Document:

exv4w1

 

EXHIBIT 4.1

SUPPLEMENTAL INDENTURE

     This SUPPLEMENTAL INDENTURE, dated as of March 15, 2007 (this “Supplemental
Indenture”), is among Sterling Chemicals, Inc., a Delaware corporation (the “Company”),
Sterling Chemicals Energy, Inc., a Delaware corporation (“Energy,” as guarantor), and U.S.
Bank National Association (as successor to National City Bank), as trustee under the Indenture
referred to below (the “Trustee”) and as collateral agent under the Security Documents
(“Collateral Agent”).

     WHEREAS, the Company, Energy and the Trustee have heretofore executed and delivered an
Indenture, dated as of December 19, 2002 (the “Indenture”), providing for the issuance of
10% Senior Secured Notes due 2007 of the Company (the “Notes”);

     WHEREAS, the Company, Energy, the Trustee and the Collateral Agent are parties to the Security
Agreement dated as of December 19, 2002 (the “Security Agreement”);

     WHEREAS, the Company and Thomas S. Henderson, as trustee for the benefit of the Trustee, are
parties to the Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing
dated as of December 19, 2002 (the “Deed of Trust and Security Agreement”);

     WHEREAS, the only Subsidiary Guarantor is Energy;

     WHEREAS, none of the Notes are owned by the Company or any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the Company;

     WHEREAS, the Company has issued under the Indenture, and there remains outstanding (within the
meaning of Sections 2.08 and 2.09 of the Indenture) on the date of the execution and delivery of
this Supplemental Indenture, $100,579,000 in aggregate principal amount of the Notes;

     WHEREAS, pursuant to Section 9.02 of the Indenture, the Holders of at least a majority in
principal amount of the then outstanding (within the meaning of Sections 2.08 and 2.09 of the
Indenture) Notes have consented in writing to the substance of this Supplemental Indenture,
evidence of which that is satisfactory to the Trustee having been filed therewith;

     WHEREAS, pursuant to Section 9.02 of the Indenture, the Company has delivered a request to the
Trustee, accompanied by a resolution of its Board of Directors authorizing the execution of this
Supplemental Indenture, requesting the Trustee to join with the Company and the Subsidiary
Guarantors in the execution of this Supplemental Indenture;

     WHEREAS, pursuant to Sections 9.02 and 9.06 of the Indenture, the Board of Directors has
authorized and approved this Supplemental Indenture; and

1

 

     WHEREAS, pursuant to Sections 9.06 and 12.04 of the Indenture, the Trustee has received an
Officers’ Certificate and Opinion of Counsel.

     NOW, THEREFORE, in consideration of the premises, each of the Company, Energy and the Trustee
and the Collateral Agent mutually covenant and agree for the equal and ratable benefit of the
respective Holders from time to time of the Notes as follows:

ARTICLE I

Definitions

     SECTION 1.1 Defined Terms. As used in this Supplemental Indenture, terms not defined in
this Supplemental Indenture that are defined in the Indenture are used herein as therein defined.
The words “herein,” “hereof” and “hereby” and other words of similar import used in this
Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular
section hereof.

ARTICLE II

Amendments

     SECTION 2.1 Acceptance Time. The amendments to the Indenture, the Security Agreement and
the Deed of Trust and Security Agreement specified in this Article II shall become effective at
such time, and only at such time, as Notes are accepted for purchase by the Company pursuant to the
Company’s offer to purchase for cash the outstanding Notes upon the terms and conditions set forth
in the Offer to Purchase and Consent Solicitation Statement dated March 1, 2007 as it may be
amended or supplemented from time to time.

     SECTION 2.2 Definitions.

     (a) Section 1.01 of the Indenture is hereby amended by deleting in their entirety the
following defined terms: “Average Life”, “Capital Expenditures”, “Change of Control”, “Company
Budget”, “Consolidated Net Worth”, “Environmental Law”, “Fiscal Year”, “Net Available Cash”,
“Non-Convertible Capital Stock”, “Permitted Debt”, “Permitted Holders”, “Permitted Investment”,
“Permitted Transferee”, “Refinance”, “Refinancing Debt”, “Required Environmental Capital
Expenditure”, “Restricted Payment”, and “Tangible Property”..

     (b) Section 1.01 of the Indenture is hereby amended by adding the following definition to such
Section:

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

     (c) Section 1.01 of the Indenture is hereby amended by modifying the defined term “Permitted
Liens” by deleting “and” at the end of paragraph 22; deleting the period at the end of paragraph 23
and inserting “; and” at the end thereof; and inserting the following new paragraph 24:

“(24) any Lien on Pledged Collateral not prohibited by Article 4 of this
Indenture that is expressly subordinate to the Liens in favor of the

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Collateral Agent under the Security Documents for the benefit of the Holders
and that does not otherwise deprive any of the Holders of the benefit of the
Liens created by the Security Documents except in accordance with the terms
of the Security Documents.”

     SECTION 2.3 The Notes. Article 2 of the Indenture is hereby amended by adding the
following new Section 2.14:

“SECTION 2.14 LIMITATION ON AGGREGATE PRINCIPAL AMOUNT

     Notwithstanding Section 2.02 or any other provision of this Indenture
or any Note, from and after the time at which the Company has purchased all
Notes tendered pursuant to the Company Tender Offer and delivered such Notes
to the Trustee for cancellation (the “Cancellation Time”), (i) the aggregate
principal amount of Notes which may be at any time outstanding under this
Indenture shall be limited to the aggregate principal amount of Notes
outstanding immediately after the Cancellation Time and (ii) no additional
Additional Notes or Notes may be issued under this Indenture.

     For purposes of this Section 2.14, “Company Tender Offer” means the
Company’s offer to purchase all outstanding Notes in accordance with and
subject to the terms and conditions of that certain Offer to Purchase and
Consent Solicitation Statement dated March 1, 2007 of the Company.”

     SECTION 2.4 Redemption and Prepayment.

     (a) Section 3.08 (Mandatory Redemption) of the Indenture is hereby amended by deleting the
clause “, except as may be set forth in Sections 4.11, 4.15 and 4.16 hereof” from such Section.

     (b) Section 3.09 (Offer to Purchase by Application of Net Available Cash) of the Indenture is
hereby amended by deleting such Section in its entirety and inserting the words “[Intentionally
Omitted]” in lieu thereof.

     SECTION 2.5 Covenants.

     (a) Article 4 of the Indenture is hereby amended by deleting the following Sections therein in
their entirety and, in each case, inserting the words “[Intentionally Omitted]” in lieu thereof:
Section 4.03 (Reports), Section 4.04 (Compliance Certificate), Section 4.05 (Taxes), Section 4.06
(Stay, Extension and Usury Laws), Section 4.07 (Limitation on Dividends), Section 4.08 (Limitation
on Restricted Payments), Section 4.09 (Limitation on Restrictions on Distributions from
Subsidiaries), Section 4.10 (Limitation on Debt), Section 4.11 (Asset Sales), Section 4.12
(Limitation on Transactions with Affiliates), Section 4.13 (Liens), Section 4.14
(Corporate Existence), Section 4.15 (Offer to Repurchase upon Change of Control), Section 4.16
(Sale of the Texas City Facilities), Section 4.17 (Limitation on the Sale or Issuance of Capital

3

 

Stock of Subsidiaries), Section 4.19 (Additional Subsidiaries), Section 4.20 (Capital Expenditures)
and Section 4.21 (Excluded Subsidiaries).

     (b) Section 4.01 (Payment of Notes) of the Indenture is hereby amended by (i) inserting “the
Trustee or any other” before “Paying Agent” in the second sentence of such Section and (ii) adding
the following as the new third sentence to the first paragraph:

“For purposes of Section 5.4 of the Security Agreement, Section 6 of any
Patent Security Agreement, Section 5.4.1 of the Deed of Trust and Security
Agreement and Section 10.09 of this Indenture and any other provision of
this Indenture, the Notes or any Security Document, all Obligations shall be
deemed and considered, and shall have been, paid in full at such time as all
principal, premium, if any, and interest shall be considered paid on all
outstanding Notes in accordance with the preceding sentence.”

     SECTION 2.6 Successors. Section 5.01 of the Indenture is hereby amended by deleting
the clauses (2) and (3); inserting “and” after the semicolon at the end of clause (1); and
replacing “(4)” with “(2).”

     SECTION 2.7 Events of Default. Section 6.01 of the Indenture is hereby amended by
deleting the text of clauses (4), (6), (7) and (8) of such Section in their entirety and, in each
case, inserting the words “[Intentionally Omitted]” in lieu thereof.

     SECTION 2.8 Covenant Defeasance. Section 8.03 of the Indenture is hereby amended by
deleting such Section in its entirety and inserting the words “[Intentionally Omitted]” in lieu
thereof.

     SECTION 2.9 Collateral and Security.

     (a) Section 10.01 of the Indenture is hereby amended by deleting the last sentence of such
Section.

     (b) The second sentence of Section 10.03(a) of the Indenture is hereby amended by (i)
replacing “met, and stating whether or not such release is in connection with an Asset Disposition
or a Sale of the Texas City Facilities (at the sole cost and expense of the Company)” with
“satisfied”; and (ii) deleting “; provided, that if such sale, conveyance or disposition
constitutes an Asset Disposition or a Sale of the Texas City Facilities, the Company shall comply
with Section 4.11 or Section 4.16, as applicable”.

     (c) Section 10.03(d) of the Indenture is hereby amended by inserting “(unless compliance with
TIA Section 314(d) is no longer required),” before “TIA Section 314(d)” in the second sentence of
such Section.

     (d) Section 10.04 of the Indenture is hereby amended by (i) inserting “, if any,” after “(i)
all documents” and (ii) inserting “or that no documents are so required” after “TIA Section 314(d)”
in the first sentence of such Section.

4

 

     (e) Section 10.05 of the Indenture is hereby amended by (i) deleting “10.02 and”; (ii)
inserting “and 10.04” after “Sections 10.03”; and (iii) replacing “10.02(b)” with “10.04” in the
first sentence of such Section.

     SECTION 2.10 Satisfaction and Discharge of the Indenture.

     (a) Article 13 of the Indenture is hereby amended by adding the following as Section 13.14 of
the Indenture:

     “SECTION 13.14 SATISFACTION AND DISCHARGE OF THE INDENTURE

     This Indenture shall upon request of the Company cease to be of further effect (except as to
any surviving rights expressly provided for in this Indenture), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when:

(1) either

     (a) all Notes theretofore authenticated and delivered (other than Notes which have been
destroyed, lost or stolen and which have been replaced as provided in Section 2.07 of this
Indenture) have been delivered to the Trustee for cancellation; or

     (b) all such Notes not theretofore delivered to the Trustee for cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one year, or

     (iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Company,

and the Company, in the case of (i), (ii) or (iii) above, has deposited or caused to
be deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Notes not
theretofore delivered to the Trustee for cancellation, for principal (and premium,
if any) and interest to the date of such deposit (in the case of Notes which have
become due and payable) or to the Stated Maturity or Redemption Date, as the case
may be;

(2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company or any Subsidiary Guarantor; and

(3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.

5

 

     Notwithstanding the satisfaction and discharge of this Indenture, (i) so long (and only so
long) as the Liens pursuant to the Security Documents have not been released as to any Pledged
Collateral in accordance with Section 10.09 or otherwise as provided herein, the obligations of the
parties to such Security Documents and the Liens pursuant thereto in respect of such Pledged
Collateral, (ii) the obligations of the Company to the Trustee under Section 7.07 of this Indenture
and (iii) if money shall have been deposited with the Trustee pursuant to subclause (b) of clause
(1) of this Section 13.14, the obligations of the Trustee under the following paragraph of this
Indenture shall survive.

     All money deposited with the Trustee pursuant to this Section 13.14 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 (and premium, if
any) and interest for whose payment such money has been deposited with the Trustee.”

     SECTION 2.11 Form of Note.

     (a) Paragraph 6 of the “Back of Note” set forth in Exhibit A of the Indenture is hereby
amended by deleting the text of such Paragraph in its entirety and replacing such text with
“[Intentionally Omitted]” in lieu thereof:

     (b) Paragraph 7 of the “Back of Note” set forth in Exhibit A of the Indenture is hereby
amended by deleting the text of such Paragraph in its entirety and inserting the words
“[Intentionally Omitted]” in lieu thereof.

     (c) Paragraph 12 of Exhibit A of the “Back of Note” set forth in the Indenture is hereby
amended by deleting the text of clauses (iv), (vi), (vii), (viii) and (ix) of such Paragraph in
their entirety and, in each case, inserting the words “Intentionally Omitted” in lieu thereof.

     SECTION 2.12 Security Agreement. Section 5.4(c) of the Security Agreement is hereby
amended by (i) inserting “(x)” before “all documentation required” and (ii) inserting “or (y) TIA
Section 314(d) does not require furnishing any documentation to the Trustee” at the end of such
Section.

     SECTION 2.13 Deed of Trust and Security Agreement. Section 5.4.1 of the Deed of Trust and
Security Agreement is hereby amended by (i) inserting “either (x)” after “If” and before “the
Secured Obligations” in such Section and (ii) inserting “or (y) the Security Agreement has
terminated in accordance with Section 5.4 thereof,” before “then on such date” in such Section.

     SECTION 2.14 References. To the extent any clause, definition, Paragraph, Section or
Article of the Indenture has been deleted from the Indenture pursuant to Article II of this
Supplemental Indenture, any reference in any provision of the Indenture, any Note, any Subsidiary
Guarantee or any Security Document to such clause, definition, Paragraph, Section or Article shall
be disregarded in, and be deemed eliminated from, such provisions.

6

 

ARTICLE III

Miscellaneous

     SECTION 3.1 Representations and Warranties. The Company hereby represents and
warrants to the Trustee and the Collateral Agent that, immediately prior to the execution and
delivery of this Supplemental Indenture by each of the parties hereto on the date hereof, none of
the Notes are owned by the Company, or any Person directly or indirectly controlling or controlled
by or under direct or indirect common control with the Company.

     SECTION 3.2 Successors and Assigns. The Trustee hereby represents and warrants to the
Company and Energy that (i) in accordance with Section 7.09 of the Indenture, the Trustee is the
successor to National City Bank as the original Trustee under the Indenture and (ii) in accordance
with Section 5.3(b) of the Security Agreement, the Collateral Agent is the duly appointed successor
to National City Bank as the original Collateral Agent under the Security Agreement. All
agreements of the Company and Energy in this Supplemental Indenture shall bind their respective
successors. All agreements of the Trustee in this Supplemental Indenture shall bind its successor.
All agreements of the Collateral Agent in this Supplemental Indenture shall bind its successor.

     SECTION 3.3 Governing Law. This Supplemental Indenture shall be governed by, and construed
in accordance with, the laws of the State of New York.

     SECTION 3.4 Severability Clause. In case any provision in this Supplemental Indenture
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby and such provision shall
be ineffective only to the extent of such invalidity, illegality or unenforceability.

     SECTION 3.5 Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as
expressly amended hereby, the Indenture and the Notes issued thereunder, the Security Agreement and
the Deed of Trust and Security Agreement are in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental
Indenture is executed as and shall constitute an indenture supplemental to the Indenture and an
amendment to each of the Security Agreement and the Deed of Trust and Security Agreement and shall
be construed in connection with and form a part of the Indenture, the Security Agreement and the
Deed of Trust and Security Agreement for all purposes, and every Holder of Notes heretofore or
hereafter authenticated and delivered shall be
bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of
this Supplemental Indenture.

     SECTION 3.6 Counterparts. The parties hereto may sign one or more copies of this
Supplemental Indenture in counterparts, all of which together shall constitute one and the same
agreement. This Supplemental Indenture shall become effective and constitute a binding agreement
between the parties hereto when counterparts hereof shall have been executed and delivered by each
of the parties hereto.

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     SECTION 3.7 Headings. The headings of the Articles and the sections herein are for
convenience of reference only and shall not be deemed to alter or affect the meaning or
interpretation of any provisions hereof.

[SIGNATURE PAGE FOLLOWS]

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

	 	 	 	 	 	 	 
	 	 	STERLING CHEMICALS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard K. Crump	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard K. Crump	 	 
	 

	 	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	STERLING CHEMICALS ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul G. Vanderhoven	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Paul G. Vanderhoven	 	 
	 

	 	 	 	Title: Senior Vice President – Finance and Chief
Financial Officer	 	 

[Signature Page]

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION (as 
successor to
National City Bank), as Trustee and as
Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ T. Scott Fesler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: T. Scott Fesler	 	 
	 

	 	 	 	Title: Vice President	 	 

[Signature Page]exv4w2

 

EXECUTION COPY

EXHIBIT 4.2

INDENTURE,

Dated as of March 29, 2007

AMONG

STERLING CHEMICALS, INC.,

as Issuer,

THE GUARANTORS NAMED HEREIN,

as Guarantors,

AND

U. S. BANK NATIONAL ASSOCIATION,

as Trustee and Collateral Agent

101/4% Senior Secured Notes due 2015

 

 

CROSS-REFERENCE TABLE

	 	 	 	 
	TIA	 	Indenture
	Section	 	Section
	310	(a)(1)
	 	7.10
	 	(a)(2)
	 	7.10
	 	(a)(3)
	 	7.10
	 	(a)(4)
	 	N.A.
	 	(a)(5)
	 	7.10
	 	(b)
	 	7.03; 7.08; 7.10
	 	(c)
	 	N.A.
	311	(a)
	 	7.03; 7.11
	 	(b)
	 	7.03; 7.11
	 	(c)
	 	7.03
	312	(a)
	 	2.05
	 	(b)
	 	2.05, 7.07; 11.03
	 	(c)
	 	11.03
	313	(a)
	 	7.06
	 	(b)(1)
	 	7.06
	 	(b)(2)
	 	7.06
	 	(c)
	 	7.06
	 	(d)
	 	7.06
	314	(a)
	 	4.06; 4.08
	 	(b)
	 	12.03
	 	(c)(1)
	 	4.06; 11.04
	 	(c)(2)
	 	11.04
	 	(c)(3)
	 	4.06
	 	(d)
	 	12.04
	 	(e)
	 	11.05
	 	(f)
	 	N.A.
	315	(a)
	 	7.01(b)
	 	(b)
	 	7.05
	 	(c)
	 	7.01(a)
	 	(d)
	 	7.01(c)
	 	(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)
	 	2.05, 9.04
	317	(a)(1)
	 	6.08
	 	(a)(2)
	 	6.09
	 	(b)
	 	2.04
	318	(a)
	 	11.01
	 	(b)
	 	N.A.
	 	(c)
	 	11.01

 

N.A. means Not Applicable

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	SECTION 1.02 Incorporation by Reference of Trust Indenture Act
	 	 	26	 
	SECTION 1.03 Rules of Construction
	 	 	26	 
	 
	 	 	 	 
	ARTICLE TWO THE NOTES
	 	 	27	 
	 
	 	 	 	 
	SECTION 2.01 Form and Dating
	 	 	27	 
	SECTION 2.02 Execution and Authentication; Aggregate Principal Amount
	 	 	28	 
	SECTION 2.03 Registrar and Paying Agent
	 	 	29	 
	SECTION 2.04 Obligations of Paying Agent
	 	 	29	 
	SECTION 2.05 Holder Lists
	 	 	29	 
	SECTION 2.06 Transfer and Exchange
	 	 	30	 
	SECTION 2.07 Replacement Notes
	 	 	30	 
	SECTION 2.08 Outstanding Notes
	 	 	30	 
	SECTION 2.09 Treasury Notes; When Notes Are Disregarded
	 	 	31	 
	SECTION 2.10 Temporary Notes
	 	 	31	 
	SECTION 2.11 Cancellation
	 	 	31	 
	SECTION 2.12 CUSIP Numbers
	 	 	31	 
	SECTION 2.13 Deposit of Moneys
	 	 	32	 
	SECTION 2.14 Book-Entry Provisions for Global Notes
	 	 	32	 
	SECTION 2.15 Special Transfer Provisions
	 	 	33	 
	SECTION 2.16 Transfers of Global Notes and Physical Notes
	 	 	36	 
	 
