1

 

ADVANCED ACCESSORY HOLDINGS CORPORATION, a Delaware corporation (the “Issuer”),
which term includes any successor entity under the Indenture hereinafter
referred to), for value received, promises to pay to CEDE & CO., or its
registered assigns, the principal sum of
                                          
Dollars on December 15, 2011.

 

Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as set forth at this place.

 

Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall
not be entitled to any benefits under the Indenture referred to on the reverse
hereof or be valid or obligatory for any purpose.

 

[Signatures on following page]

 

B-2

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly
executed.

 

	
   

  	
  ADVANCED ACCESSORY HOLDINGS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
  This is one of the Notes referred to

  	
   

  
	
  in the within-mentioned Indenture:

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  BNY MIDWEST TRUST COMPANY,

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

B-3

 

(Back of Note)

 

13 1/4% Senior Discount Notes due 2011

 

Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

 

1.                                       Interest.  The Issuer promises to pay interest on the
principal amount of this Note at the rate of 13 1/4% per annum and shall
pay the Additional Interest pursuant to Section 4 of the Registration
Rights Agreement referred below. Prior to June 15, 2008, interest on the
Note will accrue in the form of an increase in the Accreted Value of the Note,
and no cash interest shall be paid.  The
Accreted Value of the Note will increase from the date of issuance until
June 15, 2008 at a rate of 
13 1/4% per annum compounded semi-annually as provided
in the definition of “Accreted Value” in the Indenture such that the Accreted
Value will equal the principal amount at maturity on June 15, 2008.  Beginning on June 15, 2008, cash
interest on the Notes will accrue at the rate of 13 1/4% per annum.  The Issuer will pay interest and Additional
Interest, if any, semi-annually on June 15 and December 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”) commencing December 15,
2008; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date.  The Issuer shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
payments of the principal, Purchase Price and Redemption Price of this Note
from time to time on demand at a rate that is 1% per annum in excess of the
rate then in effect; it shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue installments of interest
and Additional Interest, if any, (without regard to any applicable grace
periods) hereon 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 Issuer will pay
interest on the Notes (except defaulted interest) and Additional Interest, if
any, to the Persons who are registered Holders of Notes at the close of
business on the June 1 and December 1 next preceding the Interest
Payment Date, even if such Notes are canceled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest.  Any such installment of interest or Additional Interest, if any,
not punctually paid or duly provided for shall forthwith cease to be payable to
the registered Holders on such Interest Payment Date, and may be paid to the
registered Holders at the close of business on a special interest payment date
to be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered Holders not less than 10 days prior to
such special interest payment date, or may be paid at any time 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, all as more fully provided in the Indenture.  The Notes will be payable as to Accreted
Value or principal, Redemption Price, Purchase Price, interest and Additional
Interest, if any, at the office or agency of the Issuer maintained for such
purpose within or without the City and State of New York, or, at the option of
the Issuer, payment of interest and Additional Interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders, provided
that payment by wire transfer of immediately available funds will be required
with respect to Accreted Value or principal, Redemption Price and Purchase
Price of, and interest and Additional Interest (if any) on, all Global Notes
and all other Notes the Holders of which shall have provided wire transfer
instructions to the Trustee or the Paying Agent.  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, BNY
Midwest Trust Company, the Trustee under the Indenture, will act as Paying
Agent and Registrar.  The Issuer may
change any Paying Agent or Registrar without notice to any Holder.  The Issuer may act in any such capacity.

 

4.                                       Indenture.  The Issuer issued $88.0 million in aggregate
principal amount of the Notes on the Issue Date under an Indenture dated as of
February 4, 2004 (the “Indenture”) between the Issuer 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 

 

B-4

 

Trust Indenture Act of 1939, as amended (15 U.S.C. 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.  The
Notes are general obligations of the Issuer.

 

5.                                       Optional
Redemption.  The Issuer may redeem
any or all of the Notes at any time on or after February 15, 2009, upon
not less than 30 nor more than 60 days’ prior notice in amounts of $1,000 or an
integral multiple thereof at the Redemption Prices (expressed as a percentage
of the Accreted Value) set forth below, if redeemed during the 12-month period
beginning February 15 of the years indicated below:

 

	
  Year

  	
   

  	
  Redemption
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  113.250

  	
  %

  
	
  2010

  	
   

  	
  106.625

  	
  %

  
	
  2011 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

in each case together with accrued and unpaid interest and Additional
Interest, if any, to the Redemption Date.

