Document:

HELPcard Merchant Agreement

 Exhibit 10.2 

 

			
	 COMPANY:
  

Dent-A-Med, Inc.
     d.b.a.
The HELPcard
 Mailing Address:
 CT
Corporation
 735 First National Building

120 North Robinson
 Oklahoma City, OK
73102
 Phone: 479-750-6700
 Facsimile
No.: 888-621-7978
	 	 MERCHANT:
  

Nautilus, Inc.
 16400 SE Nautilus
Drive
 Vancouver, WA 98683

The HELPcard Merchant Agreement 

This HELPcard Non-Recourse Merchant Agreement (“Agreement”) is made and entered into as of the
11th day of June 2010 (“Effective Date”), by and
between Dent-A-Med Inc. (“Company”) d.b.a. The HELPcard, for itself and any Eligible Assignee (as defined and described in Section 1. hereof) and Nautilus, Inc., a Washington corporation (herein “Merchant”). In consideration
of the mutual promises, covenants, and agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Merchant and Company agree as follows: 

Section 1. Definitions. 
 In
addition to the words and phrases defined above and elsewhere in this Agreement, the following words and phrases shall have the following meanings: 

a. “Account” means an account resulting from the issuance of a Card. An Account may have more than one Card issued for it. Each
Account shall be owned by, and deemed to be the property of, Company and/or Eligible Assignee. 
 b. “Affiliate” means
any entity that is owned by, owns or is under common control with Company, Eligible Assignee or Merchant or its ultimate parent. 

c. “Applicable Law” means collectively or individually any applicable law, rule, regulation or judicial, governmental or
administrative order, decree, ruling, opinion or interpretation. 
 d. “Application” means an application for an
Account under the Program. 
 e. “Authorization” means permission from Company and/or Eligible Assignee to make a Card
Sale. 
 f. “Authorization Center” means the facility designated by Company and/or Eligible Assignee as the facility at
which Card Sales are authorized. 
  

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 g. “Business Day” means any day except Saturday or Sunday or a day on which banks
are closed in the State of Arkansas. 
 h. “Card” means the credit card issued by Company and/or Eligible Assignee for
the Program. 
 i. “Cardholder” means (i) the person in whose name an Account is opened, and (ii) any other
authorized users of the Account and Card. 
 j. “Cardholder Agreement and Disclosure Statement” (also sometimes
referred to as the “Cardholder Agreement”) means the credit card agreement between Company and/or Eligible Assignee and each Cardholder providing for the extension of credit by Company and/or Eligible Assignee under the Program pursuant to
which the Cardholder is issued a Card, as the same may be revised from time to time by Company and/or Eligible Assignee with notification to Merchant. 

k. “Card Sale” means any sale of Goods that Merchant makes to a Cardholder pursuant to this Agreement that is charged to an
Account. 
 l. “Chargeback” means the return to Merchant and reimbursement to Company and/or Eligible Assignee of a
Sales Slip for which Merchant was previously paid pursuant to Section 3 herein. 
 m. “Credit Slip” means evidence
of credit in electronic, verbal recording, or paper form for Goods purchased from Merchant. 
 n. “Eligible Assignee”
means CIT Bank, or any other bank or entity, which originates or purchases Accounts or is an assignee by reason of Company’s pledge or sale of the Accounts or the receivables generated by the Accounts. 

o. “Fees” means the fee payable by Merchant to Company and/or Eligible Assignee as described in Section 3.c. hereof.

 p. “Goods” means the products or services described in Section 2 below, certain warranties expressly authorized
by Company, and related services sold by Merchant in the ordinary course of Merchant’s business to consumers for individual, family, personal or household use. 

q. “Internet Application” means any Application for a Card which is received by Company and/or Eligible Assignee on-line via the
Company and/or Eligible Assignee web site. 
 r. “Mailed-In Application” means any Application for a Card which is
received by Merchant, Company and/or Eligible Assignee through the mail. 
 s. “Operating Instructions” means the
regulatory guidelines and operating instructions and/or procedures or written instructions designated by Company and/or Eligible 

 

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Assignee and agreed to from time to time in writing by Merchant, which agreement shall not be unreasonably withheld, from time to time concerning the Program. 

t. “Program” means the revolving credit card program promoted by Merchant whereby Accounts will be established and maintained by
Company and/or Eligible Assignee, Cards issued by Company and/or Eligible Assignee to qualified consumers purchasing Merchant’s Goods, and Card Sales funded all pursuant to the terms of this Agreement. 

u. “Sales Slip” means evidence of a Card Sale in electronic, verbal recording, or paper form for Goods purchased from Merchant.

 v. “Telephone Application” means any Application for a Card which is received from a consumer or solicited by
Merchant via telephone and for which the applicant’s credit or other information required to apply for a Card is obtained by Merchant from the applicant over the telephone. 

w. “Terminal” means an electronic terminal or computer capable of communicating by means of an on-line or dial-up electronic
link with an Authorization Center. 
 Section 2. Scope and Purpose. 

Merchant engages in the sale of fitness equipment and other products. Merchant has requested Company and/or Eligible Assignee to make financing available
to consumers purchasing Goods from Merchant and Merchant has agreed to execute this Agreement in order to make the Program available to its consumers and secure its benefit for Merchant. Company and/or Eligible Assignee has agreed to provide
financing under the Program to individual qualified consumers purchasing Merchant’s Goods pursuant to the terms and conditions set forth in this Agreement. 

a. Forms and Cards. Company will provide to Merchant standard Sales Slips, Credit Slips and other forms from time to time for use by
Merchant in the Program, which documents may be changed from time to time by Company upon reasonable advance notice to Merchant. Merchant agrees to pay for non-standard forms and for forms in excess of normal usage. The design and content of Cards
and billing statements and the terms and conditions of Accounts and combined Applications and Cardholder Agreement and Disclosure Statement shall be determined by Company and/or Eligible Assignee and are subject to change by Company and/or Eligible
Assignee from time to time. 
 b. Credit Review, Ownership of Accounts. All completed Applications for Accounts submitted to
Company and/or Eligible Assignee will be processed and approved or declined by Company and/or Eligible Assignee in accordance with Company’s and/or Eligible Assignee’s standard credit criteria and procedures from time to time established
by Company and/or Eligible Assignee, with Company and/or Eligible Assignee having and retaining all rights to reject or accept such Applications. Company and/or Eligible Assignee will only accept Applications for revolving credit pursuant to the
credit card it issues for individual, personal, family or household use. Company and/or Eligible Assignee shall own the Accounts and shall bear the credit risk for such Accounts, except as otherwise provided in this Agreement. Merchant acknowledges
and agrees that it shall 
  

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have no interest whatsoever in the Accounts. Company and/or Eligible Assignee shall not be obligated to take any action under an Account, including making future advances or credit available to
Cardholders. Company and/or Eligible Assignee shall not be obligated to accept Applications for a Card or to approve any Card Sale for consumers that do not have their principal residence and billing address in the fifty United States or the
District of Columbia. 
 c. Card Promotions, Services and Enhancements. Company and Merchant may from time to time mutually agree
to offer to existing or potential Cardholders special credit promotions, additional services and/or enhancements. The terms of such promotions, services and enhancements shall be mutually agreed upon by Company and Merchant and are subject to change
or discontinuance by Company and Merchant. In consideration of Company’s providing special credit promotions that are mutually agreed upon by Company and Merchant in writing and to compensate Company for such promotions, Merchant agrees to pay
to Company for the period agreed upon by Company and Merchant such rates, amounts and/or be subject to discounts expressly set forth herein or as Company and Merchant may mutually agree upon in writing from time to time. Company may deduct amounts
owed to it hereunder from amounts owed to Merchant under this Agreement. 
 d. Merchant Customer Lists. Company acknowledges that
the names and addresses of Merchant customers provided by Merchant to Company constitute a customer list of Merchant in which Merchant has proprietary rights and which Merchant regards as (and which is acknowledged by Company to constitute) a trade
secret of Merchant. Accordingly, Company and/or Eligible Assignee shall not use such list except with the prior written consent of Merchant, or to carry out its obligations under this Agreement. Merchant grants to Company and/or Eligible Assignee
the right to use such customer list solely for such purposes. Company and/or Eligible Assignee shall exercise such care with respect to such customer list as it does with its own trade secrets. Notwithstanding the confidentiality provisions of this
Agreement, Merchant as owner of such customer list may use such names and addresses for any purpose. 
 e. Cardholder List.
Merchant agrees that Company and/or Eligible Assignee is the owner of the Cardholder list and that Company, Eligible Assignee and its Affiliates may use such list to solicit Cardholders for credit card products offered by Company, Eligible Assignee
and/or any of its Affiliates or other types of accounts or financial products or insurance services offered by Company and/or any of its Affiliates. The Cardholder list shall be subject to the confidentiality provisions of this Agreement.

 Section 3. Fees, Discounts, Charges, Rates and Funding. 

Except as otherwise provided herein, the following consumer rate, fees, discount and charges shall be effective for the Initial Term of this Agreement.

  

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 a. Consumer Rate. The consumer rate to be charged on purchases with the Card shall be a
variable rate equal to the prime rate plus a margin of *% subject to change from time to time by Company and/or Eligible Assignee, but in no event less than *% or greater than the maximum allowable rate permitted by applicable law. 

b. Determination of Fees and Discounts. The rate, Fees, discounts and charges described in this Section 3 are subject to change by
Company and will become effective upon 30 days advance notice to Merchant. 
 c. Merchant. Merchant agrees to pay the Company a
Fee equal to *% of the amount of credit that is approved and fully funded by Company; such payment shall be made by discount or deduction of said Fee from amounts paid to Merchant by the Company. Merchant agrees to pay the Company a return Fee, if
applicable, for each credit, return and/or Chargeback as set forth in the Return/Credit/Chargeback Policy attached to this Agreement; such payment shall be made by discount or deduction of said return Fee from amounts paid to Merchant by Company.

 d. Acceptance, Offset & Funding. 

(i) Company agrees to pay to Merchant the amount of each valid and authorized Sales Slip presented to Company during the term of this
Agreement, less the amount of the outstanding Fees, Credit Slips, amounts described herein, and amounts agreed to by the parties pursuant to Section 2.c, that Merchant owes to Company at the time. Outstanding Account balances for Sales Slips
subject to Chargeback and any other amounts owed by Merchant to Company under this Agreement may also offset or be recouped from future amounts owed to Merchant under this Agreement. Any amounts owed by Merchant to Company that cannot be paid by the
aforesaid means shall be due and payable by Merchant within 10 days of Merchant’s receipt of written notice for such amount. Should Merchant fail to repay amounts due Company within 10 days of notice the Company may assess interest at *% per
annum on the amount due from the date the debt occurred until cured. Any payment made by Company to Merchant shall not be final but shall be subject to subsequent review and verification by Company as to Merchant’s compliance with the terms and
conditions set forth in this Agreement as they relate to the transaction initiating the obligation by Company to pay Merchant, including, without limitation, Sections 4, 5, 7, and 8. Company’s liability to Merchant with respect to the funding
of any Card Sale or Sales Slip shall not exceed the amount on the relevant Sales Slip less the amount of a relevant Credit Slip) in connection with such transaction. In no event shall Company or Merchant be liable for incidental or consequential
damages under or in connection with this Agreement or any transaction contemplated herein. See the Program Options and Rate Schedule for additional information on amounts due and funding. 

 
  

	*	Certain information in this section has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

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 (ii) The provisions of Section 3.d(i) and Section 7 notwithstanding, Merchant shall not
owe Company, and Company shall not offset, discount, or recoup for, or otherwise seek recovery of, amounts or exercise a any right to effect a Chargeback with respect to any events or circumstances described in Section 7.a(i) longer than ninety
days after Merchant has provided the relevant Sales Slip to the Company, or described in Section 7.a(iii) after the time within which the relevant Cardholder is allowed under U.S. federal law is permitted to contest payment to Company, its
successors or assigns, with respect to the relevant Card Sale. 
 e. Funding. The transaction initiating the obligation by
Company to fund Merchant under this Agreement will be as specified by the Merchant selected Program(s) as contained in the attached Program Options and Rate Schedule. Funding by Company and/or Eligible Assignee to Merchant shall be made to
Merchant’s account at a bank designated by Merchant as set forth in the “Checking Account Information Authorization” attached to this Agreement. Company and/or Eligible Assignee will use its best efforts to make such payments on the
first Business Day after receipt, verification and processing by Company of the transmission of the transaction data, if such transmission is received by 1:00 pm Central Standard Time; if received later than 1:00 pm Central Standard Time, then on
the second Business Day after receipt, verification and processing of said transmission. 
 Section 4. Merchant Responsibilities
Concerning Consumer Transactions. 
 Merchant covenants and agrees that Merchant shall: 

a. Honor all valid Accounts without discrimination, when properly presented by Cardholders for payment of Goods. 

b. Not require, through an increase in price or otherwise, any Cardholder to pay any surcharge at the time of sale or pay any part of any
charge imposed by Company and/or Eligible Assignee on Merchant. 
 c. Not establish minimum or maximum charge amounts without
Company and/or Eligible Assignee’s prior written approval. 
 d. In the event Merchant elects to offer the Program at
Merchant’s retail locations, Merchant agrees to display at each of its locations, advertising and promotional materials relating to the Card, including, without limitation, take-one Applications for the Card and use and display such materials
in accordance with any specifications provided by Company and/or Eligible Assignee. Such materials shall be used only for the purpose of soliciting accounts for the Program. Any solicitation, written material, advertising or the like relating to the
Program or the products offered pursuant to the Program shall be prepared or furnished by Company and/or Eligible Assignee or shall receive Company’s 

 

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and/or Eligible Assignee’s prior written approval. Company will charge Merchant and Merchant agrees to pay the cost of any such advertising and promotional materials. Any such materials
shall not be used by Merchant following termination of this Agreement. 
 e. Use only the form of, or modes of transmission for,
Application/Cardholder Agreements, Sales Slips and Credit Slips as are provided by Company and/or Eligible Assignee, and not use any Application/Cardholder Agreements, Sales Slips, and Credit Slips provided by Company and/or Eligible Assignee other
than in connection with a Card transaction. 
 f. With respect to Telephone Applications, Merchant shall: 

(i) Make sure all information requested on the Telephone Application is complete; 

(ii) Using the verbal scripts provided by the Company, give the applicant the applicable financing disclosures at the time: a) the
Telephone Application information is requested or b) the Cardholder is advised the Telephone Application is approved, and include such other disclosures as may be required by Company and/or Eligible Assignee from time to time; 

(iii) Record the verbal communication of financing disclosures given to the applicant, including such other disclosures as may be required
by Company, using a recording medium acceptable to Company; 
 (iv) Provide all information required by Company and/or Eligible
Assignee from time to time for approval of Applications by telephone or other electronic transmission including recordings of the financing disclosures given to the applicant and recordings of any such other telephone disclosures as may be required
by the Company; 
 (v) Not submit to Company and/or Eligible Assignee for funding any Sales Slip resulting from a telephone Card
Sale until the Goods are shipped to the Cardholder; and 
 (vi) Merchant represents and warrants that in connection with
telephone solicitations, it has adopted such policies and procedures to ensure compliance with all applicable federal and state laws, regulations or rules relating to telemarketing and/or telephone solicitations including but not limited to the
Telephone Consumer Protection Act of 1991 (“TCPA”) 42 USC 227 and 152(b); Chapter I, Title 47 of the Code of Federal Regulations, parts 64 and 68, the Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFAPA) 15 U.S.C.
§6101-6108; 16 CFR Part 310 and any applicable telemarketing or telephone solicitation laws of the state from which Merchant shall be initiating telephone solicitations for the Card. 

g. With respect to Mailed-In Applications, Merchant shall: 
  

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 (i) Make sure all information requested on the Application is complete; 

(ii) Provide all information required by Company and/or Eligible Assignee from time to time for approval of Applications by mail and
legibly insert the Account number on the Application in the designated area; 
 (iii) Merchant represents and warrants that in
connection with mail-order sales, it has adopted such policies and procedures to ensure compliance with all applicable federal and state laws, regulations or rules relating to mail order sales including but not limited to all applicable requirements
of Title 16 Code of Federal Regulations, Chapter I, Subchapter D, part 435.1 (“Mail Order Rule”); 
 (iv) Not submit to
Company and/or Eligible Assignee for funding any Sales Slip resulting from a mail order Card Sale until the Goods are shipped to the Cardholder; and 

(v) Send a copy of the approved Mailed-In Application to Company and/or Eligible Assignee within five (5) Business Days after the
date the Goods are shipped to the Cardholder or the Sales Slip funded by Company and/or Eligible Assignee. 
 h. With respect to
Internet Applications, Merchant shall: 
 (i) Include a link to the Company web site, and include language notifying visitors
that they may complete an application for a Card via the Internet by clicking on such link. The link will be provided and maintain by Company; 

(ii) Not submit to Company and/or Eligible Assignee for funding any Sales Slip resulting from an Internet Application until the Goods are
shipped to the Cardholder; 
 (iii) Include a copy of the Terms and Conditions with all Goods shipped; and 

(iii) Not permit any additional purchases, Internet or otherwise, on an Account for a period of not less than seven (7) days after
notification from Company and/or Eligible Assignee that Company and/or Eligible Assignee has approved an Internet Application for an Account. 

i. Telephone Applications, Mailed-in Applications and Internet Applications do not require the signature of the applicant/cardholder,
provided, however, Merchant warrants the validity and veracity of all authorizations for said applications. 
 j. With respect to
Sales Slips Merchant shall: 
 (i) Enter on a single Sales Slip (1) a description of all Goods purchased in the same
transaction in detail sufficient to identify the transaction; (2) the date of the 
  

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transaction; (3) the Authorization number; and (4) the entire amount due for the transaction (including any applicable taxes); 

(ii) REQUEST AUTHORIZATION FROM COMPANY’S AND/OR ELIGIBLE ASSIGNEE’S AUTHORIZATION CENTER UNDER ALL CIRCUMSTANCES. (Company
and/or Eligible Assignee may refuse to accept or fund any Sales Slip that is presented to Company and/or Eligible Assignee for payment more than thirty (30) days after the date of Authorization of the Card Sale). Merchant agrees not to divide a
single transaction between two or more Sales Slips. However, if necessary, a transaction may be split in order for a consumer to use their own personal (non-merchant sponsored) credit card to complete the transaction. If Authorization is granted,
legibly enter the Authorization number in the designated area on the Sales Slip. If Authorization is denied, not complete the transaction and follow any instructions from the Authorization Center. Merchant shall use its best efforts, by reasonable
and peaceful means, to retain or recover a Card that is presented to Merchant: 
 (1) if Merchant is advised to retain the Card
in response to an Authorization request; or 
 (2) if Merchant has reasonable grounds to believe that the Card is counterfeit,
fraudulent, or stolen. The obligation to retain or recover a Card imposed by this Section does not authorize a breach of the peace or any injury to persons or property, and Merchant will hold Company and/or Eligible Assignee harmless from any claim
arising from any injury to person or property or other breach of the peace. 
 (iii) Enter on the Sales Slip sufficient
information to identify the Cardholder and Merchant, including at least, Merchant’s name, Cardholder’s name, Account number, expiration date and any effective date on the Card. Merchant shall be deemed to warrant the Cardholder’s true
identity as an authorized user of the Card; 
 (iv) if the Merchant is presented with the Card prior to the purchase, check the
effective date, if any, and the expiration date on the Card; 
 (v) Obtain the signature of the Cardholder on the Sales Slip, and
compare the signature on the Sales Slip with the signature panel of the Card and if identification is uncertain or if Merchant otherwise questions the validity of the Card, contact Company’s Authorization Center for instructions. For telephone
orders (TO), mail orders (MO) or Internet orders (IO) only, the Sales Slip may be completed without the Cardholder’s signature, but Merchant shall, in addition to all other requirements under this Section 4, not deliver Goods or perform
services after being advised that the “TO”, “MO” or “IO” has been canceled or that the Card is not to be honored; 
  

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 (vi) IDENTIFICATION OF THE CARDHOLDER IS THE RESPONSIBILITY OF MERCHANT; 

(vii) Present the Sales Slip to Company and/or Eligible Assignee for funding, but not before such time as all Goods are shipped and all
services are performed. If the Card Sale is cancelled or the Goods or services cancelled or returned, the Sales Slip is subject to Chargeback; and 

(viii) If applicable, enter the Card Sale into the Terminal including Company’s and/or Eligible Assignee’s approval code.

 k. Credit Slips. If Goods are accepted by Merchant for return, any Card Sale or services are terminated or canceled in
accordance with Merchant’s policies and procedures regarding cancelled orders or returns, or Merchant allows any price adjustment, then Merchant shall not make any cash refund, but shall complete and deliver to Company and/or Eligible Assignee
within seven (7) days a Credit Slip evidencing the refund or adjustment. Merchant shall sign and date each Credit Slip and include thereon a brief description of the Goods returned, services terminated or canceled, refund or adjustment made,
the date of the original Card Sale, Authorization number, Cardholder’s name, address and Account number, and the date and amount of the credit, all in sufficient detail to identify the transaction. The amount of the Credit Slip cannot exceed
the amount of the original transaction as reflected on the Sales Slip. Merchant shall issue Credit Slips only in connection with previous bona fide Card Sales and only as permitted hereunder. 

l. Not receive any payments from a Cardholder for charges included on any Sales Slip resulting from the use of any Card, nor receive any
payments from a Cardholder to prepare and present a Credit Slip for the purpose of effecting a deposit to the Cardholder’s Account. 

m. Cardholder Complaints. Merchant shall within ten (10) days of receipt provide Company with a copy of any written complaint about
financing provided by Company from any Cardholder concerning an Account. 
 n. Satisfy all other requirements designated in the
Operating Instructions. In the event there is any inconsistency between any Operating Instructions and this Agreement, this Agreement shall govern unless otherwise expressly indicated by Company in any Operating Instructions. 

o. Present each Sales Slip and deliver each Credit Slip to Company or such other person designated by Company, within seven
(7) Business Days after the date of the respective sale or credit transaction. 
 Section 5. Merchant Representations and
Warranties. 
 Merchant represents and warrants to Company as of the Effective Date and throughout the term of this Agreement the following:

  

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 a. That each Card Sale will arise out of a bona fide sale of Goods by Merchant and will not
involve the use of the Card and/or Account for any other purpose. 
 b. That each Card Sale will be to a consumer for personal,
family, or household purposes. 
 c. That Cardholder Applications will be available to the public (i) without regard to
race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to enter into a binding contract) and (ii) not in any manner which would discriminate against an applicant or discourage an applicant
from applying for the Card. 
 d. That it has full corporate power and authority to enter into this Agreement; that all corporate
action required under any organization documents to make this Agreement binding and valid upon Merchant according to its terms has been taken; and that this Agreement is and will be binding, valid and enforceable upon Merchant according to its
terms. 
 e. That it is not in violation of any material covenants in any debt instruments to which it is a party as of the
Effective Date of this Agreement. 
 f. Neither (i) the execution, delivery and performance of this Agreement, nor
(ii) the consummation of the transactions contemplated hereby will constitute a violation of law or a violation or default by Merchant under its articles of incorporation, by laws or any organization documents, or any material agreement or
contract and no authorization of any governmental authority is required in connection with the performance by Merchant of its obligations hereunder. 

g. There are no proceedings or investigations pending, or, to the knowledge of Merchant, threatened, before any court, regulatory body,
administrative agency, or other tribunal or governmental instrumentality having jurisdiction over Merchant or its properties: (i) asserting the invalidity of this Agreement or seeking to prevent the consummation of any of the transactions
contemplated hereunder, or (ii) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the ability of Merchant to perform its obligations hereunder. 

h. Merchant has and will retain throughout the term of this Agreement all required licenses to perform its obligations under this
Agreement. 
 Section 6. Company Representations and Warranties. 

Company represents and warrants to Merchant as of the Effective Date and throughout the term of this Agreement the following: 

a. That Cardholder Applications will be available to the public (i) without regard to race, color, religion, national origin, sex,
marital status, or age (provided the applicant has the capacity to enter into a binding contract) and (ii) not in any manner which would discriminate against an applicant or discourage an applicant from applying for the Card. 

 

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 b. That it has full corporate power and authority to enter into this Agreement; that all
corporate action required under any organization documents to make this Agreement binding and valid upon Company according to its terms has been taken; and that this Agreement is and will be binding, valid and enforceable upon Company according to
its terms. 
 c. That it is not in violation of any covenants in any debt instruments to which it is a party as of the Effective
Date of this Agreement. 
 d. Neither (i) the execution, delivery and performance of this Agreement, nor (ii) the
consummation of the transactions contemplated hereby will constitute a violation of law or a violation or default by Company under its articles of incorporation, by laws or any organization documents, or any material agreement or contract and no
authorization of any governmental authority is required in connection with the performance by Company of its obligations hereunder. 

e. There are no proceedings or investigations pending, or, to the knowledge of Company threatened, before any court, regulatory body,
administrative agency, or other tribunal or governmental instrumentality having jurisdiction over Company or its properties: (i) asserting the invalidity of this Agreement or seeking to prevent the consummation of any of the transactions
contemplated hereunder, or (ii) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect on the ability of Company to perform its obligations hereunder. 

f. Company and each Eligible Assignee has and will retain throughout the term of this Agreement all required licenses to perform its
obligations under this Agreement. Neither Company, Eligible Assignee nor any of their directors, officers, employees or assigns has been excluded from any federal or state health care program or has otherwise been sanctioned or excluded from doing
business with any federal or state government agency or program. 
 Section 7. Chargebacks to Merchant. 

Merchant agrees as follows: 
 a.
Chargebacks. Company agrees to abide by all Federal Regulations; however, subject to the time limits contained in Section 3.d(ii), any Sales Slip or Card Sale may be subject to Chargeback under any one or more of the following circumstances and
thereupon the provisions of Section 7.b. below shall apply: 
 (i) The relevant Application or any information on that
Application or the particular Sales Slip involved or any required information on that Sales Slip (such as the account number, expiration date of the Card, description of Dealer or Goods purchased, transaction amount or date) is illegible or
incomplete, or except as provided in Section 4., the Sales Slip or Application is not executed by the Cardholder; or Authorization is not obtained from Company’s Authorization 

 

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Center, or a valid Authorization number is not correctly and legibly entered on the Sales Slip; or the Sales Slip is a duplicate of an item previously paid, or the price of the Goods or services
shown on the Sales Slip differs from the amount shown on the Cardholder’s copy of the Sales Slip; 
 (ii) Company determines
that 
 (1) In connection with the particular Sales Slip involved or the transaction to which it relates, Merchant has
materially breached or failed to satisfy, any term, condition, covenant, warranty, or other provision of this Agreement, including, without limitation, Sections 4 and 5 above, or of the Operating Instructions, or the Application for the relevant
Card or the opening of the relevant Account; or 
 (2) the particular Sales Slip, Application/Cardholder Agreement or Card Sale
that is involved is fraudulent or is subject to any claim of illegality, cancellation, rescission, avoidance or offset for any reason whatsoever not encompassed within Section 7.a(iii) including, without limitation, negligence, fraud,
misrepresentation, or dishonesty on the part of the customer or Merchant or its agents, employees, licensees, or franchisees, or that the related transaction is not a bona fide transaction in Merchant’s ordinary course of business; 

(iii) If the Company determines, in its sole discretion, after reasonable investigation the Cardholder has a valid dispute with Merchant
or denies in good faith: (1) the Card Sale or other Card transaction (including any requests for credit adjustments issued by Merchant which have not been posted to the Account); (2) the execution of the Sales Slip or
Application/Cardholder Agreement; (3) the delivery, quality, or performance of the goods, services or warranties purchased; or (4) the Cardholder has not authorized the Card Sale; and Merchant is unable or chooses not to resolve such
dispute or denial as provided in Section 7.b. below; or 
 (iv) Merchant fails to deliver to Company the Sales Slip, Credit
Slip, Application, Verbal recording, or other records of the Card transaction within the times required in this Agreement. 
 b.
Resolution and Payment. Subject to the time limits in Section 3.d(ii), Merchant is required to resolve any dispute or other of the circumstances described above in (a) of this Section 7 to Company’s satisfaction within ten
(10) days of notice of Chargeback or Merchant shall pay to Company the full amount of each Sales Slip subject to Chargeback or the portion thereof designated by Company, as the case may be, plus a return Fee, if applicable, as set forth in the
Return/Credit/Chargeback Policy attached hereto. Upon Chargeback to Merchant of a Sales Slip, Merchant shall become owner of the receivable associated with the Sales Slip and have full right to payments made under said receivable and bear all
liability and risk of loss associated with such Sales Slip or receivable, or the applicable portion thereof, without warranty by, or recourse or liability to, Company. 

 

 13 

 
Company may deduct amounts owed to Company under this Section from any amounts owed to Merchant under this Agreement. 

c. Excessive Chargebacks. If (i) the aggregate number of Sales Slips subject to Chargeback exceeds *% of the total number of Card
Sales submitted by Merchant with respect to an individual Merchant location in any calendar quarter or (ii) the aggregate dollar amount of all Sales Slips subject to Chargeback in any monthly billing cycle exceeds *% of the total net balances
of all Accounts at end of such monthly billing cycle ((i) and (ii) are herein individually and collectively called “Excessive Chargebacks”). In the event of Excessive Chargebacks, Company has the right, in its sole discretion, to
terminate this Agreement pursuant to Section 16. 
 d. The terms and provisions of this Section 7 shall survive the
termination of this Agreement until all Accounts existing at the time of termination are paid In-Full or otherwise charged off. 

Section 8. Electronic Transmission & Records. 