	 	 	 	 
	ARTICLE THREE REDEMPTION
	 	 	36	 
	 
	 	 	 	 
	SECTION 3.01 Optional Redemption
	 	 	36	 
	SECTION 3.02 Mandatory Redemption
	 	 	37	 
	SECTION 3.03 Selection of Notes to Be Redeemed
	 	 	37	 
	SECTION 3.04 Notice of Redemption
	 	 	37	 
	SECTION 3.05 Effect of Notice of Redemption
	 	 	38	 
	SECTION 3.06 Deposit of Redemption Price
	 	 	38	 
	SECTION 3.07 Notes Redeemed in Part
	 	 	39	 
	 
	 	 	 	 
	ARTICLE FOUR COVENANTS
	 	 	39	 
	 
	 	 	 	 
	SECTION 4.01 Payment of Notes
	 	 	39	 
	SECTION 4.02 Maintenance of Office or Agency
	 	 	39	 
	SECTION 4.03 Corporate Existence
	 	 	39	 
	SECTION 4.04 Payment of Taxes and Other Claims
	 	 	40	 
	SECTION 4.05 Maintenance of Properties and Insurance
	 	 	40	 
	SECTION 4.06 Compliance Certificate; Notice of Default
	 	 	40	 
	SECTION 4.07 Compliance with Laws
	 	 	41	 
	SECTION 4.08 Reports to Holders
	 	 	41	 
	SECTION 4.09 Waiver of Stay, Extension or Usury Laws
	 	 	42	 
	SECTION 4.10 Limitation on Restricted Payments
	 	 	42	 
	SECTION 4.11 Limitations on Transactions with Affiliates
	 	 	45	 

-i- 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	SECTION 4.12 Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	47	 
	SECTION 4.13 Limitation on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries
	 	 	50	 
	SECTION 4.14 Additional Note Guarantees
	 	 	52	 
	SECTION 4.15 Repurchase upon Change of Control
	 	 	53	 
	SECTION 4.16 Limitation on Asset Sales
	 	 	54	 
	SECTION 4.17 Repurchase Upon Event of Loss
	 	 	57	 
	SECTION 4.18 Limitation on Liens
	 	 	58	 
	SECTION 4.19 Business Activities
	 	 	58	 
	SECTION 4.20 Limitation on Issuances and Sales of Equity Interests in Restricted Subsidiaries
	 	 	58	 
	SECTION 4.21 Payments for Consent
	 	 	58	 
	SECTION 4.22 Impairment of Security Interest
	 	 	59	 
	SECTION 4.23 Designation of Restricted and Unrestricted Subsidiaries
	 	 	59	 
	SECTION 4.24 Additional Interest
	 	 	59	 
	 
	 	 	 	 
	ARTICLE FIVE SUCCESSOR CORPORATION
	 	 	59	 
	 
	 	 	 	 
	SECTION 5.01 Merger, Consolidation and Sale of Assets
	 	 	59	 
	SECTION 5.02 Successor Corporation Substituted
	 	 	61	 
	 
	 	 	 	 
	ARTICLE SIX DEFAULT AND REMEDIES
	 	 	61	 
	 
	 	 	 	 
	SECTION 6.01 Events of Default
	 	 	61	 
	SECTION 6.02 Acceleration
	 	 	63	 
	SECTION 6.03 Other Remedies
	 	 	63	 
	SECTION 6.04 Waiver of Past Defaults
	 	 	64	 
	SECTION 6.05 Control by Majority
	 	 	64	 
	SECTION 6.06 Limitation on Suits
	 	 	65	 
	SECTION 6.07 Rights of Holders to Receive Payment
	 	 	65	 
	SECTION 6.08 Collection Suit by Trustee or Collateral Agent
	 	 	66	 
	SECTION 6.09 Trustee May File Proofs of Claim
	 	 	66	 
	SECTION 6.10 Priorities
	 	 	66	 
	SECTION 6.11 Undertaking for Costs
	 	 	67	 
	SECTION 6.12 Restoration of Rights and Remedies
	 	 	67	 
	SECTION 6.13 Rights and Remedies Cumulative
	 	 	67	 
	SECTION 6.14 Delay or Omission not Waiver
	 	 	67	 
	 
	 	 	 	 
	ARTICLE SEVEN TRUSTEE
	 	 	68	 
	 
	 	 	 	 
	SECTION 7.01 Duties of Trustee
	 	 	68	 
	SECTION 7.02 Rights of Trustee
	 	 	69	 
	SECTION 7.03 Individual Rights of Trustee
	 	 	71	 
	SECTION 7.04 Trustee’s Disclaimer
	 	 	71	 
	SECTION 7.05 Notice of Default
	 	 	71	 
	SECTION 7.06 Reports by Trustee to Holders
	 	 	72	 
	SECTION 7.07 Compensation and Indemnity
	 	 	72	 
	SECTION 7.08 Replacement of Trustee
	 	 	73	 

-ii- 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	SECTION 7.09 Successor Trustee by Merger, Etc.
	 	 	74	 
	SECTION 7.10 Eligibility; Disqualification
	 	 	74	 
	SECTION 7.11 Preferential Collection of Claims Against Company
	 	 	75	 
	SECTION 7.12 Trustee as Collateral Agent and Paying Agent
	 	 	75	 
	SECTION 7.13 Co-Trustees, Co-Collateral Agent and Separate Trustees, Collateral Agent
	 	 	75	 
	 
	 	 	 	 
	ARTICLE EIGHT SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	76	 
	 
	 	 	 	 
	SECTION 8.01 Legal Defeasance and Covenant Defeasance
	 	 	76	 
	SECTION 8.02 Satisfaction and Discharge
	 	 	78	 
	SECTION 8.03 Survival of Certain Obligations
	 	 	79	 
	SECTION 8.04 Acknowledgment of Discharge by Trustee
	 	 	79	 
	SECTION 8.05 Application of Trust Moneys
	 	 	80	 
	SECTION 8.06 Repayment to the Company; Unclaimed Money
	 	 	80	 
	SECTION 8.07 Reinstatement
	 	 	80	 
	SECTION 8.08 Indemnity for Government Obligations
	 	 	80	 
	 
	 	 	 	 
	ARTICLE NINE AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	81	 
	 
	 	 	 	 
	SECTION 9.01 Without Consent of Holders
	 	 	81	 
	SECTION 9.02 With Consent of Holders
	 	 	82	 
	SECTION 9.03 Compliance with TIA
	 	 	83	 
	SECTION 9.04 Revocation and Effect of Consents
	 	 	83	 
	SECTION 9.05 Notation on or Exchange of Notes
	 	 	84	 
	SECTION 9.06 Trustee to Sign Amendments, Etc.
	 	 	84	 
	SECTION 9.07 Conformity with Trust Indenture Act
	 	 	84	 
	 
	 	 	 	 
	ARTICLE TEN GUARANTEE
	 	 	84	 
	 
	 	 	 	 
	SECTION 10.01 Guarantee
	 	 	84	 
	SECTION 10.02 Release of a Guarantor
	 	 	85	 
	SECTION 10.03 Limitation of Guarantor’s Liability
	 	 	86	 
	SECTION 10.04 Guarantors May Consolidate, etc., on Certain Terms
	 	 	86	 
	SECTION 10.05 Contribution
	 	 	87	 
	SECTION 10.06 Waiver of Subrogation
	 	 	87	 
	SECTION 10.07 Waiver of Stay, Extension or Usury Laws
	 	 	87	 
	 
	 	 	 	 
	ARTICLE ELEVEN MISCELLANEOUS
	 	 	87	 
	 
	 	 	 	 
	SECTION 11.01 Trust Indenture Act Controls
	 	 	87	 
	SECTION 11.02 Notices
	 	 	88	 
	SECTION 11.03 Communications by Holders with Other Holders
	 	 	89	 
	SECTION 11.04 Certificate and Opinion as to Conditions Precedent
	 	 	89	 
	SECTION 11.05 Statements Required in Certificate or Opinion
	 	 	89	 
	SECTION 11.06 Rules by Trustee, Paying Agent, Registrar
	 	 	90	 
	SECTION 11.07 Legal Holidays
	 	 	90	 
	SECTION 11.08 Governing Law
	 	 	90	 
	SECTION 11.09 No Adverse Interpretation of Other Agreements
	 	 	90	 

-iii- 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	SECTION 11.10 No Recourse Against Others
	 	 	90	 
	SECTION 11.11 Successors
	 	 	90	 
	SECTION 11.12 Duplicate Originals
	 	 	90	 
	SECTION 11.13 Severability
	 	 	91	 
	SECTION 11.14 Waiver of Jury Trial
	 	 	91	 
	 
	 	 	 	 
	ARTICLE TWELVE SECURITY
	 	 	91	 
	 
	 	 	 	 
	SECTION 12.01 Grant of Security Interest
	 	 	91	 
	SECTION 12.02 Intercreditor Agreement
	 	 	92	 
	SECTION 12.03 Recording and Opinions
	 	 	92	 
	SECTION 12.04 Release of Collateral
	 	 	93	 
	SECTION 12.05 Specified Releases of Collateral
	 	 	94	 
	SECTION 12.06 Release of all Collateral
	 	 	95	 
	SECTION 12.07 Form and Sufficiency of Release
	 	 	95	 
	SECTION 12.08 Purchaser Protected
	 	 	95	 
	SECTION 12.09 Authorization of Actions to Be Taken by the Collateral Agent Under the Collateral Documents
	 	 	96	 
	SECTION 12.10 Authorization of Receipt of Funds by the Collateral Agent Under the Collateral Documents
	 	 	96	 

	 	 	 	 	 	 	 
	Exhibit A
	 	—	 	Form of Initial Note	 	A-1
	Exhibit B
	 	—	 	Form of Exchange Note	 	B-1
	Exhibit C
	 	—	 	Form of Legend for Global Notes	 	C-1
	Exhibit D
	 	—	 	Form of Certificate to Be Delivered in Connection with Transfers to Non-QIB Accredited Investors	 	D-1
	Exhibit E
	 	—	 	Form of Certificate to Be Delivered in Connection with Transfers Pursuant to Regulation S	 	E-1
	Exhibit F
	 	 	 	Form of Deed of Trust	 	F-1
	 
	 	 	 	 	 	 
	Schedule I
	 	—	 	Mortgaged Properties	 	 
	 
	 	 	 	 	 	 
	NOTE:
	 	 	 	This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture.	 	 

-iv- 

 

     INDENTURE, dated as of March 29, 2007, among Sterling Chemicals, Inc., a Delaware corporation
(the “Company”), the Guarantors (as herein defined) and U. S. Bank National Association, as
Trustee (in such capacity, the “Trustee”) and Collateral Agent (in such capacity, the
“Collateral Agent”).

WITNESSETH:

     WHEREAS, the Company and the Guarantors (with respect to the Note Guarantees) have duly
authorized the creation of an issue of 101/4% Senior Secured Notes due 2015 (the “Initial
Notes”), and 101/4% Senior Secured Exchange Notes due 2015 (the “Exchange Notes” and,
together with the Initial Notes and any Additional Notes (as herein defined), the “Notes”)
and the Note Guarantees (as herein defined) and, to provide therefor, the Company and the
Guarantors have duly authorized the execution and delivery of this Indenture; and

     WHEREAS, all things necessary to make the Notes and Note Guarantees, when the Notes are duly
issued and executed by the Company and authenticated and delivered hereunder, the valid obligations
of each of the Company and the Guarantors, respectively, and to make this Indenture a valid and
binding agreement of each of the Company and the Guarantors, have been done.

     NOW, THEREFORE, each party hereto agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders:

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01 Definitions.

     “ABL Facility” means the amended and restated revolving credit agreement dated as of
March 29, 2007, among the Company, the lenders and issuers party thereto, and The CIT
Group/Business Credit, Inc., as Administrative Agent, as amended, restated, modified, increased,
renewed, refunded, replaced (whether upon or after termination or otherwise) or refinanced
(including by means of sales of debt securities to institutional investors) in whole or in part
from time to time, including any agreement increasing the amount of Indebtedness incurred
thereunder or available to be borrowed thereunder to the extent permitted under clause (2) or (15)
of the definition of the term “Permitted Debt”.

     “ABL Facility Lien Security Documents” means one or more security agreements, pledge
agreements, collateral assignments, or other grants or transfers for security executed and
delivered by the Company or any Guarantor creating a Lien upon assets constituting Credit Facility
Collateral owned or to be acquired by the Company or such Guarantor in favor of any holder or
holders of Credit Facility Obligations under the ABL Facility, or any administrative agent, agent
or representative acting for any such holders, as security for any Credit Facility Obligations
under the ABL Facility.

     “Acceleration Notice” has the meaning set forth in Section 6.02(a).

     “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 Restricted 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 Interest” has, with respect to any Notes that are entitled to the benefits
of a Registration Rights Agreement, the meaning set forth in such Registration Rights Agreement.

     “Additional Notes” means any Notes that are not Exchange Notes that are originally
issued after the Issue Date from time to time in accordance with the terms of this Indenture
including the provisions of Sections 2.02 and 4.12.

     “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.

     “After-Acquired Property” means any and all assets or property acquired after the
Issue Date, including any assets or property acquired by the Company or any Guarantor from a
transfer from the Company or a Wholly-Owned Restricted Subsidiary of the Company that is a
Guarantor.

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

     “Agent Members” has the meaning set forth in Section 2.14(a) and means, with
respect to the Depository, Euroclear or Clearstream, a Person who has an account with the
Depository, Euroclear or Clearstream, respectively (and, with respect to the Depository, shall
include Euroclear and Clearstream).

     “Applicable Premium” means, with respect to a Note on any Redemption Date, the greater
of (1) 1.0% of the principal amount of such Note and (2) the excess of (a) the present value at
such time of (i) the Redemption Price of such Note on April 1, 2011 as set forth in Section 3.01(c)
plus (ii) all required interest payments due on such Note through April 1, 2011 (but excluding
accrued and unpaid interest to the Redemption Date), computed using a discount rate equal to the
Treasury Rate at such time plus 50 basis points, over (b) the then-outstanding principal amount of
such Note.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for
beneficial interests in any Global Note, the rules and procedures of the Depository, 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 of the
Company or any Restricted Subsidiary; provided that the sale, 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 of Section 4.15
and/or Section 5.01 and/or Section 10.04 and not by the provisions of
Section 4.16; and

     (2) the issuance of Equity Interests in any of the Company’s Restricted Subsidiaries
other than directors’ qualifying shares or the sale of Equity Interests in any of its
Restricted Subsidiaries.

-2-

 

     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 or
all of the Equity Interests of any Restricted Subsidiary having a Fair Market Value of less
than $2.0 million;

     (2) (a) a transfer of assets or Equity Interests between or among the Company and the
Guarantors or (b) a transfer of assets or Equity Interests between or among the Restricted
Subsidiaries of the Company that are not Guarantors;

     (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) the sale, disposition or lease of products, services, inventory, equipment,
accounts receivable or other assets in the ordinary course of business, any sale or other
disposition of damaged, worn-out or obsolete or no longer useful assets or the licensing or
sublicensing, lease, assignment or sub-lease of any real or personal property, in each case,
in the ordinary course of business;

     (5) the sale or other disposition of cash or Cash Equivalents;

     (6) a Restricted Payment that does not violate Section 4.10 or a Permitted
Investment;

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

     (8) any Lien (or foreclosure thereon) securing Indebtedness to the extent such Lien was
granted in compliance with Section 4.18;

     (9) any sale, lease, conveyance or other disposition of Non-Facility Assets;

     (10) the granting of Liens not otherwise prohibited by this Indenture;

     (11) the surrender or waiver of contract rights or settlement, release or surrender of
contract, tort or other claims;

     (12) the exchange of assets held by the Company or a Restricted Subsidiary for assets
held by any Person or entity; provided that (i) the assets received by the Company or such
Restricted Subsidiary in any such exchange will immediately constitute, be part of, or be
used by the Company or such Restricted Subsidiary; and (ii) any such assets received are of
comparable fair market value to the assets exchanged as determined in good faith by the
Company;

     (13) any exchange of like property pursuant to Section 1031 of the Internal Revenue
Code of 1986, as amended, for use in a Permitted Business; provided that (i) the assets
received by the Company or such Restricted Subsidiary in any such exchange will immediately
constitute, be part of, or be used by the Company or such Restricted Subsidiary; and (ii)
any such assets received are of comparable Fair Market Value to the assets exchanged as
determined in good faith by the Company; and

-3-

 

     (14) any disposition of Equity Interests in, or Indebtedness or other securities of, an
Unrestricted Subsidiary.

     “Asset Sale Offer” has the meaning set forth in Section 4.16.

     “Asset Sale Offer Trigger Date” has the meaning set forth in Section 4.16.

     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time
of determination, the present value of the obligation of the lessee for net rental payments during
the remaining term of the lease included in such sale and leaseback transaction including any
period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest implicit
in such transaction, determined in accordance with GAAP; provided, however, that if such sale and
leaseback transaction results in a Capital Lease Obligation, the amount of Indebtedness represented
thereby will be determined in accordance with the definition of “Capital Lease Obligation”.

     “Authenticating Agent” has the meaning set forth in Section 2.02.

     “Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended, and codified as
11 U.S.C. §§101 et seq.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act. 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 or other governing body of
the general partner of the partnership;

     (3) with respect to a limited liability company, the board of directors or other
governing body, and in the absence of same, the manager or board of managers or the managing
member or members or any controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person or other
individual or entity serving a similar function.

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

     “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 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.

     “Capital Stock” means:

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

-4-

 

     (2) in the case of an association or business entity that is not a corporation, any and
all shares, interests, participations, rights or other equivalents (however designated)
similar to 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.

     “Cash Equivalents” means:

     (1) securities issued or directly and fully guaranteed or insured by the United States
or any agency or instrumentality thereof (provided that the full faith and credit of the
United States is pledged in support thereof) having maturities of not more than one year
from the date of acquisition;

     (2) dollar denominated time deposits and certificates of deposit of any commercial bank
having, or which is the principal banking subsidiary of a bank holding company having, a
long-term unsecured debt rating of at least “A” or the equivalent thereof from S&P or “A2”
or the equivalent thereof from Moody’s with maturities of not more than one year from the
date of acquisition;

     (3) repurchase obligations for underlying securities of the types described in clause
(1) above entered into with any bank meeting the qualifications specified in clause (2)
above;

     (4) commercial paper issued by any Person incorporated in the United States rated at
least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent thereof by
Moody’s and in each case maturing not more than one year after the date of acquisition;

     (5) marketable direct obligations issued by the District of Columbia or any state of
the United States or any political subdivision of any such state or any public
instrumentality thereof maturing within one year from the date of acquisition and, at the
time of acquisition, having one of the two highest ratings obtainable from either S&P or
Moody’s;

     (6) Investments in money market funds substantially all of whose assets are comprised
of Cash Equivalents of the types described in clauses (1) through (5) above; and

     (7) in the case of Investments by Foreign Subsidiaries, other short-term investments in
accordance with normal investment practices for cash management of a type analogous to the
foregoing.

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

     (1) any person or persons acting together that would constitute a group (for purposes
of Section 13(d) of the Exchange Act, or any successor provision thereto) (a “group”),
together with any Affiliates or related Persons thereof, other than any such Person,
Persons, Affiliates or related Person who are Permitted Holders, shall Beneficially Own,
directly or indirectly, at least 40% of the voting power of the Company’s outstanding Voting
Stock, and the Permitted Holders own less than such Person or group (in doing the “own less
than” comparison, the holdings of the

-5-

 

Permitted Holders who are members of the new group shall not be counted in the shares
held in the aggregate by Permitted Holders);

     (2) any sale, lease or other transfer (other than by way of merger or consolidation),
in one transaction or a series of related transactions, is made by the Company or any of its
Restricted Subsidiaries of all or substantially all of the consolidated assets of the
Company and the Restricted Subsidiaries, taken as a whole to any Person other than a
Permitted Holder;

     (3) the Company consolidates with or merges with or into another Person or any Person
consolidates with, or merges with or into, the Company, in any such event pursuant to a
transaction in which immediately after the consummation thereof Persons owning a majority of
the Company’s Voting Stock voting immediately prior to such consummation shall cease to own
a majority of the Company’s Voting Stock or, if the Company is not the surviving entity, a
majority of the Voting Stock of such surviving entity;

     (4) during any period of two consecutive years, Continuing Directors cease to
constitute at least a majority of the Board of Directors of the Company; or

     (5) the Company’s stockholders approve any plan or proposal for the Company’s
liquidation or dissolution.