 

If less than all the Notes are to be redeemed, the Trustee will select
the particular Notes or portions thereof to be redeemed by lot, pro  rata
or by any other method the Trustee shall deem fair and reasonable.

 

6.                                       Special
Redemption.  In the event the Issuer
completes one or more Public Equity Offerings on or before June 15, 2007,
the Issuer, at its option, may use the net cash proceeds from any such Public
Equity Offering to redeem up to 35% of the principal amount at maturity of the
Notes (a “Special Redemption”) at a Redemption Price of 113.25% of the
Accreted Value thereof, provided, however, that at least 65% of
the principal amount at maturity of the Notes will remain outstanding
immediately after each such redemption; and provided, further,
that each such redemption shall occur within 90 days after the date of the
closing of the applicable Public Equity Offering.  If less than all the Notes are to be redeemed, the Trustee will
select the particular Notes or portions thereof to be redeemed by lot, only on
a prorata basis or on as nearly a pro  rata basis as
is practicable (subject to DTC procedures).

 

In addition, prior to June 15, 2007, upon the occurrence of a
Change of Control, the Notes may be redeemed by the Issuer or the acquiring
party, in whole but not in part, at a redemption price equal to 113.25% of the
Accreted Value thereof on the redemption date; provided,
that such redemption (the “Change of Control Redemption”) occurs
within 75 days of the occurrence of such Change of Control.

 

7.                                       Mandatory
Redemption.  On June 15,
2009, if any Notes are outstanding, the Issuer will be required to redeem 35.5%
of each Note (provided that if such redemption results in any unredeemed
portion of a Note having a principal amount that is not a round multiple of
$1,000, the Issuer shall redeem an additional portion of such Note so as to
reduce the principal amount to a round multiple of $1,000) then outstanding
(the “Mandatory Principal Redemption Amount”) ($31.2 million aggregate
Accreted Value of the Notes, assuming all of the Notes remain outstanding on
such date) at a redemption price of 100% of the Accreted Value of the portion
of the Notes so redeemed; provided,
that the Issuer shall simultaneously be required to redeem an additional
portion of each Note to the extent required to prevent such Note from being
treated as an “Applicable High Yield Discount Obligation” within the meaning of
Section 163(i)(1) of the Internal Revenue Code of 1986, as amended. The
Mandatory Principal Redemption Amount represents an amount approximately equal
to (i) the excess of the aggregate Accreted Value of all Notes outstanding on
June 15, 2009 over the aggregate original issue price thereof less (ii) an
amount equal to one year’s simple uncompounded interest on the aggregate
original issue price of such Notes at a rate per annum equal to the yield to
maturity on the Notes.

 

8.                                       Notice
of Redemption.  Subject to the
provisions of the Indenture, a notice of redemption will be mailed at least 30
days but not more than 60 days (or 45 days in the case of Mandatory redemption)
before the Redemption Date to each Holder whose Notes are to be redeemed at its
registered address.  Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held 

 

B-5

 

by a Holder are to be redeemed. 
On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

 

9.                                       Repurchase
at Option of Holder.

 

(a)                                  If
there is a Change of Control, the Issuer shall be required to make an offer (a
“Change of Control Offer”) to repurchase all or any part (equal to
$1,000 or an integral multiple thereof) of each Holder’s Notes at a Purchase
Price equal to 101% of the Accreted Value thereof plus accrued and unpaid
interest and Additional Interest, if any, to the date of repurchase, in
accordance with the procedures set forth in the Indenture.  Within 30 days following any Change of
Control, the Issuer shall mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

 