Data, records and information shall be transmitted and maintained as described below. 

a. Transmission of Data. In lieu of depositing paper Sales Slips and Credit Slips with Company, Merchant shall transmit to Company, by
electronic transmission or other form of transmission designated by Company all data required by this Agreement to appear on Applications, Sales Slips and Credit Slips. All data transmitted shall be in a medium, form and format designated by Company
and shall be presorted according to Company’s instructions. Any errors in such data or in its transmission shall be the sole responsibility of Merchant. The means of transmission indicated above in this Section or other means approved by
Company, shall be the exclusive means utilized by Merchant for the transmission of Application, Sales Slip or Credit Slip transaction data to Company. Merchant shall use a secure line for communicating with Company pursuant to the guidelines set
forth in Section 4. Company’s voice Authorization Center will be available for use for times when the secure line authorization system is not in operation. 

b. Receipt of Transmission. Upon successful receipt of any transmission, Company shall accept such transmission and pay Merchant in
accordance with this Agreement, subject to subsequent review and verification by Company and to all other rights of Company and obligations of Merchant as set forth in this Agreement. Merchant agrees to deliver upon demand by Company a duplicate of
any prior transmission, at the expense of Company, if such demand is made within forty-five (45) calendar days of the original transmission. 
  

 

	*	Certain information in this section has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

 14 

 c. Records. Merchant shall maintain the actual paper Sales Slips, Credit Slips, Verbal
Recordings, and other records, including recordings of telephone applications and financing disclosures, pertaining to any transaction covered by this Agreement for such time and in such manner as Company or any law or regulation may require, but in
no event less than two (2) years after the date Merchant presents each transaction data to Company, and Merchant shall make and retain for at least seven (7) years legible copies of such actual paper Applications, Sales Slips, Credit Slips
or other transaction records. Within ten (10) days of receipt of Company’s and/or Eligible Assignee’s request, Merchant shall provide to Company and/or Eligible Assignee the actual paper Applications, Sales Slips, Credit Slips or
other transaction records including telephone recordings, and any other documentary evidence available to Merchant and reasonably requested by Company and/or Eligible Assignee to meet its obligations under law (including its obligations under the
Fair Credit Billing Act) or otherwise to respond to questions, complaints, lawsuits, counterclaims or claims concerning Accounts or requests from Cardholders, or to enforce any rights Company and/or Eligible Assignee may have against a Cardholder,
including, without limitation, litigation by or against Company and/or Eligible Assignee, collection efforts and bankruptcy proceedings, or for any other reason. In the event Merchant fails to comply in any material respect with the provisions of
this Section 8 and such failure results in an actual loss to the Company, Company and/or Eligible Assignee may process a Chargeback for each Card Sale involved pursuant to Section 7 above. 

d. Production. Promptly upon termination of this Agreement or upon the request of Company, Merchant will provide Company and/or Eligible
Assignee with all original and microfilm copies of documents required to be retained under this Agreement. In addition, Merchant will provide Company and/or Eligible Assignee all Verbal Applications. 

Section 9. Payments by Cardholder and Endorsement. 

Merchant agrees that Company and/or Eligible Assignee has the sole right to receive payments on any Sales Slip funded by Company and/or Eligible Assignee.
Unless specifically authorized in writing by Company and/or Eligible Assignee, Merchant agrees not to make any collections on any such Sales Slip. Merchant agrees to hold in trust for Company and/or Eligible Assignee any payment received by Merchant
of all or part of the amount of any such Sales Slip and to deliver promptly the same in kind to Company and/or Eligible Assignee as soon as received together with the Cardholder’s name, Account number, and any correspondence accompanying the
payment and deliver same within five (5) days of receipt by Merchant. Merchant agrees that Merchant shall be deemed to have endorsed any Sales Slip, Credit Slip, or Cardholder payments by check, money order, or other instrument made payable to
Merchant that a Cardholder presents to Company and/or Eligible Assignee in Company’s and/or Eligible Assignee’s favor, and Merchant hereby authorizes Company and/or Eligible Assignee to supply such necessary endorsements on behalf of
Merchant. 
 Section 10. Merchant Credit Information. 
  

 15 

 Company may annually review Merchant’s financial stability. To assist Company in doing this, Merchant
shall deliver to Company no later than ninety (90) days after the end of each fiscal year, an audited financial statement, including, without limitation, all footnotes. Merchant warrants and represents that financial statements submitted to
Company by or on behalf of Merchant are true and accurate and Merchant agrees to supply such additional credit information as Company may reasonably request from time to time. Merchant understands that Company may verify the information on any
financial statement or other information provided by Merchant at the sole cost and expense of the Company and, from time to time, may seek credit and other information concerning Merchant from others and may provide information regarding this
Program including financial and other information to its Eligible Assignees, Affiliates or others for purposes of its asset securitizations and sales. 

Section 11. Business Practices. 

a. Merchant agrees to provide adequate services in connection with each Card Sale pursuant to standard customs and trade practices and any
applicable manufacturer’s warranties, and to provide such repairs, service and replacements and take such other corrective action as may be required by law. 

b. Company and/or Eligible Assignee agree to provide adequate services in connection with each Card Sale pursuant to standard customs and
trade practices including prompt and accurate posting of payments to accounts, prompt and courteous resolution of Cardholder questions about accounts and any action required by law or to maintain positive relationships with Merchant’s
customers. 
 Section 12. Cardholder Account Information. 

Merchant shall comply with all Applicable Law regarding privacy and the Direct Marketing Association privacy promise. Merchant shall not sell, purchase,
provide, or exchange Account information in the form of Sales Slips, copies of Sales Slips, mailing lists electronic copies or other media obtained by reason of a Card transaction to any third party other than to Merchant’s agents for the
purpose of assisting Merchant in its business with Company, Eligible Assignee or pursuant to a government request. 
 Section 13. Change
in Ownership; Assignments. 
 Each party agrees to send the other party at least thirty (30) days prior written notice of any change in
such party’s name or location, any material change in ownership of Merchant’s business or any change in Sales Slip or Credit Slip information concerning Merchant. The parties recognize that the Company has contracted and/or may contract
with CIT Bank, or other Eligible Assignee. This Agreement shall cover all Accounts issued through or acquired by CIT Bank or any other Eligible Assignee and the receivables generated by the Accounts. All obligations for payments to Merchant, as
reflected herein, are assigned to and assumed by the applicable Eligible Assignee. The parties acknowledge that the Company, CIT Bank, and any other Eligible Assignee may assign their rights and/or obligations under this Agreement provided that no
such assignment shall relieve the assignor of its obligations hereunder except to the extent that Merchant expressly agrees in writing to relieve an assignor of such obligations. Except as 

 

 16 

 
provided in this Section 13, this Agreement is not assignable or transferable by either party in whole or in part except with the prior written consent of the other party. 

Section 14. Indemnification. 

a. Indemnification by Merchant. Merchant shall be liable to and shall indemnify and hold harmless Company, Eligible Assignee and its
Affiliates associated with the Program and their respective officers, employees, agents and directors from any losses, damages, claims or complaints incurred by Company, Eligible Assignee or any Affiliate or their respective officers, employees,
agents and directors arising out of: (i) Merchant’s failure to comply with this Agreement or any of the Operating Instructions; (ii) any claim, dispute, complaint or setoff made by a Cardholder in good faith with respect to anything
done or not done by Merchant in connection with Card Sales or Credit Slips that constitutes a violation of a duty or promise by Merchant; (iii) anything done or not done by Merchant in connection with the furnishing of any Goods, warranties or
services purchased by Cardholders that constitutes a violation of a duty or promise by Merchant; (iv) the death or injury to any person or the loss, destruction or damage to any property arising out of the design, manufacture or furnishing by
Merchant of any Goods, warranties or services purchased by Cardholders; (v) any claim or complaint of a third party in connection with Merchant’s advertisements and promotions relating to the Card which have not been reviewed or approved
by Company; (vi) any illegal or improper conduct of Merchant or its employees or agents; and (vii) any claim or complaint by a consumer that Merchant has violated the Equal Credit Opportunity Act, Truth in Lending Act, or any other act and
related Applicable Laws. 
 b. Indemnification by Company. Company shall be liable to and shall indemnify and hold harmless
Merchant and its subsidiaries or Affiliates and their respective officers, employees, agents and directors from any losses, damages, claims or complaints incurred by Merchant or any subsidiary or affiliate of Merchant or their respective officers,
employees, agents and directors arising out of (i) Company’s failure to comply with this Agreement or any of the Operating Instructions; (ii) any claim, dispute or complaint by a Cardholder made in good faith resulting from anything
done or not done by Company in connection with such Cardholder’s Account; (iii) any illegal or improper conduct of Company, or its employees or agents with respect to the Card, a Card Sale, an Account or any other matters relating to the
Program; (iv) any claim, dispute, complaint or setoff by a consumer made in good faith resulting from a violation by Company, with respect to the Application/Agreement, of the Equal Credit Opportunity Act, Truth in Lending Act or any other act
and related Applicable Laws and regulations; and (v) any claim, dispute or complaint of any thirty party made in good faith in connection with advertisements and promotions prepared by Company relating to the Card. Notwithstanding the
foregoing, the indemnification by Company shall not apply to any claim or complaint relating to the failure of Merchant to resolve a billing inquiry or dispute with a Cardholder where such failure was not caused by Company. 

c. Notice of Claim & Survival. In the event that Company or Merchant shall receive any claim or demand or be subject to any suit
or proceeding of which a claim may be made against the other under this Section, the indemnified party shall give prompt written 

 

 17 

 
notice thereof to the indemnifying party and the indemnifying party will be entitled to participate in the settlement or defense thereof with counsel satisfactory to indemnified party at the
indemnifying party’s expense. In any case, the indemnifying party and the indemnified party shall cooperate (at no cost to the indemnified party) in the settlement or defense of any such claim, demand, suit, or proceeding. The terms of this
Section 14 shall survive the termination of this Agreement. 
 Section 15. Assignments Related to Chargebacks.

 If there is a Chargeback with respect to any Card Sale, Company shall assign, without recourse, all right to payment for such Card Sale to
Merchant free and clear of right, claim of title or lien. Company will provide reasonable documentation in connection with all Chargebacks. 

Section 16. Term and Termination. 

a. Term. This Agreement shall be effective as of the Effective Date and shall remain in effect for one (1) year (“Initial
Term”), subject to earlier termination as set forth below. Thereafter, this Agreement shall be automatically renewed for successive one year terms (the “Renewal Term(s)”) unless and until terminated as provided herein. 

b. Termination. This Agreement shall continue until terminated by either party by giving the other party not less than thirty
(30) days written notice by certified mail, express delivery or by facsimile. Merchant’s and Company’s obligations on charges accepted by the Company prior to the effective date of the termination shall survive such termination, and
the acceptance of charges after such notice shall be at the sole discretion of the Company on a case by case basis. Termination of this Agreement by either party does not relieve Merchant or Company from obligations incurred by the acceptance of
charges by the Company prior to receipt of notice and Merchant’s and Company’s indemnification obligations as provided herein shall survive any termination of this Agreement and shall remain in effect until all unpaid accounts receivable
generated by Merchant have been paid in full by the respective Cardholders. 
 c. Duties and Rights Upon Termination. Upon
termination of this Agreement, Merchant will promptly submit to Company all Card Sales, Sales Slips, credits and other data made through the date of termination. Neither shall be liable to the other party for any direct or indirect damages that
either party may suffer as a result of any rightful termination of this Agreement in accordance with the terms of this Agreement. 

Section 17. Status of the Parties. 

In performing their responsibilities pursuant to this Agreement, Company and Merchant are in the position of independent contractors, and in no
circumstances shall either party be deemed to be the agent or employee of the other. This Agreement is not intended to create, nor does it create and shall not be construed to create, a relationship of partner or joint venturer or an

  

 18 

 
association for profit between Company and Merchant. Any amounts ever owing by Merchant pursuant to this Agreement represent contractual obligations only and are not a loan or debt. 

Section 18. Force Majeure. 
 Neither
party to this Agreement shall be liable to the other by reason of any failure in performance of this Agreement in accordance with its terms if such failure arises out of a cause beyond the control and without the fault or negligence of such party.
Such causes may include but are not limited to acts of God, of the public enemy or of civil or military authority, unavailability of energy resources, system or communication failure, delay in transportation, fires, strikes, riots or war. In the
event of any force majeure occurrence, the disabled party shall use its best efforts to meet its obligations as set forth in this Agreement. 

Section 19. Limited License. 

Merchant hereby authorizes Company for purposes of this Agreement to use Merchant’s name, logo, registered trademarks and servicemarks (if any) and
any other proprietary designations (“Proprietary Materials”) on the Cards, Applications, periodic statements, billing statements, collection letters or documents, promotional or advertising materials and otherwise in connection with the
Program, subject to Merchant’s periodic reasonable review of such use and to such reasonable specifications of Merchant. Merchant represents and warrants that it has obtained appropriate federal trademark registrations to protect its interest
in the use and ownership of the Proprietary Materials. Merchant shall, indemnify, defend and hold Company harmless from any loss, damage, expense or liability arising from any claims of alleged infringement of the Proprietary Materials (including
attorneys’ fees and costs). Merchant may not use any name, logo, or service mark of Company or any of its Affiliates in any manner without the prior written consent of Company. 

Section 20. Confidentiality. 

Merchant will keep confidential and not disclose to any person or entity (except to employees, officers, partners or directors of Merchant who are engaged
in the implementation and execution of the Program) all information, software, systems and data, that Merchant receives from Company or from any other source, relating to the Program and matters which are subject to the terms of this Agreement,
including, but not limited to, Cardholder names and addresses or other Account information, and shall use, or cause to be used, such information solely for the purposes of the performance of Merchant’s obligations under the terms of this
Agreement. Company will keep confidential and not disclose to any person or entity (except employees, officers, agents or directors of Company, its subsidiaries or affiliates who are engaged in the implementation and execution of the Program) any
information that Company receives from Merchant and shall use, or cause to be used, such information solely for the performance of Company’s obligations under the terms of this Agreement. In the event Company sells or assigns the Accounts or
any portion of the Accounts under the Program, Company may disclose any information under this provision 
  

 19 

 
reasonably necessary or required to effectuate such sale or assignment. The provisions of this Section 20 shall survive the termination of this Agreement. 

Section 21. Additional Products & Services. 

Company and/or any of its Affiliates may at any time, whether during or after the term of this Agreement and whether the Accounts are owned by Company,
solicit Cardholders for any other credit cards or other types of accounts or financial products or insurance services offered by Company and/or any of its Affiliates. However, Company agrees not to use the name, logo, or service mark of Merchant or
any of its Affiliates in such solicitations without the prior written consent of Merchant. 
 Section 22. Notices.

 All notices required or permitted by this Agreement shall be in writing and shall be sent to the respective parties at the addresses set
forth herein. Said notices shall be deemed to be received when sent to the above addresses (i) upon three (3) Business Days after deposit in the U.S. first class mail with postage prepaid, (ii) upon personal delivery, or
(iii) upon receipt by telex, facsimile, or overnight/express courier service or mail. 
 Section 23. Amendments and
Supplementary Documents. 
 If a modification is reasonably determined by Company or Merchant to be required by any state or federal law,
rule, regulation, governmental or judicial order, opinion, interpretation or decision, such party shall notify the other party, and either party may terminate this Agreement if an acceptable amendment is not agreed upon within ten (10) days of
the notice. Reference herein to “this Agreement” shall include any schedules, appendices, exhibits, and amendments hereto. Any amendment or modification to this Agreement must be in writing and signed by a duly authorized officer of
Company and Merchant to be effective and binding upon Company and Merchant; no oral amendments or modifications shall be binding upon the parties. 

Section 24. Nonwaiver and Extensions. 

Neither Company nor Merchant shall not by any act, delay, omission, or otherwise be deemed to have waived any rights or remedies hereunder. Either party
agrees that the other party’s failure to enforce any of its rights under this Agreement shall not affect any other right of such party or the same right in any other instance. 

Section 25. Rights of Persons Not a Party. 

This Agreement shall not create any rights on the part of any person or entity not a party hereto, whether as a third party beneficiary or otherwise.

 Section 26. Section Headings. 
  

 20 

 The headings of the sections of this Agreement are for reference only, are not a substantive part of this
Agreement and are not to be used to affect the validity, construction or interpretation of this Agreement or any of its provisions. 

Section 27. Integration. 
 This
Agreement contains the entire agreement between the parties. There are merged herein all prior oral or written agreements, amendments, representations, promises and conditions in connection with the subject matter hereof. Any representations,
warranties, promises or conditions not expressly incorporated herein shall not be binding on Company or Merchant. 
 Section 28.
Governing Law/Severability. 
 This Agreement shall be governed by and construed in accordance with the laws of the State of Arkansas. If any
provision of this Agreement is contrary to Applicable Law, such provision shall be deemed ineffective without invalidating the remaining provisions hereof. 

Section 29. JURISDICTION. 
 ANY
SUIT, COUNTERCLAIM, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT MUST BE BROUGHT BY EITHER PARTY IN THE COURTS OF THE STATE OF ARKANSAS OR IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF ARKANSAS (FAYETTEVILLE)
AND MERCHANT HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS AND ANY APPELLATE COURTS THEREOF FOR THE PURPOSE OF ANY SUCH SUIT, COUNTERCLAIM, ACTION, PROCEEDING OR JUDGMENT (IT BEING UNDERSTOOD THAT SUCH CONSENT TO THE
EXCLUSIVE JURISDICTION OF SUCH COURTS WAIVES ANY RIGHT TO SUBMIT ANY DISPUTES HEREUNDER TO ANY COURTS OTHER THAN THOSE ABOVE). 

Section 30. Arbitration. 
 The
parties understand and agree that all controversies or disputes of any kind arising out of or relating to this Agreement, now or in the future, shall be settled by arbitration. Without limiting the foregoing, this paragraph specifically applies to
(1) transactions entered into or services provided prior, on, or subsequent to the date of this Agreement; and (2) the construction, performance, or alleged breach of this Agreement, between the COMPANY, ELIGIBLE ASSIGNEE and the MERCHANT
at any time, including the issue of whether the dispute is subject to arbitration. Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association as such rules are amended from time to
time, and judgment upon the award rendered by the sole arbitrator may be entered in any court having jurisdiction thereof. The parties understand and agree that: (i) arbitration is final and binding on the parties; (ii) the parties are
waiving their right to seek remedies in court, including the right to jury trial; (iii) pre-arbitration discovery is generally more limited than and different from court proceedings; (iv) the arbitrators’ award is not required to
include factual findings or legal reasoning and any party’s right to appeal or to seek modification of rulings by the 
  

 21 

 
arbitrators is strictly limited; and, (v) in the event of arbitration, the losing party shall pay all reasonable administrative arbitration costs, including the arbitrator’s fee.

 IN WITNESS WHEREOF, Company and Merchant have caused their duly authorized representatives to execute this Agreement effective as of the date
set forth above. 
  

									
	MERCHANT	  		  	COMPANY
			
	Nautilus, Inc.	  		  	The HELPcard
					
	By:	  	 /s/ Kenneth L. Fish
	  		  	By:	  	 /s/ Thomas W. Center

	Title:	  	CFO	  		  	Title:	  	Pres.
					
	Date:	  	June 11, 2010	  		  	Date:	  	6-14-10

  

 22 

 Attachment to 

The HELPcard Non-Recourse Merchant Agreement 

Return/Credit Policy 

The HELPcard may assess a return fee for credits issued by the Merchant. The amount of the fee will be based upon the elapsed time between the posting of
the original cardholder charge and our receipt of the credit as follows: 
  

	1.	* to * Days: No return fees will be assessed to the Merchant. Merchant depository account will be debited the amount deposited by The HELPcard for the
charge being credited. 

  

	2.	* to * Days: A return fee equal to *% of the requested credit amount will be assessed to the Merchant. Merchant depository account will be debited the
amount deposited by The HELPcard for the charge being credited plus the return fee. *. 

  

	3.	Over * Days: A return fee equal to *% of the requested credit amount plus accrued cardholder finance charges and fees will be assessed to the Merchant.
Merchant depository account will be debited *. 

 Please make sure all credits on returned items are issued immediately with
The HELPcard. As part of Regulation Z of the Fair Credit Billing Act, the merchant has 7 days after an item has been returned to issue a credit with the charged credit card company. 

I have read and understand the above return/credit policy. 
  

									
	MERCHANT	  		  	COMPANY
			
	Nautilus, Inc.	  		  	The HELPcard
					
	By:	  	 /s/ Kenneth L. Fish
	  		  	By:	  	 /s/ Thomas W. Center

	Title:	  	CFO	  		  	Title:	  	Pres.
					
	Date:	  	June 11, 2010	  		  	Date:	  	6-14-10

  

	*	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions. 

  

 23Indenture, Dated as of May 28, 2010

 Exhibit 4.1 

EXECUTION VERSION 
  

 
 THE HILLMAN GROUP, INC.

 AND EACH OF THE GUARANTORS PARTY HERETO 

10.875% SENIOR NOTES DUE 2018 
  

 
  

 
 INDENTURE

 Dated as of May 28, 2010 
  

 
  

 
  

 
 Wells Fargo
Bank, National Association 
 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)
	  	7.10
	  (c)
	  	N.A.
	 311(a)
	  	7.11
	  (b)
	  	7.11
	  (c)
	  	N.A.
	 312(a)
	  	2.05
	  (b)
	  	12.03
	  (c)
	  	12.03
	 313(a)
	  	  7.06
	  (b)(2)
	  	7.06; 7.07
	  (c)
	  	7.06; 12.02
	  (d)
	  	7.06
	 314(a)
	  	4.03;12.02; 12.05
	 314(b)
	  	N.A.
	  (c)(1)
	  	12.04
	  (c)(2)
	  	12.04
	  (c)(3)
	  	N.A.
	  (e)
	  	12.05
	  (f)
	  	N.A.
	 315(a)
	  	7.01
	  (b)
	  	7.05; 12.02
	  (c)
	  	7.01
	  (d)
	  	7.01
	  (e)
	  	6.11
	 316(a) (last sentence)
	  	2.09
	  (a)(1)(A)
	  	6.05
	  (a)(1)(B)
	  	6.04
	  (a)(2)
	  	N.A.
	  (b)
	  	6.07
	  (c)
	  	2.12
	 317(a)(1)
	  	6.08
	  (a)(2)
	  	6.09
	  (b)
	  	2.04
	 318(a)
	  	12.01
	  (b)
	  	N.A.
	  (c)
	  	12.01

  

	N.A.	means not applicable. 

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

 TABLE OF CONTENTS 

 

					
	 	 	 	  	Page
		 	ARTICLE 1	  	
		 	DEFINITIONS AND INCORPORATION	  	
		 	BY REFERENCE	  	
			
	 Section 1.01
	 	 Definitions.
	  	1
	 Section 1.02
	 	 Other Definitions.
	  	25
	 Section 1.03
	 	 Incorporation by Reference of Trust Indenture Act.
	  	25
	 Section 1.04
	 	 Rules of Construction.
	  	26
			
		 	ARTICLE 2	  	
		 	THE NOTES	  	
			
	 Section 2.01
	 	 Form and Dating.
	  	26
	 Section 2.02
	 	 Execution and Authentication.
	  	27
	 Section 2.03
	 	 Registrar and Paying Agent.
	  	28
	 Section 2.04
	 	 Paying Agent to Hold Money in Trust.
	  	28
	 Section 2.05
	 	 Holder Lists.
	  	29
	 Section 2.06
	 	 Transfer and Exchange.
	  	29
	 Section 2.07
	 	 Replacement Notes.
	  	41
	 Section 2.08
	 	 Outstanding Notes.
	  	41
	 Section 2.09
	 	 Treasury Notes.
	  	41
	 Section 2.10
	 	 Temporary Notes.
	  	42
	 Section 2.11
	 	 Cancellation.
	  	42
	 Section 2.12
	 	 Defaulted Interest.
	  	42
	 Section 2.13
	 	 Issuance of Additional Notes.
	  	42
	 Section 2.14
	 	 One Class of Notes.
	  	42
	 Section 2.15
	 	 CUSIP, ISIN or Other Similar Numbers.
	  	43
			
		 	ARTICLE 3	  	
		 	REDEMPTION AND PREPAYMENT	  	
			
	 Section 3.01
	 	 Notices to Trustee.
	  	43
	 Section 3.02
	 	 Selection of Notes to Be Redeemed or Purchased.
	  	43
	 Section 3.03
	 	 Notice of Redemption.
	  	44
	 Section 3.04
	 	 Effect of Notice of Redemption.
	  	44
	 Section 3.05
	 	 Deposit of Redemption or Purchase Price.
	  	44
	 Section 3.06
	 	 Notes Redeemed or Purchased in Part.
	  	45
	 Section 3.07
	 	 Optional Redemption.
	  	45
	 Section 3.08
	 	 Mandatory Redemption.
	  	46
	 Section 3.09
	 	 Offer to Purchase by Application of Excess Proceeds.
	  	46
			
		 	ARTICLE 4	  	
		 	COVENANTS	  	
			
	 Section 4.01
	 	 Payment of Notes.
	  	48
	 Section 4.02
	 	 Maintenance of Office or Agency.
	  	48
	 Section 4.03
	 	 Reports.
	  	49
	 Section 4.04
	 	 Compliance Certificate.
	  	50
	 Section 4.05
	 	 Taxes.
	  	50
	 Section 4.06
	 	 Stay, Extension and Usury Laws.
	  	50

  

 ii 

					
	 Section 4.07
	 	 Restricted Payments.
	  	50
	 Section 4.08
	 	 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.
	  	54
	 Section 4.09
	 	 Incurrence of Indebtedness and Issuance of Preferred Stock.
	  	56
	 Section 4.10
	 	 Asset Sales.
	  	60
	 Section 4.11
	 	 Transactions with Affiliates.
	  	62
	 Section 4.12
	 	 Liens.
	  	64
	 Section 4.13
	 	 Business Activities.
	  	64
	 Section 4.14
	 	 Corporate Existence.
	  	64
	 Section 4.15
	 	 Offer to Repurchase Upon Change of Control.
	  	64
	 Section 4.16
	 	 [Reserved]
	  	66
	 Section 4.17
	 	 Additional Note Guarantees.
	  	66
	 Section 4.18
	 	 Designation of Restricted and Unrestricted Subsidiaries.
	  	66
		
	ARTICLE 5	  	
	SUCCESSORS	  	
			
	 Section 5.01
	 	 Merger, Consolidation or Sale of Assets.
	  	67
	 Section 5.02
	 	 Successor Corporation Substituted.
	  	67
		
	ARTICLE 6	  	
	DEFAULTS AND REMEDIES	  	
			
	 Section 6.01
	 	 Events of Default.
	  	68
	 Section 6.02
	 	 Acceleration.
	  	69
	 Section 6.03
	 	 Other Remedies.
	  	70
	 Section 6.04
	 	 Waiver of Past Defaults.
	  	70
	 Section 6.05
	 	 Control by Majority.
	  	70
	 Section 6.06
	 	 Limitation on Suits.
	  	70
	 Section 6.07
	 	 Rights of Holders of Notes to Receive Payment.
	  	71
	 Section 6.08
	 	 Collection Suit by Trustee.
	  	71
	 Section 6.09
	 	 Trustee May File Proofs of Claim.
	  	71
	 Section 6.10
	 	 Priorities.
	  	72
	 Section 6.11
	 	 Undertaking for Costs.
	  	72
		
	ARTICLE 7	  	
	TRUSTEE	  	
			
	 Section 7.01
	 	 Duties of Trustee.
	  	72
	 Section 7.02
	 	 Rights of Trustee.
	  	73
	 Section 7.03
	 	 Individual Rights of Trustee.
	  	74
	 Section 7.04
	 	 Trustee’s Disclaimer.
	  	75
	 Section 7.05
	 	 Notice of Defaults.
	  	75
	 Section 7.06
	 	 Reports by Trustee to Holders of the Notes.
	  	75
	 Section 7.07
	 	 Compensation and Indemnity.
	  	75
	 Section 7.08
	 	 Replacement of Trustee.
	  	76
	 Section 7.09
	 	 Successor Trustee by Merger, etc.
	  	77
	 Section 7.10
	 	 Eligibility; Disqualification.
	  	77
	 Section 7.11
	 	 Preferential Collection of Claims Against Company.
	  	77
		
	ARTICLE 8	  	
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	  	
			
	 Section 8.01
	 	 Option to Effect Legal Defeasance or Covenant Defeasance.
	  	77
	 Section 8.02
	 	 Legal Defeasance and Discharge.
	  	78
	 Section 8.03
	 	 Covenant Defeasance.
	  	78

  

 iii 

					
	 Section 8.04
	 	 Conditions to Legal or Covenant Defeasance.
	  	79
	 Section 8.05
	 	 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions.
	  	80
	 Section 8.06
	 	 Repayment to Company.
	  	80
	 Section 8.07
	 	 Reinstatement.
	  	81
	
	ARTICLE 9
	AMENDMENT, SUPPLEMENT AND WAIVER
			
	 Section 9.01
	 	 Without Consent of Holders of Notes.
	  	81
	 Section 9.02
	 	 With Consent of Holders of Notes.
	  	82
	 Section 9.03
	 	 Compliance with Trust Indenture Act.
	  	83
	 Section 9.04
	 	 Revocation and Effect of Consents.
	  	83
	 Section 9.05
	 	 Notation on or Exchange of Notes.
	  	83
	 Section 9.06
	 	 Trustee to Sign Amendments, etc.
	  	84
	
	ARTICLE 10
	NOTE GUARANTEES
			
	 Section 10.01
	 	 Guarantee.
	  	84
	 Section 10.02
	 	 Limitation on Guarantor Liability.
	  	85
	 Section 10.03
	 	 Execution and Delivery of Note Guarantee.
	  	85
	 Section 10.04
	 	 Guarantors May Consolidate, etc., on Certain Terms.
	  	86
	 Section 10.05
	 	 Releases.
	  	86
	
	 ARTICLE 11

SATISFACTION AND DISCHARGE

			
	 Section 11.01
	 	 Satisfaction and Discharge.
	  	87
	 Section 11.02
	 	 Application of Trust Money.
	  	88
	
	 ARTICLE 12

MISCELLANEOUS

			
	 Section 12.01
	 	 Trust Indenture Act Controls.
	  	88
	 Section 12.02
	 	 Notices.
	  	89
	 Section 12.03
	 	 Communication by Holders of Notes with Other Holders of Notes.
	  	89
	 Section 12.04
	 	 Certificate and Opinion as to Conditions Precedent.
	  	90
	 Section 12.05
	 	 Statements Required in Certificate or Opinion.
	  	90
	 Section 12.06
	 	 Rules by Trustee and Agents.
	  	90
	 Section 12.07
	 	 No Personal Liability of Directors, Officers, Employees and Stockholders.
	  	90
	 Section 12.08
	 	 Governing Law.
	  	90
	 Section 12.09
	 	 No Adverse Interpretation of Other Agreements.
	  	91
	 Section 12.10
	 	 Successors.
	  	91
	 Section 12.11
	 	 Severability.
	  	91
	 Section 12.12
	 	 Counterpart Originals.
	  	91
	 Section 12.13
	 	 Table of Contents, Headings, etc.
	  	91
	 Section 12.14
	 	 Facsimile and PDF Delivery of Signature Pages.
	  	91
	 Section 12.15
	 	 U.S.A. Patriot Act.
	  	91

 EXHIBITS 

 

			
	Exhibit A1	  	FORM OF NOTE
	Exhibit A2	  	FORM OF REGULATION S TEMPORARY GLOBAL NOTE
	Exhibit B	  	FORM OF CERTIFICATE OF TRANSFER

  

 iv 

			
	Exhibit C	  	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D	  	FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
	Exhibit E	  	FORM OF NOTATION OF GUARANTEE
	Exhibit F	  	FORM OF SUPPLEMENTAL INDENTURE

  

 v 

 INDENTURE dated as of May 28, 2010 among The Hillman Group, Inc., a Delaware
corporation, the Guarantors (as defined) and Wells Fargo Bank, National Association, as trustee. 
 The Company, the Guarantors
and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined) of the Company’s 10.875% Senior Notes due 2018 (the “Notes”): 

ARTICLE 1 

DEFINITIONS AND INCORPORATION 

BY REFERENCE 

Section 1.01    Definitions. 