     In no event would the sale of the Company’s common stock to an underwriter or group of
underwriters in privity of contract with the Company (or anybody in privity of contact with such
underwriters) be deemed to be a Change of Control or be deemed the acquisition of more than 40% of
the voting power of the Company’s outstanding Voting Stock by a Person or any group unless such
common stock is held in an investment account, in which case the investment account would be
treated without giving effect to the foregoing part of this sentence.

     “Change of Control Offer” has the meaning set forth in Section 4.15(a).

     “Change of Control Payment Date” has the meaning set forth in Section
4.15(b)(2).

     “Clearstream” means Clearstream Banking, societe anonyme.

     “Collateral Agent” means the party named as such in this Indenture until a successor
replaces it in accordance with the provisions of this Indenture and thereafter means such
successor.

     “Collateral Documents” means, collectively, the Security Agreement, the Escrow
Agreement, the Intercreditor Agreement and each Mortgage, in each case, as the same may be in force
from time to time.

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

     “Consolidated Cash Flow” means, with respect to any specified Person for any period,
the Consolidated Net Income of such Person for such period plus, without duplication:

     (1) an amount equal to any extraordinary loss plus any net loss realized by such Person
or any of its Restricted Subsidiaries in connection with an Asset Sale, to the extent such
losses were deducted in computing such Consolidated Net Income; plus

-6-

 

     (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

     (3) 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

     (4) depreciation and amortization (including amortization of intangibles, debt issuance
or deferred financing costs or fees) and other non-cash charges (including write-downs or
write-offs (including any write-offs of debt issuance or deferring financing costs or fees)
and impairment charges and the impact of purchase accounting) of such Person and its
Restricted Subsidiaries for such period to the extent that such depreciation, amortization
and other non-cash charges were deducted in computing such Consolidated Net Income; plus

     (5) expenses and charges of the Company related to the Transaction (including any
refinancing fees and other costs incurred in connection with any of the foregoing), to the
extent such expenses and charges were deducted in computing such Consolidated Net Income;
plus

     (6) any non-capitalized transaction costs incurred in connection with actual, proposed
or abandoned financings, Investments, acquisitions or divestitures, including any expensing
of any bridge or other financing fees or expenses, to the extent such costs were deducted in
computing such Consolidated Net Income; plus

     (7) the amount of any restructuring charges (including retention, severance, systems
establishment cost, post employment benefits, curtailment or other excess charges), to the
extent such charges were deducted incorporating such Consolidated Not Income; plus

     (8) other non-operating expenses, to the extent such expenses were deducted
incorporating such Consolidated Net Income; plus

     (9) non-cash items to the extent deducted from Consolidated Net Income for such period,
other than any non-cash charges that represent accruals of, or reserves for, cash
disbursements to be made in any future accounting period;

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 of such Person and its Restricted Subsidiaries for such period, on
a consolidated basis, determined in accordance with GAAP; provided that:

     (1) 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;

     (2) the Net Income 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

-7-

 

regulation applicable to that Restricted Subsidiary or its stockholders or otherwise;
provided, however, that this exclusion shall not apply in determining the principal amount
of Indebtedness that may be incurred pursuant to the proviso to the first sentence under
Section 4.12 so long as such Restricted Subsidiary is a Guarantor;

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

     (4) non-cash gains and losses due solely to fluctuations in currency values will be
excluded.

     “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 Issue Date; or

     (2) was nominated for election or elected to such Board of Directors by holders of the
Company’s Series A Convertible Preferred Stock or with the approval of a majority of the
Continuing Directors who were members of such Board at the time of such nomination or
election.

     “Corporate Trust Office” means the office of the Trustee specified in Section
11.02 hereof.

     “Covenant Defeasance” has the meaning set forth in Section 8.01(c).

     “Credit Facilities” means one or more debt facilities (including the ABL Facility) or
commercial paper facilities, in each case with banks or other institutional lenders providing for
revolving credit loans, term loans, 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), bankers’ acceptances or letters of credit, including any related notes,
guarantees, collateral documents, instruments and agreements executed in connection therewith, and,
in each case, as amended, restated, modified, increased, renewed, refunded, replaced (whether upon
termination or otherwise) or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time; provided that the aggregate
principal amount of Indebtedness outstanding at any time under all such Credit Facilities is
permitted to be incurred under clause (2) or (15) of the definition of the term “Permitted Debt”.

     “Credit Facility Agent” means, at any time, the Person serving at such time as the
“Agent”, “Administrative Agent” or “Collateral Agent” under the applicable Credit Facility or any
other representative of the lenders thereunder then most recently designated by the terms of the
Credit Facility, in a written notice delivered to the administrative agent, as the Credit Facility
Agent for the purposes of the Intercreditor Agreement.

     “Credit Facility Collateral” means “First Lien Collateral” as defined in the
Intercreditor Agreement.

     “Credit Facility Lien” means, to the extent securing Credit Facility Obligations, a
Lien granted on assets constituting Credit Facility Collateral to the Credit Facility Agent or any
holder, or other administrative agent, agent or representative of holders, of Credit Facility
Obligations as security for Credit Facility Obligations.

-8-

 

     “Credit Facility Lien Documents” means the documentation relating to the Liens granted
under any Credit Facility including the ABL Facility, the ABL Facility Lien Security Documents, any
related loans, guarantees, collateral documents, instruments and agreements executed in connection
therewith and all other agreements governing, securing or relating to any Credit Facility
Obligations.

     “Credit Facility Obligations” means Indebtedness arising under any Credit Facility and
all other Obligations of the Company or any Guarantor under the Credit Facility Lien Documents.

     “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Code.

     “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.

     “Depository” means The Depository Trust Company, its nominees and successors
(“DTC”).

     “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 Maturity Date. Notwithstanding the preceding sentence, 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 Section 4.10; provided, further, that if
the Capital Stock is issued to any plan for the benefit of employees of the Company or its
Subsidiaries or by any such plan to those employees, that Capital Stock shall not constitute
Disqualified Stock solely because it may be required to be repurchased by the Company in order to
satisfy applicable statutory or regulatory obligations. 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. Notwithstanding the foregoing, the Company’s existing Series A Convertible Preferred
Stock shall not be deemed to be Disqualified Stock unless the terms thereof are changed after the
Issue Date in a manner that causes such Series A Convertible Preferred Stock to become Disqualified
Stock.

     “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.

     “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 Offerings” means one or more public or private offerings of Equity Interests
(other than Disqualified Stock) of the Company or cash capital contributions received by the
Company in respect of such Equity Interests (other than Disqualified Stock).

     “Escrow Account” means the Pledged Account as defined in the Escrow Agreement which
shall be a segregated trust account under the sole control of the Trustee that includes only cash,
treasury securities, other cash equivalents, the proceeds thereof and interest earned thereon, free
from all other Liens (other than the Liens of the Trustee for the benefit of the Holders).

-9-

 

     “Escrow Agreement” means the Escrow and Security Agreement, dated the Issue Date, by
and among U. S. Bank National Association, as escrow agent, the Trustee and the Company.

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

     “Event of Default” has the meaning set forth in Section 6.01.

     “Event of Loss” means, with respect to any property or asset (tangible or intangible,
real or personal) that constitute Note Collateral (including any of the Facilities but, in any
event, excluding Non-Facility Assets), any of the following:

     (1) any loss, destruction or damage of such property or asset in an amount in excess of
$5.0 million;

     (2) any institution of any proceedings for the condemnation or seizure of such property
or asset or for the exercise of any right of eminent domain;

     (3) any actual condemnation, seizure or taking by exercise of the power of eminent
domain or otherwise of such property or asset, or confiscation of such property or asset or
the requisition of the use of such property or asset; or

     (4) any settlement in lieu of clauses (2) or (3) above.

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

     “Exchange Notes” has the meaning set forth in the preamble to this Indenture and means
the Notes, if any, issued under Section 2.02 pursuant to a Registration Rights Agreement.

     “Exchange Offer” means an exchange offer that may be made by the Company, pursuant to
a Registration Rights Agreement, to exchange for any and all the Notes a like aggregate principal
amount of Exchange Notes having substantially identical terms to the Notes registered under the
Securities Act.

     “Excluded Assets” means assets designated from time to time by the Company in an
Officers’ Certificate delivered to the Trustee that secure an aggregate of up to $5.0 million of
Capitalized Lease Obligations and purchase money obligations, in each case, without securing the
Notes with such assets securing such obligations so long as the Liens securing such obligations are
Permitted Liens and the Indebtedness secured thereby otherwise prohibits any other Liens thereon.

     “Existing Notes” means the Company’s existing 10% Senior Secured Notes due 2007.

     “Facilities” means the Company’s acetic acid manufacturing facility, styrene monomer
manufacturing facility, phthalic anhydride manufacturing facility, plasticizers esters
manufacturing facility and, in each case, all improvements thereto.

     “Fair Market Value” means the value that would be paid by a willing buyer to an
unaffiliated willing seller, determined in good faith by the chief financial officer of the Company
in the case of any transaction valued at less than $5.0 million and in all other cases by the Board
of Directors of the Company (unless otherwise provided in this Indenture).

-10-

 

     “Fixed Charge Coverage Ratio” means, with respect to any specified Person for any
period, the ratio of the Consolidated Cash Flow 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 (other than perpetual “PIK” 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 to such incurrence, assumption, Guarantee, repayment, repurchase,
redemption, defeasance or other discharge of Indebtedness, or such issuance, repurchase or
redemption of such 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 any 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 will be given pro forma
effect as if they had occurred on the first day of the four-quarter reference period;

     (2) the Consolidated Cash Flow 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 until the
earlier of the maturity of such Indebtedness or as at the Calculation Date in excess of 12
months).

     For purposes of this definition and the first paragraph of Section 4.12, whenever pro
forma effect is to be given to any calculation, the pro forma calculations shall be determined in
good faith by the chief financial officer of the Company. Any such pro forma calculations may
include operating expense reductions (net of associated expenses) for such period resulting from
the acquisition which is being given pro forma effect that (a) would be permitted to be reflected
on pro forma financial statements pursuant to Rule 11-02 of Regulation S-X under the Securities Act
or (b) have been realized or for which

-11-

 

substantially all the steps necessary for realization have been taken or, at the time of
determination, are reasonably expected to be taken with 90 days immediately following any such
acquisition, including, but not limited to, the execution, termination, renegotiation or
modification of any contracts, the termination of any personnel or the closing of any facility, as
applicable, provided that, in any case, such adjustments shall be calculated on an annualized basis
and such adjustments are set forth in an Officers’ Certificate signed by the Company’s chief
financial officer and another Officer which states in detail (i) the amount of such adjustment or
adjustments, (ii) that such adjustment or adjustments are based on the reasonable good faith
beliefs of the Officers executing such Officers’ Certificate at the time of such execution and
(iii) that such adjustment or adjustments and the plan or plans related thereto have been reviewed
and approved by the Company’s Board of Directors.

     “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 amortization of debt issuance costs and
original 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, imputed interest with respect to Attributable Debt, 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 of such Person and its Restricted Subsidiaries that was
capitalized during such period to the extent the net income of such Restricted Subsidiary is
included in the calculation of Net Income; plus

     (3) any interest accruing 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 the then current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal,

in each case, on a consolidated basis and in accordance with GAAP.

     “Foreign Subsidiary” means any Restricted Subsidiary that is not a Domestic
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 from time to time.

     “Global Note” has the meaning set forth in Section 2.01.

-12-

 

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner, including 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 or to maintain
financial statement conditions).

     “Guarantors” means:

     (1) all of the Company’s existing Domestic Subsidiaries; and

     (2) any other Subsidiary of the Company that executes a supplemental indenture hereto
providing for 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.

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

     “IAI Global Notes” has the meaning set forth in Section 2.01.

     “incur” has the meaning set forth in Section 4.12.

     “Indebtedness” means, with respect to any specified Person,

     (1) any indebtedness of such Person (excluding accrued expenses and trade payables),
whether or not contingent:

     (a) in respect of borrowed money;

     (b) evidenced by bonds, loans, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof);

     (c) in respect of banker’s acceptances;

     (d) representing Capital Lease Obligations; or

     (e) representing any Hedging Obligations, and

     (2) all Obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all Obligations under any title retention

-13-

 

agreement (but excluding trade accounts payable and other accrued liabilities arising
in the ordinary course of business that are not overdue by 90 days or more or are being
contested in good faith by appropriate proceedings promptly instituted and diligently
conducted and any deferred purchase price represented by earn outs consistent with the
Company’s past practice),

if and to the extent any of the preceding items (other than letters of credit, Attributable Debt
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 such portion of
the 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) as shall equal the lesser of (x) the Fair
Market Value of such asset as of the date of determination and (y) the amount of such Indebtedness
and, to the extent not otherwise included, the Guarantee by the specified Person of any
Indebtedness of any other Person, provided that Indebtedness of the Company or any Restricted
Subsidiary shall not include the pledge by the Company or such Restricted Subsidiary of, or a
Guarantee thereof limited in recourse to, the Capital Stock of an Unrestricted Subsidiary to secure
Non-Recourse Debt of such Unrestricted Subsidiary.

     “Indemnified Party” has the meaning set forth in Section 7.07.

     “Indenture” means this Indenture, as amended or supplemented from time to time in
accordance with the terms hereof.

     “Indenture Documents” means, collectively, this Indenture, the Notes, the Note
Guarantees and the Collateral Documents.

     “Initial Notes” has the meaning set forth in the preamble to this Indenture.

     “Initial Purchasers” means Jefferies & Company, Inc. and CIBC World Markets Corp.

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

     “Intercreditor Agreement” means an intercreditor agreement to be entered into between
the Collateral Agent, on behalf of the Trustee and the Holders and each applicable Credit Facility
Agent, as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time.

     “Interest Payment Date” means the stated maturity of an installment of interest on the
Notes.

     “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 accounts receivable, trade credit
and advances to customers and commission, travel and similar advances to officers and employees
made in the ordinary course of business), and purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities of such other Person 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 Restricted
Subsidiary that were not sold or disposed of in an amount determined as provided in the last
paragraph of Section 4.10. The acquisition by the Company or any Restricted Subsidiary of
the Company of a Person that became a Restricted Subsidiary and that holds an

-14-

 

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 last paragraph of the covenant described above under Section 4.10. Except as otherwise
provided in this Indenture, the amount or Fair Market Value of an Investment will be determined at
the time the Investment is made and without giving effect to subsequent changes in value but giving
effect to all subsequent reductions in the amount of such Investment as a result of (x) the
repayment or disposition thereof for cash or (y) the redesignation of an Unrestricted Subsidiary as
a Restricted Subsidiary (valued proportionate to the equity interest in such Subsidiary of the
Company or the Restricted Subsidiary thereof owing such Unrestricted Subsidiary at the time of such
redesignation) at the Fair Market Value of the net assets of such Subsidiary at the time of such
redesignation, in the case of clause (x) and (y), not to exceed the original amount, or Fair Market
Value, of such Investment.

     “Issue Date” means March 29, 2007.

     “Legal Defeasance” has the meaning set forth in Section 8.01(b).

     “Legal Holiday” has the meaning set forth in Section 11.07.

     “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 or any option or other agreement to sell give a security
interest.

     “Maturity Date” means April 1, 2015.

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

     “Mortgages” means the mortgages, deeds of trust, deeds to secure indebtedness or other
similar documents, if any, granting Liens on the Facilities or any other real property owned by the
Company or any Guarantor to secure the Note Obligations and described in the mortgages, deeds of
trust, deeds to secure Indebtedness or other similar documents required to be delivered pursuant to
Section 4.22.

     “Net Income” means, with respect to any specified Person, the net income (loss) of
such Person, determined in accordance with GAAP and before any reduction in respect of preferred
stock dividends, excluding, however:

     (1) any gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: (a) any Asset Sale; or (b) the disposition of
any securities by such Person or any of its Restricted Subsidiaries or the extinguishment of
any Indebtedness of such Person or any of its Restricted Subsidiaries; and

     (2) any extraordinary or nonrecurring gain (or loss), together with any related
provision for taxes on such extraordinary or nonrecurring gain (or loss).

     “Net Loss Proceeds” means the aggregate cash proceeds received by the Company or any
Guarantor in respect of any Event of Loss, including insurance proceeds, condemnation awards or
damages awarded by any judgment, net of the direct costs in recovery of such Net Loss Proceeds
(including legal, accounting, appraisal and insurance adjuster fees and any relocation expenses
incurred as a result thereof), amounts required to be applied to the repayment of Indebtedness,
other than Credit

-15-

 

Facility Obligations, secured by a Lien on the asset or assets that were the subject of such
Event of Loss, and any taxes paid or payable as a result thereof.

     “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including any cash received upon the sale or
other disposition of any non-cash consideration received in any Asset Sale), net of the direct
costs relating to such Asset Sale, including legal, accounting and investment banking fees, and
sales commissions, recording fees, title transfer fees and appraiser fees and cost of preparation
of assets for sale,, and any relocation expenses incurred as a result of the Asset Sale, 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, and amounts required to be applied to the
repayment of Indebtedness, other than Credit Facility Obligations, secured by a Lien on the asset
or assets that were the subject of such Asset Sale and any reserve for adjustment in respect of the
sale price of such asset or assets established in accordance with GAAP or amount placed in an
escrow account for purposes of such an adjustment.

     “Non-Facility Assets” means (1) any non-current assets of the Company or any of its
Restricted Subsidiaries, excluding (a) the Facilities and (b) any asset (i) used primarily in
connection with the operation of any of the Facilities or (ii) the loss of which would result in
the Company expending more than $1.0 million in the aggregate to operate its acetic acid, styrene
or plasticizers businesses as currently conducted by the Company and its Restricted Subsidiaries
and (2) any other asset of the Company or any of its Restricted Subsidiaries that is not described
in the exclusion to clause (1) and that primarily relates to the construction, use, occupancy,
possession, operation or ownership of such other asset.

     “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) other than a pledge of the Equity Interests of Unrestricted
Subsidiaries, (b) is directly or indirectly liable (as a guarantor or otherwise), other than
by virtue of a non-recourse pledge of the Equity Interests of Unrestricted Subsidiaries or
(c) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the
Company or any of its Restricted Subsidiaries to Declare a Default on such other
Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to
its Stated Maturity.

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

     “Note Collateral” means, collectively, all the property and assets (including, without
limitation, Primary Collateral and Secondary Collateral) that are from time to time subject to the
Lien of the Collateral Documents, including the Liens, if any, required to be granted pursuant to
this Indenture

     “Note Lien” means, to the extent securing Note Obligations, a Lien granted pursuant to
a Collateral Document as security for Note Obligations.

     “Note Obligations” means the Notes, the Note Guarantees and all other Obligations of
any Obligor under this Indenture, the Note Guarantees and the Collateral Documents.

     “Note Guarantee” has the meaning set forth in Section 10.01.

-16-

 

     “Notes” has the meaning set forth in the preamble to this Indenture and means the Initial
Notes, the Additional Notes, if any, and the Exchange Notes treated as a single class of
securities, as amended or supplemented from time to time in accordance with the terms hereof, that
are issued pursuant to this Indenture.

     “Obligations” means all obligations for principal, premium, interest (including with
respect to the Notes, any interest accruing after the commencement of any bankruptcy, insolvency,
or similar proceeding, whether or not a claim for post-filing or post-petition interest is allowed
in such proceeding), penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

     “Obligors” means, as the context may require, the Company and/or the Guarantors.

     “Offering” means the offering of the Initial Notes under the Offering Circular.

     “Offering Circular” means the final offering circular, dated as of March 26, 2007,
relating to the Offering.

     “Officer” means the Chief Executive Officer, the President, the Chief Financial
Officer, any Senior Vice President or any Vice President of the Company.

     “Officers’ Certificate” means a certificate signed by two Officers of the Company, at
least one of whom shall be the principal financial officer of the Company, and delivered to the
Trustee.

     “Opinion of Counsel” means a written opinion of counsel who shall be reasonably
acceptable to the Trustee.

     “Paying Agent” has the meaning set forth in Section 2.03.

     “Permitted Business” means (1) the manufacturing and distributing of selected
petrochemicals, (2) any business or activity similar, ancillary or reasonably related thereto, or a
reasonable extension, expansion or development of, such businesses or ancillary thereto and (3) any
business or activity carried out or performed utilizing any of the Non-Facility Assets.

     “Permitted Debt” has the meaning set forth in Section 4.12.