(b)                                 Except
as otherwise provided in the Indenture, on the 396th day after an Asset Sale (a
“Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash
Proceeds which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (3)(a), (3)(b) and (3)(c) of paragraph (A)
of Section 4.10 of the Indenture (each, a “Net Proceeds Offer Amount”)
shall be applied by the Issuer or such Restricted Subsidiary to allow the
Issuer to make an offer to purchase (the “Net Proceeds Offer”) to all
Holders and, to the extent required by the terms of such Pari Passu
Indebtedness, an offer to purchase to all holders of such Pari Passu
Indebtedness, on a Purchase Date not less than 30 nor more than 45 days
following the applicable Net Proceeds Offer Trigger Date, from all Holders (and
holders of any such Pari Passu Indebtedness) on a pro  rata basis,
that amount of Notes (and Pari Passu Indebtedness) equal to the Net Proceeds
Offer Amount at a price equal to 100% of the Accreted Value of the Notes (and
Pari Passu Indebtedness) to be purchased, plus accrued and unpaid interest
thereon, if any, to the date of purchase. 
Each Net Proceeds Offer will be mailed to the record Holders as shown on
the register of Holders within 25 days following the Net Proceeds Offer Trigger
Date, with a copy to the Trustee, and shall comply with the procedures set
forth in the Indenture.  Upon receiving
notice of the Net Proceeds Offer, Holders may elect to tender their Notes in
whole or in part in integral multiples of $1,000 principal amount at maturity
in exchange for cash.  To the extent
Holders properly tender Notes and holders of Pari Passu Indebtedness properly
tender such Indebtedness having an Accreted Value in an amount exceeding the
Net Proceeds Offer Amount, the tendered Notes and Pari Passu Indebtedness will
be purchased on a pro  rata basis based on the Accreted Value of
Notes and Pari Passu Indebtedness tendered (and the Trustee shall select the
tendered Notes of tendering Holders on a pro  rata basis based on
the Accreted Value of Notes tendered). 
A Net Proceeds Offer shall remain open for a period of 20 business days
or such longer period as may be required by law.

 

10.                                 Denominations,
Transfer, Exchange.  The Notes are
in registered form without coupons in denominations of $1,000 principal amount
at maturity and integral multiples of $1,000 principal amount at maturity.  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
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture.  The Issuer
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.

 

11.                                 Persons
Deemed Owners.  The registered
Holder of a Note may be treated as its owner for all purposes.

 

12.                                 Amendment,
Supplement and Waiver.  Subject to
certain exceptions, the Indenture, the Notes and the Guarantees, if any, may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount at maturity of the then outstanding Notes, and any existing
default or compliance with any provision of the Indenture or the Notes may be
waived with the consent of the Holders of a majority in principal amount at
maturity of the then outstanding Notes. 
Without the consent of any Holder of a Note, the Indenture, the Notes
and the Guarantees, if any, 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 

 

B-6

 

the Issuer’s or any Guarantor’s obligations to Holders of the Notes in
case of a merger or consolidation, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, or to
comply with the requirements of the Commission in order to effect or maintain
the qualification of the Indenture under the Trust Indenture Act.

 

13.                                 Defaults
and Remedies.  Events of Default
include:  (i) default for 30 days in the
payment when due of interest or Additional Interest, if any, on the Notes; (ii)
default in payment when due of principal, Redemption Price or Purchase Price of
the Notes when the same becomes due and payable at maturity, upon redemption,
repurchase or otherwise (including the failure to make a payment to purchase
Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer);
(iii) failure by the Issuer to comply with any covenant contained in the
Indenture for 45 days after notice to the Issuer by the Trustee or the Holders
of at least 25% of the aggregate principal amount at maturity of the Notes
outstanding; (iv) default under certain other agreements relating to
Indebtedness of the Issuer and certain of its Subsidiaries which default (a) is
caused by a failure to pay any amount due at the stated maturity thereof or (b)
results in the acceleration of such Indebtedness prior to its express maturity
and, in each case, the principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
default for failure to pay principal at final maturity or the maturity of which
has been so accelerated, aggregates $10.0 million or more and such failure
shall not have been cured or waived within 30 days thereof; (v) certain
final judgments for the payment of money that remain undischarged for a period
of 60 days, provided that the aggregate of all such undischarged
judgments exceeds $10.0 million; and (vi) certain events of bankruptcy or
insolvency with respect to the Issuer or any Significant Subsidiary of the
Issuer.  If any Event of Default occurs
and is continuing, the Trustee or the Holders of at least 25% in principal
amount at maturity of the then outstanding Notes may declare all the Notes to
be due and payable immediately.  Upon
any such declaration, the entire the Accreted Value of and accrued and unpaid
interest and Additional Interest, if any, on the Notes shall become immediately
due and payable.  Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, all outstanding Notes will become due and payable
without further action or notice. 
Holders may not enforce the Indenture or the Notes except as provided in
the Indenture.  Subject to certain
limitations, Holders of a majority in principal amount at maturity of the then
outstanding Notes may direct the Trustee in its exercise of any trust or
power.  The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to payment on any Note) if it
determines that withholding notice is in their interest.  The Holders of a majority in principal
amount at maturity of the Notes may waive any existing or past Default or Event
of Default under the Indenture, and its consequences, except a default in the
payment of the principal of, or interest on any Notes.  The Issuer is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and the
Issuer is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