“144A Global Note” means a Global Note substantially in the form of Exhibit A1 hereto bearing the Global Note Legend and
the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

 “Acquired Debt” means, with respect to any specified Person: 

(1)    Indebtedness of any other Person existing at the time such other Person is merged with or into
or became a Subsidiary of such specified Person, whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

 (2)    Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person. 
 “Additional Notes” means additional Notes (other than the Initial Notes and the Exchange Notes in
respect thereof) issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes. 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control
with” have correlative meanings. 
 “Agent” means any Registrar, co-registrar, Paying Agent or additional
paying agent. 
 “Applicable Premium” means, with respect to any Note on any redemption date, the greater of:

 (1)    1.0% of the principal amount of the Note; or 

(2)    the excess of: 

(a)    the present value at such redemption date of (i) the redemption price of the Note at
June 1, 2014 (such redemption price being set forth in the table appearing in Section 3.07 hereof), plus (ii) all required interest payments due on the Note through June 1, 2014 (excluding accrued but unpaid interest to the
redemption date), computed using a discount rate equal to the Treasury Rate as of such redemption date plus 50 basis points per annum discounted on a semi-annual bond equivalent basis; over 

 

 1 

 (b)    the principal amount of the Note. 

Calculation of the Applicable Premium will be made by the Company or on behalf of the Company by such Person as the Company shall designate. 

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

“Asset Sale” means: 

(1)    the sale, lease, conveyance or other disposition of any assets or rights by the Company or any
of the Company’s Restricted Subsidiaries; and 
 (2)    the issuance of Equity Interests
by any of the Company’s Restricted Subsidiaries or the sale by the Company or any of the Company’s Restricted Subsidiaries of Equity Interests in any of the Company’s Subsidiaries; 

provided, that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole will be governed by the provisions hereof described in Section 4.15 and/or Section 5.01 and not by Sections 3.09 and 4.10. 

Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale: 

(1)    any single transaction or series of related transactions that involves assets having a Fair
Market Value of less than $2.0 million; 
 (2)    a transfer of assets between or among the
Company and its Restricted Subsidiaries; 
 (3)    an issuance of Equity Interests by a
Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary of the Company; 

(4)    any exchange of assets for assets (including a combination of assets and Cash Equivalents)
related to a Permitted Business of comparable or greater market value or usefulness to the business of the Company and its Restricted Subsidiaries as a whole, as determined in good faith by the Company, which in the event of an exchange of assets
with a Fair Market Value in excess of (a) $2.0 million shall be evidenced by an Officer’s Certificate, and (b) $5.0 million shall be set forth in a resolution approved in good faith by at least a majority of the members of the Board
of Directors of the Company; 
 (5)    the sale, lease or other transfer of inventory,
products, byproducts, goods held for sale, services, accounts receivable in the ordinary course of business and any sale or other disposition of damaged, worn-out or obsolete assets in the ordinary course of business (including the abandonment or
other disposition of any assets, including intellectual property, that is no longer used or useful or no longer economically practical to maintain in the conduct of the business of the Company and its Restricted Subsidiaries taken as whole);

  

 2 

 (6)    licenses and sublicenses by the Company or any of
its Restricted Subsidiaries of software or intellectual property in the ordinary course of business; 

(7)    any surrender or waiver of contract rights or settlement, release, recovery on or surrender of
contract, tort or other claims in the ordinary course of business; 
 (8)    the granting of,
creation of or realization on Liens not prohibited by the covenant described in Section 4.12 hereof. 

(9)    the sale, transfer or other disposition of cash or Cash Equivalents; 

(10)    a Restricted Payment that does not violate the covenant described in Section 4.07 hereof
or a Permitted Investment; 
 (11)    the transfer of assets related to any Hedging
Obligations incurred in compliance with Section 4.09 hereof pursuant to the unwinding of any such Hedging Obligations; and 

(12)    dispositions of Investments in joint ventures to the extent required by, or made pursuant to,
buy/sell arrangements between the joint venture parties set forth in joint venture agreements and similar binding agreements. 

“Asset Sale Offer” has the meaning assigned to that term in Section 3.09 hereof. 

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

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

(1)    with respect to a corporation, the board of directors of the corporation or any committee
thereof duly authorized to act on behalf of such board; 
 (2)    with respect to a
partnership, the Board of Directors of the general partner of the partnership; 
 (3)    with
respect to a limited liability company, the managing member or members or any controlling committee of managing members or managers thereof; and 

(4)    with respect to any other Person, the board or committee of such Person serving a similar
function. 
 “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement. 

“Business Day” means any day other than a Legal Holiday. 

 

 3 

 “Capital Lease Obligation” means, at the time any determination is to be
made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent
or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 

“Capital Stock” means: 

(1)    in the case of a corporation, corporate stock; 

(2)    in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock; 

(3)    in the case of a partnership or limited liability company, partnership interests (whether
general or limited) or membership interests; and 
 (4)    any other interest or
participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether
or not such debt securities include any right of participation with Capital Stock. 
 “Cash Equivalents” means:

 (1)    United States dollars, pounds sterling, euros, the national currency of any
participating member state of the European Union, Canadian dollars, or, in the case of any Foreign Subsidiary, such local currencies held by it from time to time in the ordinary course of business; 

(2)    securities issued or directly and fully guaranteed or insured by the United States government
or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than twelve months from the date of
acquisition; 
 (3)    certificates of deposit and eurodollar time deposits with maturities
of twelve months or less from the date of acquisition, bankers’ acceptances with maturities not exceeding twelve months and overnight bank deposits, in each case, with any lender party to the Credit Agreement or with any domestic commercial
bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better; 

(4)    repurchase obligations with a term of not more than seven days for underlying securities of the
types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above; 

(5)    commercial paper having one of the two highest ratings obtainable from Moody’s or S&P
and, in each case, maturing within six months after the date of acquisition; 
 (6)    money
market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5) of this definition; and 
  

 4 

 (7)    in the case of a Foreign Subsidiary,
substantially similar investments, of comparable credit quality, denominated in the currency of any jurisdiction in which such Person conducts business. 

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

(1)    the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any Person (including any “person” (as that term
is used in Section 13(d)(3) of the Exchange Act)) other than a Principal or a Related Party of a Principal; 

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

(3)    the consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any Person (including any “person” (as defined above)), other than the Principals and their Related Parties, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting
Stock of the Company, measured by voting power rather than number of shares; provided, however, that such event shall not be deemed a Change of Control so long as one or more of the Principals has the right or ability by voting power
or contract to elect or designate for election a majority of the Board of Directors of the Company; or 

(4)    the first day on which a majority of the members of the Board of Directors of the Company are
not Continuing Directors. 
 For purposes of this definition, (i) any direct or indirect holding company of the Company
(including Parent) shall not itself be considered a “person” or “group” for purposes of clause (3) above, provided that no “person” or “group” (other than the Principals and their Related Parties)
beneficially owns, directly or indirectly, more than 50% of the Voting Stock of such holding company and (ii) no Change of Control pursuant to clause (1) above shall be deemed to have occurred solely as the result of a transfer of assets
among the Company and the Guarantors. 
 “Change of Control Offer” has the meaning assigned to that term in
Section 4.15 hereof. 
 “Clearstream” means Clearstream Banking, S.A. 

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

“Company” means The Hillman Group, Inc., and any and all successors thereto. 

“Consolidated EBITDA” means, with respect to any specified Person for any period, the Consolidated Net Income of such
Person for such period plus, without duplication: 
 (1)    the Fixed Charges of such
Person and its Restricted Subsidiaries for such period, to the extent that such Fixed Charges were deducted in computing such Consolidated Net Income; plus  

(2)    provision for taxes based on income or profits of such Person and its Restricted Subsidiaries
for such period, to the extent that such provision for taxes was deducted in computing such Consolidated Net Income; plus  
  

 5 

 (3)    depreciation, amortization (including
amortization of intangibles but excluding amortization of prepaid cash expenses that were paid in a prior period) and other non-cash charges and expenses (excluding any such non-cash charge or expense to the extent that it represents an accrual of
or reserve for cash charges or expenses in any future period or amortization of a prepaid cash charge or expense that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash charges or expenses were deducted in computing such Consolidated Net Income; minus  

(4)    non-cash items increasing such Consolidated Net Income for such period, other than the accrual
of revenue in the ordinary course of business; plus, 
 (5)    adjustments used in
connection with the calculation of “Adjusted EBITDA” (as presented in the Offering Memorandum), 
 in each case, on a consolidated
basis and determined in accordance with GAAP. 
 “Consolidated Net Income” means, with respect to any specified
Person for any period, the aggregate of the net income (loss) of such Person and its Restricted Subsidiaries for such period, on a consolidated basis (excluding the net income (loss) of any Unrestricted Subsidiary of such Person), determined in
accordance with GAAP and without any reduction in respect of preferred stock dividends; provided that: 

(1)    all (a) extraordinary, nonrecurring or unusual gains and losses or income or expenses,
including, without limitation, any expenses related to a facilities closing and any reconstruction, recommissioning or reconfiguration of fixed assets for alternate uses; any severance or relocation expenses; executive recruiting costs;
restructuring costs; curtailments or modifications to pension and post-retirement employee benefit plans; (b) any expenses (including, without limitation, financial advisory fees, accounting fees, legal fees and other similar advisory and
consulting fees and related out-of-pocket expenses), costs or charges incurred in connection with any Equity Offering, Permitted Investment, acquisition, disposition, recapitalization or incurrence or repayment of Indebtedness permitted under this
Indenture, including a refinancing thereof (in each case whether or not successful) (including any such costs and charges incurred in connection with the transactions described in the section of the Offering Memorandum titled “The
Transactions”); and (c) gains and losses realized in connection with any sale of assets outside the ordinary course of business, the disposition of securities, the early extinguishment of Indebtedness or associated with Hedging
Obligations, together with any related provision for taxes on any such gain, will be excluded; 

(2)    the net income (but not loss) of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting will be included only to the extent of the amount of dividends or similar distributions paid in cash to the specified Person or a Restricted Subsidiary of the Person; 

(3)    solely for the purpose of the covenant described above under Section 4.07 hereof, the net
income (but not loss) of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that net income is not at the date of determination permitted
without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to
that Restricted Subsidiary or its stockholders; 
  

 6 

 (4)    any foreign currency translation gains or losses
(including gains or losses related to currency remeasurements of Indebtedness) of such Person and its Restricted Subsidiaries for such period, will be excluded; 

(5)    the effect of any non-cash impairment charges or asset write-downs or write-offs resulting from
the application of GAAP, including pursuant to ASC 350 and 360, and the amortization of intangibles arising from the application of GAAP, including pursuant to ASC 805, will be excluded; 

(6)    any non-cash expense realized or resulting from stock option plans, employee benefit plans or
post-employment benefit plans, or grants or sales of stock, stock appreciation or similar rights, stock options, restricted stock, preferred stock or other rights; 

(7)    the cumulative effect of a change in accounting principles will be excluded; 

(8)    non-cash gains and losses attributable to movement in the mark-to-market valuation of Hedging
Obligations pursuant to ASC 815; and 
 (9)    interest payments made on the Subordinated
Intercompany Promissory Note at the Stated Maturity of such interest payments and any amortization of premium resulting from any fair value adjustments of such note, will be excluded. 

“continuing” means, with respect to any Default or Event of Default, that such Default or Event of Default has not been
cured or waived. 
 “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Company who: 
 (1)    was a member of such Board of Directors on the date
of this Indenture; or 
 (2)    was nominated for election or elected to such Board of
Directors with the approval of the Principals or a majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination or election. 

“Contribution Indebtedness” means Indebtedness of the Company in an aggregate principal amount not to exceed two times
the aggregate amount of cash received by the Company after the date of this Indenture from the sale of its Equity Interests (other than Disqualified Stock) or as a contribution to its common equity capital (in each case, other than to or from a
Subsidiary of the Company); provided that such Indebtedness (a) is incurred within 180 days after the sale of such Equity Interests or the making of such capital contribution and (b) is designated as “Contribution
Indebtedness” pursuant to an officer’s certificate on the date of its incurrence. Any sale of Equity Interests or capital contribution that forms the basis for an incurrence of Contribution Indebtedness will not be considered to be a sale
of Qualifying Equity Interests and will be disregarded for purposes of Section 4.07 hereof and will not be considered to be an Equity Offering for purposes of Section 3.07 hereof. 

“Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in Section 12.02 hereof or
such other address as to which the Trustee may give notice to the Company. 
 “Credit Agreement” means the
Credit Agreement, to be dated as of the date of this Indenture, by and among OHCP HM Acquisition Corp., The Hillman Companies, Inc., Hillman Investment Company, The Hillman Group, Inc. and the lenders and agents from time to time party thereto,
providing for up to 
  

 7 

 
$420.0 million of revolving credit and term loan borrowings, including any related notes, Guarantees, collateral documents, instruments and agreements executed in connection therewith, and, in
each case, as amended, restated, modified, renewed, refunded, replaced in any manner (whether upon or after termination or otherwise) or refinanced (including by means of sales of debt securities to investors) in whole or in part from time to time.

 “Credit Facilities” means one or more debt facilities (which may be outstanding at the same time and
including, without limitation, the Credit Agreement) or commercial paper facilities, in each case, with banks or other lenders or investors or indentures or other agreements providing for revolving credit loans, term loans, debt securities,
receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit or other indebtedness, in each case, as amended,
restated, supplemented, modified, renewed, refunded, replaced in any manner (whether upon or after termination or otherwise) or refinanced (including by means of sales of debt securities to investors) in whole or in part, in one or more instances,
from time to time (including successive renewals, extensions, substitutions, refinancings, restructurings, replacements, supplementations or other modifications of the foregoing, including into one or more debt facilities, commercial paper
facilities or other debt instruments, indentures or agreements (including by means of sales of debt securities (including Additional Notes) to investors)), providing for revolving credit loans, term loans, letters of credit, debt securities or other
debt obligations, from time to time. 
 “Default” means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default. 
 “Definitive Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A1 hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto. 
 “Depositary” means, with respect to the
Notes issuable or issued in whole or in part in global form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such
pursuant to the applicable provision of this Indenture. 
 “Designated Non-cash Consideration” means any
non-cash consideration received by the Company or one of its Restricted Subsidiaries in connection with an Asset Sale that is designated as Designated Non-cash Consideration pursuant to an officer’s certificate executed by an officer of the
Company or such Restricted Subsidiary at the time of such Asset Sale. 
 “Disqualified Stock” means any Capital
Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding
the preceding sentence, (i) any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require the Company to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies
with the covenant described in Section 4.07 hereof, (ii) if such Capital Stock is issued to any employee or to any plan for the benefit of employees of the Company or its Subsidiaries or by any such plan to such employees, such Capital
Stock shall not constitute Disqualified Stock solely because they may be 
  

 8 

 
required to be repurchased by the Company in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability and
(iii) any class of Capital Stock of such Person that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of Capital Stock that is not Disqualified Stock shall not be deemed to be Disqualified Stock. The amount
of Disqualified Stock deemed to be outstanding at any time for purposes of this Indenture will be the maximum amount that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued dividends. 
 “Domestic Subsidiary”
means any Restricted Subsidiary of the Company that was formed under the laws of the United States or any state of the United States or the District of Columbia or that guarantees or otherwise provides direct credit support for any Indebtedness of
the Company. 
 “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 
 “Equity
Offering” means a public or private sale either (1) of Equity Interests of the Company by the Company (other than Disqualified Stock and other than to a Subsidiary of the Company) or (2) of Equity Interests of a direct or indirect
parent entity of the Company (other than to the Company or a Subsidiary of the Company) to the extent that the net proceeds therefrom are contributed to the common equity capital of the Company. 

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

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

“Exchange Notes” means the Notes issued in the Exchange Offer pursuant to Section 2.06(f) hereof. 

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

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

“Excluded Contributions” means the Cash Equivalents received by the Company after the date of this Indenture from
(1) contributions to its common equity capital, and (2) the sale (other than to a Subsidiary of the Company or to any Subsidiary management equity plan or stock option plan or any other management or employee benefit plan or agreement) of
Equity Interests (other than Disqualified Stock) of the Company, in each case designated as Excluded Contributions pursuant to an officer’s certificate executed by an officer of the Company on or promptly after the date such capital
contributions are made or the date such Equity Interest is sold, as the case may be. Any Excluded Contribution shall not be used or counted pursuant to Section 4.07(a)(3) hereof. 

“Existing Indebtedness” means all Indebtedness of the Company and its Subsidiaries (other than Indebtedness under the
Credit Agreement and the Subordinated Intercompany Promissory Note) in existence on the date of this Indenture, until such amounts are repaid. 

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a
transaction not involving distress or necessity of either party, determined in good faith by the Board of Directors of the Company (unless otherwise provided in this Indenture). 

 

 9 

 “Fixed Charge Coverage Ratio” means with respect to any specified Person
for any period, the ratio of the Consolidated EBITDA of such Person for such period to the Fixed Charges of such Person for such period. In the event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees,
repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems preferred stock subsequent to the commencement of the period for which the Fixed
Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will be
calculated giving pro forma effect (including all Pro Forma Cost Savings) to such incurrence, assumption, Guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or redemption of
preferred stock, and the use of the proceeds therefrom, as if the same had occurred at the beginning of the applicable four-quarter reference period. 

In addition, for purposes of calculating the Fixed Charge Coverage Ratio: 

(1)    acquisitions that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations, or any Person or any of its Restricted Subsidiaries acquired by the specified Person or any of its Restricted Subsidiaries, and including all related financing transactions and including
increases in ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent to such reference period and on or prior to the Calculation Date, or that are to be made on the Calculation Date, will be given pro forma
effect (including all Pro Forma Cost Savings) as if they had occurred on the first day of the four-quarter reference period; 

(2)    the Consolidated EBITDA attributable to discontinued operations, as determined in accordance
with GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded; 

(3)    the Fixed Charges attributable to discontinued operations, as determined in accordance with
GAAP, and operations or businesses (and ownership interests therein) disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed Charges will not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date; 
 (4)    any
Person that is a Restricted Subsidiary on the Calculation Date will be deemed to have been a Restricted Subsidiary at all times during such four-quarter period; 

(5)    any Person that is not a Restricted Subsidiary on the Calculation Date will be deemed not to
have been a Restricted Subsidiary at any time during such four-quarter period; and 

(6)    if any Indebtedness bears a floating rate of interest, the interest expense on such
Indebtedness will be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a
remaining term as at the Calculation Date in excess of 12 months). 
 “Fixed Charges” means, with respect to
any specified Person for any period, the sum, without duplication, of: 
 (1)    the
consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of original 

 

 10 

 
issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations,
commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to Hedging Obligations in respect of interest rates;
plus  
 (2)    the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period; plus  
 (3)    any interest on
Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus
 
 (4)    the product of (a) all dividends, whether paid or accrued and whether or
not in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Company (other than Disqualified Stock) or to the Company or a
Restricted Subsidiary of the Company, times (b) a fraction, the numerator of which is one and the denominator of which is one minus then current combined federal, state and local statutory tax rate of such Person, expressed as a decimal,
in each case, determined on a consolidated basis in accordance with GAAP; less  

(5)    the consolidated interest income of such Person and its Restricted Subsidiaries for such
period, whether received or accrued, to the extent such income was included in determining Consolidated Net Income. 
 To the
extent related to the Transactions or any refinancing of Indebtedness, amortization of debt issuance costs and premium and other financing fees and expenses shall be excluded from the calculation of Fixed Charges. In addition, interest payments made
on the Subordinated Intercompany Promissory Note at the Stated Maturity of such interest payments and any amortization of premium resulting from any fair value adjustments of such note, will be excluded from the calculation of Fixed Charges.

 “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is not a Domestic Subsidiary and
any direct or indirect Restricted Subsidiary of such Restricted Subsidiary. 
 “GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such
other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the date of this Indenture. 

“Global Note Legend” means the legend set forth in Section 2.06(g)(2) hereof, which is required to be placed on all
Global Notes issued under this Indenture. 
 “Global Notes” means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the Depository or its nominee, substantially in the form of Exhibit A1 hereto and that bears the Global Note Legend and that has
the “Schedule of Exchanges of Interests in the Global Note” attached thereto, issued in accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f) hereof. 

“Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the
payment for which the United States pledges its full faith and credit. 
  

 11 

 “Guarantee” means a guarantee other than by endorsement of negotiable
instruments for collection or deposit in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of
all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise).

 “Guarantors” means Hillman Companies, Parent and any Subsidiary of the Company that executes a Note
Guarantee in accordance with the provisions of this Indenture, and their respective successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with the provisions of this Indenture. 

“Hedging Obligations” means, with respect to any specified Person, the obligations of such Person under: 

(1)    interest rate swap agreements (whether from fixed to floating or from floating to fixed),
interest rate cap agreements and interest rate collar agreements; 
 (2)    other agreements
or arrangements designed to manage interest rates or interest rate risk; and 
 (3)    other
agreements or arrangements designed to protect such Person against fluctuations in currency exchange rates or commodity prices. 

“Hillman Companies” means The Hillman Companies, Inc., and any and all successors thereto. 

“Hillman Group Capital Trust” means The Hillman Group Capital Trust, and any and all successors thereto. 

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

“IAI Global Note” means a Global Note substantially in the form of Exhibit A1 hereto bearing the Global Note Legend and
the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold to Institutional Accredited
Investors.  
 “Indebtedness” means, with respect to any specified Person, any
indebtedness of such Person (excluding accrued expenses and trade payables), whether or not contingent: 

(1)    in respect of borrowed money; 

(2)    evidenced by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof); 
 (3)    in respect of banker’s
acceptances; 
 (4)    representing Capital Lease Obligations; 

(5)    representing the balance deferred and unpaid of the purchase price of any property or services
due more than six months after such property is acquired or such services are completed; or 
  

 12 

 (6)    representing any Hedging Obligations, 

if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet
of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the
specified Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person. Indebtedness shall be calculated without giving effect to the effects of ASC 815 and related interpretations
to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose under this Indenture as a result of accounting for any embedded derivatives created by the terms of such Indebtedness. 

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

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

 “Initial Notes” means the $150.0 million aggregate principal amount of Notes issued under this Indenture on
the date hereof. 
 “Initial Purchasers” means (i) with respect to the Initial Notes, Barclays Capital
Inc. and Morgan Stanley & Co. Incorporated and (ii) with respect to each issuance of Additional Notes, the Persons purchasing such Additional Notes under the related purchase agreement. 

“Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act, that is not also a QIB. 
 “Investments” means, with
respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations), advances or capital contributions (excluding commission, travel and
similar advances to officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that,
after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of
the Company’s Investments in such Subsidiary that were not sold or disposed of in an amount determined as provided in the penultimate paragraph of the covenant described in Section 4.07 hereof. The acquisition by the Company or any
Restricted Subsidiary of the Company of a Person that holds an Investment in a third Person will be deemed to be an Investment by the Company or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the
Investments held by the acquired Person in such third Person in an amount determined as provided in the penultimate paragraph of the covenant described in Section 4.07 hereof. Except as otherwise provided in this Indenture, the amount of an
Investment will be determined at the time the Investment is made and without giving effect to subsequent changes in value. 
  

 13 

 “Junior Subordinated Debentures” means Hillman Companies’ outstanding
11.6% Junior Subordinated Debentures due 2027 underlying the trust preferred securities issued by Hillman Group Capital Trust, as amended from time to time, provided that no such amendment may increase the interest rate or change the Stated
Maturity of interest payments. 
 “Legal Holiday” means a Saturday, a Sunday or a day on which banking
institutions in the City of New York or at a place of payment are authorized by law, regulation or executive order to remain closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period. 
 “Letter of
Transmittal” means the letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for use by such Holders in connection with the Exchange Offer. 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any
kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or
give a security interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction. 

“Moody’s” means Moody’s Investors Service, Inc., and any successor to the ratings business thereof. 

“Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Company or any of its Restricted
Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of (A) the direct costs relating
to such Asset Sale, including, without limitation, legal, accounting and investment banking fees and expenses, and brokerage and sales commissions, (B) any relocation expenses incurred as a result of the Asset Sale, (C) taxes paid or
payable as a result of the Asset Sale, in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements, (D) amounts required to be applied to the repayment of Indebtedness, other than
Indebtedness under a Credit Facility, secured by a Lien on the asset or assets that were the subject of such Asset Sale, (E) amounts to be paid to any Person (other than the Company or any Restricted Subsidiary) owning a beneficial interest in
the assets subject to the Asset Sale or having a Lien thereon, and (F) appropriate amounts to be provided as a reserve in accordance with GAAP against liabilities associated with such Asset Sale, including pension and other post-employment
benefit liabilities, liabilities related to environmental matters and indemnification obligations associated with such Asset Sale, with any subsequent reduction of the reserve other than by payments made and charged against the reserved amount to be
deemed a receipt of cash. 
 “Non-Recourse Debt” means Indebtedness: 

(1)    as to which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor or otherwise; and 

(2)    as to which the lenders have been notified in writing that they will not have any recourse to
the stock or assets of the Company or any of its Restricted Subsidiaries (other than the Equity Interests of an Unrestricted Subsidiary). 
  

 14 

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

“Note Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any successor entity
thereto. 
 “Note Guarantee” means the Guarantee by each Guarantor of the Company’s obligations under this
Indenture and the Notes, executed pursuant to the provisions of this Indenture. 
 “Notes” has the meaning
assigned to it in the preamble to this Indenture. The Initial Notes, the Exchange Notes in respect thereof and the Additional Notes shall be treated as a single class for all purposes under this Indenture, and unless the context otherwise requires,
all references to the Notes shall include the Initial Notes, the Exchange Notes in respect thereof and any Additional Notes. 

“Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness. 
 “Offering Memorandum” means the
Offering Memorandum, dated May 18, 2010, relating to the initial offering of the Notes and setting forth information regarding the Company, the Guarantors, the Guarantees, the Notes and the Exchange Notes. 

“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the General Counsel, the Secretary or any Vice-President of such Person. 

“Officer’s Certificate” means a certificate signed on behalf of the Company by an Officer of the Company.

 “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that
meets the requirements of Section 12.05 hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee. Such opinion may be subject to customary assumptions, exceptions and qualifications.

 “Parent” means Hillman Investment Company and any other person who is the direct owner of the Voting Stock
of the Company. 
 “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream). 

“Permitted Business” means the businesses engaged in by the Company and its Subsidiaries on the date of this Indenture
and any other businesses that are complementary or ancillary thereto, reasonably related thereto or reasonable extensions thereof. 