     “Permitted Holders” means Resurgence Asset Management, L.L.C. and its and its
affiliates’ managed funds and accounts and (1) entities controlled by any such Persons, (2) trusts
for the benefit of any such individual Persons or the spouses, issue, parents or other relatives of
such individual Persons and (3) in the event of the death of any such individual Person, heirs or
testamentary legatees of such Person. For purposes of this definition, “control”, as used with
respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of such Person, whether through the ownership of
voting securities or by contract or otherwise.

     “Permitted Investments” means:

     (1) any Investment by (a) the Company or a Restricted Subsidiary of the Company in the
Company or a Guarantor, (b) the Company or a Guarantor in a Restricted Subsidiary of the
Company that is not a Guarantor to the extent that the aggregate amount of all such
Investments does not exceed $5.0 million at any time outstanding or (c) a Restricted
Subsidiary of the Company that is not a Guarantor in any other Restricted Subsidiary;

-17-

 

     (2) any Investment in Cash Equivalents;

     (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 consideration from an Asset Sale
that was made pursuant to and in compliance with Section 4.16;

     (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 any
Person or customer 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 such Person; or (B) litigation,
arbitration or other disputes with Persons who are not Affiliates;

     (7) investments represented by Hedging Obligations;

     (8) other Investments 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 (8) that are at the
time outstanding, not to exceed $3.0 million;

     (9) loans or advances to employees in the ordinary course of business permitted by
applicable law not to exceed $500,000 at any time outstanding;

     (10) Investments in the Notes;

     (11) endorsements for collection or deposit in the ordinary course of business by such
Person of bank drafts and similar negotiable instruments of any other Person received as
payment for ordinary course of business trade receivables;

     (12) receivables and prepaid expenses, in each case arising in the ordinary course of
business; provided, however, that such receivables and prepaid expenses would be recorded as
assets of such Person in accordance with GAAP;

     (13) Investments owned by a Person if and when such Person is acquired by the Company
or a Restricted Subsidiary and becomes a Restricted Subsidiary or if and when such Person
merges into, consolidates with or transfers substantially all of such Person’s assets to,
the Company or a Restricted Subsidiary; provided, however, that such Investments are not
made in contemplation of such acquisition or transfer;

-18-

 

     (14) reclassification of any Investment initially made in (or reclassified as) one form
into another form (such as from equity to loan or vice versa); provided in each case that
the amount of such Investment is not increased thereby;

     (15) any Investment existing on the Issue Date and any Investment that extends, renews,
defeases, discharges, replaces, refinances or refunds an existing Investment; provided, that
the new Investment is in an amount that does not exceed the amount replaced, refinanced or
refunded, and is made in the same Person as the Investment replaced, refinanced or refunded;

     (16) Investments in Unrestricted Subsidiaries and other Persons to the extent such
Investments consist of (a) Non-Facility Assets or (b) other assets 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 (16)(b) that are at the time outstanding, not to exceed $2.0
million; and

     (17) prepaid expenses, lease, utilities, workers’ compensation, performance and similar
deposits made in the ordinary course of business,

     provided, however, that with respect to any Investment, the Company may, in its sole discretion,
allocate all or any portion of any Investment to one or more of the above clauses (1) through (17)
so that all or a portion of the Investment would be a Permitted Investment.

     “Permitted Liens” means:

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

     (2) Credit Facility Liens on assets constituting Credit Facility Collateral;

     (3) Liens in favor of the Company or the Guarantors (not securing Credit Facility
Obligations);

     (4) Liens on property of a Person existing at the time such Person 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 merger or consolidation
and do not extend to any assets other than those of the Person merged into or consolidated
with the Company or such Restricted Subsidiary;

     (5) Liens on property (including Capital Stock) existing at the time of acquisition of
the property, including by way of merger, consolidation or otherwise, by the Company or any
Restricted Subsidiary of the Company; provided that such Liens were in existence prior to,
such acquisition, and not incurred in contemplation of, such acquisition and do not extend
to any assets other than those of the Person merged into or consolidated with the Company or
such Restricted Subsidiary;

     (6) Liens to secure the performance of statutory obligations (including obligations
under worker’s compensation, unemployment insurance or similar legislation), surety or
appeal bonds, performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

     (7) Liens existing on the Issue Date (other than pursuant to clause (2), (3) or (28) of
this definition);

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     (8) 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;

     (9) Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business, or to secure the
performance of tenders, statutory obligations, surety, environmental liability or appeal
bonds, bids, leases, government contracts, performance or return-of-money bonds or other
similar obligations (exclusive of obligations for the payment of borrowed money) incurred in
the ordinary course of business;

     (10) 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;

     (11) minor irregularities in title, boundaries, or other survey defects, easements,
rights-of-way, restrictions, servitudes, permits, reservations, exceptions, zoning
regulations, conditions, covenants, mineral or royalty rights or reservations or oil, gas
and mineral leases and rights of others in any property of the Company or any Restricted
Subsidiary for streets, roads, bridges, pipes, pipe lines, railroads, electric transmission
and distribution lines, electronic communication lines, the removal of oil, gas or other
minerals or other similar purposes, flood control, water rights, rights of others with
respect to navigable waters, sewage and drainage rights and other similar charges or
encumbrances existing as of the Issue Date (or granted by the Company or any Restricted
Subsidiary in the ordinary course of business) that do not, in the aggregate, materially
impair the value of the property of the Company or any Restricted Subsidiary or the
occupation, use and enjoyment by the Company or any Restricted Subsidiaries of any of their
respective properties in the normal course of business;

     (12) Liens securing an obligation of a third party neither created, assumed nor
guaranteed by the Company or any Restricted Subsidiary upon lands over which easements or
similar rights are acquired by the Company or any Restricted Subsidiary in the ordinary
course of business;

     (13) terminable or short term leases or permits for occupancy, which leases or permits
expressly grant to the Company or any Restricted Subsidiary the right to terminate them at
any time on not more than one year’s notice and which occupancy does not interfere with the
operation of the business of the Company and the Restricted Subsidiaries;

     (14) Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Indenture; provided, however, that:

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

     (B) the Indebtedness secured by the new Lien is not increased to any amount
greater than the sum of (1) the outstanding principal amount or, if greater,
committed

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amount of the Permitted Referencing Indebtedness and (2) an amount necessary to
pay any fees and expenses, including premiums, related to such refinancings,
refunding, extension, renewal or replacement;

     (15) Liens arising pursuant to an order of attachment, distraint or similar legal
process arising in connection with legal proceedings not giving rise to an Event of Default;

     (16) any obligations or duties affecting any of the property of the Company or any
Restricted Subsidiary to any municipality or public authority with respect to any franchise,
grant, license or permit that do not impair the use of such property for the purposes for
which it is held;

     (17) Liens on property that is the subject of capital projects between the Company or
any Restricted Subsidiary and a third party that has a production, operating or other
agreement with the Company; provided, however, that such Liens are expressly limited to the
assets directly financed by such third party;

     (18) [INTENTIONALLY OMITTED]

     (19) Liens on any property in favor of domestic or foreign governmental bodies to
secure partial, progress, advance or other payments pursuant to any contract or statute, not
yet due and payable;

     (20) Liens (other than Liens securing the Credit Facilities) securing Permitted Debt
described in clause (5) of the definition thereof that is incurred to finance the
construction, purchase or lease of, or repairs, improvements or additions to, property of
such Person used in the business of the Company or any of its Restricted Subsidiaries;

     (21) Liens with respect to the so called “greenbelt” or “buffer zone” properties;

     (22) leases and ground leases of underutilized or vacant properties of the Company or
any Subsidiary to third parties with which the Company has a production, co-production,
co-generation, operating or other arrangement or to third party providers of energy or raw
materials in the ordinary course of business, provided such leases do not materially
interfere with the operation of the business of the Company or any Subsidiary or materially
diminish the value of the Facility Assets;

     (23) easements, rights-of-way, restrictions and other similar charges or encumbrances
granted to others, in each case incidental to, and not interfering with, the ordinary
conduct of the business of the Company or any of its Subsidiaries, provided that such Liens
are not violated by the existing Facility Assets and do not, in the aggregate, materially
diminish the value of the Facility Assets;

     (24) the burdens of any law or governmental regulation or permit requiring the Company
to maintain certain facilities or perform certain acts as a condition of its occupancy of or
interference with any public lands or any river or stream or navigable waters;

     (25) Liens on any of the Non-Facility Assets;

     (26) Liens incurred in the ordinary course of business of the Company or any Subsidiary
of the Company with respect to obligations that do not exceed $1.0 million at any one time
outstanding;

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     (27) Liens incurred in the ordinary course of business of the Company or any Subsidiary
of the Company with respect to obligations that do not secure Indebtedness and that do not
exceed $5.0 million at any one time outstanding;

     (28) Liens on the Primary Collateral that secure the Existing Notes so long as the
Indebtedness secured by such Liens is paid in full no later than the 31st day following the
Issue Date; and

     (29) extensions, renewals, modifications or replacements of any Lien referred to in
clauses (4), (5), (7), (18), (20), (22), (23) and (25) of this definition; provided that
such Lien is not otherwise prohibited by the terms hereof and, with respect to Liens
securing Indebtedness, no extension or renewal Lien shall (A) secure more than the amount of
the Indebtedness or other obligations secured by the Lien being so extended or renewed or
(B) extend to any property or assets not subject to the Lien being so extended or renewed.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of
its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
refund, refinance, replace, defease or discharge, other Indebtedness of the Company or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); 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 extended, refinanced, renewed, replaced, defeased or
refunded (plus all accrued interest on the Indebtedness and the amount of all expenses and
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 equal to or greater than
the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded, taken as a whole;

     (3) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated in right of payment to the Notes or any Note Guarantee, such
Permitted Refinancing Indebtedness has a final maturity date later than the final maturity
date of, and is subordinated in right of payment to, the Notes or such Note Guarantee, as
the case may be, on terms at least as favorable to the Holders as those contained in the
documentation governing the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded, taken as a whole; and

     (4) such Indebtedness is incurred either by the Company or by the Restricted Subsidiary
that is the obligor on the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded or any other Restricted Subsidiary.

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

     “Physical Notes” has the meaning set forth in Section 2.14(b).

     “Primary Collateral” means the “Indenture Exclusive Collateral” as defined in the
Intercreditor Agreement.

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     “principal” of any Indebtedness (including the Notes) means the principal amount (or
accreted value, as the case may be) of such Indebtedness plus the premium, if any, on such
Indebtedness.

     “Private Placement Legend” means the legend initially set forth on the Notes in the
form set forth in Exhibit C.

     “QIB” means a “qualified institutional buyer” as defined in Rule 144A.

     “Record Date” means any of the Record Dates specified in the Notes, whether or not a
Legal Holiday.

     “Redemption Date” means, when used with respect to any Note to be redeemed, the date
fixed for redemption of such Note pursuant to this Indenture and the Notes.

     “Redemption Price” means, when used with respect to any Note to be redeemed, the price
fixed for redemption pursuant to this Indenture and the Notes.

     “Registrar” has the meaning set forth in Section 2.03.

     “Registration Rights Agreement” means (a) the Registration Rights Agreement, dated as
of the Issue Date, among the Company, the Guarantors and the Initial Purchasers, as the same may be
amended or modified from time to time in accordance with the terms thereof and (b) any registration
rights agreement between the Company, the Guarantors and the other parties thereto in connection
with the issuance of Additional Notes.

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

     “Regulation S Global Note” has the meaning set forth in Section 2.01.

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

     “Restricted Payments” has the meaning set forth in Section 4.10.

     “Restricted Period” means the 40-day distribution compliance period as defined in
Regulation S.

     “Restricted Security” has the meaning assigned to such term in Rule 144(a)(3) under
the Securities Act; provided that the Trustee shall be entitled to request and conclusively rely on
an Opinion of Counsel with respect to whether any Note constitutes a Restricted Security.

     “Restricted Subsidiary” of a Person means any Subsidiary of such Person that is not an
Unrestricted Subsidiary.

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

     “S&P” means Standard & Poor’s Ratings Group and its successors.

     “SEC” means the Securities and Exchange Commission.

     “Secondary Collateral” means “Second Lien Collateral” as defined in the Intercreditor
Agreement.

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

     “Secured Parties” means, collectively, the Collateral Agent, the Trustee and the
Holders.

     “Security Agreement” means the Security Agreement, dated as of the Issue Date, made by
the Company and the Guarantors in favor of the Collateral Agent, as amended or supplemented from
time to time in accordance with its terms.

     “Significant Subsidiary” means any 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 Issue Date.

     “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 such documentation was
entered into, 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.

     “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 (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are such Person or one or more Subsidiaries of such Person (or any combination
thereof).

     “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as amended,
as in effect on the Issue Date, except as otherwise set forth in Section 9.03.

     “Transaction” means the Company’s tender offer for and consent solicitation with
respect to and redemption of the Existing Notes, the Offering and the amendment and restatement of
the ABL Facility, all as described in the Offering Circular.

     “Treasury Rate” means the yield to maturity at the time of computation of United
States Treasury securities with a constant maturity (as compiled and published in the most recent
Federal Reserve Statistical Release H.15 (519) which 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 April 1, 2011; provided, however, that if the period from the Redemption Date to
April 1, 2011 is not equal to the constant maturity of a United States Treasury security for which
a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the period from the Redemption
Date to April 1, 2011 is less than one year, the weekly

-24-

 

average yield on actually traded United States Treasury securities adjusted to a constant
maturity of one year shall be used.

     “Trust Officer” means any officer of the Trustee assigned by the Trustee to administer
this Indenture or, in the case of a successor trustee, an officer assigned to the department,
division or group performing the corporation trust work of such successor and assigned to
administer this Indenture.

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

     “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 that such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

     (2) except as permitted by Section 4.11, 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,
in the good faith judgment of the Company’s Board of Directors 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) 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; and

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
the Notes.

     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 the resolution of the Board of
Directors giving effect to such designation and an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section 4.10. 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 4.12, the Company will be in default of such
Section 4.12. The Board of Directors of the Company may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation will be
deemed to be an incurrence 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 4.12, calculated on a pro forma basis as if
such designation had occurred at the beginning of the four-quarter reference period; and (2) no
Default or Event of Default would be in existence following such designation.

     “U.S. Government Obligations” means non-callable direct obligations of, and
non-callable obligations guaranteed by, the United States of America for the payment of which the
full faith and credit of the United States of America is pledged.

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     “U.S. Legal Tender” means such coin or currency of the United States which, as at the
time of payment, shall be immediately available legal tender for the payment of public and private
debts.

     “Voting Stock” of any 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.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness 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 payment of principal,
including payment at final maturity, in respect of the Indebtedness, 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) the then outstanding principal amount of such Indebtedness.

     “Wholly-Owned Restricted Subsidiary” of any specified Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other ownership interests of
which (other than directors’ qualifying shares) will at the time be owned by such Person or by one
or more Wholly-Owned Restricted Subsidiaries of such Person or by such Person and one or more
Wholly-Owned Restricted Subsidiaries of such Person.

          SECTION 1.02 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, such provision is incorporated by
reference in, and made a part of, this Indenture. The following TIA terms used in this Indenture
have the following meanings:

     “indenture securities” means the Notes.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

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

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

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule and not otherwise defined herein have the
meanings assigned to them therein.

          SECTION 1.03 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;

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     (3) “or” is not exclusive;

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

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

     (6) when the words “includes” or “including” are used herein, they shall be deemed to
be followed by the words “without limitation”;

     (7) all references to “interest” in this Indenture in respect of any Note shall include
any Additional Interest due on such Note pursuant to the terms of the applicable
Registration Rights Agreement; and

     (8) all references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated.

ARTICLE TWO

THE NOTES

          SECTION 2.01 Form and Dating.

     The Initial Notes and the Additional Notes and the Trustee’s certificate of authentication
thereon shall be substantially in the form of Exhibit A hereto. The Exchange Notes and the
Trustee’s certificate of authentication thereon shall be substantially in the form of Exhibit
B hereto. The Notes may have notations, legends or endorsements required by law, stock
exchange rule or Depository rule or usage. The Company shall approve the form of the Notes and any
notation, legend or endorsement on them. Each Note shall be dated the date of its authentication.

     The terms and provisions contained in the forms of the Notes annexed hereto as Exhibit
A and Exhibit B shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, 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.

     Notes offered and sold in reliance on Rule 144A shall be issued initially in the form of one
or more permanent Global Notes in registered form, substantially in the form set forth in
Exhibit A hereto (“Global Notes”), deposited with the Trustee, as custodian for the
Depository, duly executed by the Company and authenticated by the Trustee as hereinafter provided
and shall bear the legend set forth in Exhibit C.

     Notes offered and sold to Institutional Accredited Investors in reliance on Rule 501(a)(1),
(2), (3) or (7) under the Securities Act shall be issued initially in the form of one or more
permanent Global Notes in registered form, substantially in the form set forth in Exhibit A
(the “IAI Global Notes”), deposited with the Trustee, as custodian for the Depository, duly
executed by the Company and authenticated by the Trustee as hereinafter provided and shall bear the
legend set forth in Exhibit C.

     Notes offered and sold in offshore transactions in reliance on Regulation S shall be issued in
the form of one or more permanent Global Notes (a “Regulation S Global Note”) deposited
with the Trustee, as custodian for the Depository, and registered in the name of the Depositary or
the nominee of the

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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
and shall bear the legend set forth in Exhibit C.

     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 Global Note that are held by participants through Euroclear or Clearsteam.

     The aggregate principal amount of any Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for the Depository, as
hereinafter provided.

     The definitive Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of any
securities exchange on which the Notes may be listed, all as determined by the Officers executing
such Notes, as evidenced by their execution of such Notes.

          SECTION 2.02 Execution and Authentication; Aggregate Principal Amount.

     An Officer (who shall have been duly authorized by all requisite corporate actions) shall sign
the Notes for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Note was an Officer at the time of such execution but no
longer holds that office or position at the time the Trustee authenticates the Note, the Note shall
nevertheless be valid.

     A Note shall not be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Note. The signature shall be conclusive evidence, and the
only evidence, that the Note has been authenticated under this Indenture.

     The Trustee shall authenticate (i) Initial Notes for original issue in the aggregate principal
amount not to exceed $150,000,000, (ii) Exchange Notes from time to time for issue only pursuant to
a Registration Rights Agreement in exchange for a like principal amount of Initial Notes or
Additional Notes, and (iii) subject to compliance with Section 4.12, one or more series of
Additional Notes for original issue after the Issue Date, in each case upon written orders of the
Company in the form of an Officers’ Certificate, which Officers’ Certificate shall, in the case of
any issuance of Additional Notes, certify that such issuance is in compliance with Section
4.12. In addition, each Officers’ Certificate shall specify the amount of Notes to be
authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be
Initial Notes, Exchange Notes or Additional Notes. All Notes issued under this Indenture shall
vote and consent together on all matters as one class and no series of Notes shall have the right
to vote or consent as a separate class on any matter.

     The Trustee may appoint an authenticating agent (the “Authenticating Agent”)
reasonably acceptable to the Company to authenticate Notes. Unless otherwise provided in the
appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such
Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with the
Company and Affiliates of the Company.

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     The Notes shall be issuable in fully registered form only, without coupons, in denominations
of $1,000 in principal amount and any integral multiple thereof.

          SECTION 2.03 Registrar and Paying Agent.

     The Company shall maintain an office or agency which shall initially be the office of the
Trustee in Indianapolis, Indiana, where (a) Notes may be presented or surrendered for registration
of transfer or for exchange (the “Registrar”) and (b) Notes may be presented or surrendered
for payment (the “Paying Agent”). The Registrar shall keep a register of the Notes and of
their transfer and exchange. The Company, upon prior written notice to the Trustee, may have one
or more co-Registrars and one or more additional Paying Agents reasonably acceptable to the
Trustee. The Company may change the Paying Agent or Registrar without prior notice to the Holders.
The term “Paying Agent” includes any additional Paying Agent. The Company or any
Affiliate of the Company may act as Paying Agent or Registrar.

     The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which agreement shall incorporate the provisions of the TIA and implement the
provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee in
writing, in advance, of the name and address of any such Agent. If the Company fails to maintain a
Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as such, as
shall be entitled to appropriate compensation therefore, pursuant to Section 7.07.

     The Company initially appoints the Trustee as Registrar, Paying Agent and agent for service of
demands and notices in connection with the Notes. The Paying Agent or Registrar may resign upon
thirty (30) days’ written notice to the Company.

     The Company appoints The Depository Trust Company as Depositary.

          SECTION 2.04 Obligations of Paying Agent.