14.                                 Trustee
Dealings with Issuer.  Subject to
certain limitations, the Trustee under the Indenture, in its individual or any
other capacity, may become owner or pledge of Notes and may otherwise deal with
the Issuer or its Affiliates as if it were not the Trustee.

 

15.                                 No
Recourse Against Others.  No past,
present or future director, manager, officer, employee, incorporator (or Person
forming any limited liability company), agent, member or stockholder of the
Issuer, as such, shall have any liability for any obligations of the Issuer
under the Notes or the Indenture or for any claim based on, in respect of, or
by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such
liability.  The waiver and release are
part of the consideration for the issuance of the Notes.

 

16.                                 Authentication.  This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

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

 

B-7

 

18.                                 Discharge
Prior to Maturity.  If the Issuer
deposits with the Trustee or Paying Agent cash or U.S. Government Securities
sufficient to pay the Accreted Value, principal or Redemption Price of, and
interest and Additional Interest, if any, on, the Notes to maturity or a
specified Redemption Date and satisfies certain conditions specified in the
Indenture, the Issuer will be discharged from the Indenture, except for certain
Sections thereof.

 

19.                                 Governing
Law.  The Indenture, the Guarantees
and this Note shall be governed by and construed in accordance with the laws of
the State of New York but without giving effect to applicable principles of
conflicts of law to the extent that the application of the law of another
jurisdiction would be required thereby. 
Each of the Issuer, the Guarantors, if any, and the Trustee hereby
irrevocably submits to the jurisdiction of any New York state court sitting in
the Borough of Manhattan in the City of New York or any federal court sitting
in the Borough of Manhattan in the City of New York in respect of any suit,
action or proceeding arising out of or relating to the Indenture and the Notes,
and irrevocably accept for itself and in respect of its property, generally and
unconditionally, jurisdiction of the aforesaid courts.  Each of the Issuer, the Guarantors, if any,
and the Trustee irrevocably waive, to the fullest extent that it may
effectively do so under applicable law, trial by jury and any objection which
it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding brought in any such court and any claim that any such
suit, action or proceeding brought in any such court has been brought in an
inconvenient forum.  Nothing herein
shall affect the right of the Trustee or any Holder of the Notes to serve
process in any other manner permitted by law or to commence legal proceedings
or otherwise proceed against the Issuer or any Guarantor in any other jurisdiction.

 

20.                                 CUSIP
Numbers.  Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer 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 correctness or accuracy of such numbers either as printed on the Notes
or as contained in any notice of redemption or repurchase and reliance may be
placed only on the other identification numbers placed thereon.

 

The Issuer will furnish to any Holder upon written request and without
charge a copy of the Indenture.  Request
may be made to:

 

Advanced Accessory Corporation

Sterling Town Center

12900 Hall Road, Suite 200

Sterling Heights, Michigan  48313

Attention:  Secretary

 

B-8

 

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

agent to transfer this Note on the books of the Issuer.  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:

  	
   

  	
   

  
	
   

  	
   

  	
  (Participant
  in recognized signature guarantee medallion program)

  	
   

  
									

 

B-9

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you wish to elect to have all or any portion of this Note purchased
by the Issuer pursuant to Section 4.10 (“Net Proceeds Offer”) or
Section 4.15 (“Change of Control Offer”) of the Indenture, check
the applicable boxes

 

	
  o

  	
  Net Proceeds Offer:

  	
   

  	
  o

  	
  Change of Control Offer:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in whole

  	
  o

  	
   

  	
  in whole

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  in part

  	
  o

  	
   

  	
  in part

  	
  o

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Amount to be

  	
   

  	
   

  	
  Amount to be

  	
   

  
	