“Permitted Investments” means: 

(1)    any Investment in the Company or in a Restricted Subsidiary of the Company; 

(2)    any Investment in Cash Equivalents; 

 

 15 

 (3)    any Investment by the Company or any Restricted
Subsidiary of the Company in a Person, if as a result of such Investment: 
 (a)    such
Person becomes a Restricted Subsidiary of the Company; or 
 (b)    such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially all of its assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company; 

(4)    any Investment made as a result of the receipt of non-cash consideration from an Asset Sale or
other asset disposition that was made pursuant to and in compliance with the covenant described in Sections 3.09 and 4.10 hereof; 

(5)    any acquisition of assets or Capital Stock solely in exchange for the issuance of Equity
Interests (other than Disqualified Stock) of the Company; 
 (6)    any Investments received
in compromise or resolution of (A) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Company or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or (B) litigation, arbitration or other disputes; 

(7)    Investments represented by Hedging Obligations; 

(8)    loans or advances to directors, officers and employees made in the ordinary course of business
of the Company or any Restricted Subsidiary of the Company in an aggregate principal amount not to exceed $2.0 million at any one time outstanding; 

(9)    repurchases of the Notes; 

(10)    any guarantee of Indebtedness permitted to be incurred pursuant to Section 4.09 hereof
other than a guarantee of Indebtedness of an Affiliate of the Company that is not a Restricted Subsidiary of the Company; 

(11)    any Investment existing on, or made pursuant to binding commitments existing on, the date of
this Indenture and any Investment consisting of an extension, modification or renewal of any Investment existing on, or made pursuant to a binding commitment existing on, the date of this Indenture; provided that the amount of any such
Investment may be increased (a) as required by the terms of such Investment as in existence on the date of this Indenture or (b) as otherwise permitted under this Indenture; 

(12)    Investments acquired after the date of this Indenture as a result of the acquisition by the
Company or any Restricted Subsidiary of the Company of another Person, including by way of a merger, amalgamation or consolidation with or into the Company or any of its Restricted Subsidiaries in a transaction that is not prohibited by
Section 5.01 hereof after the date of this Indenture to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger,
amalgamation or consolidation; 
 (13)    advances, loans, rebates and extensions of credit
to suppliers, customers and vendors in the ordinary course of business; 
  

 16 

 (14)    any Investment acquired by the Company or any of
its Restricted Subsidiaries as a result of a foreclosure by the Company or any of its Restricted Subsidiaries with respect to any secured Investment or other transfer of title with respect to any secured Investment in default; and 

(15)    other Investments in any Person having an aggregate Fair Market Value (measured on the date
each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (15) that are at the time outstanding not to exceed the greater of $10.0
million and 1.5% of Total Assets. 
 “Permitted Liens” means: 

(1)    Liens on assets of the Company or any Guarantor securing Indebtedness and other Obligations
under Credit Facilities that was permitted by the terms of this Indenture to be incurred pursuant to clause (1) or clause (17) of the definition of Permitted Debt in Section 4.09(b) and/or securing Hedging Obligations related thereto
and/or securing Obligations with regard to Treasury Management Arrangements; 
 (2)    Liens
in favor of the Company or the Guarantors; 
 (3)    Liens on property of a Person existing
at the time such Person becomes a Restricted Subsidiary of the Company or is merged with or into or consolidated with the Company or any Restricted Subsidiary of the Company; provided that such Liens were in existence prior to the
contemplation of such Person becoming a Restricted Subsidiary of the Company or such merger or consolidation and do not extend to any assets other than those of the Person that becomes a Restricted Subsidiary of the Company or is merged with or into
or consolidated with the Company or any Restricted Subsidiary of the Company; 
 (4)    Liens
on property (including Capital Stock) existing at the time of acquisition of the property by the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to such acquisition and not incurred in contemplation
of, such acquisition; 
 (5)    Liens to secure the performance of public or statutory
obligations, insurance, surety, or appeal bonds, customs duties, workers compensation obligations, unemployment insurance or similar legislation, good faith deposits in connection with bids, tenders, contracts or leases, performance bonds or other
obligations of a like nature incurred in the ordinary course of business (including Liens to secure letters of credit issued to assure payment of such obligations); 

(6)    Liens securing reimbursement obligations with respect to letters of credit that encumber
documents and other property relating to such letters of credit and the proceeds thereof; 

(7)    Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 4.09(b)(4) hereof covering only the assets acquired with or financed by such Indebtedness; 

(8)    Liens existing on the date of this Indenture; 

(9)    customary Liens in favor of trustees and escrow agents, and netting and setoff rights, margins
Liens and the like in favor of financial institutions and counterparties to financial obligations and instruments, including any such Liens securing Hedging Obligation; 
  

 17 

 (10)    Liens on assets pursuant to merger agreements,
stock or asset purchase agreements and similar agreements in respect of the disposition of such assets; 

(11)    options, put and call arrangements, rights of first refusal and similar rights relating to
Investments in joint ventures, partnerships and similar transactions; 
 (12)    Liens for
taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor; 
 (13)    Liens
imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’ Liens, in each case, incurred in the ordinary course of business; 

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

(15)    Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);

 (16)    Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Indenture; provided, however, that: 
 (a)    the new Lien is limited to
all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions
thereof); and 
 (b)    the Indebtedness secured by the new Lien is not increased to any
amount greater than the sum of (x) the outstanding principal amount, or, if greater, committed amount, of the Indebtedness renewed, refunded, refinanced, replaced, defeased or discharged with such Permitted Refinancing Indebtedness and
(y) an amount necessary to pay any fees and expenses, including premiums, related to such renewal, refunding, refinancing, replacement, defeasance or discharge; 

(17)    Liens on insurance policies and proceeds thereof, or other deposits, to secure insurance
premium financings; 
 (18)    filing of Uniform Commercial Code financing statements as a
precautionary measure in connection with operating leases; 
 (19)    bankers’ Liens,
Liens securing appeal bonds of letters of credit issued in support of or in lieu of appeal bonds, rights of setoff, Liens arising out of judgments or awards not constituting an Event of Default and notices of lis pendens and associated rights
related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made; 

(20)    Liens on cash, Cash Equivalents or other property arising in connection with the defeasance,
discharge or redemption of Indebtedness; 
  

 18 

 (21)    Liens on specific items of inventory or other
goods (and the proceeds thereof) of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to facilitate the purchase, shipment
or storage of such inventory or other goods; 
 (22)    leases and subleases of real property
which do not materially interfere with the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries; 

(23)    Liens securing Hedging Obligations to the extent permitted by Section 4.09 hereof;

 (24)    Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into in the ordinary course of business; 

(25)    Liens securing Indebtedness incurred under any Credit Facility, so long as the Secured
Indebtedness Ratio would be no greater than to 3.0 to 1.0 after giving pro forma effect to the incurrence of such Indebtedness and the application of the proceeds therefrom; 

(26)    Liens on the assets of any Foreign Subsidiary securing Indebtedness and other Obligations
under Indebtedness permitted by the terms of this Indenture pursuant to clauses (16) and (17) of the definition of Permitted Debt or pursuant to Section 4.09(a) hereof; and 

(27)    Liens of the Company or any Restricted Subsidiary of the Company with respect to obligations
that do not exceed $10.0 million at any one time outstanding. 
 “Permitted Payments to Parent” means, without
duplication as to amounts: 
 (1)    payments by the Company to or on behalf of Parent or
any direct or indirect parent of the Company (i) in an amount sufficient to pay franchise taxes and other fees required to maintain the legal existence of Parent or another direct or indirect parent of the Company in an amount sufficient for
Parent or any direct or indirect parent of the Company to pay out-of-pocket legal, accounting and filing costs and other expenses in the nature of overhead in the ordinary course of business, plus (ii) amounts necessary to pay expenses
required to maintain their corporate existence, customary salary, bonus and other benefits payable to, and indemnities provided on behalf of, its officers and employees and corporate overhead expenses, plus (iii) amounts necessary to pay
customary and reasonable costs and expenses of financings, acquisitions or offerings of securities of any direct or indirect parent of the Company that are not consummated, in the case of clauses (i), (ii) and (iii) above in an aggregate
amount not to exceed $1.0 million in any calendar year; and 
 (2)    payments made directly
or indirectly to Parent or the direct or indirect parent of Parent of the amount that Parent or a direct or indirect parent of Parent is required to pay for federal, state or local income, franchise or similar taxes as the common parent of an
affiliated group (within the meaning of Section 1504 of the Code) or a combined or unitary group of corporations of which the Company is a member and quarterly or annual payments for other taxes incurred by Parent or its direct or indirect
Parent (but only to the extent that such other taxes relate to the operations of, or such Persons’ direct or indirect ownership of, the Company and its Subsidiaries); provided that (A) such payments with respect to income, franchise
or similar taxes may be made only in respect of the period during which the Company is consolidated, combined, or affiliated with Parent and the direct or indirect parent of Parent for purposes of the payment of such taxes and (B) such payments
with respect to income, franchise or similar taxes shall not 
  

 19 

 
exceed the aggregate amount that the Company reasonably estimates would be payable by the Company and its Subsidiaries if they filed a separate consolidated return with the Company as the parent,
determined without giving effect to any deductions for amounts payable to Parent or the direct or indirect parent of Parent that have not been paid in cash. 

“Permitted Refinancing Indebtedness” means any Indebtedness or Disqualified Stock of the Company or any Indebtedness or
preferred stock of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used (or will be used within 60 days of the incurrence or issuance of such permitted Refinancing Indebtedness) to renew, refund, refinance,
replace, defease or discharge other Indebtedness or Disqualified Stock of the Company or any Indebtedness or preferred stock of its Restricted Subsidiaries (other than Indebtedness, Disqualified Stock or preferred stock held by the Company or any of
its Subsidiaries); provided that: 
 (1)    the principal amount (or accreted value,
if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness, Disqualified Stock or preferred stock renewed, refunded, refinanced, replaced, defeased or
discharged (plus all accrued interest on the Indebtedness, dividends on Disqualified Stock or preferred stock and the amount of all fees and expenses, including premiums, incurred in connection therewith); 

(2)    such Permitted Refinancing Indebtedness has a final maturity date later than the final maturity
date of, and has a Weighted Average Life to Maturity that is (i) equal to or greater than the final maturity date and the Weighted Average Life to Maturity of, the Indebtedness, Disqualified Stock or preferred stock being renewed, refunded,
refinanced, replaced, defeased or discharged or (ii) more than 90 days after the final maturity date of the Notes; 

(3)    if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is
subordinated in right of payment to the Notes, such Permitted Refinancing Indebtedness is subordinated in right of payment to the Notes on terms at least as favorable to the holders of Notes as those contained in the documentation governing the
Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged; and 

(4)    such Indebtedness is incurred either by the Company or by the Restricted Subsidiary of the
Company that was the obligor on the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged and is guaranteed only by the Guarantors (if the Company incurs such Indebtedness) or by Persons who were obligors on the
Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged. 
 “Person” means any
individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 

“Principal” means (A) Oak Hill Capital Partners, LLC, Oak Hill Capital Partners III, L.P., and Oak Hill Capital
Management Partners III, L.P. and any of their Affiliates (but excluding any of their portfolio companies); and (B) any of Max W. Hillman, Richard P. Hillman, James P. Waters, George L. Heredia and Ali Fartaj. 

“Private Placement Legend” means the legend set forth in Section 2.06(g)(1) hereof to be placed on all Notes issued
under this Indenture except where otherwise permitted by the provisions of this Indenture. 
  

 20 

 “Pro Forma Cost Savings” means operating expense reductions and other
operating improvements or synergies determined in good faith by the Company to be reasonably expected to result from any acquisition, merger, disposition or operational change (provided that such operating expense reductions and other
operating improvements or synergies are (1) reasonably identifiable and factually supportable and (2) realized within twelve months of the date on which such acquisition, merger, disposition or operational change is consummated), based on
assumptions determined in good faith by the Company. 
 “QIB” means a “qualified institutional buyer”
as defined in Rule 144A. 
 “Qualifying Equity Interests” means Equity Interests of the Company other than
(1) Disqualified Stock and (2) Equity Interests that were used to support an incurrence of Contribution Indebtedness. 

“Registration Rights Agreement” means (i) with respect to the Initial Notes, the Registration Rights Agreement,
dated as of May 28, 2010, among the Company, the Guarantors and the other parties named on the signature pages thereof, as such agreement may be amended, modified or supplemented from time to time, and, (ii) with respect to each issuance
of Additional Notes issued in a transaction exempt from the registration requirements of the Securities Act, the registration rights agreement, if any, among the Company, the Guarantors and the other parties thereto, as such agreement may be
amended, modified or supplemented from time to time, in each case relating to rights given by the Company to the purchasers of Additional Notes to register such Additional Notes under the Securities Act. 

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

“Regulation S Global Note” means a Regulation S Temporary Global Note or Regulation S Permanent Global Note, as
appropriate. 
 “Regulation S Permanent Global Note” means a permanent Global Note in the form of Exhibit A1
hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the
Regulation S Temporary Global Note upon expiration of the Restricted Period. 
 “Regulation S Temporary Global
Note” means a temporary Global Note in the form of Exhibit A2 hereto deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the Notes
initially sold in reliance on Rule 903 of Regulation S. 
 “Related Party” means: 

(1)    any controlling stockholder, controlling member, general partner, majority owned Subsidiary,
spouse, descendant or other immediate family member (which includes any child, stepchild, parent, stepparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law) (in the case of an individual) of any
Principal; or 
 (2)    any estate, trust, corporation, partnership, limited liability
company or other entity, the beneficiaries, stockholders, partners, members, owners or Persons beneficially holding a majority (and controlling) interest of which consist of any one or more Principals and/or such other Persons referred to in the
immediately preceding clause (1); or 
  

 21 

 (3)    any executor, administrator trustee, manager,
director, or other similar fiduciary of any Person referred to in the immediately preceding clause (2), acting solely in such capacity. 

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

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

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

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

“Restricted Period” means, with respect to any Notes, the 40-day distribution compliance period as
defined in Regulation S as applicable to such Notes. 
 “Restricted Subsidiary” of a Person means any Subsidiary of
the referent Person that is not an Unrestricted Subsidiary. 
 “Rule 144” means Rule 144 promulgated under the
Securities Act. 
 “Rule 144A” means Rule 144A promulgated under the Securities Act. 

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

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

“S&P” means Standard & Poor’s Ratings Group, and any successor to the ratings business thereof. 

“SEC” means the Securities and Exchange Commission. 

“Secured Indebtedness Ratio” means, as of any date of determination, the ratio of (a) the aggregate principal
amount of Indebtedness of the Company and the Guarantors outstanding as of that date (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and the Guarantors thereunder) that is
secured by a Lien to (b) the Company’s Consolidated EBITDA for the most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date of determination, with such pro forma and
other adjustments to the Indebtedness of the Company and its Restricted Subsidiaries and to Consolidated EBITDA as are consistent with the adjustment provisions set forth in the definition of “Fixed Charge Coverage Ratio.” 

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

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

 “Significant Subsidiary” means any Restricted Subsidiary that would be a “significant subsidiary”
as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date of this Indenture. 

 

 22 

 “Special Interest” has the meaning assigned to that term pursuant to the
Registration Rights Agreement. 
 “Stated Maturity” means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the date of this Indenture, and will not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof. 

“Subordinated Indebtedness” means Indebtedness of the Company, any Guarantor or any Restricted Subsidiary that is
expressly subordinated in right of payment to the Notes or the Note Guarantees, as applicable. 
 “Subordinated
Intercompany Promissory Note” means the Amended and Restated Subordinated Promissory Note from the Company to Parent in the principal amount of $105,446,000, maturing on September 30, 2027, and bearing interest (payable monthly) at a
rate of 11.6% per annum, as in existence on the date of this Indenture. 
 “Subsidiary” means, with
respect to any specified Person: 
 (1)    any corporation, association or other business
entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively
transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person (or a combination thereof); and 
 (2)    any partnership or
limited liability company of which (a) more than 50% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, and (b) such Person or any Subsidiary of such
Person is a controlling general partner or otherwise controls such entity. 
 “TIA” means the Trust Indenture
Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb). 
 “Total Assets” means the total assets of
the Company and its Restricted Subsidiaries on a consolidated basis, as shown on the most recent balance sheet of the Company. For purposes of testing whether any Investment, Indebtedness or other item that is incurred based on a basket related to
Total Assets such item shall be permitted if such basket was available on the date of such incurrence even if Total Assets subsequently decreases. 

“Treasury Management Arrangement” means any agreement or other arrangement governing the provision of treasury or cash
management services, including deposit accounts, overdraft, credit or debit card, funds transfer, automated clearinghouse, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation and reporting
and trade finance services and other cash management services. 
  

 23 

 “Treasury Rate” means, as of any redemption date, the yield to maturity as
of such redemption date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days
prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most nearly equal to the period from the redemption date to June 1, 2014; provided, however,
that if the period from the redemption date to June 1, 2014, is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used. 

“Trustee” means Wells Fargo Bank, National Association until a successor replaces it in accordance with the applicable
provisions of this Indenture and thereafter means the successor serving hereunder. 
 “Unrestricted Definitive
Note” means a Definitive Note that does not bear and is not required to bear the Private Placement Legend. 

“Unrestricted Global Note” means a Global Note that does not bear and is not required to bear the Private Placement
Legend. 
 “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board of
Directors of the Company as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but only to the extent: 

(1)    that if the Indebtedness of the Subsidiary is not Non-Recourse Debt, any guarantee or other
credit support thereof by the Company or a Restricted Subsidiary is permitted under the “Limitations on Additional Indebtedness and Issuance of Preferred Stock” covenant; 

(2)    except as permitted in Section 4.11 hereof, such Subsidiary is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted Subsidiary of the Company unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted Subsidiary
than those that might be obtained at the time from Persons who are not Affiliates of the Company; 

(3)    such Subsidiary is a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause such Person to achieve any specified levels of operating
results, unless such obligation is a Permitted Investment or is otherwise permitted under the covenant described in Section 4.07 hereof; and 

(4)    such Subsidiary has not guaranteed or otherwise directly or indirectly provided credit support
for any Indebtedness of the Company or any of its Restricted Subsidiaries. 
 “U.S. Person” means a U.S. Person
as defined in Rule 902(k) promulgated under the Securities Act. 
 “Voting Stock” of any specified Person as of
any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person. 
  

 24 

 “Weighted Average Life to Maturity” means, when applied to any
Indebtedness, Disqualified Stock or preferred stock at any date, the number of years obtained by dividing: 

(1)    the sum of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of principal or liquidation preference, including payment at final maturity, in respect of the Indebtedness, Disqualified Stock or preferred stock, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by 

(2)    then outstanding principal amount of such Indebtedness or liquidation preference of such
Disqualified Stock or preferred stock. 
 Section 1.02    Other Definitions. 

 

			
	Term	  	Defined in
Section
	 “Advisor”
	  	7.02
	 “Affiliate Transaction”
	  	4.11
	 “Asset Sale Offer”
	  	3.09
	 “Authenticating Agent”
	  	2.02
	 “Authentication Order”
	  	2.02
	 “Change of Control Offer”
	  	4.15
	 “Change of Control Payment”
	  	4.15
	 “Change of Control Payment Date”
	  	4.15
	 “Covenant Defeasance”
	  	8.03
	 “DTC”
	  	2.01
	 “Event of Default”
	  	6.01
	 “Excess Proceeds”
	  	4.10
	 “incur”
	  	4.09
	 “Legal Defeasance”
	  	8.02
	 “Offer Amount”
	  	3.09
	 “Offer Period”
	  	3.09
	 “Paying Agent”
	  	2.03
	 “Permitted Debt”
	  	4.09
	 “Payment Default”
	  	6.01
	 “PDF”
	  	12.14
	 “Purchase Date”
	  	3.09
	 “Registrar”
	  	2.03
	 “Restricted Payments”
	  	4.07

Section 1.03    Incorporation by Reference of Trust Indenture Act. 

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

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

“indenture securities” means the Notes; 

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

“indenture to be qualified” means this Indenture; 

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

 

 25 

 “obligor” on the Notes and the Note Guarantees means the Company and the
Guarantors, respectively, and any successor obligor upon the Notes and the Note Guarantees, respectively. 
 All other terms
used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to them. 

Section 1.04    Rules of Construction. 

Unless the context otherwise requires: 

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

(2)    an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP; 
 (3)    “or” is not exclusive; 

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

(5)    “will” shall be interpreted to express a command; 

(6)    references to laws and statutes shall be deemed to refer to successor laws and statutes
thereto; 
 (7)    provisions apply to successive events and transactions; and 

(8)    references to sections of or rules under the Exchange Act, the Securities Act or the TIA will
be deemed to include substitute, replacement of successor sections or rules adopted by the SEC from time to time. 
 ARTICLE 2

 THE NOTES 

Section 2.01    Form and Dating. 

(a)    General. The Notes and the Trustee’s certificate of authentication will be substantially in the
form of Exhibits A1 and A2 hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note will be dated the date of its authentication. The Notes shall be in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. The Company and the Guarantors shall approve the forms of the Notes and any notation, legend or endorsement thereon. 

The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture and the Company,
the Guarantors and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions of this
Indenture, the provisions of this Indenture shall govern and be controlling. 

(b)    Global Notes. Notes issued in global form will be substantially in the form of
Exhibits A1 or A2 hereto. Notes issued in definitive form will be substantially in the form of Exhibit A1 hereto (but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached
thereto). Each Global Note will represent such of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal amount of outstanding 

 

 26 

 
Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect
exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee, the Depository or the Note
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. The Company initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes. 
 (c)    Temporary Global Notes. Notes offered and sold
in reliance on Regulation S will be issued initially in the form of the Regulation S Temporary Global Note, which will be deposited on behalf of the purchasers of the Notes represented thereby with the Trustee, at its New York office, as custodian
for the Depositary, and registered in the name of the Depositary or the nominee of the Depositary for the accounts of designated agents holding on behalf of Euroclear or Clearstream, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The Restricted Period will be terminated upon the receipt by the Trustee of: 

(1)    a written certificate from the Depositary, together with copies of certificates from Euroclear
and Clearstream certifying that they have received certification of non-United States beneficial ownership of 100% of the aggregate principal amount of the Regulation S Temporary Global Note (except to the extent of any beneficial owners thereof who
acquired an interest therein during the Restricted Period pursuant to another exemption from registration under the Securities Act and who will take delivery of a beneficial ownership interest in a 144A Global Note or an IAI Global Note bearing a
Private Placement Legend, all as contemplated by Section 2.06(b) hereof); and 

(2)    an Officer’s Certificate from the Company. 

Following the termination of the Restricted Period, beneficial interests in the Regulation S Temporary Global Note will be exchanged for
beneficial interests in the Regulation S Permanent Global Note pursuant to the Applicable Procedures. Simultaneously with the authentication of the Regulation S Permanent Global Note, the Trustee will cancel the Regulation S Temporary Global Note.
The aggregate principal amount of the Regulation S Temporary Global Note and the Regulation S Permanent Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary or its nominee,
as the case may be, in connection with transfers of interest as hereinafter provided. 

(3)    Euroclear and Clearstream Procedures Applicable. The provisions of the “Operating
Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream will be applicable to
transfers of beneficial interests in the Regulation S Temporary Global Note and the Regulation S Permanent Global Note that are held by Participants through Euroclear or Clearstream. 

Section 2.02    Execution and Authentication. 

At least one Officer of the Company must sign the Notes for the Company by manual or facsimile signature. If an Officer whose signature is
on a Note no longer holds that office at the time a Note is authenticated, the Note will nevertheless be valid. 
  

 27 

 A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that such Note has been duly and validly authenticated and issued under this Indenture. 

The aggregate principal amount of Notes that may be authenticated and delivered under this Indenture is unlimited. The
Trustee will, upon receipt of a written order of the Company signed an Officer of the Company (an “Authentication Order”), authenticate and deliver (i) on the date of this indenture, the Initial
Notes in aggregate principal amount of $150,000,000, (ii) subject to the provisions of Section 2.13, at any time and from time to time thereafter, Additional Notes in an aggregate principal amount specified in such Authentication Order and
(iii) subject to the provisions of Section 2.06(f), Exchange Notes issued in exchange for a like principal amount of Initial Notes or Additional Notes tendered pursuant to an Exchange Offer. Each such Authentication Order shall specify
(i) the registered holder of each Note, (ii) the amount and maturity date of each Note to be authenticated, (iii) the date on which the Notes are to be authenticated, (iv) whether the Notes are to be Initial Notes, Exchange Notes
or Additional Notes, (v) whether such Notes shall bear the Global Note Legend and/or the Private Placement Legend and (vi) delivery instructions for the Notes. Furthermore, Notes may be authenticated and delivered upon registration or
transfer, or in lieu of, other Notes pursuant to Section 2.06, 2.07, 2.10 or 9.05 or in connection with a Change of Control Offer pursuant to Section 4.15, an Asset Sale Offer pursuant to Section 3.09 or a redemption pursuant to
Article 3. The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes authorized for issuance by the Company pursuant to one or more Authentication Orders, except as provided in
Section 2.07 hereof.  
 The Trustee may appoint an authenticating agent (the “Authenticating
Agent”) acceptable to the Company to authenticate Notes. An Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such
Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company. 

Section 2.03    Registrar and Paying Agent. 

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

 Section 2.04    Paying Agent to Hold Money in Trust. 

The Company will require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, premium on, if any, or interest or Special Interest, if any, on, the Notes, and will notify the Trustee in writing of any default by the Company in
making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the

  

 28 

 
Trustee and to account for any funds disbursed by such Paying Agent. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) will have no further liability
for the money. If the Company or a Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating
to the Company, the Trustee will serve as Paying Agent for the Notes. 
 Section 2.05    Holder Lists.

 The Trustee will preserve in as current a form as is reasonably practicable the most recent list available to it of the names
and addresses of all Holders and shall otherwise comply with TIA §312(a). If the Trustee is not the Registrar, the Company will furnish to the Trustee at least seven Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA §312(a). 

Section 2.06    Transfer and Exchange. 

(a)    Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All
Global Notes will be exchanged by the Company for Definitive Notes if: 
 (1)    the Company
delivers to the Trustee written notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary; 

(2)    the Company in its sole discretion determines that the Global Notes (in whole but not in part)
should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee; provided that in no event shall the Temporary Regulation S Global Note be exchanged by the Company for Definitive Notes prior to
(A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act; or 

(3)    there has occurred and is continuing a Default or Event of Default with respect to the Notes.

 Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to Sections 2.06, 2.07 or 2.10 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as provided in this
Section 2.06(a), however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f) hereof. 

(b)    Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of
beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes will be subject to restrictions
on transfer comparable to those set forth herein 
  

 29 

 
to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also will require compliance with either subparagraph (1) or (2) below, as
applicable, as well as one or more of the other following subparagraphs, as applicable: 

(1)    Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in any
Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private Placement Legend;
provided, however, that transfers of beneficial interests in the Temporary Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person. Beneficial interests in any Unrestricted Global Note may be
transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note. No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(1). 
 (2)    All Other Transfers and Exchanges of Beneficial
Interests in Global Notes. In connection with all transfers and exchanges of beneficial interests that are not subject to Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar either: 

(A)    both: 

(i)    a written order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and 

(ii)    instructions given in accordance with the Applicable Procedures containing information
regarding the Participant account to be credited with such increase; or 
 (B)    both:

 (i)    a written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged; and 

(ii)    instructions given by the Depositary to the Registrar containing information regarding the
Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (i) above; 

provided that in no event shall Definitive Notes be issued upon the transfer or exchange of beneficial interests in the Regulation
S Temporary Global Note prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903 under the Securities Act. 

Upon consummation of an Exchange Offer by the Company in accordance with Section 2.06(f) hereof, the requirements of this Section 2.06(b)(2)
shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of such beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the
requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.06(h) hereof. 
  

 30 

 (3)    Transfer of Beneficial Interests to Another
Restricted Global Note. A beneficial interest in any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the
requirements of Section 2.06(b)(2) above and the Registrar receives the following: 

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

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

(C)    if the transferee will take delivery in the form of a beneficial interest in the IAI Global
Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 

(4)    Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial
Interests in an Unrestricted Global Note. A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note or transferred to a Person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.06(b)(2) above and: 

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

(B)    such transfer is effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement; 
 (C)    such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

(D)    the Registrar receives the following: 

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

(ii)    if the holder of such beneficial interest in a Restricted Global Note proposes to transfer
such beneficial interest to a Person who shall take 
  

 31 

 
delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof; 
 and, in each such case set forth in this subparagraph (D), if the Registrar so requests or if the Applicable
Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the
Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 
 If any such transfer
is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the
Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above. 

Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the
form of, a beneficial interest in a Restricted Global Note. 
 (c)    Transfer or Exchange of Beneficial
Interests for Definitive Notes. 
 (1)    Beneficial Interests in Restricted Global
Notes to Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 

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

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

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

(D)    if such beneficial interest is being transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof; 

(E)    if such beneficial interest is being transferred to an Institutional Accredited Investor in
reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if applicable; 
  

 32 

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

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

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof,
and the Company shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions
from the Depositary and the Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein. 

(2)    Beneficial Interests in Regulation S Temporary Global Note to Definitive Notes.
Notwithstanding Sections 2.06(c)(1)(A) and (C) hereof, a beneficial interest in the Regulation S Temporary Global Note may not be exchanged for a Definitive Note or transferred to a Person who takes delivery thereof in the form of a Definitive
Note prior to (A) the expiration of the Restricted Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act, except in the case of a transfer pursuant to an
exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904. 

(3)    Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes. A
holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note only if: 
 (A)    such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the holder of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is
not (i) a Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company; 

(B)    such transfer is effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement; 
 (C)    such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

(D)    the Registrar receives the following: 

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

 

 33 

 (ii)    if the holder of such beneficial interest in a
Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof; 
 and, in each such case set forth in this subparagraph (D), if the Registrar so
requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 

(4)    Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes. If
any holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note,
then, upon satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Company will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(3) will be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(3)(4) will not bear the Private Placement Legend. 
 (d)    Transfer and Exchange of
Definitive Notes for Beneficial Interests. 
 (1)    Restricted Definitive Notes to
Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person who
takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation: 

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

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

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

 

 34 

 (D)    if such Restricted Definitive Note is being
transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

 (E)    if such Restricted Definitive Note is being transferred to an Institutional
Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including
the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable; 

(F)    if such Restricted Definitive Note is being transferred to the Company, any Guarantor or any of
their Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or 

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

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

(2)    Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes. A
Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note only if: 
 (A)    such exchange or transfer is effected pursuant to
the Exchange Offer in accordance with the Registration Rights Agreement and the Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (i) a
Broker-Dealer, (ii) a Person participating in the distribution of the Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144) of the Company; 

(B)    such transfer is effected pursuant to the Shelf Registration Statement in accordance with the
Registration Rights Agreement; 
 (C)    such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

(D)    the Registrar receives the following: 

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

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

 

 35 

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

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2), the Trustee will cancel
the Definitive Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note. 