     The Company shall require each Paying Agent other than the Trustee to agree in writing that
such Paying Agent shall hold separate and apart from, and not commingle with any other properties,
for the benefit of the Holders or the Trustee, all assets held by the Paying Agent for the payment
of principal of, or interest on, the Notes (whether such assets have been distributed to it by the
Company or any other obligor on the Notes), and the Paying Agent shall promptly notify the Trustee
in writing of any Default by the Company (or any other obligor on the Notes) in making any such
payment. The Company at any time may require a Paying Agent to distribute all assets held by it to
the Trustee and account for any assets disbursed and the Trustee may at any time during the
continuance of any payment Default, upon written request to a Paying Agent, require such Paying
Agent to distribute all assets held by it to the Trustee and to account for any assets distributed.
Upon receipt by the Trustee of all assets that shall have been delivered by the Company to the
Paying Agent, the Paying Agent shall have no further liability for such assets.

          SECTION 2.05 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of the Holders and shall otherwise comply with TIA
Section 312(b). If the Trustee is not the Registrar, the Company shall furnish or cause the
Registrar to furnish to the Trustee before each Record Date and at such other times as the Trustee
may request in writing a list as of such date and in such form as the Trustee may reasonably
request of the names and addresses of the Holders, which list may be conclusively relied upon by
the Trustee.

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          SECTION 2.06 Transfer and Exchange.

     Subject to the provisions of Sections 2.14 and 2.15, when Notes are presented
to the Registrar or a co-Registrar with a request to register the transfer of such Notes or to
exchange such Notes for an equal principal amount of Notes of other authorized denominations, the
Registrar or co-Registrar shall register the transfer or make the exchange as requested;
provided, however, that the Notes presented or surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Registrar or co-Registrar, duly executed by the Holder
thereof or his attorney duly authorized in writing and such other documents as the Registrar or
Co-Registrar may reasonably require. To permit registrations of transfers and exchanges, the
Company shall issue and the Trustee shall authenticate Notes at the Registrar’s or co-Registrar’s
request. No service charge shall be made for any registration of transfer or exchange, but the
Company or the Trustee 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 exchanges or transfers pursuant to Section 2.10,
3.07, 4.15, 4.16, 4.17 or 9.05, in which event the Company
shall be responsible for the payment of such taxes).

     The Registrar or co-Registrar shall not be required to register the transfer or exchange of
any Note (i) during a period beginning at the opening of business fifteen (15) days before the
mailing of a notice of redemption of Notes and ending at the close of business on the day of such
mailing and (ii) selected for redemption in whole or in part pursuant to Article Three,
except the unredeemed portion of any Note being redeemed in part.

     Any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through the Depository, in accordance
with this Indenture and the Applicable Procedures.

          SECTION 2.07 Replacement Notes.

     If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims in writing
that the Note has been lost, destroyed or wrongfully taken, then, in the absence of written notice
to the Company or the Trustee that such Note has been acquired by a protected purchaser, the
Company shall issue and the Trustee shall authenticate a replacement Note of like tenor and
principal amount and bearing a number not contemporaneously outstanding if the Trustee’s
requirements are met. Except with respect to mutilated Notes, if required by the Trustee or the
Company, such Holder must provide an affidavit of lost certificate and an indemnity bond or other
indemnity, sufficient in the judgment of both the Company and the Trustee, to protect the Company,
the Trustee or any Agent from any loss which any of them may suffer if a Note is replaced. The
Company may charge such Holder for its reasonable out-of-pocket expenses in replacing a Note,
including reasonable fees and expenses of its counsel and of the Trustee and its counsel. In case
any mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and
payable, the Company in its discretion may pay such Note instead of issuing a new Note in
replacement thereof. Every replacement Note shall constitute an additional obligation of the
Company, entitled to the benefits of this Indenture, subject to Section 2.08.

          SECTION 2.08 Outstanding Notes.

     Notes outstanding at any time are all the Notes that have been authenticated by the Trustee
except those cancelled by it, those delivered to it for cancellation and those described in this
Section 2.08 as not outstanding. Subject to the provisions of Section 2.09, a Note
does not cease to be outstanding because the Company or any of its Affiliates holds the Note.

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     If a Note is replaced pursuant to Section 2.07 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Note is held by a protected purchaser. A mutilated Note
ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to
Section 2.07.

     If on a Redemption Date or the Maturity Date the Paying Agent holds U.S. Legal Tender or U.S.
Government Obligations sufficient to pay all of the principal and interest due on the Notes payable
on that date and is not prohibited from paying such money to the Holders thereof pursuant to the
terms of this Indenture, then on and after that date such Notes cease to be outstanding and
interest on them ceases to accrue.

          SECTION 2.09 Treasury Notes; When Notes Are Disregarded.

     In determining whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver, consent or notice, Notes owned by the Company or any of its Affiliates shall
be considered as though they are not outstanding, except that for the purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes which a Trust Officer of the Trustee actually knows are so owned shall be so considered.
Notes so owned which have been pledged in good faith may be regarded as outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such
Notes and that the pledgee is not the Company or any other obligor upon the Notes or any Affiliate
of the Company or of such other obligor.

          SECTION 2.10 Temporary Notes.

     Until definitive Notes are ready for delivery, the Company may prepare and execute and the
Trustee shall authenticate temporary Notes upon receipt of a written order of the Company in the
form of an Officers’ Certificate. The Officers’ Certificate shall specify the amount of temporary
Notes to be authenticated and the date on which the temporary Notes are to be authenticated.
Temporary Notes shall be substantially in the form of definitive Notes but may have variations that
the Company considers appropriate for temporary Notes. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate upon receipt of a written order of the Company
pursuant to Section 2.02 definitive Notes in exchange for temporary Notes. Until so
exchanged, the temporary Notes shall be entitled to the same benefits under this Indenture as
definitive Notes.

          SECTION 2.11 Cancellation.

     The Company at any time may deliver Notes previously authenticated hereunder which the Company
has acquired in any lawful manner to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Notes surrendered to them for transfer, exchange or payment.
The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent, and no one
else, shall cancel all Notes surrendered for transfer, exchange, payment or cancellation. Subject
to Section 2.07, the Company may not issue new Notes to replace Notes that it has paid or
delivered to the Trustee for cancellation. If the Company shall acquire any of the Notes, such
acquisition shall not operate as a redemption or satisfaction of the Indebtedness represented by
such Notes unless and until the same are surrendered to the Trustee for cancellation pursuant to
this Section 2.11. The Trustee shall dispose of all cancelled Notes in accordance with the
Trustee’s customary procedures.

          SECTION 2.12 CUSIP Numbers.

     A “CUSIP” number shall be printed on the Notes, and the Trustee shall use the CUSIP
number in notices of redemption, purchase or exchange as a convenience to Holders; provided
that any such notice

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may state that no representation is made as to the correctness or accuracy of the CUSIP number
printed in the notice or on the Notes and that reliance may be placed only on the other
identification numbers printed on the Notes. The Company shall promptly notify the Trustee of any
change in the CUSIP number.

          SECTION 2.13 Deposit of Moneys.

     Prior to 10:00 a.m. Indianapolis, Indiana time on each Interest Payment Date and the Maturity
Date, the Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to make cash
payments, if any, due on such Interest Payment Date or the Maturity Date, as the case may be.

          SECTION 2.14 Book-Entry Provisions for Global Notes.

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

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

          (b) Transfers of the Global Notes shall be limited to transfers in whole, but not in part, to
the Depository, its successors or their respective nominees. Interests of beneficial owners in the
Global Notes may be transferred or exchanged in accordance with the Applicable Procedures of the
Depository and the provisions of Section 2.15, provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or benefit of a U.S.
Person (other than an Initial Purchaser). In addition, Notes in the form of certificated Notes in
registered form in substantially the form set forth in Exhibit A hereto (the “Physical
Notes”) shall be transferred to all beneficial owners in exchange for their beneficial
interests in the Global Notes if (i) the Depository notifies the Company that it is unwilling or
unable to continue as Depository for the Global Notes and a successor Depository is not appointed
by the Company within ninety (90) days of such notice or (ii) an Event of Default has occurred and
is continuing and the Registrar has received a request from the Depository to issue Physical Notes;
provided that a beneficial interest in the Regulation S Global Note may not be exchanged
for a Physical Note or transferred to a Person who takes delivery thereof in the form of a Physical
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.

          (c) Any beneficial interest in one of the Global Notes that is transferred to a Person who
takes delivery in the form of an interest in another Global Note shall, upon transfer, cease to be
an interest in such first Global Note and become a beneficial interest in such other Global Note
and, accordingly, shall thereafter be subject to all transfer restrictions, if any, and other
procedures applicable to a beneficial interest in such other Global Notes for as long as it remains
such an interest.

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          (d) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Note to beneficial owners pursuant to paragraph (b), the Registrar shall (if one or
more Physical Notes are to be issued) reflect on its books and records the date and a decrease in
the principal amount of the Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and the Company shall execute, and the
Trustee shall authenticate and deliver, one or more Physical Notes of like tenor and aggregate
principal amount.

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

          (f) Any Physical Note constituting a Restricted Security delivered in exchange for an interest
in the Global Note pursuant to paragraph (b), except as otherwise provided by
paragraphs (a)(i)(x) and (c) of Section 2.15, bear the legend regarding
transfer restrictions applicable to the Physical Notes set forth in Exhibit A.

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

          SECTION 2.15 Special Transfer Provisions.

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

     (i) the Registrar shall register the transfer of any Physical Note constituting a
Restricted Security which after transfer is to be evidenced by an interest in a Global Note,
whether or not such Note bears the Private Placement Legend, upon surrender of such Physical
Note to the Registrar, if (x) the requested transfer is after March 29, 2009 or (y) (1) in
the case of a transfer to an Institutional Accredited Investor which is not a QIB (excluding
Non-U.S. Persons), the proposed transferee has delivered to the Registrar a certificate
substantially in the form of Exhibit D hereto or (2) in the case of a transfer to a
Non-U.S. Person, the proposed transferor has delivered to the Registrar a certificate
substantially in the form of Exhibit E hereto whereupon the Registrar shall reflect
on its books and records the date and the Company shall execute and the Trustee shall
authenticate and deliver one or more Physical Notes of like tenor and principal amount and
the Trustee shall cancel the Physical Notes so transferred; or

     (ii) if the proposed transferor is an Agent Member holding a beneficial interest in a
Global Note and the proposed transferee is an Agent Member who will hold a beneficial
interest in a Global Note, the Registrar shall register such transfer upon receipt of (x)
the certificate, if any, required by clause (i) above and (y) instructions given in
accordance with the Applicable Procedures and the Registrar’s procedures, whereupon the
Registrar shall reflect on its books and records the date and a decrease in the principal
amount of the Global Note in an amount equal to the principal amount of the beneficial
interest in the Global Note to be transferred and a corresponding increase in the Global
Note to which such beneficial interest is transferred; or

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     (iii) if the proposed transferor is an Agent Member holding a beneficial interest in a
Global Note and the proposed transferee’s interest will be evidenced by a Physical Note, the
Registrar shall register such transfer upon receipt of (x) the certificate, if any, required
by clause (i) above and (y) instructions given in accordance with the Applicable
Procedures and the Registrar’s procedures, whereupon the Registrar shall reflect on its
books and records the date and a decrease in the principal amount of the Global Note in an
amount equal to the principal amount of the beneficial interest in the Global Note to be
transferred, and the Company shall execute and the Trustee shall authenticate and deliver
one or more Physical Notes of like tenor and principal amount; or

     (iv) if the proposed transferee is an Agent Member and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an interest in a
Global Note, the Registrar shall register such transfer upon surrender of such Physical Note
to the Registrar, upon receipt of (x) the certificate, if any, required by clause (i) above
and (y) instructions given in accordance with the Applicable Procedures and the Registrar’s
procedures, whereupon the Registrar shall reflect on its books and records the date and an
increase in the principal amount of such Global Note in an amount equal to the principal
amount of the Physical Notes to be transferred and the Trustee shall cancel the Physical
Notes so transferred.

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

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

     (ii) Subject to compliance with clause (i), if the proposed transferee is an Agent
Member, and the Notes to be transferred consist of Physical Notes which after transfer are
to be evidenced by an interest in the Global Note, upon surrender of such Physical Note to
the Registrar, upon receipt by the Registrar of instructions given in accordance with the
Applicable Procedures and the Registrar’s procedures, the Registrar shall reflect on its
books and records the date and an increase in the principal amount of the Global Note in an
amount equal to the principal amount of the Physical Notes to be transferred, and the
Trustee shall cancel the Physical Notes so transferred.

     (iii) Subject to compliance with clause (i), if the Notes to be transferred consist of
Physical Notes, upon the surrender of such Physical Notes to the Registrar, the Registrar
shall reflect on its books and records the date and the Company shall execute and the
Trustee shall authenticate and deliver one or more Physical Notes of like tenor and
principal amount and the Trustee shall cancel the Physical Notes to be transferred.

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     (iv) Subject to compliance with clause (i), if the proposed transferor is an Agent
Member holding a beneficial interest in a Global Note and the proposed transferee is an
Agent Member who will hold a beneficial interest in a Global Note, the Registrar shall
reflect on its books and records the date and a decrease in the principal amount of the
Global Note in an amount equal to the principal amount of the beneficial interest in the
Global Note to be transferred and a corresponding increase in the Global Note to which such
beneficial interest is transferred.

     (v) Subject to compliance with clause (i), if the proposed transferor is an Agent
Member holding a beneficial interest in a Global Note and the proposed transferee’s interest
will be evidenced by a Physical Note, the Registrar shall reflect on its books and records
the date and a decrease in the principal amount of the Global Note in an amount equal to the
principal amount of the beneficial interest in the Global Note to be transferred, and the
Company shall execute and the Trustee shall authenticate and deliver one or more Physical
Notes of like tenor and principal amount.

          (c) Private Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the
Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Registrar shall deliver only Notes that bear the Private Placement Legend
unless (i) the circumstance contemplated by paragraph (a)(i)(x) of this Section
2.15 exists or (ii) there is delivered to the Registrar an Opinion of Counsel reasonably
satisfactory to the Company and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the provisions of the
Securities Act. The Registrar shall not register a transfer of any Note unless such transfer
complies with the restrictions on transfer of such Note set forth in this Indenture. In connection
with any transfer of Notes, each Holder agrees by its acceptance of the Notes to furnish the
Registrar or the Company such certifications, legal opinions or other information as either of them
may reasonably require to confirm that such transfer is being made pursuant to an exemption from,
or a transaction not subject to, the registration requirements of the Securities Act;
provided that the Registrar shall not be required to determine (but may rely on a
determination made by the Company with respect to) the sufficiency of any such certifications,
legal opinions or other information.

          (d) General. By its acceptance of any Note bearing the Private Placement Legend, each
Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this
Indenture and in the Private Placement Legend and agrees that it shall transfer such Note only as
provided in this Indenture.

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

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

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

     Neither the Trustee nor any Agent shall have any responsibility for any actions taken or not
taken by DTC.

          SECTION 2.16 Transfers of Global Notes and Physical Notes.

     A transfer of a Global Note or a Physical Note (including the right to receive principal and
interest payable thereon) may be made only by the Registrar’s entering the transfer in the
Register. Prior to such entry, the Company shall treat the person in whose name such Note is
registered as the owner of the Note for all purposes.

ARTICLE THREE

REDEMPTION

          SECTION 3.01 Optional Redemption.

          (a) The Company may, at its option, redeem the Notes, in whole or in part, at specified times
and under specified conditions, as set forth in this Section 3.01. If the Company elects
to redeem Notes pursuant to this Section 3.01, it shall, prior to mailing the notice of
redemption referred to in Section 3.04 and at least 45 days prior to the Redemption Date
(unless a shorter notice shall be satisfactory to the Trustee) furnish to the Trustee and Paying
Agent an Officers’ Certificate setting forth the Redemption Date and the principal amount of the
Notes to be redeemed, the clause of this Indenture pursuant to which the redemption shall occur and
the Redemption Price.

          (b) Optional Redemption Prior to April 1, 2011. Prior to April 1, 2011, the Company
may, at its option, on any one or more occasions, redeem all or a part of the Notes upon not less
than 30 nor more than 60 days’ prior notice to the Trustee, at a Redemption Price equal to 100% of
the principal amount of the Notes redeemed plus the Applicable Premium plus accrued and unpaid
interest, if any, to (but not including) the Redemption Date.

          (c) Optional Redemption on or After April 1, 2011. On or after April 1, 2011, the
Company may, at its option, on any one or more occasions, redeem all or a part of the Notes upon
not less than 30 days’ nor more than 60 days’ prior notice to the Trustee, at the Redemption Prices
(expressed as percentages of the principal amount) set forth below plus accrued and unpaid interest
to (but not including) the Redemption Date, if redeemed during the twelve-month period commencing
on April 1 of the year set forth below:

	 	 	 	 	 
	Year	 	Percentage
	2011
	 	 	105.125	%
	2012
	 	 	102.563	%
	2013 and thereafter
	 	 	100.000	%

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          (d) Optional Redemption Upon Equity Offerings. At any time prior to April 1, 2010,
the Company may, at its option, on any one or more occasions, redeem, in whole or in part, up to
35% of the aggregate principal amount of Notes originally issued under this Indenture (including
any Additional Notes issued after the Issue Date) at a Redemption Price of 110.25% of the aggregate
principal amount of the Notes redeemed, plus accrued and unpaid interest on the Notes redeemed to
(but not including) the applicable Redemption Date; provided that:

     (1) at least 65% of the aggregate principal amount of Notes originally issued
under this Indenture remains outstanding immediately after any the occurrence of
such redemption; and

     (2) notice of redemption is mailed within 180 days after the date of the
closing of any such Equity Offering.

     SECTION 3.02 Mandatory Redemption

     The Company shall not be required to make any mandatory redemption or sinking fund payments
with respect to the Notes. The Company or any Subsidiary thereof may at any time and from time to
time purchase Notes in the open market or otherwise.

     SECTION 3.03 Selection of Notes to Be Redeemed.

     If fewer than all of the Notes are to be redeemed pursuant to the provisions of this
Indenture, the Trustee shall select the Notes to be redeemed (1) in compliance with the
requirements of the principal national securities exchange, if any, on which such Notes are listed
or (2) if such Notes are not then listed on a national securities exchange, on a pro rata
basis, by lot or by such method as the Trustee may reasonably determine is fair and appropriate,
provided, that if any such partial redemption is made with the proceeds of an Equity
Offering, the Trustee will select the Notes only on a pro rata basis or on as
nearly a pro rata basis as is practicable (subject to DTC procedures), unless such
method is otherwise prohibited. The Trustee shall make the selection from the Notes outstanding
and not previously called for redemption and shall promptly notify the Company in writing of the
Notes selected for redemption and, in the case of any Note selected for partial redemption, the
principal amount thereof, to be redeemed.

     No Notes of $1,000 or less shall be redeemed in part. Notes of a principal amount in
denominations of $1,000 may be redeemed only in whole. The Trustee may select for redemption
portions (equal to $1,000 or any integral multiple thereof) of the principal amount of Notes that
have denominations larger than $1,000. Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

     SECTION 3.04 Notice of Redemption.

     At least 30 days but not more than 60 days before a Redemption Date, the Company shall mail or
cause to be mailed a notice of redemption by first class mail, postage prepaid, to each Holder
whose Notes are to be redeemed at its registered address, with a copy to the Trustee and any Paying
Agent. At the Company’s written request delivered at least fifteen days prior to the date such
notice is to be given (unless a shorter period shall be acceptable to the Trustee), the Trustee
shall give the notice of redemption in the Company’s name and at the Company’s expense, provided
the Company provides the Trustee with all information required for such notice of redemption.
Failure to give Notice of redemption, or any defect therein to any Holder of any Note selected for
redemption shall not impair or affect the validity of the redemption of any other Note.