   

  	
  purchased: $

  	
   

  	
   

  	
   

  	
  purchased: $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the
  other side of this Note)

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
	
   

  	
  (Participant
  in recognized signature guarantee medallion program)

  	
   

  
	
   

  	
   

  
	
  Social Security Number or

  	
   

  	
   

  
	
  Taxpayer Identification Number:

  	
   

  	
   

  
														

 

B-10

 

EXHIBIT C

 

GUARANTEE

 

For value received, the undersigned hereby unconditionally guarantees,
as principal obligor and not only as a surety, to the Holder of this Note the
cash payments in United States dollars of principal of, premium, if any, and
interest on this Note (and including Additional Interest payable thereon) in
the amounts and at the times when due and interest on the overdue principal,
premium, if any, and interest, if any, of this Note, if lawful, and the payment
or performance of all other Obligations of the Issuer under the Indenture (as defined
below) or the Note, to the Holder of this Note and the Trustee, all in
accordance with and subject to the terms and limitations of this Note,
Article Eleven of the Indenture and this Guarantee.  This Guarantee will become effective in
accordance with Article Eleven of the Indenture and its terms shall be
evidenced therein.  The validity and
enforceability of this Guarantee shall not be affected by the fact that it is
not affixed to any particular Note. 
Capitalized terms used but not defined herein shall have the meanings
ascribed to them in the Indenture dated as of February 4, 2004, among Advanced
Accessory Holdings Corporation, a Delaware corporation (the “Issuer”)
and BNY Midwest Trust Company, as trustee (the “Trustee”) (as amended or
supplemented, the “Indenture”).

 

THIS GUARANTEE SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY. 
Each Guarantor hereby agrees to submit to the jurisdiction of the courts
of the State of New York in any action or proceeding arising out of or relating
to this Guarantee.

 

[Signatures on following page]

 

C-1

 

This Guarantee is subject to release upon the terms set forth in the
Indenture.

 

	
   

  	
  [GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-2

 

EXHIBIT D(1)

 

FORM
OF REGULATION S CERTIFICATE

 

                                      ,              

 

BNY Midwest Trust Company

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

 

Attention:  Corporate Trust
Department

 

Re:                               Advanced Accessory
Holdings Corporation (the “Issuer”)

13 1/4% Senior Discount Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

This letter relates to U.S. $
                            
principal amount at maturity of Notes represented by a certificate (the “Legended
Certificate”) which bears a legend outlining restrictions upon transfer of
such Legended Certificate.  Pursuant to
Section 2.1 of the Indenture (the “Indenture”) dated as of
February 4, 2004 relating to the Notes, we hereby certify that we are (or
we will hold such securities on behalf of) a person outside the United States
to whom the Notes could be transferred in accordance with Rule 904 of
Regulation S promulgated under the U.S. Securities Act of 1933, as amended.

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Holder]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  	
   

  

 

D(1)-1

 

EXHIBIT D(2)

 

CERTIFICATE
TO BE DELIVERED

UPON EXCHANGE OR REGISTRATION OF TRANSFER OF NOTES

 

                                  ,
            

 

BNY Midwest Trust Company

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

 

Attention:  Corporate Trust
Department

 

Re:                               Advanced Accessory
Holdings Corporation (the “Issuer”)

13 1/4% Senior Discount Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

This Certificate relates to $                          
principal amount of Notes held in *        
book-entry or *           
certificated form by                                            (the
“Transferor”).

 

The Transferor:*

 

o has requested the
Trustee by written order to deliver in exchange for its beneficial interest in
the Global Note held by the Depositary a Note or Notes in certificated,
registered form of authorized denominations in an aggregate principal amount
equal to its beneficial interest in such Global Note (or the portion thereof
indicated above); or

 

o has requested the
Trustee by written order to exchange or register the transfer of a Note or
Notes.

 

In connection with such request and in respect of each such Note, the
Transferor does hereby certify that Transferor is familiar with the Indenture
relating to the above captioned Notes and as provided in Section 2.6 of
such Indenture, the transfer of this Note does not require registration under
the Securities Act (as defined below) because:*

 

o Such Note is being
acquired for the Transferor’s own account, without transfer.

 

o Such Note is being
transferred to a “qualified institutional buyer” (as defined in Rule
144A under the Securities Act of 1933, as amended (the “Securities Act”))
in reliance on Rule 144A.