(3)    Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes. A
Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount of one of the
Unrestricted Global Notes. 
 If any such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to subparagraphs (2)(B), (2)(D) or (3) above at a time when an Unrestricted Global Note has not yet been issued, the Company will issue and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee will authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred. 

(e)    Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive
Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder must
present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In
addition, the requesting Holder must provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e). 

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

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

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

 36 

 (C)    if the transfer will be made pursuant to any
other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item
(3) thereof, if applicable. 
 (2)    Restricted Definitive Notes to Unrestricted
Definitive Notes. Any Restricted Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if:

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

(B)    any such transfer is effected pursuant to the Shelf Registration Statement in accordance with
the Registration Rights Agreement; 
 (C)    any such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

(D)    the Registrar receives the following: 

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

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

and, in each such case set forth in this subparagraph (D), if the Registrar so requests, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain
compliance with the Securities Act. 
 (3)    Unrestricted Definitive Notes to
Unrestricted Definitive Notes. A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the
Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof. 
  

 37 

 (f)    Exchange Offer. Upon the occurrence of the Exchange Offer
in accordance with the Registration Rights Agreement, the Company will issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate: 

(1)    one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal
amount of the beneficial interests in the Restricted Global Notes accepted for exchange in the Exchange Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B) they are not
participating in a distribution of the Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of the Company; and 

(2)    Unrestricted Definitive Notes in an aggregate principal amount equal to the principal amount of
the Restricted Definitive Notes accepted for exchange in the Exchange Offer by Persons that certify in the applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B) they are not participating in a distribution of the
Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of the Company. 
 Concurrently with the issuance
of such Notes, the Trustee will cause the aggregate principal amount of the applicable Restricted Global Notes to be reduced accordingly, and the Company will execute and the Trustee will authenticate and deliver to the Persons designated by the
Holders of Definitive Notes so accepted Unrestricted Definitive Notes in the appropriate principal amount. 

(g)    Legends. The following legends will appear on the face of all Global Notes and Definitive Notes issued
under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 

(1)    Private Placement Legend. 

(A)    Except as permitted by subparagraph (B) below, each Global Note and each Definitive Note
(and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form: 
 “THE
NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN
OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN
INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) TO US, ANY OF THE GUARANTORS OR ANY OF
THEIR SUBSIDIARIES AND (C) IN ACCORDANCE WITH ALL APPLICABLE BLUE SKY LAWS OF THE STATES OF THE UNITED STATES, AND ANY SELLER AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.” 
 (B)    Notwithstanding the foregoing,
any Global Note or Definitive Note issued pursuant to subparagraphs (b)(4), (c)(3), (c)(4), (d)(2), (d)(3), (e)(2), (e)(3) or (f) of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) will not bear the
Private Placement Legend. 
  

 38 

 (2)    Global Note Legend. Each Global Note will
bear a legend in substantially the following form: 
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF
THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 

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

(3)    Regulation S Temporary Global Note Legend. The Regulation S Temporary Global Note will
bear a Legend in substantially the following form: 
 “THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND
THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE
PAYMENT OF INTEREST HEREON.” 
 (4)    Original Issue Discount Legend. If
required by the Code, or any regulation promulgated thereunder, each Additional Note (and the related Exchange Note) will bear a legend in substantially the following form: 

“FOR THE PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH ORIGINAL
ISSUE DISCOUNT; FOR EACH $1,000 PRINCIPAL AMOUNT OF THIS SECURITY, THE ISSUE PRICE IS $[        ], THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $[        ], THE ISSUE DATE
IS [            ], 20[     ] AND THE YIELD TO MATURITY IS [    ]% PER ANNUM.” 

 

 39 

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

(i)    General Provisions Relating to Transfers and Exchanges. 

(1)    To permit registrations of transfers and exchanges, the Company will execute and the Trustee
will authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request. 

(2)    No service charge will be made to a Holder of a beneficial interest in a Global Note or to a
Holder of a Definitive Note for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer
taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof). 

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

(4)    All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of
Global Notes or Definitive Notes will be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer
or exchange. 
 (5)    Neither the Registrar nor the Company will be required: 

(A)    to issue, to register the transfer of or to exchange any Notes during a period beginning at
the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 hereof and ending at the close of business on the day of selection; 

(B)    to register the transfer of or to exchange any Note 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. 

(6)    Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent
and the Company may deem and treat the Person in whose name any Note is 
  

 40 

 
registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the
Company shall be affected by notice to the contrary. 
 (7)    The Trustee will authenticate
Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof. 

(8)    All certifications, certificates and Opinions of Counsel required to be submitted to the
Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile. 

Section 2.07    Replacement Notes. 

If any mutilated Note is surrendered to the Trustee or the Company and the Trustee and the Company receive evidence to their mutual
satisfaction of the destruction, loss or theft of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note if the Trustee’s and the Company’s requirements are met. An
indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect the Company, the Trustee, any Agent and any Authenticating Agent from any loss that any of them may suffer if a Note is
replaced. The Company may charge for its expenses in replacing a Note. 
 Every replacement Note is an additional obligation of
the Company and will be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 

Section 2.08    Outstanding Notes. 

The Notes outstanding at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered to it
for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof,
a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a Subsidiary of the Company shall not be deemed to be outstanding for purposes of Section 3.07(a)
hereof. 
 If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives
proof satisfactory to them that the replaced Note is held by a protected purchaser. 
 If the principal amount of any Note is
considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue. 
 If the
Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and after that date such Notes will be deemed to be no
longer outstanding and will cease to accrue interest. 
 Section 2.09    Treasury Notes. 

In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes
owned by the Company or any Guarantor, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any Guarantor, will be considered as though not outstanding, except that for
the purposes of determining whether the Trustee will be protected in relying conclusively on any such direction, waiver or consent, only Notes that the Trustee actually knows are so owned will be so disregarded. 

 

 41 

 Section 2.10    Temporary Notes. 

Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication
Order, will authenticate temporary Notes. Temporary Notes will be substantially in the form of certificated Notes but may have variations that the Company considers appropriate for temporary Notes and as may be reasonably acceptable to the Trustee.
Without unreasonable delay, the Company will prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes. 

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

Section 2.11    Cancellation. 

The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent will forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and will destroy canceled Notes
(subject to the record retention requirement of the Exchange Act). If requested by the Company, certification of the destruction of all canceled Notes will be delivered to the Company. The Company may not issue new Notes to replace Notes that it has
paid or that have been delivered to the Trustee for cancellation. 
 Section 2.12    Defaulted Interest.

 If the Company defaults in a payment of interest on the Notes, it will 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 4.01 hereof. The Company will 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 Company will fix or cause to be fixed each such special record date and payment date; provided that no such special
record date may 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 Company (or, upon the written request of the Company, the Trustee in the name and at the expense
of the Company) will 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    Issuance of Additional Notes. 

The Company shall be entitled, subject to its compliance with Section 4.09, to issue Additional Notes under this Indenture which
shall have identical terms as the Initial Notes or the Exchange Notes, other than with respect to the date of issuance, issue price, first interest payment amount, first interest payment date and rights under a related Registration Rights Agreement,
if any. 
 Section 2.14    One Class of Notes. 

The Initial Notes, any Additional Notes and all Exchange Notes issued in exchange therefor shall be treated as a single class for all
purposes under this Indenture; provided, however, that to the extent that any Notes are issued at a discount to their stated redemption price at maturity and bear the legend required by Section 2.06(g)(4), each group of Notes bearing a
given amount of original issue discount shall be treated as a separate class only for purposes of the transfer and exchange provisions of Section 2.06. 
  

 42 

 Section 2.15    CUSIP, ISIN or Other Similar Numbers. 

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

ARTICLE 3 

REDEMPTION AND PREPAYMENT 

Section 3.01    Notices to Trustee. 

If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it must furnish to the
Trustee, at least 30 days but not more than 60 days before a redemption date, an Officer’s Certificate setting forth: 

(1)    the clause of this Indenture pursuant to which the redemption shall occur; 

(2)    the redemption date; 

(3)    the principal amount of Notes to be redeemed; and 

(4)    the redemption price. 

Section 3.02    Selection of Notes to Be Redeemed or Purchased. 

If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select Notes for
redemption or purchase on a pro rata basis (or, in the case of Notes issued in global form pursuant to Article 2 hereof, based on a method that most nearly approximates a pro rata selection as the Trustee deems fair and appropriate)
unless otherwise required by law or applicable stock exchange or depositary requirements. 
 In the event of partial redemption
or purchase by lot, the particular Notes to be redeemed or purchased will be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding Notes not
previously called for redemption or purchase. 
 The Trustee will promptly notify the Company in writing of the Notes selected
for redemption or purchase and, in the case of any Note selected for partial redemption or purchase, the principal amount thereof to be redeemed or purchased. No Notes of $2,000 or less can be redeemed in part. Notes and portions of Notes selected
will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased.
Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also apply to portions of Notes called for redemption or purchase. 

 

 43 

 Section 3.03    Notice of Redemption. 

Subject to the provisions of Section 3.09 hereof, at least 30 days but not more than 60 days before a redemption date, the Company
will mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Articles 8 or 11 hereof. 

The notice will identify the Notes to be redeemed and will state: 

(1)    the redemption date; 

(2)    the redemption price; 

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

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

(5)    that Notes called for redemption must be surrendered to the Paying Agent to collect the
redemption price; 
 (6)    that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and after the redemption date; 

(7)    the paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called
for redemption are being redeemed; and 
 (8)    the CUSIP number and that no representation
is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Notes. 
 At the
Company’s request, the Trustee will give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company has delivered to the Trustee, at least 30 days prior to the redemption date (unless a
shorter period is acceptable to the Trustee), an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph. 

Section 3.04    Effect of Notice of Redemption. 

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

Section 3.05    Deposit of Redemption or Purchase Price. 

On or prior to 10:00 am New York City time on the redemption or purchase date (or such later time of day to which the Trustee may
reasonably agree), the Company will deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of, and accrued interest 

 

 44 

 
and Special Interest, if any, on, all Notes to be redeemed or purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any money deposited with the Trustee or
the Paying Agent by the Company in excess of the amounts necessary to pay the redemption or purchase price of, accrued interest and Special Interest, if any, on all Notes to be redeemed or purchased. 

If the Company complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest will cease
to accrue on the Notes or the portions of Notes called for redemption or purchase. If a Note is redeemed or purchased on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid interest
shall be paid to the Person in whose name such Note was registered at the close of business on such record date. If any Note called for redemption or purchase is not so paid upon surrender for redemption or purchase because of the failure of the
Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or purchase date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each
case at the rate provided in the Notes and in Section 4.01 hereof. 
 Section 3.06    Notes Redeemed or
Purchased in Part. 
 Upon surrender of a Note that is redeemed or purchased in part, the Company will issue and, upon
receipt of an Authentication Order, the Trustee will authenticate for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed or unpurchased portion of the Note surrendered. 

Section 3.07    Optional Redemption. 

(a)    At any time prior to June 1, 2013, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 110.875% of the principal amount of the Notes redeemed, plus accrued and unpaid interest and
Special Interest, if any, to the date of redemption (subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant interest payment date) with the net cash proceeds of an Equity Offering by the Company or
a capital contribution to the Company’s common equity made with the net cash proceeds of a concurrent Equity Offering by the Company’s direct or indirect parent; provided that: 

(1)    at least 65% of the aggregate principal amount of Notes originally issued under this Indenture
(excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and 

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

 (b)    At any time prior to June 1, 2014, the Company may on any one or more occasions redeem all or
a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of, and accrued and unpaid interest and Special
Interest, if any, to the applicable date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date. 

(c)    Except pursuant to the preceding paragraphs, the Notes will not be redeemable at the Company’s option
prior to June 1, 2014. 
  

 45 

 (d)    On or after June 1, 2014, the Company may on any one or more
occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest and Special Interest, if
any, on the Notes redeemed, to the applicable date of redemption, if redeemed during the twelve-month period beginning on June 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest on
the relevant interest payment date: 
  

				
	Year	  	Percentage	 
	 2014
	  	105.438	% 
	 2015
	  	102.719	% 
	 2016 and thereafter
	  	100.000	% 

 Unless the
Company defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date. 

(e)    Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01
through 3.06 hereof. 
 Section 3.08    Mandatory Redemption. 

The Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes. 

Section 3.09    Offer to Purchase by Application of Excess Proceeds. 

In the event that, pursuant to Section 4.10 hereof, the Company is required to commence an offer to all Holders to purchase Notes (an
“Asset Sale Offer”), it will follow the procedures specified below. 
 The Asset Sale Offer shall be made to
all Holders and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in this Indenture with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets,
to purchase, prepay or redeem the maximum principal amount of notes and such other pari passu Indebtedness (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection
therewith) that may be purchased, prepaid or redeemed out of such Excess Proceeds. The Asset Sale Offer will remain open for a period of at least 20 Business Days following its commencement and not more than 30 Business Days, except to the extent
that a longer period is required by applicable law (the “Offer Period”). No later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Company will apply all Excess Proceeds
(the “Offer Amount”) to the purchase of Notes and such other pari passu Indebtedness (on a pro rata basis based on the principal amount of Notes and such other pari passu Indebtedness surrendered, if applicable)
or, if less than the Offer Amount has been tendered, all Notes and other Indebtedness tendered in response to the Asset Sale Offer. Payment for any Notes so purchased will be made in the same manner as interest payments are made. 

If the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid
interest and Special Interest, if any, will be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale
Offer. 
  

 46 

 Upon the commencement of an Asset Sale Offer, the Company will send, by first class mail, a
notice to the Trustee and each of the Holders, with a copy to the Trustee. The notice will contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The notice, which will govern the
terms of the Asset Sale Offer, will state: 
 (1)    that the Asset Sale Offer is being made
pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale Offer will remain open; 

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

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

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

(5)    that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to
have Notes purchased in denominations of $2,000 or an integral multiple of $1,000 in excess thereof; 

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

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

(8)    that, if the aggregate principal amount of Notes and other pari passu Indebtedness
surrendered by holders thereof exceeds the Offer Amount, the Trustee will select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis based on the principal amount of Notes and such other pari passu
Indebtedness surrendered (with such adjustments as may be deemed appropriate by the Company so that only Notes in denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be purchased); and 

(9)    that Holders whose Notes were purchased only in part will be issued new Notes equal in
principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry transfer). 
 On or before
the Purchase Date, the Company will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer
Amount has been tendered, all Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating that such Notes or portions thereof were accepted for payment by
the Company in accordance with the terms of this Section 3.09. The Company, the Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company will promptly issue a new Note, and the Trustee, upon written request from the Company, will
authenticate and mail or deliver (or cause 
  

 47 

 
to be transferred by book entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any Note not so accepted shall be promptly mailed or
delivered by the Company to the Holder thereof. The Company will publicly announce the results of the Asset Sale Offer as promptly as practicable after the Purchase Date (but in any event no later than two Business Days after such date). 

Other than as specifically provided in this Section 3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to
the provisions of Sections 3.01 through 3.06 hereof. 
 ARTICLE 4 

COVENANTS 

Section 4.01    Payment of Notes. 

The Company will pay or cause to be paid the principal of, premium on, if any, interest and Special Interest, if any, on, the Notes on the
dates and in the manner provided in the Notes. Principal, premium, if any, interest and Special Interest, if any, will be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 11:00 a.m.
New York City Time on the due date money deposited by the Company in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest, if any, then due. The Company will pay all Special Interest, if
any, in the same manner on the dates and in the amounts set forth in the Registration Rights Agreement. 
 The Company will pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Special Interest, if any (without regard to any applicable grace period), at the same rate to the extent lawful. 

Section 4.02    Maintenance of Office or Agency. 

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

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

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

 48 

 Section 4.03    Reports. 

(a)    Whether or not required by the rules and regulations of the SEC, so long as any Notes are outstanding, the
Company will furnish to the Holders of Notes and the Trustee (or file with the SEC for public availability and provide the Trustee with electronic notification thereof including a hyperlink to the relevant SEC website), within the time periods
specified in the SEC’s rules and regulations (giving effect to Rule 12h-5 and Rule 12b-25 under the Exchange Act): 

(1)    all quarterly and annual reports that would be required to be filed with the SEC on Forms 10-Q
and 10-K if the Company were required to file such reports, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to the annual information only, a report thereon by the
Company’s certified independent accountants; and 
 (2)    all current reports that
would be required to be filed with the SEC on Form 8-K if the Company were required to file such reports. 
 In addition,
following the consummation of the exchange offer contemplated by the Registration Rights Agreement, the Company will file a copy of each of the reports referred to in clauses (1) and (2) above with the SEC for public availability within
the time periods specified in the rules and regulations applicable to such reports (giving effect to Rule 12h-5 and Rule 12b-25 under the Exchange Act) (unless the SEC will not accept such a filing). 

If, at any time after consummation of the Exchange Offer contemplated by the Registration Rights Agreement, the Company is no longer
subject to the periodic reporting requirements of the Exchange Act for any reason, the Company will nevertheless continue filing the reports specified in the preceding paragraphs of this covenant with the SEC within the time periods specified above
unless the SEC will not accept such a filing. The Company will not take any action for the purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will not accept the Company’s filings for any
reason, the Company will post the reports referred to in the preceding paragraphs on its website within the time periods that would apply if the Company were required to file those reports with the SEC. 

(b)    If the Company has designated any Significant Subsidiary as an Unrestricted Subsidiary, then the quarterly and
annual financial information required by the preceding paragraphs will include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in Management’s Discussion and Analysis of
Financial Condition and Results of Operations, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and results of operations of such Unrestricted Subsidiaries of
the Company. 
 (c)    Notwithstanding the foregoing clauses (a) and (b), if any direct or indirect
parent of the Company, including Parent or Hillman Companies, fully and unconditionally guarantees the Notes, the filing of such reports by such parent within the time periods specified above will satisfy such obligations of the Company under
clauses (a) and (b) above; provided that, following effectiveness of an exchange offer registration statement or shelf registration statement, such reports shall include the information required by Rule 3-10 of Regulation S-X with respect
to the Company and the Guarantors. 
 (d)    In addition, the Company and the Guarantors agree that, for so
long as any Initial Notes remain outstanding, if at any time they are not required to file with the SEC the reports required by the preceding paragraphs, they will furnish to the Holders of Initial Notes 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. 
  

 49 

 Section 4.04    Compliance Certificate. 

(a)    The Company and each Guarantor (but only to the extent that such Guarantor is so required under the TIA) shall,
so long as any of the Notes are outstanding, deliver to the Trustee, within 90 days after the end of each fiscal year of the Company, an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during
the preceding fiscal year of the Company has been made under the supervision of the signing Officer with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating,
as to each such Officer signing such certificate, that to his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default has occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes
to take with respect thereto). 
 (b)    So long as any of the Notes are outstanding, the Company will
deliver to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect
thereto, unless such Event of Default shall have been previously cured or waived. 
 Section 4.05    Taxes.

 The Company will pay, and will cause each of its Restricted Subsidiaries to pay, prior to delinquency, all material taxes,
assessments, and governmental levies except (a) such as are contested in good faith and by appropriate proceedings or (b) where the failure to effect such payment would not have a material adverse effect on the ability of the Company and
the Restricted Subsidiaries taken as a whole, to perform their obligations under the Notes or the Indenture. 

Section 4.06    Stay, Extension and Usury Laws. 

The Company and each of the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Company and each of the Guarantors (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted. 

Section 4.07    Restricted Payments. 

(a)    The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly:

 (i)    declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Company or any of its Restricted Subsidiaries) or to the direct
or indirect holders of the Company’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other 

 

 50 

 
than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company and other than dividends or distributions payable to the Company or a Restricted
Subsidiary of the Company); 
 (ii)    purchase, redeem or otherwise acquire or retire for
value (including, without limitation, in connection with any merger or consolidation involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company; 

(iii)    make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or
retire for value any Subordinated Indebtedness (excluding any intercompany Indebtedness between or among the Company and any of its Restricted Subsidiaries or among Restricted Subsidiaries), except a payment of interest or principal at the Stated
Maturity thereof (other than a payment of interest on the Subordinated Intercompany Promissory Note); or 

(iv)    make any Restricted Investment 

(all such payments and other actions set forth in these clauses (i) through (iv) above being collectively referred to as “Restricted
Payments”), 
 unless, at the time of and after giving effect to such Restricted Payment: 

(1)    no Default or Event of Default has occurred and is continuing or would occur as a consequence
of such Restricted Payment; 
 (2)    the Company would, at the time of such Restricted
Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge
Coverage Ratio test set forth in Section 4.09(a) hereof; and 
 (3)    such Restricted
Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted Subsidiaries since the date of this Indenture (excluding Restricted Payments permitted by clauses (2), (3), (4), (5), (6), (7), (8),
(10), (11) and (13) of paragraph (b) of this Section 4.07), is less than the sum, without duplication, of: 

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

(B)    100% of the aggregate net cash proceeds received by the Company since the date of this
Indenture as a contribution to its common equity capital or from the issue or sale of Qualifying Equity Interests of the Company (in each case other than Excluded Contributions) or from the issue or sale of convertible or exchangeable Disqualified
Stock of the Company or convertible or exchangeable debt securities of the Company, in each case that have been converted into or exchanged for Qualifying Equity Interests of the Company (other than Qualifying Equity Interests and convertible or
exchangeable Disqualified Stock or debt securities sold to a Subsidiary of the Company); plus 
  

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 (C)    to the extent that any Restricted Investment that
was made after the date of this Indenture is (a) sold for cash or otherwise cancelled, liquidated or repaid for cash, the amount of cash received or (b) made in an entity that subsequently becomes a Restricted Subsidiary of the Company,
the initial amount of such Restricted Investment; plus  
 (D)    to the extent that
any Unrestricted Subsidiary designated as such after the date of this Indenture is redesignated as a Restricted Subsidiary after the date of this Indenture, the Fair Market Value of the Company’s Restricted Investment in such Subsidiary as of
the date of such redesignation; plus 
 (E)    100% of any dividends or distributions
received in cash by the Company or a Restricted Subsidiary of the Company that is a Guarantor after the date of this Indenture from an Unrestricted Subsidiary, to the extent that such dividends or distributions were not otherwise included in the
Consolidated Net Income of the Company for such period. 
 (b)    The provisions of Section 4.07(a)
hereof will not prohibit: 
 (1)    the payment of any dividend or the consummation of any
irrevocable redemption within 60 days after the date of declaration of the dividend or giving of the redemption notice, as the case may be, if at the date of declaration or notice, the dividend or redemption payment would have complied with the
provisions of this Indenture; 
 (2)    the making of any Restricted Payment in exchange for,
or out of or with the net cash proceeds of the sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than Disqualified Stock) or from the contribution of common equity capital to the Company; provided
that the amount of any such net cash proceeds that are utilized for any such Restricted Payment will not be considered to be net proceeds of Qualifying Equity Interests for purposes of Section 4.07(a)(3)(B) and will not be considered to be
net cash proceeds from an Equity Offering for purposes of Section 3.07 hereof; 

(3)    the payment of any dividend (or, in the case of any partnership or limited liability company,
any similar distribution) by a Restricted Subsidiary of the Company to the holders of its Equity Interests on a pro rata basis; 

(4)    the repurchase, redemption, defeasance or other acquisition or retirement of Subordinated
Indebtedness in exchange for, or out of the net cash proceeds from a substantially concurrent incurrence of Permitted Refinancing Indebtedness, provided that any redemption of Subordinated Indebtedness for which a notice of redemption has
been validly given pursuant to this Indenture or any other instrument governing such Subordinated Indebtedness and which is redeemed within 60 days of the incurrence of such Permitted Refinancing Indebtedness shall be deemed to have occurred
substantially concurrent with such incurrence for purposes of this clause (4); 
 (5)    so
long as no Default or Event of Default has occurred and is continuing, payments to Parent that are used by Parent, Hillman Companies, or another direct or indirect parent of the Company to repurchase, redeem or otherwise acquire or retire for value
any Equity Interests of Parent, Hillman Companies or any other direct or indirect parent of the Company or payments to repurchase, redeem or otherwise acquire or retire for value any Equity Interests of the Company or any Restricted Subsidiary of
the Company, in each case, held by any current or 
  

 52 

 
former officer, director or employee of the Company or any of its Restricted Subsidiaries (or their estates or beneficiaries under their estates), upon their death, disability, retirement,
severance or termination of employment or service; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed (A) $2.0 million in any calendar year (with unused amounts
up to $1.0 million being available to be used in any succeeding calendar year for a total of up to $3.0 million in any calendar year) plus (B) the amount of any net cash proceeds received by or contributed to the Company from the
issuance and sale since the date of this Indenture of Qualified Equity Interests of the Company, Parent, Hillman Companies or another direct or indirect parent of the Company to its officers, directors or employees that have not been applied to the
payment of Restricted Payments pursuant to the terms of Section 4.07(a)(3) or this clause (5), plus (C) the net cash proceeds of any “key-man” life insurance policies received by the Company or a Restricted Subsidiary of the
Company after the date of this Indenture that have not been applied to the payment of Restricted Payments pursuant to this clause (5); provided, further, that the cancellation of Indebtedness owing to the Company or any Restricted
Subsidiary in connection with the repurchase of Qualified Equity Interests will not be deemed to constitute a Restricted Payment under this Indenture; 

(6)    the repurchase of Equity Interests deemed to occur upon the exercise of stock options to the
extent such Equity Interests represent a portion of the exercise price of those stock options (or related withholding taxes); 

(7)    so long as no Default or Event of Default has occurred and is continuing, the declaration and
payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Company or any preferred stock of any Restricted Subsidiary of the Company issued on or after the date of this Indenture in accordance
with Section 4.09 hereof; 
 (8)    payments of cash, dividends, distributions, advances
or other Restricted Payments by the Company or any of its Restricted Subsidiaries to allow the payment of cash in lieu of the issuance of fractional shares upon (i) the exercise of options or warrants or (ii) the conversion or exchange of
Capital Stock of any such Person; 
 (9)    Permitted Payments to Parent; 

(10)    so long as no Default or Event of Default has occurred and is continuing and such payment is
then permitted by any Credit Facilities then in effect, without duplication, (a) distributions to Parent in an amount necessary to permit payments of interest on the Junior Subordinated Debentures at the Stated Maturity of such interest
payments provided such payments are applied to make payments of interest on the Junior Subordinated Debentures at the Stated Maturity of such interest payments or (b) payments of interest on the Subordinated Intercompany Promissory Note at the
Stated Maturity of such interest payments provided such payments are applied to make payments of interest on the Junior Subordinated Debentures at the Stated Maturity of such interest payments; 

(11)    Restricted Payments made with Excluded Contributions; 

(12)    so long as no Default or Event of Default has occurred and is continuing, the repurchase of
any Subordinated Indebtedness at a purchase price not greater than 101% of the principal amount thereof in the event of a Change of Control pursuant to a provision no more favorable to the holders thereof than the provisions described in
Section 4.15 hereof, provided that, in each case, prior to the repurchase the Company has made a Change of Control Offer to and repurchased all Notes issued under this Indenture that were validly tendered for payment in connection with the
offer to purchase; 
  

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 (13)    distributions or dividends to Hillman Group or
Parent to make the payments described in the section of the Offering Memorandum titled “Use of Proceeds” (if any); and 

(14)    so long as no Default or Event of Default has occurred and is continuing, other Restricted
Payments in an aggregate amount not to exceed the greater of $15.0 million and 2.5% of Total Assets since the date of this Indenture. 

The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the
asset(s) or securities proposed to be transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment. The Fair Market Value of any assets or securities that are required to be valued by
this covenant will be determined by the Board of Directors of the Company whose resolution with respect thereto will be delivered to the trustee. For the avoidance of doubt, any “deemed dividend” resulting from the filing of a consolidated
or combined tax return by any direct or indirect parent of the Company and not involving any cash distribution will not be a “Restricted Payment.” 

For purposes of determining compliance with this covenant, in the event that a proposed Restricted Payment (or portion thereof) meets the
criteria of more than one of the categories of Restricted Payments described in clauses (1) through (14) above, or is entitled to be incurred pursuant to Section 4.07(a), the Company will be entitled to classify or re-classify (based
on circumstances existing on the date of such reclassification) such Restricted Payment or portion thereof in any manner that complies with this covenant and such Restricted Payment will be treated as having been made pursuant to only such clause or
clauses or Section 4.07(a). 
 Section 4.08    Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries. 
 (a)    The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to: 

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

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

(3)    sell, lease or transfer any of its properties or assets to the Company or any of its Restricted
Subsidiaries. 
 (b)    The restrictions in Section 4.08(a) hereof will not apply to encumbrances or
restrictions existing under or by reason of: 
 (1)    agreements governing Existing
Indebtedness and Credit Facilities as in effect on the date of this Indenture and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the amendments,
restatements, modifications, renewals, supplements, refundings, replacements or refinancings are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements
on the date of this Indenture; 
  

 54 

 (2)    this Indenture, the Notes and the Note
Guarantees; 
 (3)    agreements governing other Indebtedness permitted to be incurred under
Section 4.09 hereof and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the restrictions therein will not materially adversely impact the
ability of the Company to make required principal and interest payments on the Notes; 

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

(5)    any instrument governing Indebtedness or Capital Stock of a Person acquired by the Company or
any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is
not applicable to any Person, or the properties or assets of any Person, other than the Person, or the properties or assets of the Person, so acquired; 

(6)    customary non-assignment or non-transfer provisions in contracts, leases and licenses entered
into in the ordinary course of business; 
 (7)    purchase money obligations for property
acquired and Capital Lease Obligations that impose restrictions on the property purchased or leased of the nature described in Section 4.08(a)(3) hereof; 

(8)    any agreement for the sale or other disposition of assets (including the Equity Interests of a
Restricted Subsidiary) that restricts transfers of assets (including distributions by that Restricted Subsidiary) pending the closing of such sale or other disposition; 

(9)    Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced; 

(10)    Liens permitted to be incurred under the provisions of Section 4.12 hereof that limit the
right of the debtor to dispose of the assets subject to such Liens; 
 (11)    provisions
limiting the disposition or distribution of assets or property in partnership agreements, limited liability company organizational governance documents, joint venture agreements, asset sale agreements, sale-leaseback agreements, stock sale
agreements and other similar agreements (including agreements entered into in connection with a Restricted Investment), which limitation is applicable only to the assets that are the subject of such agreements; and 

(12)    restrictions on cash or other deposits or net worth imposed by suppliers, landlords or
customers under contracts entered into in the ordinary course of business. 
 For purposes of determining compliance with this
Section 4.08, (i) the priority of any Preferred Stock in receiving dividends or liquidating distributions prior to dividends or liquidating distributions 

 

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being paid on common Equity Interests shall not be deemed a restriction on the ability to make distributions on Equity Interests and (ii) the subordination of loans or advances made to the
Company or a Restricted Subsidiary of the Company to other Indebtedness incurred by the Company or any such Restricted Subsidiary shall not be deemed a restriction on the ability to make loans or advances. 