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     Each notice of redemption shall identify the Notes to be redeemed and shall state:

     (1) the Redemption Date;

     (2) the Redemption Price and the amount of accrued interest, if any, to be paid;

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

     (4) the CUSIP number;

     (5) the subparagraph of the Notes pursuant to which such redemption is being made;

     (6) the place where such Notes called for redemption must be surrendered to the Paying
Agent to collect the Redemption Price plus accrued interest, if any;

     (7) that, unless the Company fails to deposit with the Paying Agent funds in
satisfaction of the applicable Redemption Price plus accrued interest, if any, interest on
Notes called for redemption ceases to accrue on and after the Redemption Date in accordance
with Section 3.06, and the only remaining right of the Holders of such Notes is to
receive payment of the Redemption Price plus accrued interest, if any, upon surrender to the
Paying Agent of the Notes redeemed;

     (8) 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, and upon surrender of such Note, a
new Note or Notes in the aggregate principal amount equal to the unredeemed portion thereof
shall be issued; and

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

     If any of the Notes to be redeemed is in the form of a Global Note, then the Company shall
modify such notice to the extent necessary to accord with the procedures of the Depository
applicable to redemption.

          SECTION 3.05 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.04, Notes or portions
thereof called for redemption shall become irrevocably due and payable on the Redemption Date and
at the Redemption Price plus accrued interest thereon. Upon surrender to the Trustee or Paying
Agent, such Notes or portions thereof called for redemption shall be paid at the Redemption Price
plus accrued interest thereon, to the Redemption Date, but installments of interest thereon, the
maturity of which is on or prior to the Redemption Date, shall be payable to Holders of record at
the close of business on the relevant Record Dates referred to in the Notes.

          SECTION 3.06 Deposit of Redemption Price.

     Not later than 10:00 a.m. local time in the place of payment on the Redemption Date, the
Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the Redemption
Price plus accrued interest, if any, of all Notes or portions thereof to be redeemed on that date.

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     The Paying Agent shall promptly return to the Company any U.S. Legal Tender so deposited which
is not required for that purpose, except with respect to monies owed as obligations to the Trustee
pursuant to Article Seven.

     If the Company complies with the preceding paragraph, then, unless the Company defaults in the
payment of such Redemption Price plus accrued interest, if any, interest on the Notes to be
redeemed shall cease to accrue on and after the applicable Redemption Date, whether or not such
Notes are presented for payment.

          SECTION 3.07 Notes Redeemed in Part.

     Upon surrender of a Note that is to be redeemed in part, the Company shall issue and the
Trustee shall authenticate for the Holder at the expense of the Company a new Note or Notes equal
in principal amount to the unredeemed portion of the Note surrendered.

ARTICLE FOUR

COVENANTS

          SECTION 4.01 Payment of Notes.

     The Company shall pay the principal of, or premium, if any, or interest, if any, on the Notes
on the dates and in the manner provided in the Notes and in this Indenture. An installment of
principal of, or premium, if any, or interest, if any, on the Notes shall be considered paid on the
date it is due if the Trustee or Paying Agent (other than the Company or an Affiliate of the
Company) holds at 10:00 a.m. Indianapolis, Indiana time on that date U.S. Legal Tender designated
for and sufficient to pay the installment in full and is not prohibited from paying such money to
the Holders pursuant to the terms of this Indenture. The Company shall pay interest on overdue
principal at 2% per annum in excess of the rate per annum set forth in the Notes, and it shall pay
interest on overdue installments of interest at the same rate to the extent lawful.

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

          SECTION 4.02 Maintenance of Registrar and Paying Agent.

     The Company shall maintain a Registrar and Paying Agent required under Section 2.03.
The Company shall give prior written notice to the Trustee and the Holders of the location, and any
change in the location, of the Registrar and Paying Agent. If at any time the Company shall fail
to maintain a Registrar or Paying Agent or shall fail to furnish the Trustee with the address
thereof, such presentations and surrenders may be made or served at the Corporate Trust Office and
the Company hereby appoints the Trustee as its agent to receive all such presentations and
surrenders.

          SECTION 4.03 Corporate Existence.

     Except as otherwise permitted by Article Four, Five, and Ten the
Company shall do or cause to be done, at its own cost and expense, all things necessary to preserve
and keep in full force and effect its corporate existence and the limited liability company,
partnership or corporate existence of each of its Restricted Subsidiaries in accordance with the
respective organizational documents of the Company and each such Restricted Subsidiary, as the case
may be, and the material rights (charter and statutory) and

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franchises of the Company and each such Restricted Subsidiary; provided,
however, that the Company shall not be required to preserve, with respect to itself, any
material right or franchise and, with respect to any of its Restricted Subsidiaries, any such
existence, material right or franchise, if the Board of Directors of the Company shall determine in
good faith that the preservation thereof is no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries, taken as a whole.

          SECTION 4.04 Payment of Taxes and Other Claims.

     The Company shall pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (i) all material taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or imposed upon it or
any of its Restricted Subsidiaries or its properties or any of its Restricted Subsidiaries’
properties and (ii) all material lawful claims for labor, materials and supplies that, if unpaid,
might by law become a Lien upon its properties or any of its Restricted Subsidiaries’ properties;
provided, however, that the Company shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being or shall be contested in good faith by appropriate proceedings
properly instituted and diligently conducted for which adequate reserves, to the extent required
under GAAP, have been taken.

          SECTION 4.05 Maintenance of Properties and Insurance.

          (a) The Company shall, and shall cause each of its Restricted Subsidiaries to, maintain its
properties in good working order and condition in all material respects (subject to ordinary wear
and tear) and make all necessary repairs, renewals, replacements, additions, betterments and
improvements thereto and actively conduct and carry on its business; provided,
however, that nothing in this Section 4.05 shall prevent the Company or any of its
Restricted Subsidiaries from discontinuing the operation and maintenance of any of its properties
if such discontinuance is, in the good faith judgment of the Board of Directors or other governing
body of the Company or the Subsidiary concerned, as the case may be, desirable in the conduct of
its businesses and would not reasonably be expected to have a material adverse effect on the
business operations, assets or financial condition of the Company and its Subsidiaries, taken as a
whole.

          (b) The Company shall maintain insurance (including appropriate self-insurance) against loss
or damage of the kinds that, in the good faith judgment of the Company, are adequate and
appropriate for the conduct of the business of the Company and its Restricted Subsidiaries in a
prudent manner, with reputable insurers or with the government of the United States or an agency or
instrumentality thereof.

          SECTION 4.06 Compliance Certificate; Notice of Default.

          (a) The Company and each Guarantor shall deliver to the Trustee, within ninety (90) days after
the end of the Company’s fiscal year, an Officers’ Certificate stating that a review of the
activities of the Company and its Restricted Subsidiaries during the preceding fiscal year has been
made under the supervision of the signing Officers (one of whom is the principal executive officer,
principal financial officer or principal accounting officer) with a view to determining whether
they have kept, observed, performed and fulfilled their obligations under this Indenture and
further stating, as to each such Officer signing such certificate, that to the best of such
Officer’s actual knowledge the Company and its Restricted Subsidiaries during such preceding fiscal
year have kept, observed, performed and fulfilled each and every condition and covenant under this
Indenture and no Default or Event of Default occurred during such year and at the date of such
certificate there is no Default or Event of Default that has occurred and is continuing or, if such
signers do know of such Default or Event of Default, the certificate

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shall describe the Default or Event of Default and its status with particularity. The
Officers’ Certificate shall also notify the Trustee should the Company elect to change the manner
in which it fixes its fiscal year end.

          (b) The Company shall, so long as any Notes are outstanding, upon any Officer of the Company
becoming aware of any Default or Event of Default, deliver to the Trustee and Collateral Agent an
Officers’ Certificate specifying such Default or Event of Default within five (5) Business Days of
such Officer becoming aware of such occurrence.

          SECTION 4.07 Compliance with Laws.

     The Company shall, and shall cause each of its Restricted Subsidiaries to, comply with all
applicable statutes, rules, regulations, orders and restrictions of the United States, all states
and municipalities thereof, and of any governmental department, commission, board, regulatory
authority, bureau, agency and instrumentality of the foregoing, in respect of the conduct of its
businesses and the ownership of its properties, except for such noncompliances as are not in the
aggregate reasonably likely to have a material adverse effect on the financial condition or results
of operations of the Company and its Restricted Subsidiaries, taken as a whole or the ability of
the Company to perform its obligations hereunder.

          SECTION 4.08 Reports to Holders.

     Whether or not required by the rules and regulations of the SEC, so long as any Notes are
outstanding, the Company will furnish the Holders of the Notes:

     (a) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such Forms, including a “Management’s Discussion and Analysis of Financial Condition
and Results of Operations” that describes the financial condition and results of operations
of the Company and its consolidated Subsidiaries (showing in reasonable detail, 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”, the financial
condition and results of operations of the Company and its Restricted Subsidiaries separate
from the financial condition and results of operations of the Unrestricted Subsidiaries of
the Company, if any) and, with respect to the annual information only, a report thereon by
the Company’s certified independent accountants within the time periods specified in the
SEC’s rules and regulations; and

     (b) 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 each case, within the time periods required for filing such forms and reports as specified in
the SEC’s rules and regulations.

     In addition, following the consummation of the Exchange Offer contemplated by the Registration
Rights Agreement relating to the Initial Notes issued in connection with the Offering, whether or
not required by the rules and regulations of the SEC, the Company will file a copy of all such
information and reports with the SEC for public availability within the time periods specified in
the SEC’s rules and regulations (unless the SEC will not accept such a filing) and make such
information available to securities analysts and prospective investors upon request. In addition,
the Company has agreed that, for so long as any Notes remain outstanding, it will furnish to the
Holders and prospective investors, upon

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their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

          SECTION 4.09 Waiver of Stay, Extension or Usury Laws.

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

          SECTION 4.10 Limitation on Restricted Payments.

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

     (1) declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including 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 than dividends,
payments or distributions payable in Equity Interests (other than Disqualified Stock) of the
Company and other dividends, payments or distributions payable to the Company or another
Restricted Subsidiary of the Company);

     (2) purchase, redeem or otherwise acquire or retire for value (including 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 other than those Equity Interests owned by
the Company or any Restricted Subsidiary of the Company;

     (3) make any payment on or with respect to, or purchase, redeem, repurchase, defease or
otherwise acquire or retire for value, any Indebtedness of the Company or any Guarantor that
is contractually subordinated in right of payment to the Notes or any Note Guarantee
(excluding (x) any intercompany Indebtedness between or among the Company and any of the
Guarantors or (y) the purchase, repurchase or other acquisition or retirement for value of
Indebtedness that is contractually subordinated to the Notes or to any Note Guarantee, as
the case may be, purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of
purchase, repurchase or acquisition or retirement for value), except a payment of interest
or principal at the Stated Maturity thereof; or

     (4) make any Restricted Investment;

(all such payments and other actions set forth in these clauses (1) through (4) above being
collectively referred to as “Restricted Payments”), unless, at the time of and after giving
effect to such Restricted Payment:

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     (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 the first
paragraph of Section 4.12; 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 Issue Date (excluding
Restricted Payments permitted by clauses (2), (3), (4), (6), (8) and (9) of the next
succeeding paragraph), 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 Issue Date 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 proceeds, including cash and the Fair Market
Value of the property other than cash, received by the Company since the Issue Date
as a contribution to its common equity capital and from the issue or sale of Equity
Interests of the Company (other than Disqualified Stock) or from the issue or sale
of convertible or exchangeable Disqualified Stock or convertible or exchangeable
debt securities of the Company that have been converted into or exchanged for such
Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company); provided, however, that the
Company may not include the net cash proceeds to the extent that any such common
equity capital or Equity Interests are repurchased, redeemed or otherwise acquired
or retired pursuant to clauses (2) and (5)(x) of the subsequent paragraph of this
Section 4.10 or applied to redeem any Notes pursuant to Section
3.01(d); plus

     (c) to the extent that any Restricted Investment that was made after the Issue
Date is sold for cash or otherwise liquidated or repaid for cash, the cash and the
Fair Market Value of property other than cash received as return of capital with
respect to such Restricted Investment (less the cost of disposition, if any);
plus

     (d) to the extent that any Unrestricted Subsidiary of the Company designated as
such after the Issue Date is redesignated as a Restricted Subsidiary after the Issue
Date or has been merged into, consolidated or amalgamated with or into, or transfers
or conveys its assets to, the Company or a Restricted Subsidiary of the Company, the
Fair Market Value of the Company’s Investment in such Subsidiary as of the date of
such redesignation, combination or transfer (or of the assets transferred or
conveyed, as applicable) after deducting any Indebtedness associated with the
Unrestricted Subsidiary so designated or combined or any Indebtedness associated
with the assets so transferred or conveyed; plus

     (e) 50% of any dividends or distributions received by the Company or a
Wholly-Owned Restricted Subsidiary of the Company that is a Guarantor after the
Issue

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Date from an Unrestricted Subsidiary of the Company, to the extent that such
dividends or distributions were not otherwise included in Consolidated Net Income of
the Company for such period.

In the case of clause (3)(b) above, any net cash proceeds from issuances and sales of Capital Stock
of the Company financed directly or indirectly using funds borrowed from the Company or any
Subsidiary of the Company, shall be excluded until and to the extent such borrowing is repaid.

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

     (1) the payment, by the Company or any Restricted Subsidiary, of any dividend or
distribution or the consummation of any redemption within 60 days after the date of
declaration of the dividend or distribution or giving of the redemption notice, as the case
may be, if at the date of declaration or notice, the dividend, distribution 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 the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of the Company)
of, Equity Interests of the Company (other than Disqualified Stock) or from the
substantially concurrent 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 be excluded from clause (3)(b) of the preceding paragraph;

     (3) the defeasance, redemption, repurchase, retirement or other acquisition or
retirement for value of Indebtedness of the Company or any Restricted Subsidiary that is
contractually subordinated in right of payment to the Notes or to any Note Guarantee with,
in exchange for, by conversion into or out of the net cash proceeds from a substantially
concurrent incurrence of, or in exchange for, Permitted Refinancing Indebtedness;

     (4) 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 Company or another Restricted Subsidiary of the Company;

     (5) the repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of the Company or any Restricted Subsidiary of the Company held by any
current or former officer, director or employee of the Company or any of its Restricted
Subsidiaries pursuant to any equity subscription agreement, stock option agreement,
shareholders’ or members’ agreement or similar agreement, plan or arrangement, provided that
the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity
Interests may not exceed $2.0 million for each fiscal year (with unused amounts in any
calendar year being permitted to be carried over into succeeding calendar years) and $5.0
million in the aggregate during the term of the Notes; provided further that the amount in
any calendar year may be increased by an amount not to exceed the sum of (x) in each case
net of the aggregate net cash proceeds received from such persons after the Issue Date from
the issuance of or equity contributions with respect to our Equity Interests (other than
Disqualified Stock) of the Company to officers, employees, directors or consultants of the
Company and its Restricted Subsidiaries that occurs after the Issue Date, to the extent such
net cash proceeds have not otherwise been previously applied to the payment of any
Restricted Payments and (y) the cash proceeds of key man insurance received by the Company
or any Restricted Subsidiary after the Issue Date, to the extent such cash proceeds have not
otherwise been previously applied to the payment of

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Restricted Payments (the Company being entitled to elect to use all or any portion of
the aggregate increase contemplated by clauses (x) and (y) within one year of such net cash
proceeds being received by the Company);

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

     (7) 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 Restricted Subsidiary of
the Company issued on or after the Issue Date in accordance with the Fixed Charge Coverage
Ratio test set forth in the first sentence of Section 4.12;

     (8) the satisfaction of change of control obligations once the Company has fulfilled
its obligations under this Indenture with respect to a Change of Control;

     (9) the repayment of intercompany debt to the Company or any Guarantor that was
permitted to be incurred under this Indenture;

     (10) other Restricted Payments in an aggregate amount then outstanding not to exceed
$5.0 million since the Issue Date; and

     (11) the pledge by the Company or any Restricted Subsidiary of the Capital Stock of an
Unrestricted Subsidiary of the Company or such Restricted Subsidiary, as applicable, to
secure Non-Recourse Debt of such Unrestricted Subsidiary.

     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
Section 4.10 will be determined by the Company or, if such Fair Market Value is in excess
of $5.0 million, by the relevant Board of Directors, whose resolution with respect thereto will be
delivered to the Trustee. In the case of a determination of Fair Market Value in excess of $10.0
million, such Board of Directors’ determination must be based upon an opinion or appraisal issued
by an accounting, appraisal or investment banking firm of national standing. In determining
whether any Restricted Payment is permitted by this Section 4.10, the Company may allocate
all or any portion of such Restricted Payment among the categories described in clauses (1) through
(11) of the immediately preceding paragraph or among such categories and the types of Restricted
Payments described in the first paragraph of this Section 4.10; provided that at the time
of such allocation, all such Restricted Payments, or allocated portions thereof, would be permitted
under the various provisions of this Section 4.10.

          SECTION 4.11 Limitations on Transactions with Affiliates.

     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 (other
than Non-Facility 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 Sterling Chemicals (each, an “Affiliate Transaction”), in one or
more transactions involving aggregate consideration in excess of $1.0 million, unless:

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     (1) the Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary than those that might reasonably have been
obtained in a comparable transaction by the Company or such Restricted Subsidiary on an
arm’s length basis with an unrelated Person; and

     (2) the Company obtains and retains:

     (a) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $5.0 million, a
resolution of its Board of Directors set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with this Section 4.11
and that such Affiliate Transaction has been approved by a majority of the
disinterested members of its Board of Directors; and

     (b) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $10.0 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.

     The following items will not be deemed to be Affiliate Transactions and, therefore, will not
be subject to the provisions of the prior paragraph:

     (1) any employment agreement, employee benefit plan, officer and director
indemnification agreement or any similar arrangement entered into by the Company or any of
its Restricted Subsidiaries (including the payment of, or an agreement providing for the
payment of, reasonable directors’ fees) in the ordinary course of business;

     (2) transactions between or among the Company and/or its Restricted Subsidiaries;

     (3) any issuance of Equity Interests (other than Disqualified Stock) of the Company to
Affiliates of the Company and the grant and performance of registration rights;

     (4) Permitted Investments described in clauses (6), (8), (9) or (16) of the definition
thereof or Restricted Payments that do not violate Section 4.10;

     (5) any transaction in which the Company or any of its Restricted Subsidiaries, as the
case may be, obtains and retains a letter from an accounting, appraisal or investment
banking firm of national standing stating that such transaction is fair to the Company or
such Restricted Subsidiary from a financial point of view or that such transaction meets the
requirements of clause (1) of the preceding paragraph;

     (6) if such Affiliate Transaction is with a Person in its capacity as a holder of
Indebtedness or Capital Stock of the Company or any Restricted Subsidiary where such Person
is treated no more favorably than the other holders of Indebtedness or Capital Stock of the
Company or any Restricted Subsidiary;

     (7) transactions effected pursuant to agreements in effect on the Issue Date and any
amendment, modification or replacement of such agreement (so long as such amendment or
replacement is not in the good faith judgment of the Company’s Board of Directors materially
more disadvantageous to the Holders, taken as a whole, than the original agreement as in
effect on the Issue Date);

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     (8) transactions with Unrestricted Subsidiaries, customers, clients, suppliers, joint
venture partners or purchasers or sellers of goods or services, or lessors or lessees of
property, in each case in the ordinary course of business and otherwise in compliance with
the terms of this Indenture which are, in the aggregate (taking into account all the costs
and benefits associated with such transactions), materially no less favorable to the Company
and its Restricted Subsidiaries than those that would have been obtained in a comparable
transaction by the Company or such Restricted Subsidiary with an unrelated Person, in the
good faith judgment of the Company’s Board of Directors or senior management thereof, or are
on terms at least as favorable as might reasonably have been obtained at such time on an
arm’s-length basis from an unaffiliated party;

     (9) operating or similar agreements with Affiliates pursuant to which the Company or a
Restricted Subsidiary operates the properties or assets of any Affiliate in exchange for
reimbursement of costs, with or without any additional consideration;

     (10) any capital contribution to any Affiliate otherwise permitted by this Indenture or
any other Permitted Investment in an Affiliate;

     (11) ground leases of Non-Facility Assets for nominal or no consideration.

          SECTION 4.12 Incurrence of Indebtedness and Issuance of Preferred Stock.

     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 other than to the
Company or another Restricted Subsidiary; provided, however, that the Company or any Guarantor may
incur Indebtedness (including Acquired Debt) or issue Disqualified Stock and any of its 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 preferred stock is issued would
have been at least 2.0 to 1 determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if such additional Indebtedness had been incurred or Disqualified
Stock or the preferred stock had been issued, as the case may be, at the beginning of such
four-quarter period.