 

o Such Note is being
transferred to an “Accredited Investor” (as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act) in accordance with Regulation D under
the Securities Act.

 

 

*                                         Check
applicable box 

 

D(2)-1

 

o Such Note is being
transferred pursuant to an exemption from registration in accordance with
Regulation S under the Securities Act.

 

o Such Note is being
transferred in accordance with Rule 144 under the Securities Act, or pursuant
to an effective registration statement under the Securities Act.

 

o Such Note is being
transferred in reliance on and in compliance with an exemption from the
registration requirements of the Securities Act, other than Rule 144A, 144 or
Rule 904 under the Securities Act.  An
Opinion of Counsel to the effect that such transfer does not require
registration under the Securities Act accompanies this Certificate.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INSERT NAME OF TRANSFEROR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
					

 

D(2)-2

 

EXHIBIT E

 

FORM
OF CERTIFICATE TO BE

DELIVERED IN CONNECTION WITH

TRANSFERS TO NON QIB ACCREDITED INVESTORS

 

                                            ,              

 

BNY Midwest Trust Company 

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

 

Attention:  Corporate Trust
Department

 

Re:                               Advanced Accessory
Holdings Corporation (the “Issuer”)

13 1/4% Senior Discount Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

In connection with our proposed purchase of 13 1/4% Senior
Discount Notes due 2011 (the “Notes”) of the Issuer, we confirm that:

 

1.                                       We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of
February 4, 2004 relating to the Notes (the “Indenture”) and the
undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes except in compliance with such restrictions and conditions
and the Securities Act of 1933, as amended (the “Securities Act”).

 

2.                                       We
understand that the Notes have not been registered under the Securities Act or
any other applicable securities law, and that the Notes may not be offered,
sold or otherwise transferred 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 offer, sell, transfer, pledge, hypothecate or otherwise
dispose of any Notes within two years after the original issuance of the Notes,
we will do so only (A) to the Issuer or any subsidiary thereof, (B) inside
the United States to a “qualified institutional buyer” in compliance with Rule
144A under the Securities Act, (C) inside the United States to an institutional
“accredited investor” (as defined below) that, prior to such transfer,
furnishes to you a signed letter substantially in the form of this letter, (D)
outside the United States to a foreign person in compliance with Rule 904 of
Regulation S under the Securities Act, (E) pursuant to the exemption from
registration provided by Rule 144 under the Securities Act (if available) (F)
in accordance with another exemption from the registration requirements of the
Securities, or (G) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person purchasing any of
the Notes from us a notice advising such purchaser that resales of the Notes
are restricted as stated herein and in the Indenture.

 

3.                                       We
understand that, on any proposed transfer of any Notes prior to the later of
the original issue date of the Securities and the last date the Notes were held
by an affiliate of the Issuer pursuant to paragraphs 2(C), 2(D) and 2(E) above,
we will be required to furnish to you and the Issuer such certifications, legal
opinions and other information as you and the Issuer may reasonably require to
confirm that the proposed transfer complies with the foregoing
restrictions.  We further understand
that the Notes purchased by us will bear a legend to the foregoing effect.

 

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

 

E-1

 

of evaluating the merits and risks of our investment in the Notes, and
we and any accounts for which we are acting are acquiring the Notes for
investment purposes and not with a view to, or offer of sale in connection
with, any distribution in violation of the Securities Act, and we are each able
to bear the economic risk of our or its investment.

 

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

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  	
   

  

 

E-2

 

EXHIBIT F

 

FORM
OF CERTIFICATE TO BE DELIVERED

IN CONNECTION WITH TRANSFERS

PURSUANT TO REGULATION S

 

                                    ,
            

 

BNY Midwest Trust Company

Attention:  Corporate Trust Department

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

 

Re:                               Advanced Accessory
Holdings Corporation (the “Issuer”)

13 1/4% Senior Discount Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

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

 

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

 

(2)                                  at
the time the buy order was originated, the transferee was outside the United
States or we and any person acting on our behalf reasonably believed that the
transferee was outside the United States;

 

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

 

(4)                                  the
transaction is not part of a plan or scheme to evade the registration
requirements of the U.S. Securities Act of 1913.

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  	
   

  

 

F-1

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