Section 4.09    Incurrence of Indebtedness and Issuance of Preferred Stock. 

(a)    The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the Company will not issue
any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, and
the Company’s Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or issue preferred stock, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal
financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock is issued, as the case may be, would have been at least 2.0 to 1.0, determined on
a pro forma basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as the case may be, at the beginning of such
four-quarter period. 
 (b)    The provisions of Section 4.09(a) hereof will not prohibit the
incurrence of any of the following items of Indebtedness or the issuance of the following items of Disqualified Stock or preferred stock, as applicable (collectively, “Permitted Debt”): 

(1)    the incurrence by the Company and any Guarantor of additional Indebtedness and letters of
credit under Credit Facilities in an aggregate principal amount at any one time outstanding under this clause (1) (with letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and its
Restricted Subsidiaries thereunder) not to exceed $420.0 million less the aggregate amount of all Net Proceeds of Asset Sales applied by the Company or any of its Restricted Subsidiaries since the date of this Indenture to repay any term
Indebtedness under a Credit Facility or to repay any revolving credit Indebtedness under a Credit Facility and effect a corresponding commitment reduction thereunder pursuant to Section 4.10 hereof; 

(2)    the incurrence by the Company and its Restricted Subsidiaries of (a) the Existing
Indebtedness and (b) the Subordinated Intercompany Promissory Note; 
 (3)    the
incurrence by the Company and the Guarantors of Indebtedness represented by the Notes and the related Note Guarantees to be issued on the date of this Indenture and the Exchange Notes and the related Note Guarantees to be issued pursuant to the
Registration Rights Agreement; 
 (4)    the incurrence by the Company or any of its
Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase price or cost of design,
construction, installation or improvement of property, plant or equipment used in the business of the Company or any of its Restricted Subsidiaries, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to
renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (4), not to exceed the greater of $5.0 million and 1.5% of Total Assets at any time outstanding; 

 

 56 

 (5)    the incurrence by the Company or any of its
Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany Indebtedness) that was
permitted by this Indenture to be incurred under Section 4.09(a) hereof or clauses (2)(a), (3), (4), (5), (14), (15), (16) or (17) of this Section 4.09(b); 

(6)    the incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided, however, that: 

(A)    if the Company or any Guarantor is the obligor on such Indebtedness and the payee is not the
Company or a Guarantor, such Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash of all Obligations then due with respect to the Notes, in the case of the Company, or the Note Guarantee, in the case of a
Guarantor; and 
 (B)    (1) any subsequent issuance or transfer of Equity Interests
that results in any such Indebtedness being held by a Person other than the Company or a Restricted Subsidiary of the Company and (2) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted
Subsidiary of the Company, 
 will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Company or
such Restricted Subsidiary, as the case may be, that was not permitted by this clause (6); 

(7)    the issuance by any of the Company’s Restricted Subsidiaries to the Company or to any of
its Restricted Subsidiaries of shares of preferred stock; provided, however, that: 

(A)    any subsequent issuance or transfer of Equity Interests that results in any such preferred
stock being held by a Person other than the Company or a Restricted Subsidiary of the Company; and 

(B)    any sale or other transfer of any such preferred stock to a Person that is not either the
Company or Restricted Subsidiary of the Company, 
 will be deemed, in each case, to constitute an issuance of such preferred
stock by such Restricted Subsidiary that was not permitted by this clause (7); 
 (8)    the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations not entered into for speculation; 

(9)    the guarantee or co-issuance by the Company or any of the Guarantors of Indebtedness of the
Company or a Restricted Subsidiary of the Company to the extent that the guaranteed or co-issued Indebtedness was permitted to be incurred by another provision of this Section 4.09; provided that if the Indebtedness being guaranteed or
co-issued is subordinated to or pari passu in right of payment with the Notes, then the Guarantee or co-issuance must be subordinated or pari passu, as applicable, in right of payment to the same extent as the Indebtedness guaranteed;

 (10)    the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness in respect of letters of credit, bank guarantees, workers’ compensation claims, self-insurance obligations, bankers’ acceptances, guarantees, performance, surety, statutory, appeal,

  

 57 

 
completion, export or import, indemnities, customs, revenue bonds or similar instruments in the ordinary course of business, including guarantees or obligations with respect thereto (in each case
other than for an obligation for money borrowed); provided, however that upon the drawing of such letters of credit, such obligations are reimbursed within 30 days following such drawing; 

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

(12)    the incurrence by the Company of Contribution Indebtedness; 

(13)    the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness arising
from agreements providing for indemnification, adjustment of purchase price or similar obligations, incurred in connection with the disposition of any business, assets or Restricted Subsidiary of the Company (other than Guarantees of Indebtedness
incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition), so long as the principal amount of such Indebtedness does not exceed the gross proceeds actually
received by the Company or any Restricted Subsidiary of the Company in connection with such transactions; 

(14)    Indebtedness incurred by the Company or any of its Restricted Subsidiaries to finance the
purchase or redemption of Equity Interests of the Company or any direct or indirect parent company of the Company, including Parent and Hillman Companies, to the extent described in Section 4.07(b)(5) hereof; 

(15)    Indebtedness of a Subsidiary outstanding on the date such Subsidiary was acquired by the
Company or a Restricted Subsidiary of the Company (other than Indebtedness incurred in contemplation of, or in connection with, the transaction or series of related transactions pursuant to which such Subsidiary became a Subsidiary of or was
otherwise acquired by the Company or a Restricted Subsidiary of the Company); provided that, on the date that such Subsidiary is acquired by the Company or a Restricted Subsidiary of the Company and after giving effect to the incurrence of such
Indebtedness and the acquisition of such Subsidiary pursuant to this clause (15), either (a) the Company would have been able to incur $1.00 of additional Indebtedness pursuant to the first paragraph of this covenant or (b) the
Company’s Fixed Charge Coverage Ratio would be greater than immediately prior to such acquisition; 

(16)    the incurrence by one or more Foreign Subsidiaries of additional Indebtedness in an aggregate
principal amount (or accreted value, as applicable) at any time outstanding, including all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause
(16) and then outstanding, not to exceed the greater of $20.0 million and 3% of Total Assets; and 

(17)    the incurrence by the Company of additional Indebtedness or Disqualified stock, or by one or
more Restricted Subsidiaries of additional Indebtedness or preferred stock, in an aggregate principal amount (or accreted value or liquidation amount, as applicable) at any time outstanding, including all Permitted Refinancing Indebtedness incurred
to renew, refund, refinance, replace, defease or discharge any Indebtedness, Disqualified Stock or preferred stock incurred pursuant to this clause (17) and then outstanding, not to exceed the greater of $20.0 million and 3% of Total Assets.

  

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 The Company will not incur, and will not permit any Guarantor to incur, any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other Indebtedness of the Company or such Guarantor unless such Indebtedness is also contractually subordinated in right of payment to the Notes and the
applicable Note Guarantee on substantially identical terms; provided, however, that no Indebtedness will be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being
unsecured or by virtue of being secured on a junior priority basis or pursuant to any customary provisions of any inter-creditor agreements related to the lien subordination (but not the payment subordination) of any such junior security interest.

 For purposes of determining compliance with this Section 4.09, in the event that an item of Indebtedness meets the
criteria of more than one of the categories of Permitted Debt described in clauses (1) through (17) above, or is entitled to be incurred pursuant to Section 4.09(a) hereof, the Company will be permitted to classify and reclassify, in
each case in its sole discretion, such item of Indebtedness and may divide, classify and reclassify (based on circumstances in existence at the time of such reclassification or redivision) such Indebtedness in more than one of the types of
Indebtedness described, except that Indebtedness under Credit Facilities outstanding on the date on which Notes are first issued and authenticated under this Indenture will initially be deemed to have been incurred on such date in reliance on the
exception provided by clause (1) of the definition of Permitted Debt. The accrual of interest or preferred stock dividends, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a change in accounting principles and the payment of dividends on preferred stock or Disqualified Stock in the form of additional shares of
the same class of preferred stock or Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock or Disqualified Stock for purposes of this Section 4.09; provided, in each such case, that
the amount thereof is included in Fixed Charges of the Company as accrued. For purposes of determining compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of
Indebtedness denominated in a foreign currency shall be utilized, calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred. Notwithstanding any other provision of this Section 4.09, the
maximum amount of Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values. 

The amount of any Indebtedness outstanding as of any date will be: 

(1)    the accreted value of the Indebtedness, in the case of any Indebtedness issued with original
issue discount; 
 (2)    the principal amount of the Indebtedness, in the case of any other
Indebtedness; and 
 (3)    in respect of Indebtedness of another Person secured by a Lien on
the assets of the specified Person, the lesser of: 
 (A)    the Fair Market Value of such
assets at the date of determination; and 
 (B)    the amount of the Indebtedness of the
other Person. 
  

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 Section 4.10    Asset Sales. 

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

(1)    the Company (or the Restricted Subsidiary, as the case may be) receives consideration at the
time of the Asset Sale at least equal to the Fair Market Value (measured as of the date of the definitive agreement with respect to such Asset Sale) of the assets or Equity Interests issued or sold or otherwise disposed of; and 

(2)    at least 75% of the total consideration received in the Asset Sale by the Company or such
Restricted Subsidiary is in the form of cash or Cash Equivalents. For purposes of this provision, each of the following will be deemed to be cash: 

(A)    any liabilities, as shown on Hillman Companies’ most recent consolidated balance sheet, of
the Company or any Restricted Subsidiary (other than contingent liabilities and liabilities that are Subordinated Indebtedness) that are assumed by the transferee of any such assets pursuant to a customary novation or indemnity agreement that
releases the Company or such Restricted Subsidiary from or indemnifies against further liability; 

(B)    any securities, notes or other obligations received by the Company or any such Restricted
Subsidiary from such transferee that are promptly, but in any event within 90 days of the consummation of the Asset Sale, subject to ordinary settlement periods, converted by the Company or such Restricted Subsidiary into cash, to the extent of the
cash received in that conversion; 
 (C)    any Designated Non-cash Consideration received by
the Company or any of its Restricted Subsidiaries in such Asset Sale having an aggregate Fair Market Value, taken together with all other Designated Non-cash Consideration received pursuant to this clause (c) that is at that time outstanding,
not to exceed the greater of $15.0 million and 2.5% of Total Assets at the time of the receipt of such Designated Non-cash Consideration (with the Fair Market Value of each item of Designated Non-cash Consideration being measured at the time
received and without giving effect to subsequent changes in value); and 
 (D)    any stock
or assets of the kind referred to in clauses (3) or (5) of the next paragraph of this Section 4.10. 
 Within 365
days after the receipt of any Net Proceeds from an Asset Sale, the Company (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds: 

(1)    to repay Indebtedness and other Obligations under a Credit Facility that are secured by a Lien
and, if the Indebtedness repaid is revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto; 

(2)    to repay or repurchase and retire any Indebtedness that was secured by the assets sold in such
Asset Sale; 
  

 60 

 (3)    to acquire all or substantially all of the assets
of, or any Capital Stock of, another Permitted Business, if, after giving effect to any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Company; 

(4)    to make a capital expenditure; 

(5)    to acquire other assets that are not classified as current assets under GAAP and that are used
or useful in a Permitted Business; or 
 (6)    any combination of clauses (1) through
(5); 
 provided, that, if during the 365 day period following the consummation of an Asset Sale the Company or a Restricted Subsidiary
enters into a definitive binding agreement committing it to apply the Net Proceeds in accordance with the requirements of the above clauses after such 365 period, such 365 day period will be extended with respect to the amount of Net Proceeds so
committed until such Net Proceeds are required to be applied in accordance with such agreement (but such extension will in no event be for a period longer than 180 days) (or, if earlier, the date of termination of such agreement). 

Pending the final application of any Net Proceeds, the Company (or the applicable Restricted Subsidiary) may temporarily reduce revolving
credit borrowings or otherwise invest the Net Proceeds in any manner that is not prohibited by this Indenture. Following the entering into of a binding agreement with respect to an Asset Sale and prior to the consummation thereof, cash or Cash
Equivalents (whether or not actual Net Proceeds of such Asset Sale) used for the purposes described in clauses (1) through (6) above that are designated as used in accordance therewith, and not previously or subsequently so designated in
respect of any other Asset Sale, shall be deemed to be Net Proceeds applied in accordance therewith. 
 Any Net Proceeds from
Asset Sales that are not applied or invested as provided in the second paragraph of this Section 4.10 will constitute “Excess Proceeds.” When the aggregate amount of Excess Proceeds exceeds $15.0 million, within 30 days
thereof, the Company will make an Asset Sale Offer to (A) all Holders of Notes and (B) all holders of other Indebtedness that is pari passu in right of payment with the Notes containing provisions similar to those set forth in this
Indenture with respect to offers to purchase, prepay or redeem with the proceeds of asset sales, to purchase, prepay or redeem the maximum principal amount of Notes and such other pari passu Indebtedness (plus all accrued interest on the
Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the
principal amount, plus accrued and unpaid interest and Special Interest, if any, to the date of purchase, prepayment or redemption, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date, and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer, such amounts shall no longer be considered Excess Proceeds for purposes of this Indenture and the Company may use those
Excess Proceeds for any purpose not otherwise prohibited by this Indenture. If the aggregate principal amount of Notes and other pari passu Indebtedness tendered in (or required to be prepaid or redeemed in connection with) such Asset Sale
Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis, based on the amounts tendered or required to be prepaid or redeemed (with such
adjustments as may be deemed appropriate by the Company so that only Notes in denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be purchased). Upon completion of each Asset Sale Offer, the amount of Excess Proceeds
will be reset at zero. 
  

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 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any securities laws or
regulations conflict with the provisions of Section 3.09 hereof or this Section 4.10, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under
Section 3.09 hereof or this Section 4.10 by virtue of such compliance. 
 Section 4.11    Transactions
with Affiliates. 
 (a)    The Company will not, and will not permit any of its Restricted Subsidiaries
to, make any payment to or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance
or guarantee with, or for the benefit of, any Affiliate of the Company (each, an “Affiliate Transaction”) involving aggregate payments or consideration in excess of $5.0 million, unless: 

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

(2)    the Company delivers to the Trustee: 

(A)    with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $10.0 million, the Company delivers to the Trustee a resolution of the Board of Directors of the Company set forth in an Officer’s Certificate certifying that such Affiliate Transaction complies with clause
(1) of this Section 4.11(a) and that such Affiliate Transaction has been approved by a majority of the disinterested members of the Board of Directors of the Company; and 

(B)    with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate consideration in excess of $25.0 million, an opinion as to the fairness to the Company or such Subsidiary of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of
national standing. 
 (b)    The following items will not be deemed to be Affiliate Transactions and,
therefore, will not be subject to the provisions of Section 4.11(a) hereof: 

(1)    any employment agreement, employee benefit plan, officer or director indemnification agreement
or any similar arrangement entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business and payments and other benefits (including bonuses, retirement, severances, health, stock option and other benefit plans)
pursuant thereto; 
 (2)    transactions between or among (A) the Company and one or
more Restricted Subsidiaries or (B) Restricted Subsidiaries; 
 (3)    transactions with
a Person (other than an Unrestricted Subsidiary of the Company) that is an Affiliate of the Company solely because the Company owns, directly or through a Restricted Subsidiary, an Equity Interest in, or controls, such Person; 

 

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 (4)    payment of reasonable and customary fees and
reimbursements of expenses (pursuant to indemnity arrangements or otherwise) of officers, directors, employees or consultants of the Company or any of its Restricted Subsidiaries; 

(5)    (A) any issuance of Equity Interests (other than Disqualified Stock) of the Company to
Affiliates of the Company (or contributions in respect of such Equity Interests by Affiliates) and the granting of registration and other customary rights in connection therewith, (B) contributions to the common capital of the Company or
(C) the granting of registration and other customary rights related to Equity Interests to Affiliates of the Company; 

(6)    Restricted Payments or Permitted Investments that do not violate Section 4.07 hereof;

 (7)    loans or advances (or the cancellation thereof) to officers, directors, employees
or consultants not to exceed $2.0 million in the aggregate at any one time outstanding; 

(8)    transactions with customers, clients, suppliers, or purchasers or sellers of goods or services
that are Affiliates, in each case in the ordinary course of business and which, in the reasonable determination of the Board of Directors of the Company are on terms at least as favorable as would reasonably have been obtained at such time from an
unaffiliated party; 
 (9)    (x) any agreement described in the section of the Offering
Memorandum titled “Certain Relationships and Related Transactions” as in effect on the date of this Indenture or as thereafter amended, renewed or replaced in any manner, that, taken as a whole, is not more disadvantageous to the Holders
of the Notes or the Company in any material respect than such agreement as it was in effect on the date of this Indenture or (y) any transaction pursuant to any agreement referred to in the immediately preceding clause (x); 

(10)    any transaction with an Affiliate where the only consideration paid by the Company or any
Restricted Subsidiary is Qualified Equity Interests; 
 (11)    transactions permitted by,
and complying with, the provisions of Section 5.01 hereof; 
 (12)    transactions
between the Company or any of its Restricted Subsidiaries and any Person that is an Affiliate solely because one or more of its directors is also a director of the Company or any direct or indirect parent of the Company; provided that such director
abstains from voting as a director of the Company or such direct or indirect parent, as the case may be, on any matter involving such other Person; 

(13)    transactions entered into in good faith with any of the Company’s or a Restricted
Subsidiary’s Affiliates which provide for shared services and/or facilities arrangements and which provide cost savings and/or other operational efficiencies to the Company and the Restricted Subsidiaries, taken as a whole, as determined in
good faith by the Company’s Board of Directors, and payments related thereto; 

(14)    Permitted Payments to Parent; 

(15)    the entering into of any tax sharing agreement that provides for payments to Parent or any
other direct or indirect parent of the Company no greater than the amounts provided for in clause (2) of the definition of “Permitted Payments to Parent;” and 

 

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 (16)    the Subordinated Intercompany Promissory Note
and the payments of interest thereon at the Stated Maturity of such interest payments. 
 Section 4.12    Liens.

 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume
or suffer to exist any Lien of any kind securing Indebtedness on any asset now owned or hereafter acquired, except Permitted Liens. 

Section 4.13    Business Activities. 

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

Section 4.14    Corporate Existence. 

Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect:

 (1)    its corporate existence, and the corporate, partnership or other existence of each
of its Restricted Subsidiaries, in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any such Restricted Subsidiary; and 

(2)    the rights (charter and statutory) of the Company and its Restricted Subsidiaries; 

provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other
existence of any of its Restricted Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Restricted Subsidiaries, taken as a whole, and that
the loss thereof would not have a material adverse effect on the ability of the Company and the Restricted Subsidiaries, taken as a whole, to perform their obligations under the Notes and the Indenture. 

Section 4.15    Offer to Repurchase Upon Change of Control. 

(a)    If there is a Change of Control, the Company will be required to make an offer (a “Change of Control
Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase price in cash equal to 101% of the aggregate principal amount of Notes
repurchased, plus accrued and unpaid interest and Special Interest, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest
payment date (in either case, the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail, or cause to be mailed, a notice to each Holder describing the transaction or transactions that
constitute the Change of Control and stating: 
 (1)    that the Change of Control Offer is
being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment; 

(2)    the purchase price and the purchase date, which shall be a Business day no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”); 
  

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 (3)    that any Note not tendered will continue to
accrue interest; 
 (4)    that, unless the Company defaults in the payment of the Change of
Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest on and after the Change of Control Payment Date; 

(5)    that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be
required to surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the Paying Agent at the address specified in the notice prior to the close
of business on the third Business Day preceding the Change of Control Payment Date; 

(6)    that Holders will be entitled to withdraw their election if the Paying Agent receives, not
later than the close of business on the second Business Day preceding the Change of Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement
that such Holder is withdrawing his election to have the Notes purchased; and 
 (7)    that
Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral
multiple of $1,000 in excess thereof. 
 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change in Control. To the extent that the provisions of any securities laws
or regulations conflict with the provisions of this Section 4.15, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.15 by virtue of such
compliance. 
 (b)    On the Change of Control Payment Date, the Company will, to the extent lawful:

 (1)    accept for payment all Notes or portions of Notes properly tendered pursuant to
the Change of Control Offer; 
 (2)    deposit with the Paying Agent an amount equal to the
Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and 

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

The Paying Agent will promptly mail (but in any case not later than five days after the Change of Control Payment Date) to each Holder of
Notes properly tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered, if any. The Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. 

(c)    Notwithstanding anything to the contrary in this Section 4.15, the Company will not be required to make a
Change of Control Offer upon a Change of Control if (1) a third party makes the 
  

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Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.15 and purchases all Notes properly tendered and not
withdrawn under the Change of Control Offer, or (2) notice of redemption has been given pursuant to Section 3.07 hereof, unless and until there is a default in payment of the applicable redemption price. 

(d)    Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be made in advance of
a Change of Control, conditioned upon the consummation of such Change of Control, if a definitive agreement is in place for the Change of Control at the time the Change of Control Offer is made. 

Section 4.16    [Reserved] 

Section 4.17    Additional Note Guarantees. 

If the Company or any of its Restricted Subsidiaries acquires or creates another Domestic Subsidiary after the date of this Indenture,
then the Company will cause that newly acquired or created Domestic Subsidiary to provide a Note Guarantee pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee and deliver an Opinion of Counsel reasonably
satisfactory to the Trustee within 20 Business Days of the date on which it was acquired or created. Such Opinion of Counsel will state to the effect that such supplemental indenture has been duly authorized, executed and delivered by that Domestic
Subsidiary and constitutes a valid and binding agreement of that Domestic Subsidiary, enforceable in accordance with its terms (subject to customary exceptions). The form of such supplemental indenture is attached as Exhibit E hereto. 

Section 4.18    Designation of Restricted and Unrestricted Subsidiaries. 

The Board of Directors of the Company may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would
not cause a Default. If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary designated as
Unrestricted will be deemed to be an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 4.07 hereof or under one or more clauses of the definition of Permitted
Investments, as determined by the Company. That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. The Board of
Directors of the Company may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a Default. 

Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee
a certified copy of a resolution of the Board of Directors giving effect to such designation and an Officer’s Certificate certifying that such designation complied with the preceding conditions and was permitted by Section 4.07 hereof. If,
at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary
will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred as of such date under Section 4.09 hereof, the Company will be in default of such covenant. The
Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary of the Company; provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary
of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary, and such designation will only be permitted if (1) such Indebtedness is permitted under Section 4.09 hereof, calculated on a pro forma basis as if such
designation had occurred at the beginning of the applicable reference period; and (2) no Default or Event of Default would be in existence following such designation. 
  

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 ARTICLE 5 

SUCCESSORS 

Section 5.01    Merger, Consolidation or Sale of Assets. 

The Company shall not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company is
the surviving corporation); or (2) sell, assign, lease, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries taken as a whole, in one or more related
transactions, to another Person, unless: 
 (1)    either: 

(A)    the Company is the surviving corporation; or 

(B)    the Person formed by or surviving any such consolidation or merger (if other than the Company)
or to which such sale, assignment, transfer, conveyance or other disposition has been made is an entity organized or existing under the laws of the United States, any state of the United States or the District of Columbia; and, if such entity is not
a corporation, a co-obligor of the Notes is a corporation organized or existing under any such laws; 

(2)    the Person formed by or surviving any such consolidation or merger (if other than the Company)
or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Company under the Notes, this Indenture and the Registration Rights Agreement pursuant to agreements reasonably
satisfactory to the Trustee; 
 (3)    immediately after such transaction, no Default or
Event of Default exists; and 
 (4)    the Company or the Person formed by or surviving any
such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, conveyance or other disposition has been made would, on the date of such transaction after giving pro forma effect thereto and any related
financing transactions as if the same had occurred at the beginning of the applicable four-quarter period (i) be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
Section 4.09(a) hereof; or (ii) have had a Fixed Charge Coverage Ratio greater than the actual Fixed Charge Coverage Ratio for the Company for such four-quarter period. 

This Section 5.01 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of assets between or among the Company
and its Restricted Subsidiaries. Clauses (3) and (4) of this Section 5.01 will not apply to (1) any merger or consolidation of the Company with or into one of its Restricted Subsidiaries for any purpose or (2) with or into
an Affiliate solely for the purpose of reincorporating the Company in another jurisdiction. 

Section 5.02    Successor Corporation Substituted. 

Upon the consummation of any transaction effected in accordance with Section 5.01, if the Company is not the continuing Person, the
resulting, surviving or transferee Person will succeed to, and 
  

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be substituted for, and may exercise every right and power of, the Company under this Indenture and the Notes with the same effect as if such successor Person had been named as the Company in
this Indenture. Upon such substitution, except in the case of a lease of all or substantially all its assets, the Company will be released from its obligations under this Indenture and the Notes. 

ARTICLE 6 

DEFAULTS AND REMEDIES 

Section 6.01    Events of Default. 

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

(1)    default for 30 days in the payment when due of interest and Special Interest, if any, on, the
Notes; 
 (2)    default in the payment when due (at maturity, upon redemption or otherwise)
of the principal of, or premium on, if any, the Notes; 
 (3)    failure by the Company to
accept and pay for Notes tendered when and as required by the provisions of this Indenture described in Sections 4.10 or 4.15 or failure by the Company or any of its Restricted Subsidiaries to comply with the provisions of Section 5.01 hereof;

 (4)    failure by the Company or any of its Restricted Subsidiaries for 60 days after
notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding voting as a single class to comply with any of the other agreements in this Indenture; 

(5)    default under any mortgage, indenture or instrument under which there may be issued or by which
there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries), whether such Indebtedness or
Guarantee now exists, or is created after the date of this Indenture, if that default: 

(A)    is caused by a failure to pay such Indebtedness at final maturity after the expiration of any
applicable grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or 

(B)    results in the acceleration of such Indebtedness prior to its express maturity, 

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under
which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more; 

(6)    failure by the Company or any of its Restricted Subsidiaries to pay final judgments entered by
a court or courts of competent jurisdiction aggregating in excess of $10.0 million (excluding amounts which insurance carriers of the Hillman Companies, Parent, the Company or any Restricted Subsidiaries have expressly agreed to pay under applicable
policies), which judgments are not paid, discharged or stayed, for a period of 60 days; 
  

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 (7)    except as permitted by this Indenture, any Note
Guarantee of any Significant Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or
disaffirms its obligations under its Note Guarantee; 
 (8)    the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law: 

(A)    commences a voluntary case, 

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

(C)    consents to the appointment of a custodian of it or for all or substantially all of its
property, or 
 (D)    makes a general assignment for the benefit of its creditors;

 (9)    a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that: 
 (A)    is for relief against the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary in an involuntary case; 

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

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

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

Section 6.02    Acceleration. 

In the case of an Event of Default specified in clause (8) or (9) of Section 6.01 hereof, with respect to the Company, any
Restricted Subsidiary of the Company that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of then outstanding Notes may declare all the Notes to be due and payable
immediately. Upon any such declaration, the Notes shall become due and payable immediately. 
 The Holders of a majority in
aggregate principal amount of then outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders of all the Notes, rescind an acceleration and its 

 

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consequences hereunder, if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal of, premium on, if any, interest or
Special Interest, if any, on the Notes that has become due solely because of the acceleration) have been cured or waived. 

Section 6.03    Other Remedies. 

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of,
premium on, if any, interest or Special 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. A
delay or omission by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law. 
 Section 6.04    Waiver of Past Defaults. 

The Holders of a majority in aggregate principal amount of then outstanding Notes by written notice to the Trustee may, on behalf of the
Holders of all of the Notes waive any existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of principal of, premium on, if any, interest or Special Interest, if any, on,
the Notes (including in connection with an offer to purchase); provided, however, that the Holders of a majority in aggregate principal amount of then outstanding Notes may rescind an acceleration and its consequences, including any related
payment Default that resulted from such acceleration. 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 6.05    Control
by Majority. 
 Holders of a majority in aggregate principal amount of then outstanding Notes may direct the time, method and
place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture that the
Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or the Trustee or that may involve the Trustee in personal liability provided however, that the Trustee may take any other action deemed proper by the Trustee that
is not inconsistent with such direction. Prior to taking any action hereunder, the Trustee shall be entitled to indemnity satisfactory to it in its sole discretion against all losses and expenses caused by taking or not taking such action.

 Section 6.06    Limitation on Suits. 