     The first paragraph of this Section 4.12 will not prohibit the incurrence of any of
the following items of Indebtedness (collectively, “Permitted Debt”):

     (1) Indebtedness evidenced by the Existing Notes in aggregate principal amount of up to
$101.6 million and any related Guarantees;

     (2) Indebtedness under the Credit Facilities in an aggregate principal amount not
exceeding $50.0 million at any time outstanding and any related Guarantees;

     (3) Indebtedness represented by the Notes and the related Note Guarantees issued on the
Issue Date;

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     (4) Indebtedness solely represented by premium financing or similar deferred payment
obligations incurred with respect to insurance policies purchased in the ordinary course of
business and consistent with past practice;

     (5) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings, purchase money obligations or
other Indebtedness or preferred stock, or synthetic lease obligations, in each case incurred
for the purpose of financing all or any part of the purchase price or cost of design,
development, construction, installation or improvement of property (real or personal and
including acquisitions of Capital Stock), plant or equipment used in a Permitted Business of
the Company or such Restricted Subsidiary (in each case, whether through the direct purchase
of such assets or the Equity Interests of any Person owning such assets), or repairs,
additions or improvements to such assets, in an aggregate principal amount, including all
Permitted Refinancing Indebtedness incurred to refund, refinance or replace any Indebtedness
incurred pursuant to this clause (5), not to exceed $5.0 million at any time outstanding;

     (6) 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 extend,
renew, refund, refinance, replace, defease or discharge, Indebtedness (other than
intercompany Indebtedness) that was permitted by this Indenture to be incurred under the
first paragraph of this Section 4.12 or clauses (3), (6) and (14) of this paragraph;

     (7) 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 (i) permitted as
a Permitted Investment described in clause (1)(b) of the definition thereof and (ii)
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) (i) 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 (ii) any sale or other transfer of any such
Indebtedness to a Person that is not any of the Company, a Guarantor or, in the case
where the payor on such intercompany Indebtedness is not the Company or a Guarantor,
any 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 (7);

     (8) the issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of shares of Disqualified Stock or preferred stock;
provided, however, that if the issuer of such shares of Disqualified Stock or preferred
stock is a Restricted Subsidiary of the Company that is not a Guarantor and the purchaser of
such shares is the Company or a Guarantor, such Investment must be permitted as a Permitted
Investment described in clause (1)(b) of the definition thereof and

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     (a) any subsequent issuance or transfer of Equity Interests that results in any
such Disqualified Stock or 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 Disqualified Stock or preferred
stock to a Person that is not any of the Company, a Guarantor or, in the case where
the issuer of such Disqualified Stock or preferred stock is not a Guarantor, any
Restricted Subsidiary of the Company,

will be deemed, in each case, to constitute an issuance of such Disqualified Stock or
preferred stock by such Restricted Subsidiary that was not permitted by this clause (8);

     (9) the incurrence by the Company or any of its Restricted Subsidiaries of Hedging
Obligations in the ordinary course of business;

     (10) the Guarantee by the Company or any Restricted Subsidiary of the Company of
Indebtedness of the Company or a Guarantor that was permitted to be incurred by another
provision of this Section 4.12; provided that if the Indebtedness being guaranteed
is subordinated in right of payment to the Notes or a Note Guarantee, then the Guarantee
shall be subordinated in right of payment to the same extent as the Indebtedness guaranteed;

     (11) the Guarantee by any Restricted Subsidiary of the Company that is not a Guarantor
of Indebtedness of the Company or any other Restricted Subsidiary that was permitted to be
incurred by another provision of this Section 4.12;

     (12) the incurrence by the Company or any of the Restricted Subsidiaries of
Indebtedness in respect of letters of credit and bankers acceptances issued in the ordinary
course and not supporting Indebtedness, including in respect of workers’ compensation
claims, payment obligations in connection with health or other types of social security
benefits, unemployment or other insurance or self-insurance obligations, performance and
surety, appeal, environmental assurance and similar bonds or indemnification, adjustment of
purchase price or similar obligations incurred in connection with the disposition of any
business or assets;

     (13) the incurrence by the Company or any of the Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds; provided, however, that such Indebtedness is extinguished within
three business days of incurrence;

     (14) Indebtedness, Disqualified Stock or preferred equity of any Person that is
acquired by the Company or any of its Restricted Subsidiaries or merged into or consolidated
with, or transfers substantially all of its assets to, a Restricted Subsidiary in accordance
with the terms of this Indenture; provided, however, that all such Indebtedness,
Disqualified Stock or preferred equity does not exceed $5.0 million in the aggregate at any
time outstanding and is not incurred or issued in contemplation of such acquisition or
merger or to provide all or a portion of the funds or credit support required to consummate
such acquisition or merger; and

     (15) the incurrence by the Company or any of the Restricted Subsidiaries of additional
Indebtedness or issuance of shares of Disqualified Stock or preferred stock in an aggregate
principal amount (or accreted value, as applicable) at any time outstanding not to exceed
$5.0 million.

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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.

     For purposes of determining compliance with this Section 4.12, in the event that an
item of proposed Indebtedness meets the criteria of more than one of the categories of Permitted
Debt described in clauses (1) through (15) above, or is entitled to be incurred pursuant to the
first paragraph of this Section 4.12, the Company will be permitted to classify such item
of Indebtedness, Disqualified Stock or preferred equity or any portion thereof on the date of its
incurrence, and will only be required to include the amount and, type of such Indebtedness,
Disqualified Stock or preferred equity in one of the above clauses or as having been incurred
pursuant to the first paragraph of this Section 4.12, although the Company may divide and
classify an item of Indebtedness, Disqualified Stock or preferred equity in one or more of the
categories of Permitted Debt described in such clauses or as having been incurred pursuant to the
first paragraph of this Section 4.12 and may later reclassify all or a portion of such item
of Indebtedness, Disqualified Stock or preferred equity, in any manner that complies with this
Section 4.12. The accrual of interest or dividends, the accretion of accreted value 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 equity as
Indebtedness due to a change in accounting principles, and the payment of dividends on Disqualified
Stock or preferred stock in the form of additional shares of the same class of Disqualified Stock
or preferred stock will not be deemed to be an incurrence of Indebtedness or an issuance of
Disqualified Stock or preferred stock for purposes of this Section 4.12; provided, in each
such case (other than preferred stock that is not Disqualified Stock), that the amount of any such
accrual, accretion or amortization or payment (without duplication) is included in Fixed Charges of
the Company as accrued, accreted or amortized or paid. Notwithstanding any other provision of this
Section 4.12, the maximum amount of Indebtedness that the Company or any Restricted
Subsidiary may incur pursuant to this Section 4.12 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 asset at the date of determination, and

     (B) the amount of such Indebtedness of the other Person.

Notwithstanding anything to the contrary under this Section 4.12, the Company shall repay
in full the Indebtedness described in clause (1) of the second paragraph of this Section
4.12 no later than the 31st day following the Issue Date with the funds held in the Escrow
Account.

          SECTION 4.13 Limitation on Dividend and Other Payment Restrictions Affecting Restricted
Subsidiaries.

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     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:

     (a) 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;

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

     (c) transfer any of its properties or assets to the Company or any of its Restricted
Subsidiaries;

provided, however, that the preceding restrictions will not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements governing Indebtedness outstanding on the Issue Date, the Credit
Agreement and Credit Facilities as in effect on the Issue Date and any amendments,
modifications, restatements, renewals, increases, supplements, refundings, replacements or
refinancings of those agreements; provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacement or refinancings are not, in the
good faith judgment of the Board of Directors of the Company, materially more restrictive,
taken as a whole, with respect to such dividend and other payment restrictions than those
contained in those agreements on the Issue Date;

     (2) this Indenture, the Notes, the Note Guarantees and the Collateral Documents;

     (3) applicable law, rule, regulation, order, approval, license, permit or similar
restriction;

     (4) (a) 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 property or assets of the Person, so acquired; provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred;
and (b) any amendment, modification, replacement or refinancing thereof; provided, however,
that such encumbrances or restrictions are not, in the good faith judgment of the Board of
Directors of the Company, materially more restrictive, taken as a whole, with respect to
consensual encumbrances or restrictions set forth in clauses (a), (b) or (c) of the
preceding paragraph than on such encumbrance or restriction prior to such amendment,
modification, replacement or refinancing;

     (5) customary non-assignment provisions in contracts and licenses entered into in the
ordinary course of business;

     (6) any agreement for the sale or other disposition of all or substantially all of the
Capital Stock or assets of a Restricted Subsidiary that restricts distributions, loans or
transfers by that Restricted Subsidiary pending the sale or other disposition;

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     (7) Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are, in the good faith judgment
of the Company’s Board of Directors, not materially more restrictive, taken as a whole, with
respect such consensual encumbrance or restriction set forth in clauses (a), (b) or (c) of
the preceding paragraph than those contained in the agreements governing the Indebtedness
being refinanced, extended, renewed, refunded, refinanced, replaced, defeased or discharged;

     (8) Liens permitted to be incurred under the provisions of Section 4.18 that
limit the right of the debtor to dispose of the assets subject to such Liens;

     (9) provisions in joint venture agreements, asset sale agreements, limited liability
company organizational documents, sale-leaseback agreements, stock sale agreements and other
similar agreements entered into with the approval of the Company’s Board of Directors, which
limitation is applicable only to the assets that are the subject of such agreements;

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

     (11) other Indebtedness or Disqualified Stock or preferred stock of Restricted
Subsidiaries permitted to be incurred subsequent to the Issue Date pursuant to the
provisions of Section 4.12; provided that such restrictions, taken as a whole, are,
in the good faith judgment of the Company’s Board of Directors, no more materially
restrictive, taken as a whole, with respect to consensual encumbrances or restrictions set
forth in clauses (a), (b) or (c) of the preceding paragraph, than those customary in
comparable financings (as reasonably determined by the Company’s Board of Directors);

     (12) encumbrances on property that exist at the time the property was acquired by the
Company or a Restricted Subsidiary; and

     (13) contractual encumbrances or restrictions in effect on the Issue Date, and any
amendments, restatements, modifications, supplements, renewals, extensions, refundings,
replacements or refinancings of those agreements; provided that the amendments,
restatements, modifications, supplements, renewals, extensions, refundings, replacements or
refinancings are not, in the good faith judgment of the Company’s Board of Directors,
materially more restrictive, taken as a whole, with respect to consensual encumbrances or
restrictions set forth in clauses (a), (b) or (c) of the preceding paragraph than those
contained in those agreements on the Issue Date.

          SECTION 4.14 Additional Note Guarantees.

     If the Company or any of its Restricted Subsidiaries acquires or creates another Subsidiary
that is not an Unrestricted Subsidiary after the Issue Date, then that newly acquired or created
Domestic Subsidiary that is not an Unrestricted Subsidiary will, within 10 business days of the
date on which it was acquired or created, (a) become a Guarantor and execute and deliver to the
Trustee (i) a supplemental indenture in form reasonably satisfactory to the Trustee pursuant to
which such Domestic Subsidiary that is a Restricted Subsidiary shall guarantee the Note Obligations
on the terms set forth in Article Ten of this Indenture and (ii) a supplement to the
Security Agreement and such other Collateral Documents as may be applicable; (b) cause such
instruments and Uniform Commercial Code financing statements to be filed and recorded in such
jurisdictions and take such other actions as may be required by applicable law to perfect the Note
Lien created under the Security Agreement and such other Collateral Documents, if any, on the Note
Collateral owned by Domestic Subsidiary; and (c) deliver to the Trustee within 10 business days of
the date on which it was acquired or created a customary Opinion of Counsel addressed to the

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Trustee and covering, among other things, the enforceability of such Indenture Documents and
the perfection of the Note Liens purportedly created thereby.

          SECTION 4.15 Repurchase upon Change of Control.

          (a) Upon the occurrence of a Change of Control, each Holder will have the right to require the
Company to repurchase all or a portion (equal to $1,000 or in integral multiples of $1,000) of such
Holder’s Notes using immediately available funds pursuant to the offer described below (the
“Change of Control Offer”), at a repurchase price in cash equal to 101% of the aggregate
principal amount thereof on the date of repurchase, plus accrued and unpaid interest, if any, to
(but not including) the date of repurchase.

          (b) Within 30 days following the date upon which the Change of Control occurred, the Company
shall send by registered first-class mail, postage prepaid, a notice to each record Holder as shown
on the register of Holders, with a copy to the Trustee, which notice shall govern the terms of the
Change of Control Offer. The notice to the Holders shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Change of Control Offer. Such
notice shall state:

     (1) that the Change of Control Offer is being made pursuant to this Section
4.15 and that all Notes tendered and not withdrawn shall be accepted for payment;

     (2) the repurchase price (including the amount of accrued interest) and the repurchase
date (which shall be no earlier than thirty (30) days nor later than sixty (60) days from
the date such notice is mailed, other than as may be required by law) (the “Change of
Control Payment Date”);

     (3) that any Note not tendered shall continue to accrue interest;

     (4) that, unless the Company defaults in making payment therefor, any Note accepted for
payment pursuant to the Change of Control Offer shall cease to accrue interest after the
Change of Control Payment Date;

     (5) that Holders electing to have a Note repurchased pursuant to a Change of Control
Offer shall be required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address
specified in the notice prior to the close of business on the third Business Day prior to
the Change of Control Payment Date;

     (6) that Holders shall be entitled to withdraw their election if the Paying Agent
receives, not later than three (3) Business Days prior to the Change of Control Payment
Date, a telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Notes the Holder delivered for repurchase and a
statement that such Holder is withdrawing its election to have such Notes repurchased;

     (7) that Holders whose Notes are repurchased only in part shall be issued new Notes in
a principal amount equal to the unpurchased portion of the Notes surrendered;
provided that each Note repurchased and each new Note issued shall be in an original
principal amount of $1,000 or integral multiples thereof; and

     (8) the circumstances and relevant facts regarding such Change of Control.

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     If any of the Notes subject to the Change of Control Offer is in the form of a Global Note,
then the Company shall modify such notice to the extent necessary to comply with the procedures of
the Depositary applicable to repurchases.

     On or before the Change of Control Payment Date, the Company shall, to the extent lawful (i)
accept for payment Notes or portions thereof properly tendered pursuant to the Change of Control
Offer, (ii) deposit with the Paying Agent U.S. Legal Tender sufficient to pay the repurchase price
plus accrued interest, if any, of all Notes or portions thereof so properly tendered and (iii)
deliver or cause to be delivered to the Trustee the Notes so properly accepted together with an
Officers’ Certificate stating the aggregate principal amount of Notes or portions thereof being
repurchased by the Company. The Paying Agent shall promptly mail or pay by wire transfer to the
Holders of Notes so properly tendered and so accepted the repurchase price for such Notes and the
Company shall promptly issue and the Trustee shall 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; provided that each such new Note shall be in a
principal amount of $1,000 or an integral multiple thereof. Any Note so accepted for repurchase
will cease to accrue interest on and after the Change of Control Payment Date. Any Notes not so
accepted shall be promptly mailed by the Company to the Holders thereof. For purposes of this
Section 4.15, the Trustee shall act as the Paying Agent.

     The Company will publicly announce the results of the Change of Control Offer on or as soon as
reasonably practicable after the Change of Control Payment Date. Any amounts remaining after the
repurchase of Notes pursuant to a Change of Control Offer shall be returned by the Trustee to the
Company.

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

     Notwithstanding the above, the Company shall not be required to make a Change of Control Offer
upon a Change of Control if (i) a third party makes the Change of Control Offer in the manner, at
the times and otherwise in compliance with the requirements of this Section 4.15 and
repurchases all Notes properly tendered and not withdrawn under such Change of Control Offer or
(ii) a notice with respect to the redemption of all Notes has been given pursuant to Section 3.01
hereof.

     Notes (or portions thereof) repurchased pursuant to a Change of Control Offer shall be
cancelled and may not be reissued.

          SECTION 4.16 Limitation on 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 of the
assets or Equity Interests issued or sold or otherwise disposed of;

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     (2) at least 75% of the consideration received in the Asset Sale by the Company or such
Restricted Subsidiary is in the form of cash or Cash Equivalents; provided, however, that,
for purposes of this Section 4.16, each of the following will be deemed to be cash:

     (a) any liabilities of the Company or any Restricted Subsidiary that would
otherwise be required to be included on the Company’s consolidated balance sheet
(other than contingent liabilities and liabilities that are by their terms
subordinated in right of payment to the Notes or any Note Guarantee) that are
assumed by the transferee of any such assets pursuant to a customary novation
agreement that releases the Company or such Restricted Subsidiary from further
liability;

     (b) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are converted by the Company or
such Restricted Subsidiary into cash or Cash Equivalents within 90 days after
receipt thereof, to the extent of the cash or Cash Equivalents received in that
conversion; and

     (c) any property or assets that are used or useful in a Permitted Business or
all of the Capital Stock (other than Disqualified Stock) of any Person engaged in a
Permitted Business if, as a result of the acquisition by the Company or any
Restricted Subsidiary thereof, that Person becomes a Guarantor (provided, that if
the assets that were the subject of such Asset Sale constituted Primary Collateral
or the Capital Stock of a Guarantor, this clause (c) shall only be limited to such
property or assets that constitute Primary Collateral or all of the Capital Stock
(other than Disqualified Stock) of any such Person that is or becomes a Guarantor);

provided further, however, that the 75% requirement referred to in this clause (2) will not
apply to any Asset Sale in which the cash or Cash Equivalents portion of the consideration
received therefrom, determined in accordance with subclauses (a), (b) and (c) above, is
equal to or greater than what the after-tax proceeds would have been had that Asset Sale
complied with the aforementioned 75% limitation; and

     (3) if such Asset Sale involves the disposition of Secondary Collateral, the proceeds
are applied in accordance with the Intercreditor Agreement to the extent required therein;

provided, however, that clauses (1) and (2) of the foregoing paragraph need
not be satisfied to the extent the Note Collateral to be released consists solely of
Secondary Collateral with respect to which the required lenders under the ABL Facility have
given their consent and authorized the release of same or to the extent the Secondary
Collateral to be released is disposed of by such Credit Facility Agent on behalf of the
lenders in connection with the exercise of rights or remedies under the ABL Facility, in
each case so long as (x) the Collateral Agent is required to release its lien thereon
pursuant to the terms of the Intercreditor Agreement and (y) the proceeds therefrom are
applied in accordance with the Intercreditor Agreement.

     Within 360 days after the receipt of any Net Proceeds from an Asset Sale, the Company (or the
applicable Restricted Subsidiary, as the case may be) shall:

     (a) apply those Net Proceeds, at its option:

     (1) to acquire all or substantially all of the assets of, or all of the Capital
Stock (other than Disqualified Stock) of, another Permitted Business, if, after
giving

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effect to any such acquisition of Capital Stock (other than Disqualified
Stock), the Permitted Business is or becomes a Guarantor;

     (2) in the case where the asset that was the subject of such Asset Sale was not
Primary Collateral or the Capital Stock of a Guarantor, to make a capital
expenditure;

     (3) to acquire other, or make improvements to, assets that constitute Primary
Collateral and that are used or useful in a Permitted Business; or

     (4) to any combination of the foregoing; or

     (b) enter into a binding commitment for any such application pursuant to clause (a)
above; provided that such binding commitment shall be treated as a permitted application of
the Net Proceeds from the date of such commitment until the earlier of (x) the date on which
such acquisition, or expenditure is consummated, and (y) the 180th day following the
expiration of the aforementioned 360-day period. If the acquisition or expenditure
contemplated by such binding commitment is not consummated on or before such 180th day and
the Company or such Restricted Subsidiary shall not have otherwise applied such Net Proceeds
pursuant to clause (1), (2), (3) or (4) of this paragraph on or before such 180th day, such
commitment shall be deemed not to have been a permitted application of Net Proceeds.

     Pending the final application of any Net Proceeds, the Company may temporarily reduce
revolving Indebtedness or otherwise invest the Net Proceeds in Cash Equivalents.

     Any Net Proceeds from Asset Sales that are not applied or invested as provided in the
preceding paragraph will constitute “Excess Proceeds”. When the aggregate amount of Excess
Proceeds exceeds $7.5 million (the date of such occurrence is referred to herein as the “Asset
Sale Offer Trigger Date”), within 30 days thereof, the Company will make an offer to all
Holders to purchase (the “Asset Sale Offer”) the maximum principal amount of Notes that may
be repurchased out of all such Excess Proceeds. The offer price in any Asset Sale Offer will be
equal to 100% of principal amount plus accrued and unpaid interest to the date of repurchase, and
will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
the Company may use those Excess Proceeds for any purpose not otherwise prohibited by this
Indenture. If the aggregate principal amount of Notes tendered into such Asset Sale Offer exceeds
the amount of Excess Proceeds, the Trustee will select the Notes to be repurchased on a pro rata
basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at
zero.