No Holder of a Note may pursue any remedy with respect to this Indenture or the Notes unless: 

(1)    such Holder has previously given to the Trustee written notice that an Event of Default is
continuing; 
 (2)    Holders of at least 25% in aggregate principal amount of then
outstanding Notes make a written request to the Trustee to pursue the remedy; 
  

 70 

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

(4)    the Trustee does not comply with such request within 60 days after receipt of the request and
the offer of security or indemnity; and 
 (5)    during such 60-day period, Holders of a
majority in aggregate principal amount of then outstanding Notes do not give the Trustee a direction inconsistent with such request. 

A Holder of a Note may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority
over another Holder of a Note. 
 Section 6.07    Rights of Holders of Notes to Receive Payment. 

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

Section 6.08    Collection Suit by Trustee. 

If an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal of, premium on, if any, interest and Special Interest, if any, remaining unpaid on, the Notes and interest on overdue principal and, to
the extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

Section 6.09    Trustee May File Proofs of Claim. 

The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company (or any
other obligor upon the Notes), its creditors or its property and 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 7.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, 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. 
  

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 Section 6.10    Priorities. 

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

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

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

 Third:    to the Company or to such party as a court of competent jurisdiction
shall direct. 
 The Trustee may fix a record date and payment date for any payment to Holders of Notes pursuant to this
Section 6.10. 
 Section 6.11    Undertaking for Costs. 

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

ARTICLE 7 

TRUSTEE 

Section 7.01    Duties of Trustee. 

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

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

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

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

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 (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: 

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

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

(3)    the Trustee will not be liable with respect to any action it takes or omits to take in good
faith in accordance with a direction received by it pursuant to Section 6.05 hereof. 
 (d)    Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01. 

(e)    No provision of this Indenture will require the Trustee to expend or risk its own funds or incur any
liability. The Trustee will be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder has offered to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense. 
 (f)    The Trustee will not be liable for interest on any money received by it
except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 

Section 7.02    Rights of Trustee. 

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

(b)    Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of
Counsel or both. The Trustee will not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel. The Trustee may consult with counsel, accountant, appraiser or other expert
or adviser of its selection (any of the foregoing, an “Advisor”), whether retained or employed by the Company, or by the Trustee, and the written advice of such Advisor or any Opinion of Counsel will be full and complete
authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

(c)    The Trustee may act through its attorneys and agents and will not be responsible for the misconduct or
negligence of any agent or attorney appointed with due care. 
 (d)    The Trustee will not be liable for
any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 

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

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 (f)    The Trustee will be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of any of the Holders unless such Holders have offered to the Trustee indemnity or security satisfactory to it against the losses, liabilities and expenses that might be
incurred by it in compliance with such request or direction. 
 (g)    The Trustee shall not be required to
give any note, bond or surety in respect of the trusts and powers under this Indenture. 
 (h)    The
Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to the Indenture, which Officer’s Certificate
may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in such certificate previously delivered and not superseded. 

(i)    Except with respect to information contained in the Officer’s Certificate delivered to it pursuant to
this Section 4.04 of this Indenture, the Trustee shall have no duty to monitor or investigate the Company’s compliance with, or the breach of, any representation, warranty or covenant made in this Indenture. 

(j)    Delivery of reports, information and documents to the Trustee described in Section 4.03 of this Indenture
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 information contained therein, including the Company’s compliance with
any of its covenants hereunder (as to which the Trustee is entitled to rely conclusively on Officer’s Certificates). The Trustee is under no duty to examine such reports, information or documents to ensure compliance with the provision of
this indenture or to ascertain the correctness or otherwise of the information or the statements contained therein. 

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

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

(m)    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. 

Section 7.03    Individual Rights of Trustee. 

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

 

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 Section 7.04    Trustee’s Disclaimer. 

The Trustee will not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes or the
Note Guarantees, it shall not be accountable for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any provision of this Indenture, it will not be responsible for the
use or application of any money received by any Paying Agent other than the Trustee, and it will not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or
pursuant to this Indenture other than its certificate of authentication. 
 Section 7.05    Notice of Defaults.

 If a Default or Event of Default occurs and is continuing and it is known to the Trustee, Trustee, unless such Default or
Event of Default has been cured or waived, will mail to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of principal of, premium on, if any,
interest or Special Interest, if any, on, any Note, the Trustee may withhold the notice and shall be protected in withholding such notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice
is in the interests of the Holders of the Notes. 
 Section 7.06    Reports by Trustee to Holders of the Notes.

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

(b)    A copy of each report at the time of its mailing to the Holders of Notes will be mailed by the Trustee to the
Company and filed by the Trustee with the SEC and each stock exchange on which the Notes are listed in accordance with TIA §313(d). The Company will promptly notify the Trustee in writing when the Notes are listed on any stock exchange or any
delisting thereof. 
 Section 7.07    Compensation and Indemnity. 

(a)    The Company will pay to the Trustee from time to time such compensation for its acceptance of this Indenture
and services hereunder as the Trustee and Company shall agree in writing from time to time. The Trustee’s compensation will not be limited by any law on compensation of a trustee of an express trust. The Company will reimburse the Trustee
promptly upon written request for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services. Such expenses will include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel. 
 (b)    The Company and the Guarantors jointly and severally will
indemnify the Trustee and any predecessor Trustee, including its officers, directors, agents and employees, and hold them harmless, against any and all losses, liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company and the Guarantors (including this Section 7.07) and reasonable fees and expenses of counsel and
defending itself against any claim (whether asserted by the Company, the Guarantors, any Holder or any other Person) or liability in connection with the exercise or 

 

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performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable to its negligence, bad faith or willful misconduct. The Trustee
will notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify the Company will not relieve the Company or any of the Guarantors of their obligations hereunder. The Company or such Guarantor will
defend the claim and the Trustee will cooperate in the defense. To the extent there exists a conflict of interest, the Trustee may have separate counsel and the Company will pay the reasonable fees and expenses of such counsel. Neither the Company
nor any Guarantor need pay for any settlement made without its consent, which consent will not be unreasonably withheld. 

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

(e)    When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(8) or (9) 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.

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

 Section 7.08    Replacement of Trustee. 

(a)    A resignation or removal of the Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section 7.08. 
 (b)    The
Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of a majority in aggregate principal amount of then outstanding Notes may remove the Trustee by so notifying the
Trustee and the Company in writing. The Company may remove the Trustee if: 
 (1)    the
Trustee fails to comply with Section 7.10 hereof; 
 (2)    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; 

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

(4)    the Trustee becomes incapable of acting. 

(c)    If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the
Company will promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal amount of then outstanding Notes may appoint a successor Trustee to replace the successor
Trustee appointed by the Company. 
 (d)    If a successor Trustee does not take office within 60 days after
the retiring Trustee resigns or is removed, the retiring Trustee (at the Company’s expense), the Company, or the Holders of at least 10% in aggregate principal amount of then outstanding Notes may petition any court of competent jurisdiction
for the appointment of a successor Trustee. 
  

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

(f)    A successor Trustee will deliver a written acceptance of its appointment to the retiring Trustee and to the
Company. Thereupon, the resignation or removal of the retiring Trustee will become effective, and the successor Trustee will have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee will mail a notice of its
succession to Holders. The retiring Trustee will 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 7.07 hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the benefit of the retiring Trustee. 

Section 7.09    Successor Trustee by Merger, etc. 

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

Section 7.10    Eligibility; Disqualification. 

There will at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of
America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition. 
 This Indenture will always have a Trustee who
satisfies the requirements of TIA §310(a)(1), (2) and (5). The Trustee is subject to TIA §310(b). 

Section 7.11    Preferential Collection of Claims Against Company. 

The Trustee is subject to TIA §311(a), excluding any creditor relationship listed in TIA §311(b). A Trustee who has resigned or
been removed shall be subject to TIA §311(a) to the extent indicated therein. 
 ARTICLE 8 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE 

Section 8.01    Option to Effect Legal Defeasance or Covenant Defeasance. 

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

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 Section 8.02    Legal Defeasance and Discharge. 

Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company and each
of the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with respect to all outstanding Notes (including the Note Guarantees) on the date
the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors will be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Notes (including the Note Guarantees), which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture referred to in clauses
(1) and (2) below, and to have satisfied all their other obligations under such Notes, the Note Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging
the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder: 

(1)    the rights of Holders of outstanding Notes to receive payments in respect of the principal of,
premium on, if any, interest or Special Interest, if any, on, such Notes when such payments are due from the trust referred to in Section 8.04 hereof; 

(2)    the Company’s obligations with respect to such Notes under Article 2 and Section 4.02
hereof; 
 (3)    the rights, powers, trusts, duties and immunities of the Trustee hereunder
and the Company’s and the Guarantors’ obligations in connection therewith; and 

(4)    this Article 8. 

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

Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company and each
of the Guarantors will, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from each of their obligations under Article 10 of this Indenture, the Note Guarantees and the covenants contained in Article 4
(other than Sections 4.01, 4.02, 4.04, 4.06 and 4.14 (but only with regard to the Company’s existence)) and clauses (3) and (4) of Section 5.01 hereof with respect to the outstanding Notes on and after the date the conditions set
forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes will not be deemed outstanding for
accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Note Guarantees, the Company and the Guarantors may omit to comply with and will have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and
such omission to comply will not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder of this Indenture and such Notes will be unaffected thereby. In addition, upon the
Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3), (4), (5), (6) and (7) hereof
will not constitute Events of Default. 
  

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 Section 8.04    Conditions to Legal or Covenant Defeasance. 

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

(1)    the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized investment bank, appraisal firm, or firm of independent public accountants,
to pay the principal of, premium on, if any, interest and Special Interest, if any, on, the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Company must specify whether the
Notes are being defeased to such stated date for payment or to a particular redemption date; 

(2)    in the case of an election under Section 8.02 hereof, the Company must deliver to the
Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that: 

(A)    the Company has received from, or there has been published by, the Internal Revenue Service a
ruling; or 
 (B)    since the 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 of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred; 
 (3)    in the
case of an election under Section 8.03 hereof, the Company must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 (4)    no Default or Event of Default shall have occurred and is continuing on the date of
such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating to other Indebtedness), and the granting of Liens to secure such borrowings);

 (5)    such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other than this Indenture and the agreements governing any other Indebtedness being defeased, discharged, refinanced or replaced) to which the Company or any of the
Guarantors is a party or by which the Company or any of the Guarantors is bound; 
  

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 (6)    the Company must deliver to the Trustee an
Officer’s Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of Notes over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding any creditors
of the Company or others; and 
 (7)    the Company must deliver to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 

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

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

The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or
non-callable Government Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the
outstanding Notes. 
 Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to the Company
from time to time upon the request of the Company any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally recognized investment bank, appraisal firm or firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 
 Section 8.06    Repayment to
Company. 
 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment
of the principal of, premium on, if any, interest or Special Interest, if any, on, any Note and remaining unclaimed for two years after such principal, premium, if any, interest or Special Interest, if any, has become due and payable shall be paid
to the Company on its request or (if then held by the Company) will be discharged from such trust; and the Holder of such Note will thereafter be permitted to look only to the Company for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, will thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may (but
shall not be obligated) at the expense of the Company cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which will not
be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  

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 Section 8.07    Reinstatement. 

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

ARTICLE 9 

AMENDMENT, SUPPLEMENT AND WAIVER 

Section 9.01    Without Consent of Holders of Notes. 

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

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

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

 (3)    to provide for the assumption of the Company’s or a Guarantor’s
obligations to the Holders of the Notes and Note Guarantees by a successor to the Company or such Guarantor pursuant to Article 5 or Article 10 hereof; 

(4)    to make any change that would provide any additional rights or benefits to the Holders of the
Notes or that does not adversely affect the rights hereunder of any Holder; 
 (5)    to
comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA; 

(6)    to conform the text of this Indenture, the Notes, the Note Guarantees to any provision of the
“Description of Notes” section of the Offering Memorandum, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of this Indenture, the Notes, the Note
Guarantees, which intent may be evidenced by an Officer’s Certificate to that effect; 

(7)    to provide for the issuance of Additional Notes in accordance with the limitations set forth in
this Indenture as of the date hereof; 
 (8)    to allow any Guarantor to execute a
supplemental indenture and/or a Note Guarantee with respect to the Notes or to secure the Notes; or 

(9)    to evidence and provide for the acceptance of the appointment of a successor Trustee.

  

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

Section 9.02    With Consent of Holders of Notes. 

Except as provided below in this Section 9.02, the Company and the Trustee may amend or supplement this Indenture (including, without
limitation, Section 3.09, 4.10 and 4.15 hereof) and the Notes and the Note Guarantees with the consent of the Holders of at least a majority in aggregate principal amount of then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of the principal of, premium on, if any, interest or Special Interest, if any, on, the Notes, except a payment default resulting from an acceleration that has been rescinded)
or compliance with any provision of this Indenture or the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in aggregate principal amount of then outstanding Notes (including, without limitation, Additional
Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes). Section 2.08 hereof shall determine which Notes are considered to be
“outstanding” for purposes of this Section 9.02. 
 However, without the consent of each Holder affected, an
amendment, supplement or waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder): 

(1)    reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or
waiver; 
 (2)    reduce the principal of or change the fixed maturity of any Note or alter
or waive any of the provisions with respect to the redemption of the Notes (except as provided above with respect to Sections 3.09, 4.10 and 4.15 hereof); 

(3)    reduce the rate of or change the time for payment of interest, including default interest, on
any Note; 
 (4)    waive a Default or Event of Default in the payment of principal of,
premium on, if any, interest or Special Interest, if any, on, the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of then outstanding Notes and a waiver of the payment
default that resulted from such acceleration); 
 (5)    make any Note payable in money other
than that stated in the Notes; 
 (6)    make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to receive payments of principal of, premium on, if any, interest or Special Interest, if any, on, the Notes; 

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

 82 

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

(9)    make any change in the preceding amendment and waiver provisions. 

Upon the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or
supplemental indenture, and upon the filing with the Trustee of evidence reasonably satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02
hereof, the Trustee will join with the Company and the Guarantors in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under
this Indenture or otherwise, in which case the Trustee may in its discretion, but will not be obligated to, enter into such amended or supplemental Indenture. 

It is not necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed
amendment, supplement or waiver, but it is sufficient if such consent approves the substance thereof. 
 After an amendment,
supplement or waiver under this Section 9.02 becomes effective, the Company will mail to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or
any defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver. 

Section 9.03    Compliance with Trust Indenture Act. 

Every amendment or supplement to this Indenture or the Notes will be set forth in a amended or supplemental indenture that complies with
the TIA as then in effect. 
 Section 9.04    Revocation and Effect of Consents. 

Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder of
a Note and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of
a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or waiver becomes effective in accordance with its
terms and thereafter binds every Holder. 
 Section 9.05    Notation on or Exchange of Notes. 

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

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

 83 

 Section 9.06    Trustee to Sign Amendments, etc. 

The Trustee will sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until the Board of Directors of the Company approves it. In executing any amended or supplemental indenture,
the Trustee will be entitled to receive and (subject to Section 7.01 hereof) will be fully protected in conclusively relying upon, in addition to the documents required by Section 12.04 hereof, an Officer’s Certificate and an Opinion
of Counsel stating that the execution of such amended or supplemental indenture is authorized or permitted by this Indenture. 

ARTICLE 10 
 NOTE
GUARANTEES 
 Section 10.01    Guarantee. 

(a)    Subject to this Article 10, to the fullest extent permitted by law each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the
obligations of the Company hereunder or thereunder, that: 
 (1)    the principal of, premium
on, if any, interest and Special Interest, if any, on, the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium on, if any, interest and
Special Interest, if any, on, the Notes, if lawful, and all other obligations of the Company 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

 (2)    in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise. 

Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly
and severally obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection. 

(b)    To the fullest extent permitted by law, the Guarantors hereby agree that their obligations hereunder are
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 Company, any action to enforce the same or any other circumstance (other than complete performance) which might otherwise constitute a legal or equitable discharge or defense of a guarantor. To the
fullest extent permitted by law, each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this Indenture. 

 

 84 

 (c)    If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Note
Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect. 
 (d)    Each
Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as
between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes of this Note Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as provided in Article 6 hereof,
such obligations (whether or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of this Note Guarantee. The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the
exercise of such right does not impair the rights of the Holders under the Note Guarantee. 

Section 10.02    Limitation on Guarantor Liability. 

Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note
Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to
any Note Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such
maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in the obligations of such Guarantor under its Note Guarantee not constituting a fraudulent transfer or conveyance. 

Section 10.03    Execution and Delivery of Note Guarantee. 

To evidence its Note Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees that a notation of such Note Guarantee
substantially in the form attached as Exhibit D hereto will be endorsed by an Officer of such Guarantor on each Note authenticated and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its
Officers. 
 Each Guarantor hereby agrees that its Note Guarantee set forth in Section 10.01 hereof will remain in full
force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee. 
 If an Officer whose
signature is on this Indenture or on the Note Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Note Guarantee is endorsed, the Note Guarantee will be valid nevertheless. 

The delivery of any Note by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Note Guarantee
set forth in this Indenture on behalf of the Guarantors. 
  

 85 

 Section 10.04    Guarantors May Consolidate, etc., on Certain Terms.

 Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise dispose of all or substantially
all of its assets to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless: 

(1)    immediately after giving effect to such transaction, no Default or Event of Default exists; and

 (2)    either: 

(a)    subject to Section 10.05 hereof, the Person acquiring the property in any such sale or
disposition or the Person formed by or surviving any such consolidation or merger unconditionally assumes all the obligations of that Guarantor under its Note Guarantee, this Indenture, and the Registration Rights Agreement on the terms set forth
herein or therein, pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee; or 

(b)    in the case of any Guarantor other than Hillman Companies or Parent, the Net Proceeds of such
sale or other disposition are applied in accordance with the applicable provisions of this Indenture, including without limitation, Section 4.10 hereof. 

In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and reasonably satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by
the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor Person thereupon may cause to be signed any or all of the Note Guarantees to
be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Note Guarantees so issued will in all respects have the same legal rank and benefit under this
Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Note Guarantees had been issued at the date of the execution hereof. 

Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b) above, nothing contained in this Indenture
or in any of the Notes will prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor. 
 Section 10.05    Releases. 

(a)    In the event of any sale or other disposition of all or substantially all of the assets of any Guarantor, by
way of merger, consolidation or otherwise, to a Person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company, then the Person acquiring the property will be released and relieved
of any obligations under the Note Guarantee; 
 (b)    In the event of any sale or other disposition of
Capital Stock of any Guarantor to a Person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the Company and such Guarantor ceases to be a Restricted Subsidiary of the Company as a
result of the sale or other disposition, then such Guarantor will be released and relieved of any obligations under its Note Guarantee; 

 

 86 

 
provided, in both cases, that such sale or other disposition does not violate Section 4.10 hereof. Upon delivery by the Company to the Trustee of an Officer’s Certificate and an
Opinion of Counsel to the effect that such sale or other disposition was made by the Company in accordance with the provisions of this Indenture, including without limitation Section 4.10 hereof, the Trustee will execute any documents
reasonably required in order to evidence the release of any Guarantor from its obligations under its Note Guarantee. 

(c)    Upon designation of any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in accordance
with the terms of this Indenture, such Guarantor will be released and relieved of any obligations under its Note Guarantee. 

(d)    Upon Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and discharge
of this Indenture in accordance with Article 10 hereof, each Guarantor will be released and relieved of any obligations under its Note Guarantee. 

Any Guarantor not released from its obligations under its Note Guarantee as provided in this Section 10.05 will remain liable for
the full amount of principal of, premium on, if any, interest and Special Interest, if any, on, the Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article 10. 

ARTICLE 11 

SATISFACTION AND DISCHARGE 

Section 11.01    Satisfaction and Discharge. 

This Indenture will be discharged and will cease to be of further effect as to all Notes issued hereunder, when: 

(1)    either: 

(a)    all Notes that have been authenticated, except lost, stolen or destroyed Notes that have been
replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or 

(b)    all Notes that have not been delivered to the Trustee for cancellation have become due and
payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable by reason of redemption or final maturity within one year and the Company or any Guarantor has irrevocably deposited or caused to be deposited
with the Trustee as trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on the Notes not delivered to the Trustee for cancellation for principal, premium, if any, interest and Special Interest, if any, to the date of maturity or redemption; 

(2)    in respect of subclause (b) of clause (1) of this Section 11.01, no Default or
Event of Default has occurred and is continuing on the date of the deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit and any similar deposit relating to other Indebtedness and, in
each case, the granting of Liens to secure such borrowings) and the deposit will not result in a breach or violation of, or constitute a default under, any other material instrument to which the Company or any Guarantor is a party or by which the
Company or any Guarantor is bound (other than this Indenture and the agreements governing any other Indebtedness being defeased, discharged, refinanced or replaced); 

 

 87 

 (3)    the Company or any Guarantor has paid or caused
to be paid all sums payable by it under this Indenture; and 
 (4)    the Company has
delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Notes at maturity or on the redemption date, as the case may be. 

In addition, the Company must deliver an Officer’s Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been satisfied. 
 Notwithstanding the satisfaction and discharge of this Indenture, if money
has been deposited with the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01, the provisions of Sections 11.02 and 8.06 hereof will survive. In addition, nothing in this Section 11.01 will be deemed to
discharge those provisions of Section 7.07 hereof, that, by their terms, survive the satisfaction and discharge of this Indenture. 

Section 11.02    Application of Trust Money. 

Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee pursuant to Section 11.01 hereof shall be
held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to
the Persons entitled thereto, of the principal, premium, if any, interest and Special Interest, if any, for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent
required by law. 
 If the Trustee or Paying Agent is unable to apply any money or Government Securities in accordance with
Section 11.01 hereof by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s and any Guarantor’s
obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 hereof; provided that if the Company has made any payment of principal of, premium on, if any,
interest or Special Interest, if any, on, any Notes because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities held by
the Trustee or Paying Agent. 
 ARTICLE 12 

MISCELLANEOUS 

Section 12.01    Trust Indenture Act Controls. 

If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA §318(c), the imposed duties will
control. 
  

 88 

 Section 12.02    Notices. 

Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly given if in writing and delivered in Person
or by first class mail (registered or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing next day delivery, to the others’ address: 

If to the Company and/or any Guarantor: 

The Hillman Group, Inc. 

10590 Hamilton Avenue 

Cincinnati, Ohio 45231 

Facsimile No.: (513) 595-8297 

Attention: Chief Financial Officer 

With a copy to: 

Paul, Weiss, Rifkind, Wharton & Garrison LLP 

1285 Avenue of the Americas 

New York, New York 10019 

Facsimile No.: (212) 492-0025 

Attention: John C. Kennedy 

If to the Trustee: 

Wells Fargo Bank, National Association 

45 Broadway, 14th Floor 

New York, New York 10006 

Facsimile No.: (212) 515-1589 

Attention: Corporate Trust - Hillman Administrator 

The Company, any Guarantor or the Trustee, by notice to the others, may designate additional or different addresses for subsequent
notices or communications. 
 All notices and communications (other than those sent to Holders) will be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and the next Business Day after timely delivery
to the courier, if sent by overnight air courier guaranteeing next day delivery. 
 Any notice or communication to a Holder will
be mailed by first class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar. Any notice or communication will also be so
mailed to any Person described in TIA §313(c), to the extent required by the TIA. Failure to mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with respect to other Holders. 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the
addressee receives it. 
 If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee and each
Agent at the same time. 
 Section 12.03    Communication by Holders of Notes with Other Holders of Notes.

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

 89 

 Section 12.04    Certificate and Opinion as to Conditions Precedent.

 Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall
furnish to the Trustee: 
 (1)    an Officer’s Certificate in form and substance
reasonably satisfactory to the Trustee (which must include the statements set forth in Section 12.05 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to
the proposed action have been satisfied; and 
 (2)    an Opinion of Counsel in form and
substance reasonably satisfactory to the Trustee (which must include the statements set forth in Section 12.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

Section 12.05    Statements Required in Certificate or Opinion. 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA §314(a)(4)) must comply with the provisions of TIA §314(e) and must include: 

(1)    a statement that the Person making such certificate or opinion has read such covenant or
condition; 
 (2)    a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such certificate or opinion are based; 

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

(4)    a statement as to whether or not, in the opinion of such Person, such condition or covenant has
been satisfied. 
 Section 12.06    Rules by Trustee and Agents. 

The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules
and set reasonable requirements for its functions. 
 Section 12.07 No    Personal Liability of Directors,
Officers, Employees and Stockholders. 
 No director, officer, employee, incorporator or stockholder of the Company or any
Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, this Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

 Section 12.08    Governing Law. 

THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES WITHOUT

  

 90 

 
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Section 12.09    No Adverse Interpretation of Other Agreements. 

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

Section 12.10    Successors. 

All agreements of the Company in this Indenture and the Notes will bind its successors. All agreements of the Trustee in this Indenture
will bind its successors. All agreements of each Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 10.05 hereof. 

Section 12.11    Severability. 

In case any provision in this Indenture or in the Notes is invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions will not in any way be affected or impaired thereby. 
 Section 12.12    Counterpart
Originals. 
 The parties may sign any number of copies of this Indenture. Each signed copy will be an original, but all of
them together represent the same agreement. 
 Section 12.13    Table of Contents, Headings, etc. 

The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part of this Indenture and will in no way modify or restrict any of the terms or provisions hereof. 

Section 12.14    Facsimile and PDF Delivery of Signature Pages. 

The exchange of copies of this Indenture and of signature pages by facsimile or portable document format (“PDF”)
transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be
deemed to be their original signatures for all purposes. 
 Section 12.15    U.S.A. Patriot Act. 

The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial
institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the
Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act. 

[Signatures on following page] 
  

 91 

 SIGNATURES 

Dated as of May 28, 2010 
  

			
	THE HILLMAN GROUP, INC.
	THE HILLMAN COMPANIES, INC.
	HILLMAN INVESTMENT COMPANY
	ALL POINTS INDUSTRIES, INC.
	SUNSUB C INC.
		
	By:	 	 /s/ James P. Waters

		 	Name: James P. Waters
		 	Title: Chief Financial Officer

  

 INDENTURE 

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	 /s/ Raymond Delli Colli

		 	Name: Raymond Delli Colli
		 	Title: Vice President

  

 INDENTURE 

 [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 [Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 

[Insert the OID Legend, if applicable pursuant to the provisions of the Indenture] 

[Face of Note] 

CUSIP/CINS                     

 10.875% Senior Notes due 2018 
  

			
	 No.        
	 	$                         
                           

THE HILLMAN GROUP, INC. 

promises to pay              to or registered assigns, 

the principal sum of
                                         
            DOLLARS on June 1, 2018. 
 Interest Payment Dates: June 1 and
December 1 
 Record Dates: May 15 and November 15 

Dated:             , 2010 

 

			
	THE HILLMAN GROUP, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 This is one of the Notes referred to

 in the within-mentioned Indenture: 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  

 A1-1 

 [Back of Note] 

10.875% Senior Notes due 2018 

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

 (1)    INTEREST.    The Hillman
Group, Inc., a Delaware corporation (the “Company”), promises to pay or cause to be paid interest on the principal amount of this Note at 10.875% per annum from
            ,          until maturity and shall pay the Special Interest, if any, payable pursuant to Section 5 of the
Registration Rights Agreement referred to below. The Company will pay interest and Special Interest, if any, semi-annually in arrears on June 1 and December 1 of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that, 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; provided further that the first Interest Payment
Date shall be                         ,         . The Company will pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate that is equal to the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Special Interest, if any (without regard to any applicable grace period), at the same rate to the extent lawful. 

Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months. 

(2)    METHOD OF
PAYMENT.    The Company will pay interest on the Notes (except defaulted interest) and Special Interest, if any, to the Persons who are registered Holders of Notes at the close of business on the
May 15 or November 15 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. The Notes will be payable as to principal, premium, if any, interest and Special Interest, if any, at the office or agency of the Paying Agent and Registrar within the City and State of New York, or, at the option of the Company,
payment of interest and Special Interest, if any, 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 of, premium on, if any, interest and Special Interest, if any, on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment will be
in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

(3)    PAYING AGENT AND
REGISTRAR.    Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change the Paying Agent or Registrar
without prior notice to the Holders of the Notes. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 

(4)    INDENTURE.    The Company issued the
Notes under an Indenture dated as of May 28, 2010 (the “Indenture”) among the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by
reference 
  

 A1-2 

 
to the TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are unsecured obligations of the Company. The Indenture does not limit the aggregate principal amount of Notes that may be issued
thereunder. 
 (5)    OPTIONAL
REDEMPTION. 
 (a)    At any time prior to June 1,
2013, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of Notes issued under the Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 110.875% of the
principal amount of the Notes redeemed, plus accrued and unpaid interest and Special Interest, if any, to the date of redemption (subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant Interest
Payment Date) with the net cash proceeds of an Equity Offering by the Company or a capital contribution to the Company’s common equity made with the net cash proceeds of a concurrent Equity Offering by the Company’s direct or indirect
parent; provided that: 
 (A)    at least 65% of the aggregate principal amount of
Notes originally issued under the Indenture (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and 

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

 (b)    At any time prior to June 1, 2014, the Company may on any one or more
occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of, and accrued and unpaid
interest and Special Interest, if any, to the applicable date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date. 

(c)    Except pursuant to the preceding paragraphs, the Notes will not be redeemable at the
Company’s option prior to June 1, 2014. 
 (d)    On or after June 1, 2014,
the Company may on any one or more occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and
unpaid interest and Special Interest, if any, on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on June 1 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant Interest Payment Date: 
  

				
	Year	  	Percentage	 
	 2014
	  	105.438	% 
	 2015
	  	102.719	% 
	 2016 and thereafter
	  	100.000	% 

 Unless the
Company defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date. 

 

 A1-3 

 (6)    MANDATORY
REDEMPTION.    The Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes. 

(7)    REPURCHASE AT THE OPTION
OF HOLDER. 
 (a)    If there is a Change of Control, the
Company will be required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest and Special Interest, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders of Notes on the
relevant record date to receive interest due on the relevant interest payment date. Within 30 days following any Change of Control, the Company will mail, or cause to be mailed, a notice to each Holder setting forth the procedures governing the
Change of Control Offer as required by the Indenture. 
 (b)    If the Company or a
Restricted Subsidiary of the Company consummates any Asset Sales, within 30 days of each date on which the aggregate amount of Excess Proceeds exceeds $15.0 million, the Company will make an Asset Sale Offer to (A) all Holders of Notes and
(B) all holders of other Indebtedness that is pari passu in right of payment with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase, prepay or redeem with the proceeds of asset
sales, to purchase, prepay or redeem the maximum principal amount of notes and such other pari passu Indebtedness (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in
connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest and Special Interest, if any, to the
date of purchase, prepayment or redemption, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, such amounts shall no longer be considered Excess Proceeds for purposes of this Indenture and the Company may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate
principal amount of Notes and other pari passu Indebtedness tendered in (or required to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other
pari passu Indebtedness to be purchased on a pro rata basis, based on the amounts tendered or required to be prepaid or redeemed. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. Holders of
Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect
Purchase” attached to the Notes. 
 (8)    NOTICE
OF REDEMPTION.    At least 30 days but not more than 60 days before a redemption date, the Company will mail or cause to be mailed, by first class mail, a notice of redemption to
each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction
and discharge of the Indenture pursuant to Articles 8 or 11 thereof. Notes and portions of Notes selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or
purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased 
  

 A1-4 

 (9)    DENOMINATIONS,
TRANSFER, EXCHANGE.    The Notes are in registered form in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company
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 next succeeding Interest Payment Date. 

(10)    PERSONS DEEMED
OWNERS.    The registered Holder of a Note may be treated as the owner of it for all purposes. Only registered Holders have rights under the Indenture. 

(11)    AMENDMENT, SUPPLEMENT AND
WAIVER.    Subject to certain exceptions, the Indenture, the Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes including Additional Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture or the Notes or the Note Guarantees may be
waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes including Additional Notes, if any, voting as a single class. Without the consent of any Holder of Notes, the Indenture, the Notes or
the Note Guarantees may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s or a
Guarantor’s obligations to Holders of the Notes and Note Guarantees by a successor to the Company or such Guarantor pursuant to the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes
or that does not adversely affect the rights under the Indenture of any Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the Indenture, the
Notes, the Note Guarantees to any provision of the “Description of Notes” section of the Offering Memorandum, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a
provision of the Indenture, the Notes or the Note Guarantees, which intent may be evidenced by an Officer’s Certificate to that effect, to provide for the issuance of Additional Notes in accordance with the limitations set forth in the
Indenture, to allow any Guarantor to execute a supplemental indenture to the Indenture and/or a Note Guarantee with respect to the Notes, or to evidence and provide for the acceptance of the appointment of a successor Trustee. 

(12)    DEFAULTS AND
REMEDIES.    Events of Default include: (i) default for 30 days in the payment when due of interest and Special Interest, if any, on, the Notes; (ii) default in the payment when due (at
maturity, upon redemption or otherwise) of the principal of, or premium on, if any, the Notes, (iii) failure by the Company or any of its Restricted Subsidiaries to comply with the provisions of Sections 4.10 or 4.15 or failure by the Company
or any of its Restricted Subsidiaries to comply with the provisions of Section 5.01 of the Indenture; (iv) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders
of at least 25% in aggregate principal amount of the Notes then outstanding voting as a single class to comply with any of the other agreements in the Indenture; (v) default under certain other agreements relating to Indebtedness of the Company
which default is a Payment Default or results in the acceleration of such Indebtedness prior to its express maturity; (vi) failure by the Company or any of its Restricted Subsidiaries to pay certain final judgments, which judgments are not
paid, discharged or stayed, for a period of 60 days; 
  

 A1-5 

 
(vii) certain events of bankruptcy or insolvency with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that,
taken together, would constitute a Significant Subsidiary; and (viii) except as permitted by the Indenture, any Note Guarantee of any Significant Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for any
reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its Note Guarantee. In the case of an Event of Default arising from certain events of bankruptcy or
insolvency with respect to the Company, any Restricted Subsidiary of the Company that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary, all outstanding
Notes will become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of then outstanding Notes may declare
all the Notes to be due and payable immediately. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in aggregate principal amount of 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. The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium, if any, interest or Special Interest, if any,) if it determines that withholding notice is in their interest. The Holders of a majority
in aggregate principal amount of then outstanding Notes by notice to the Trustee may, on behalf of all the Holders, rescind an acceleration or waive an existing Default or Event of Default and its respective consequences under the Indenture except a
continuing Default or Event of Default in the payment of principal of, premium on, if any, interest or Special Interest, if any, on, the Notes (including in connection with an offer to purchase). The Company is required to deliver to the Trustee
annually a statement regarding compliance with the Indenture, and the Company 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. 

(13)    TRUSTEE DEALINGS WITH
COMPANY.    The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee. 
 (14)    NO
RECOURSE AGAINST OTHERS.    No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any
obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and
releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws. 

(15)    AUTHENTICATION.    This Note will not
be valid until authenticated by the manual signature of the Trustee or an Authenticating Agent. 

(16)    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). 
  

 A1-6 

 (17)    ADDITIONAL
RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED DEFINITIVE
NOTES.    In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will have all the rights set forth in the
Registration Rights Agreement dated as of May 28, 2010, among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of each issuance of Additional Notes issued in a transaction exempt from the
registration requirements of the Securities Act, Holders of Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in the registration rights agreement, if any, among the Company, the Guarantors and the other parties
thereto, in each case relating to rights given by the Company and the Guarantors to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). 

(18)    CUSIP NUMBERS.    Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption, and reliance may be placed only on the other identification numbers placed thereon. 

(19)    GOVERNING LAW.    THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture and/or the
Registration Rights Agreement. Requests may be made to: 
 The Hillman Group, Inc., 

10590 Hamilton Avenue 
 Cincinnati, Ohio, 45231

 Attention: Chief Financial Officer. 
  

 A1-7 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

(I) or (we) assign and transfer this Note to:           
                                         
                                         
                                         
                                         

                         
                                         
                                         
             (Insert assignee’s legal name) 
  

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

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

 

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

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

and irrevocably appoint                   
                                         
                                         
                                         
                                         
                              

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

Date:                      

Your Signature:
                                         
                                         

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

Signature Guarantee*:
                                        
                                 

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

 A1-8 

 OPTION OF HOLDER TO
ELECT PURCHASE 
 If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the appropriate box below: 
  

							
	 	 	Section 4.10	 	 	 	Section 4.15

 If you want to elect to
have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 

$                     
                                

Date:                      

			
		 	Your Signature: ________________________
	 	 	        (Sign exactly as your name appears on the face of this Note)
		
		 	Tax Identification No.: ___________________

 Signature
Guarantee*:
                                        
                                 

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

 A1-9 

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

 
  

									
	 Date of Exchange
	  	 Amount of decrease in
Principal Amount

of

this Global Note
	  	 Amount of increase in
Principal Amount

of

this Global Note
	  	 Principal Amount

of this Global Note
following such
decrease

(or increase)
	  	 Signature of authorized
signatory of Trustee,

Depository, or Note

Custodian

		  		  		  		  	
		  		  		  		  	

  

 A1-10 

 THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING
ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON. 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. 
 THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”)
AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN
EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (B) TO US, ANY OF THE GUARANTORS OR ANY OF THEIR SUBSIDIARIES AND (C) IN ACCORDANCE WITH ALL APPLICABLE BLUE SKY LAWS OF THE STATES OF THE UNITED STATES,
AND ANY SELLER AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 

 

 A2-1 

 [Insert the OID Legend, if applicable pursuant to the provisions of the Indenture] 

 [Face of Regulation S Temporary Global Note] 

CUSIP/CINS                     

 10.875% Senior Notes due 2018 
  

			
	No.        	  	$                            
                        

THE HILLMAN GROUP, INC. 

promises to pay to CEDE & CO. or registered assigns, 

the principal sum of
                                         
                                         
               DOLLARS on June 1, 2018. 
 Interest Payment Dates:
June 1 and December 1 
 Record Dates: May 15 and November 15 

Dated:                        
, 2010 
  

			
	THE HILLMAN GROUP, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 This is one of the Notes referred to

 in the within-mentioned Indenture: 
  

			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

    as Trustee

		
	By:	 	  

		 	Authorized Signatory

  

 A2-2 

 [Back of Note] 

10.875% Senior Notes due 2018 

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

 (1)    INTEREST.    The Hillman
Group, Inc., a Delaware corporation (the “Company”), promises to pay or cause to be paid interest on the principal amount of this Note at 10.875% per annum from
            , 20[    ] until maturity and shall pay the Special Interest, if any, payable pursuant to Section 5 of the Registration Rights Agreement referred
to below. The Company will pay interest and Special Interest, if any, semi-annually in arrears on June 1 and December 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that 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; provided further that the first Interest Payment Date shall be
            , 20[    ]. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the
rate that is equal to the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Special Interest,
if any, (without regard to any applicable grace period), at the same rate to the extent lawful. 
 Interest will
be computed on the basis of a 360-day year of twelve 30-day months. 

(2)    METHOD OF
PAYMENT.    The Company will pay interest on the Notes (except defaulted interest) and Special Interest, if any, to the Persons who are registered Holders of Notes at the close of business on the
                     or
                     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. The Notes will be payable as to principal, premium, if any, interest and Special Interest, if any, at the office or agency of the
Paying Agent and Registrar within the City and State of New York, or, at the option of the Company, payment of interest and Special Interest, if any, 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 of, premium on, if any, interest and Special Interest, if any, on, all Global Notes and all other Notes the Holders of which will
have provided wire transfer instructions to the Company or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

(3)    PAYING AGENT AND
REGISTRAR.    Initially, Wells Fargo Bank, National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change the Paying Agent or Registrar
without prior notice to the Holders of the Notes. The Company or any of its Subsidiaries may act as Paying Agent or Registrar. 
  

 A2-3 

(4)    INDENTURE.    The Company issued the
Notes under an Indenture dated as of May 28, 2010 (the “Indenture”) among the Company, the Guarantors 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 TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. The Notes are unsecured obligations of the Company. The Indenture does not limit the aggregate principal amount of Notes that may be issued thereunder. 

(5)    OPTIONAL REDEMPTION. 

(a)    At any time prior to June 1, 2013, the Company may on any one or more occasions redeem up
to 35% of the aggregate principal amount of Notes issued under the Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 110.875% of the principal amount of the Notes redeemed, plus accrued and unpaid
interest and Special Interest, if any, to the date of redemption (subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant Interest Payment Date) with the net cash proceeds of an Equity Offering by
the Company or a capital contribution to the Company’s common equity made with the net cash proceeds of a concurrent Equity Offering by the Company’s direct or indirect parent; provided that: 

(A)    at least 65% of the aggregate principal amount of Notes originally issued under the Indenture
(excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption; and 

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

 (b)    At any time prior to June 1, 2014, the Company may on any one or more
occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of, and accrued and unpaid
interest and Special Interest, if any, to the applicable date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant Interest Payment Date. 

(c)    Except pursuant to the preceding paragraphs, the Notes will not be redeemable at the
Company’s option prior to June 1, 2014. 
 (d)    On or after June 1, 2014,
the Company may on any one or more occasions redeem all or a part of the Notes, upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and
unpaid interest and Special Interest, if any, on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period beginning on June 1 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant Interest Payment Date: 
  

				
	Year	  	Percentage	 
	 2014
	  	105.438	% 
	 2015
	  	102.719	% 
	 2016 and thereafter
	  	100.000	% 

  

 A2-4 

 (e)    Unless the Company defaults in the payment of the
redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date. 

(6)    MANDATORY
REDEMPTION.    The Company is not required to make mandatory redemption or sinking fund payments with respect to the Notes. 

(7)    REPURCHASE AT OPTION OF
HOLDER. 
 (a)    If there is a Change of Control, the
Company will be required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest and Special Interest, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders of Notes on the
relevant record date to receive interest due on the relevant interest payment date. Within 30 days following any Change of Control, the Company will mail or cause to be mailed a notice to each Holder setting forth the procedures governing the Change
of Control Offer as required by the Indenture. 
 (b)    If the Company or a Restricted
Subsidiary of the Company consummates any Asset Sales, within 30 days of each date on which the aggregate amount of Excess Proceeds exceeds $15.0 million, the Company will make an Asset Sale Offer to all Holders of Notes and all holders of other
Indebtedness that is pari passu in right of payment with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase, prepay or redeem with the proceeds of asset sales, to purchase, prepay or
redeem the maximum principal amount of notes and such other pari passu Indebtedness (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be
purchased, prepaid or redeemed out of the Excess Proceeds. The offer price in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest and Special Interest, if any, to the date of purchase, prepayment or
redemption, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
such amounts shall no longer be considered Excess Proceeds for purposes of this Indenture and the Company may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other
pari passu Indebtedness tendered in (or required to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and such other pari passu Indebtedness to be
purchased on a pro rata basis, based on the amounts tendered or required to be prepaid or redeemed. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. Holders of Notes that are the subject of an
offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” attached to the
Notes. 
 (8)    NOTICE OF
REDEMPTION.    At least 30 days but not more than 60 days before a redemption date the Company will mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose
Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the
Indenture pursuant to Articles 8 and 11 thereof. Notes and portions of Notes selected will be in 
  

 A2-5 

 
amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such
Holder shall be redeemed or purchased. 
 (9)    DENOMINATIONS,
TRANSFER, EXCHANGE.    The Notes are in registered form in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company
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 next succeeding Interest Payment Date. 

This Regulation S Temporary Global Note is exchangeable in whole or in part for one or more Global Notes only (i) on
or after the termination of the 40-day distribution compliance period (as defined in Regulation S) and (ii) upon presentation of certificates (accompanied by an Opinion of Counsel, if applicable) required by Article 2 of the Indenture. Upon
exchange of this Regulation S Temporary Global Note for one or more Global Notes, the Trustee shall cancel this Regulation S Temporary Global Note. 

(10)    PERSONS DEEMED
OWNERS.    The registered Holder of a Note may be treated as the owner of it for all purposes. Only registered Holders have rights under the Indenture. 

(11)    AMENDMENT, SUPPLEMENT AND
WAIVER.    Subject to certain exceptions, the Indenture, the Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes including Additional Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture or the Notes or the Note Guarantees may be
waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes including Additional Notes, if any, voting as a single class. Without the consent of any Holder of Notes, the Indenture, the Notes or
the Note Guarantees may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s or a
Guarantor’s obligations to Holders of the Notes and Note Guarantees by a successor to the Company or such Guarantor pursuant to the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes
or that does not adversely affect the rights under the Indenture of any Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the Indenture, the
Notes or the Note Guarantees to any provision of the “Description of Notes” section of the Offering Memorandum to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a
provision of the Indenture, the Notes or the Note Guarantees, which intent may be evidenced by an Officer’s Certificate to that effect, to provide for the issuance of Additional Notes in accordance with the limitations set forth in the
Indenture, to allow any Guarantor to execute a supplemental indenture to the Indenture and/or a Note Guarantee with respect to the Notes, or to evidence and provide for the acceptance of the appointment of a successor Trustee. 

(12)    DEFAULTS AND
REMEDIES.    Events of Default include: (i) default for 30 days in the payment when due of interest and Special Interest, if any, on, the Notes; (ii) default in the

  

 A2-6 

 
payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium on, if any, the Notes, (iii) failure by the Company or any of its Restricted Subsidiaries to
comply with the provisions of Sections 4.10 or 4.15 or failure by the Company or any of its Restricted Subsidiaries to comply with the provisions of Section 5.01 of the Indenture; (iv) failure by the Company or any of its Restricted
Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding voting as a single class to comply with any of the other agreements in the Indenture;
(v) default under certain other agreements relating to Indebtedness of the Company which default is a Payment Default or results in the acceleration of such Indebtedness prior to its express maturity; (vi) failure by the Company or any of
its Restricted Subsidiaries to pay certain final judgments, which judgments are not paid, discharged or stayed, for a period of 60 days; (vii) certain events of bankruptcy or insolvency with respect to the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (viii) except as permitted by the Indenture, any Note Guarantee of any Significant
Subsidiary is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its
Note Guarantee. In the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Company, any Restricted Subsidiary of the Company that is a Significant Subsidiary or any group of Restricted Subsidiaries
of the Company that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in aggregate principal amount of then outstanding Notes may declare all the Notes to be due and payable immediately. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to
certain limitations, Holders of a majority in aggregate principal amount of 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. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium, if any, interest or Special Interest, if
any,) if it determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of then outstanding Notes by notice to the Trustee may, on behalf of all the Holders, rescind an acceleration or waive an
existing Default or Event of Default and its respective consequences under the Indenture except a continuing Default or Event of Default in the payment of principal of, premium on, if any, interest or Special Interest, if any, on, the Notes
(including in connection with an offer to purchase). The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company 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. 

(13)    TRUSTEE DEALINGS WITH
COMPANY.    The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee. 
 (14)    NO
RECOURSE AGAINST OTHERS.    No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any
obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees 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 issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws. 

 

 A2-7 

(15)    AUTHENTICATION.    This Note will not be valid until authenticated
by the manual signature of the Trustee or an Authenticating Agent. 

(16)    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). 
 (17)    ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES.    In addition to the rights provided to Holders of Notes under the Indenture, Holders of Restricted Global Notes and Restricted Definitive Notes will have all the rights set forth in the Registration
Rights Agreement dated as of May 28, 2010, among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of each issuance of Additional Notes issued in a transaction exempt from the registration
requirements of the Securities Act, Holders of Restricted Global Notes and Restricted Definitive Notes will have the rights set forth in the registration rights agreement, if any, among the Company, the Guarantors and the other parties thereto, in
each case relating to rights given by the Company and the Guarantors to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). 

(18)    CUSIP NUMBERS.    Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption, and reliance may be placed only on the other identification numbers placed thereon. 

(19)    GOVERNING LAW.    THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture and/or the
Registration Rights Agreement. Requests may be made to: 
 The Hillman Group, Inc., 

10590 Hamilton Avenue 
 Cincinnati, Ohio, 45231

 Attention: Chief Financial Officer. 
  

 A2-8 

 ASSIGNMENT FORM 

To assign this Note, fill in the form below: 

(I) or (we) assign and transfer this Note to:           
                                         
                                         
                                         
                                         

                         
                                         
                                         
             (Insert assignee’s legal name) 
  

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

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

 

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

	
	
                        
                                         
                                         
                                         
                                         
                                         
                            

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

and irrevocably appoint                   
                                         
                                         
                                         
                                         
                              

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

Date:                      

Your Signature:
                                         
                                         

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

Signature Guarantee*:
                                        
                                 

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

 A2-9 

 OPTION OF HOLDER TO
ELECT PURCHASE 
 If you want to elect to have this Note purchased by the Company pursuant to
Section 4.10 or 4.15 of the Indenture, check the appropriate box below: 
  

							
	 	 	Section 4.10	 	 	 	Section 4.15

 If you want to elect to
have only part of the Note purchased by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 

$                     
                                    

Date:                      

 

			
		 	Your Signature: ________________________
	 	 	        (Sign exactly as your name appears on the face of this Note)
		
		 	Tax Identification No.: ___________________

 Signature
Guarantee*:
                                        
                                 

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

 

 A2-10 

 SCHEDULE OF EXCHANGES OF
INTERESTS IN THE REGULATION S TEMPORARY 

GLOBAL NOTE 

The following exchanges of a part of this Regulation S Temporary Global Note for an interest in another Global Note, or exchanges of a
part of another other Restricted Global Note for an interest in this Regulation S Temporary Global Note, have been made: 
  

 

									
	 Date of Exchange
	  	 Amount of decrease in
Principal Amount 
of

this Global Note
	  	 Amount of increase in
Principal Amount 
of

this Global Note
	  	 Principal Amount

of this Global Note
following such

decrease 
(or increase)
	  	 Signature of authorized

signatory of Trustee,

Depository or Note

Custodian

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

 A2-11 

 EXHIBIT B 

FORM OF CERTIFICATE OF TRANSFER 

The Hillman Group, Inc. 
 10590 Hamilton Avenue

 Cincinnati, Ohio, 45231 
 Attention:
Chief Financial Officer 
 Wells Fargo Bank – DAPS Reorg. 

MAC N9303-121 
 608 2nd Avenue South 

Minneapolis, MN 55479 
 Facsimile No.:
(866) 969-1290 
 with a copy to: 

Wells Fargo Bank, National Association 
 45
Broadway, 14th Floor 
 New York, New York 10006 

Facsimile No.: (212) 515-1589 
 Attention:
Corporate Trust - Hillman Administrator 
 Re:       10.875% Senior Notes Due 2018 

Reference is hereby made to the Indenture, dated as of May 28, 2010 (the “Indenture”), among The Hillman Group,
Inc., as issuer (the “Company”), the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 

                      
                  , (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of $                 in such Note[s] or interests (the “Transfer”), to
                                        
(the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor hereby certifies that: 

[CHECK ALL THAT APPLY] 

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

 

 B-1 

 
pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby
further certifies that (i) the Transfer is not being made to a Person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its
behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person
acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the
Securities Act [and/,] (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act [and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period,
the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser)]. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Permanent Global Note, the Regulation S Temporary Global Note and/or the Restricted Definitive Note
and in the Indenture and the Securities Act. 
 3.     ̈
Check and complete if Transferee will take delivery of a beneficial interest in the IAI Global Note or a Restricted Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is
being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky
securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one): 

(a)     ̈ such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act; 
 or 

(b)     ̈ such Transfer is being effected to the
Company, any of the Guarantors or any of their respective subsidiaries; 
 or 

(c)     ̈ such Transfer is being effected pursuant to
an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; 

or 

(d)     ̈ such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144, Rule 903 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any
general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the
requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the Indenture and (2) an Opinion of Counsel provided by the Transferor or the Transferee (a
copy of which the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act. Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred

  

 B-2 

 
beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the IAI Global Note and/or the Restricted Definitive
Notes and in the Indenture and the Securities Act. 

4.     ̈ Check if Transferee will take delivery of a beneficial
interest in an Unrestricted Global Note or of an Unrestricted Definitive Note. 

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

(c)     ̈ Check if Transfer is Pursuant to Other Exemption.
(i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 
 This certificate
and the statements contained herein are made for your benefit and the benefit of the Company. 
  

			
	                           
                                         
                                   
	 [Insert Name of Transferor]

		
	By:	 	                             
                                         
                         
		 	Name:
		 	Title:

 Dated:
                                        
 
  

 B-3 

 ANNEX A TO CERTIFICATE OF TRANSFER 

 

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

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

	 	(a)	 ̈ a beneficial interest in the: 

 

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

  

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

  

	 	(iii)	 ̈     IAI Global Note (CUSIP
                    ); or 

  

	 	(b)	 ̈ a Restricted Definitive Note. 

 

	2.	After the Transfer the Transferee will hold: 

[CHECK ONE] 
  

	 	(a)	 ̈ a beneficial interest in the: 

 

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

  

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

  

	 	(iii)	 ̈     IAI Global Note (CUSIP
                    ); or 

  

	 	(iv)	 ̈     Unrestricted Global Note (CUSIP
                    ); or 

  

	 	(b)	 ̈ a Restricted Definitive Note; or 

 

	 	(c)	 ̈ an Unrestricted Definitive Note, 

in accordance with the terms of the Indenture. 
  

 B-4 

 EXHIBIT C 

FORM OF CERTIFICATE OF EXCHANGE 

The Hillman Group, Inc. 
 10590 Hamilton Avenue

 Cincinnati, Ohio, 45231 
 Attention:
Chief Financial Officer 
 Wells Fargo Bank – DAPS Reorg. 

MAC N9303-121 
 608 2nd Avenue South 

Minneapolis, MN 55479 
 Facsimile No.:
(866) 969-1290 
 with a copy to: 

Wells Fargo Bank, National Association 
 45
Broadway, 14th Floor 
 New York, New York 10006 

Facsimile No.: (212) 515-1589 
 Attention:
Corporate Trust - Hillman Administrator 
 Re:    10.875% Senior Notes Due 2018 

(CUSIP [        ]) 

Reference is hereby made to the Indenture, dated as of May 28, 2010 (the “Indenture”), among The Hillman Group,
Inc., as issuer (the “Company”), the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 

                      
                  , (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                 in such Note[s] or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that:

 1.    Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note
for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note 

(a)     ̈ Check if Exchange is from beneficial interest in a
Restricted Global Note to beneficial interest in an Unrestricted Global Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend
are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United
States. 
 (b)     ̈ Check if Exchange is from beneficial
interest in a Restricted Global Note to Unrestricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies
(i) the Definitive 
  

 C-1 

 
Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted
Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and
(iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States. 

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

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

(a)     ̈ Check if Exchange is from beneficial interest in a
Restricted Global Note to Restricted Definitive Note. In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby certifies
that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to
be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act. 

(b)     ̈ Check if Exchange is from Restricted Definitive Note to
beneficial interest in a Restricted Global Note. In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE]  ̈ 144A Global Note,
 ̈ Regulation S Global Note,  ̈ IAI Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities
Act, and in compliance with any applicable blue sky securities laws of any state of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act. 
  

 C-2 

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

			
	                           
                                         
                                   
	[Insert Name of Transferor]
		
	By:	 	                             
                                         
                         
		 	Name:
		 	Title:

 Dated:
                                        
 
  

 C-3 

 EXHIBIT D 

FORM OF CERTIFICATE FROM 

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR 

The Hillman Group, Inc. 
 10590 Hamilton Avenue

 Cincinnati, Ohio 45231 
 Facsimile
No.: (513) 595-8297 
 Attention: Chief Financial Officer 

Wells Fargo Bank, National Association 
 45
Broadway, 14th Floor 
 New York, New York 10006 

Facsimile No.: (212) 515-1589 
 Attention:
Corporate Trust Services 
 Re:    10.875% Senior Notes due 2018 

 
  

Reference is hereby made to the Indenture, dated as of May 28, 2010 (the “Indenture”), among The Hillman Group,
Inc., as issuer (the “Company”), the Guarantors party thereto and Wells Fargo Bank, National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture. 

In connection with our proposed purchase of $         aggregate principal amount of:

  

	 	(a)	 ̈ a beneficial interest in a Global Note, or 

 

	 	(b)	 ̈ a Definitive Note, 

we confirm that: 

1.    We understand that any subsequent transfer of the Notes or any interest therein is subject to certain
restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the
Securities Act of 1933, as amended (the “Securities Act”). 
 2.    We understand that the
offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any
accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do so only (A) to the Company, any Guarantor or any of their respective subsidiaries, (B) to a Person whom we
reasonably believe is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act, (C) to an institutional “accredited investor” in a transaction exempt from the registration requirements of the Securities
Act, (D) in an offshore transaction complying with Rule 903 or Rule 904 of Regulation S under the Securities Act, (E) pursuant to an exemption from registration under the Securities Act provided by Rule 144 thereunder (if available) or
(F) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any Person purchasing the Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the requirements
of clauses (A) through (E) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 
  

 D-1 

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

4.    We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are
acting are each able to bear the economic risk of our or its investment. 
 5.    We are acquiring the Notes
or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion. 

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

			
	  

	    [Insert Name of Accredited Investor]
		
	By:	 	  

		 	Name:
		 	Title:

 Dated:
                                        
 
  

 D-2 

 EXHIBIT E 

[FORM OF NOTATION OF GUARANTEE] 

For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally,
unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of May 28, 2010 (the “Indenture”) among The Hillman Group, Inc., (the “Company”), the
Guarantors party thereto and Wells Fargo Bank, National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium on, if any, interest and Special Interest, if any, on, the Notes,
whether at maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of, premium on, if any, interest and Special Interest, if any, on, the Notes, if any, if lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations,
that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to
the Trustee pursuant to the Note Guarantee and the Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Note Guarantee. 

Capitalized terms used but not defined herein have the meanings given to them in the Indenture. 

 

			
	[NAME OF GUARANTOR(S)]
		
	By:	 	  

		 	Name:
		 	Title:

  

 E-1 

 EXHIBIT F 

[FORM OF SUPPLEMENTAL INDENTURE 

TO BE DELIVERED BY SUBSEQUENT GUARANTORS] 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
                    , among
                     (the “Guaranteeing Subsidiary”), a subsidiary of The Hillman Group, Inc. (or its permitted successor), a
Delaware corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred to herein) and Wells Fargo Bank, National Association., as trustee under the Indenture referred to below (the
“Trustee”). 
 W I T N E S S E T H 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of
May 28, 2010 providing for the issuance of 10.875% Senior Notes due 2018 (the “Notes”); 
 WHEREAS, the
Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s
Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is
hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

1.    CAPITALIZED TERMS.    Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture. 
 2.    AGREEMENT
TO GUARANTEE.    The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee and in the Indenture
including but not limited to Article 10 thereof. 
 3.    NO RECOURSE
AGAINST OTHERS.    No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors
under the Notes, this Indenture, the Note Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws. 

4.    NEW YORK LAW TO GOVERN.    THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

5.    COUNTERPARTS.    The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 
  

 F-1 

 6.    EFFECT OF
HEADINGS.    The Section headings herein are for convenience only and shall not affect the construction hereof. 

7.    THE TRUSTEE.    The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company.

  

 F-2 

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

			
	[Guaranteeing Subsidiary]
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE HILLMAN GROUP, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	THE HILLMAN COMPANIES, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	HILLMAN INVESTMENT COMPANY
		
	By:	 	  

		 	Name:
		 	Title:
	
	ALL POINTS INDUSTRIES, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

 F-3 

			
	SUNSUB C, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

    as Trustee

		
	By:	 	  

		 	Name:
		 	Title:

  

 F-4

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