     Each notice of an Asset Sale Offer shall be mailed first class, postage prepaid, to the record
Holders as shown on the register of Holders within 30 days following the Asset Sale Offer Trigger
Date, with a copy to the Trustee, and shall comply with the procedures set forth in this Indenture.
Upon receiving notice of the Asset Sale Offer, Holders may elect to tender their Notes in whole or
in part in integral multiples of $1,000 in exchange for cash. To the extent Holders properly
tender Notes in an amount exceeding the amount of such Excess Proceeds, Notes of tendering Holders
will be repurchased on a pro rata basis (based on amounts tendered).

     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 this Section
4.16, the Company will comply with the applicable securities laws and regulations and will not
be deemed to have breached its obligations under this Section 4.16 by virtue of such
compliance.

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          SECTION 4.17 Repurchase Upon Event of Loss.

     In the event of an Event of Loss, the Company or the affected Restricted Subsidiary of the
Company, as the case may be, may apply the Net Loss Proceeds from such Event of Loss, with no
concurrent obligation to offer to purchase any of the Notes either:

     (a) to the rebuilding, repair, replacement or construction of improvements to the
property affected by such Event of Loss;

     (b) to make capital expenditures with respect to Primary Collateral or to acquire
properties or assets that will:

     (i) constitute Primary Collateral; and

     (ii) be used in any Permitted Business of the Company and its Restricted
Subsidiaries, or

     (c) for a combination of the actions set forth in the foregoing clauses (a) and (b).

     Any Net Loss Proceeds that are not reinvested as provided in the first sentence of this
Section 4.17 within 360 days of such Event of Loss will be deemed “Excess Loss
Proceeds”. When the aggregate amount of Excess Loss Proceeds exceeds $5.0 million (the date of
such occurrence is referred to herein as the “Event of Loss Offer Trigger Date”), the
Company will make an offer (an “Event of Loss Offer”) to all Holders to repurchase with the
proceeds of Events of Loss the maximum principal amount of Notes that may be prepaid out of the
Excess Loss Proceeds. The offer price in any Event of Loss Offer will be equal to 100% of the
principal amount plus accrued and unpaid interest to the date of repurchase, and will be payable in
cash. If any Excess Loss Proceeds remain after consummation of an Event of Loss Offer, the Company
may use such Excess Loss Proceeds for any purpose not otherwise prohibited by this Indenture;
provided that any remaining Net Loss Proceeds shall remain subject to the Note Lien. If the
aggregate principal amount of Notes tendered pursuant to an Event of Loss Offer exceeds the Excess
Loss Proceeds, the Trustee will select the Notes to be repurchased on a pro rata basis based on the
aggregate principal amount of Notes outstanding. Upon completion of each Event of Loss Offer, the
amount of Excess Loss Proceeds will be reset at zero.

     Each notice of an Event of Loss Offer shall be mailed first class, postage prepaid, to the
record Holders as shown on the register of Holders within 30 days following the Event of Loss Offer
Trigger Date, with a copy to the Trustee, and shall comply with the procedures set forth in this
Indenture. Upon receiving notice of the Event of Loss Offer, Holders may elect to tender their
Notes in whole or in part in integral multiples of $1,000 in exchange for cash. To the extent
Holders properly tender Notes in an amount exceeding the amount of such Net Loss Proceeds, Notes of
tendering Holders will be repurchased on a pro rata basis (based on amounts tendered).

     All Net Loss Proceeds shall, pending their application in accordance with this Section
4.17 or the release thereof in accordance with the provisions described under Article
Twelve, be invested in Cash Equivalents or applied to temporarily reduce revolving
Indebtedness.

     With respect to any Event of Loss pursuant to clause (4) of the definition of “Event of Loss”
that has a Fair Market Value (or replacement cost, if greater) in excess of $2.5 million, the
Company (or the affected Guarantor, as the case may be), shall be required to receive consideration
(i) at least equal to 75% of the Fair Market Value (evidenced by a resolution of the Board of
Directors set forth in an Officers’

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Certificate delivered to the Trustee) of the assets subject to the Event of Loss and (ii) at
least 75% of which is in the form of cash or Cash Equivalents.

     The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to an Event of Loss Offer. To
the extent that the provisions of any applicable securities laws or regulations conflict with this
Section 4.17, the Company will comply with such securities laws and regulations and shall
not be deemed to have breached its obligations under this Section 4.17 by virtue thereof.

          SECTION 4.18 Limitation on Liens.

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

          SECTION 4.19 Business Activities.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses.

          SECTION 4.20 Limitation on Issuances and Sales of Equity Interests in Restricted
Subsidiaries.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, transfer,
convey, sell or otherwise dispose of any Capital Stock in any Restricted Subsidiary of the Company
to any Person (other than the Company or a Wholly-Owned Restricted Subsidiary of the Company and
except for such issuances of shares of Capital Stock constituting directors’ qualifying shares or
issuances to foreign nationals of shares of Capital Stock of a Foreign Subsidiary, in each case to
the extent required by applicable law), unless:

     (1) such transfer, conveyance, sale or other disposition is of all the Equity Interests
in such Restricted Subsidiary;

     (2) the Net Proceeds from such transfer, conveyance, sale or other disposition are
applied in accordance with Section 4.16; and

     (3) if, immediately after giving effect to such issuance or sale, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect to such issuance or sale would have been permitted to
be made pursuant to Section 4.10 if made on the date of such issuance or sale.

          SECTION 4.21 Payments for Consent.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of any Holder for or as
an inducement to any consent, waiver or amendment of any of the terms or provisions of any
Indenture Document, the registration rights agreement with respect to which such Holder is a
beneficiary or the Intercreditor Agreement unless such consideration is offered to be paid and is
paid to all Holders that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

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          SECTION 4.22 Impairment of Security Interest.

     Neither the Company nor any of its Restricted Subsidiaries will take or omit to take any
action which would adversely affect or impair in any material respect the Note Liens in favor of
the Trustee with respect to the Note Collateral, except in the case where such Note Collateral
constitutes Secondary Collateral, to the extent required or permitted under the Intercreditor
Agreement. Neither the Company nor any Guarantor shall grant to any Person (other than the
Trustee), or permit any Person (other than the Trustee), to retain any interest whatsoever in the
Note Collateral other than Permitted Liens. Neither the Company nor any Guarantor will enter into
any agreement that requires the proceeds received from any sale of Note Collateral to be applied to
repay, redeem, defease or otherwise acquire or retire any Indebtedness of any Person, other than as
permitted by this Indenture, the Notes and the Collateral Documents. The Company shall, and shall
cause each Guarantor to, at their sole cost and expense, execute and deliver all such agreements
and instruments as the Trustee shall reasonably request to more fully or accurately describe the
property intended to be Note Collateral or the obligations intended to be secured by the Collateral
Documents. The Company shall, and shall cause each Guarantor to, at their sole cost and expense,
file any such notice filings or other agreements or instruments as may be reasonably necessary or
desirable under applicable law to perfect the Note Liens created by the Collateral Documents at
such times and at such places as the Trustee may reasonably request.

          SECTION 4.23 Designation of Restricted and Unrestricted Subsidiaries.

     The relevant Board of Directors of the Company or any of its Restricted Subsidiaries may
designate any of its Restricted Subsidiaries (including any newly acquired or newly formed
Subsidiary or Person becoming a Subsidiary through merger or consolidation or Investment therein)
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, unless such Investment is a Permitted Investment, will reduce the amount available
for Restricted Payments under Section 4.10 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 relevant Board of Directors may redesignate any
Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a
Default.

          SECTION 4.24 Additional Interest.

     If Additional Interest becomes payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee an Officers’ Certificate stating (i) the amount
of Additional Interest due and payable, (ii) the Section of the Registration Rights Agreement
pursuant to which Additional Interest is due and payable and (iii) the date on which Additional
Interest is payable. Unless and until a Trust Officer of the Trustee receives such an Officers’
Certificate, the Trustee may assume without inquiry that no Additional Interest is payable;
provided, that the failure of the Company to deliver to the Trustee such Officers’ Certificate
shall not relieve the Company of its obligation to pay any such Additional Interest when due and
payable.

ARTICLE FIVE

SUCCESSOR CORPORATION

          SECTION 5.01 Merger, Consolidation and Sale of Assets.

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     The Company may not, directly or indirectly, (1) consolidate or merge with or into another
Person (whether or not the Company is the surviving entity); or (2) sell, assign, transfer, convey,
lease 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 entity; 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,
lease or other disposition has been made is a corporation organized or existing
under the laws of the United States, any state of the United States or the District
of Columbia;

     (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, lease or
other disposition has been made assumes all the obligations of the Company under the Notes,
this Indenture, and the Collateral Documents pursuant to agreements reasonably satisfactory
to the Trustee and in connection therewith shall cause such instruments and Uniform
Commercial Code financing statements to be filed and recorded in such jurisdictions and take
such other actions as may be required by applicable law to perfect or continue the
perfection of the Note Lien created under the Collateral Documents on the Note Collateral
owned by or transferred to such Person;

     (3) immediately before and after giving effect to such transaction, no Default or Event
of Default shall have occurred and is continuing;

     (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, lease
or other disposition has been made, will, 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, be permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the
first paragraph of Section 4.12; and

     (5) the Company or such other Person shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that the consummation of such
consolidation, merger, sale, assignment, transfer, conveyance, lease or other disposition on
the terms proposed and, if such an assumption is required in connection with such
transaction, such assumption, will comply with the applicable provisions of this Indenture
and that all conditions precedent in this Indenture relating to such transaction as proposed
will, upon consummation of such transaction as proposed, will be satisfied.

     The conditions set forth in clauses (3) and (4) of the first paragraph of this Section
5.01 will not apply to:

     (1) a merger of the Company with an Affiliate solely for the purpose of reincorporating
the Company in another jurisdiction or reorganizing into a holding company structure; or

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     (2) any consolidation or merger, or any sale, assignment, transfer, conveyance, lease
or other disposition of assets between or among the Company and any of its Restricted
Subsidiaries that are or become Guarantors.

     For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties or
assets of one or more Restricted Subsidiaries of the Company, the Capital Stock of which
constitutes all or substantially all of the properties and assets of the Company shall be deemed to
be the transfer of all or substantially all of the properties and assets of the Company.

          SECTION 5.02 Successor Corporation Substituted.

     Upon any consolidation, combination or merger or any transfer of all or substantially all of
the assets of the Company in accordance with the foregoing, in which the Company is not surviving
or the continuing corporation, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under this Indenture and
the Notes with the same effect as if such surviving entity had been named as such. Upon such
substitution, the Company and any Guarantors that remain Subsidiaries of the Company shall be
released from their obligations under the Notes, this Indenture, the Note Guarantees and the
Collateral Documents.

ARTICLE SIX

DEFAULT AND REMEDIES

          SECTION 6.01 Events of Default.

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

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

     (2) the failure to pay the principal of or premium, if any, on any Notes, when such
principal or premium, if any, becomes due and payable, at maturity, upon redemption or
otherwise;

     (3) default in the payment of principal of and interest on Notes required to be
repurchased pursuant to a Change of Control Offer, an Asset Sale Offer or an Event of Loss
Offer as described under Section 4.15, 4.16 or 4.17, respectively,
when due and payable

     (4) failure to perform or comply with any of the provisions described under Section
5.01 or 10.04;

     (5) failure by the Company or any of its Restricted Subsidiaries to perform any
covenant or agreement in the Indenture Documents (other than any default described in clause
(1), (2), (3) or (4) above), and the default continues for 45 days after written notice to
the Company by the Trustee or Holders of at least 25% in aggregate principal amount of the
Notes then outstanding voting as a single class;

     (6) 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

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the Company or any of its Significant Subsidiaries or group of Restricted Subsidiaries
that taken as a whole would constitute a Significant Subsidiary (or the payment of which is
guaranteed by the Company or any of its Significant Subsidiaries), whether such Indebtedness
or guarantee now exists or is created after the Issue Date (but excluding Indebtedness owing
to the Company or a Guarantor), if that default:

     (a) is caused by a failure to pay any portion of the principal of such
Indebtedness when due and payable after the expiration of the grace period provided
in such Indebtedness (a “Payment Default”); or

     (b) results in the acceleration of such Indebtedness prior to its Stated
Maturity (which acceleration is not rescinded, annulled or otherwise cured within 20
days of receipt by the Company or such Restricted Subsidiary of notice of any such
acceleration),

and, in each case, the principal amount of any such Indebtedness so due and payable or that
has been accelerated, together with the principal amount that is so due and payable or that
has been accelerated 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;

     (7) the rendering of a final judgment or judgments (not subject to appeal) against the
Company or any of its Restricted Subsidiaries in an amount in excess of $10.0 million (net
of any amounts which are covered by insurance or bonded) which judgments are not paid,
waived, satisfied, discharged or stayed for a period of 60 days after the date on which the
right to appeal has expired;

     (8) the denial or disaffirmation by the Company or any of its Restricted Subsidiaries,
or any Person acting on behalf of any of them, in writing, of any material obligation of the
Company or any of its Restricted Subsidiaries set forth in or arising under any Collateral
Documents (other than by reason of a release from such obligation or the Note Lien related
thereto in accordance with the terms of this Indenture and the Collateral Documents) and
such denial or disaffirmance continues for 5 days;

     (9) the Company or any Significant Subsidiary (or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary) (A) commences a voluntary
case or proceeding under any Bankruptcy Code with respect to itself (or themselves), (B)
consents to the entry of a judgment, decree or order for relief against it (or them) in an
involuntary case or proceeding under any Bankruptcy Code, (C) consents to the appointment of
a Custodian of it (or them) or for substantially all of its (or their) property, (D)
consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding
against it (or them), (E) makes a general assignment for the benefit of its (or their)
creditors; or (F) takes any corporate action to authorize or effect any of the foregoing;

     (10) a court of competent jurisdiction enters a judgment, decree or order for relief in
respect of the Company or any Significant Subsidiary (or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary) in an
involuntary case or proceeding under any Bankruptcy Code, which shall (A) approve as
properly filed a petition seeking reorganization, arrangement, adjustment or composition in
respect of the Company or such Significant Subsidiary (or such group of Restricted
Subsidiaries), (B) appoint a Custodian of the Company or such Significant Subsidiary (or
such group of Restricted Subsidiaries) or for substantially all of its (or their) property
or (C) order the winding-up or liquidation of its (or their)

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affairs; and such judgment, decree or order shall remain unstayed and in effect for a
period of sixty (60) consecutive days;

     (11) any Note Guarantee from a Significant Subsidiary, or any group of Restricted
Subsidiaries that, taken together, would constitute a Significant Subsidiary, ceases to be
in full force and effect or is declared null and void and unenforceable or is found to be
invalid or a Guarantor denies in writing its liability under the Note Guarantee (other than
by reason of a release of such Guarantor from the Note Guarantee in accordance with the
terms of the Indenture Documents); and

     (12) except as permitted by any Indenture Document, any Collateral Document or any Note
Lien purported to be granted thereby on an asset or assets having an aggregate net book
value or Fair Market Value in excess of $2.5 million fails to constitute a valid and (to the
extent required by the Collateral Documents) perfected Lien on Note Collateral purported to
be subject thereto.

          SECTION 6.02 Acceleration.

          (a) If an Event of Default (other than an Event of Default specified in Section 6.01
(9) or (10) above with respect to the Company, any Restricted Subsidiary that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary) shall occur and be continuing and has not been waived, the
Trustee or the Holders of at least 25% in aggregate principal amount of outstanding Notes voting as
a single class may declare the principal of and premium, if any, and accrued interest on all the
Notes to be due and payable by notice in writing to the Company and the Trustee (if given by the
Holders) specifying the Event of Default and that it is a “notice of acceleration” (the
“Acceleration Notice”), and the same shall become immediately due and payable.

          (b) If an Event of Default specified in Section 6.01 (9) or (10) above with
respect to the Company, any Restricted Subsidiary that is a Significant Subsidiary or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary occurs and
is continuing, then all unpaid principal of, and premium, if any, and accrued interest on all of
the outstanding Notes shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

          (c) At any time after a declaration of acceleration with respect to the Notes as described in
the preceding paragraphs, the Holders of a majority in principal amount of the Notes voting as a
single class may rescind and cancel such declaration and its consequences: (1) if the rescission
would not conflict with any judgment or decree; (2) if all existing Events of Default have been
cured or waived except nonpayment of principal, premium, if any, or interest that has become due
solely because of the acceleration; (3) to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal and premium, if any, which has
become due otherwise than by such declaration of acceleration, has been paid; (4) if the Company
has paid each of the Trustee and the Collateral Agent its reasonable compensation and reimbursed
each of the Trustee and the Collateral Agent for its reasonable expenses, disbursements and its
advances; and (5) in the event of the cure or waiver of an Event of Default of the type described
in Section 6.01 (9) or (10) of the description above of Events of Default, the
Trustee shall have received an Officers’ Certificate and an Opinion of Counsel that such Event of
Default has been cured or waived. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

          SECTION 6.03 Other Remedies.

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     If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy
by proceeding at law or in equity to collect the payment of principal of, premium, if any, or
interest on the Notes or to enforce the performance of any provision of the Notes, this Indenture,
any Collateral Document or any Note Guarantee.

     The Trustee or the Collateral Agent 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, the Collateral Agent or any Holder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in
the Event of Default. No remedy is exclusive of any other remedy. All available remedies are
cumulative to the extent permitted by law.

     If an Event of Default occurs, the Trustee, on behalf of the Holders of the Notes, in addition
to any rights or remedies available to the Trustee under this Indenture, will be entitled to take
(or instruct the Collateral Agent to take) such actions as the Trustee deems advisable to protect
and enforce the rights of the Trustee, the Collateral Agent and the Holders in the Note Collateral,
including, without limitation, the institution of foreclosure proceedings in accordance with the
Collateral Documents and applicable law. However, the rights and remedies available to the Trustee
and the Collateral Agent under the Note Collateral Documents and the actions permitted to be taken
by the Trustee and the Collateral Agent thereunder will be subject to the provisions of the
Intercreditor Agreement.

     The Trustee will apply (or instruct the Collateral Agent to apply) the proceeds received by
the Collateral Agent or the Trustee from any foreclosure of the Note Collateral:

     (1) first, to pay the expenses of such foreclosure and fees and other amounts
then payable to the Trustee or the Collateral Agent under this indenture and the Collateral
Documents, and

     (2) thereafter, to pay the principal of, premium, if any, and accrued interest
on the Notes.

provided, that the application of any such proceeds of Note Collateral that constitutes
Secondary Collateral shall be subject to the terms of the Intercreditor Agreement.

          SECTION 6.04 Waiver of Past Defaults.

     Subject to Sections 2.09, 6.07 and 9.02, the Holders of a majority in
aggregate principal amount of the outstanding Notes voting as a single class may, on behalf of the
Holders holding all of the Notes, rescind an acceleration or waive any existing Default or Event of
Default, and its consequences, except (other than as provided in Section 6.02(c)) a default
in the payment of the principal of or premium, if any, or interest on any Notes or in respect of a
covenant or provision which under this Indenture cannot be modified or amended without the consent
of the Holder of each Note then outstanding. When a Default or Event of Default is waived, it is
cured and ceases to exist and is deemed to have been cured and not to have occurred, and any Event
of Default arising therefrom shall be deemed to have been cured and not to have occurred for every
purpose of this Indenture, the Notes and the Collateral Documents, but no such waiver shall extend
to any subsequent or other Default or Event of Default or impair any right consequent thereon.

          SECTION 6.05 Control by Majority.

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     Subject to Section 2.09, the Intercreditor Agreement and applicable law, the Holders
of a majority in aggregate principal amount of the outstanding Notes may direct the time, method
and place of conducting any proceeding for exercising any remedy available to the Trustee or the
Collateral Agent, as the case may be, or exercising any trust or power conferred on the Trustee or
the Collateral Agent, as the case may be, including any remedies provided for in Section
6.03. Subject to Section 7.01 and 7.02(f), however, the Trustee or the
Collateral Agent, as the case may be, may refuse to follow any direction (which direction, if sent
to the Trustee or the Collateral Agent, as the case may be, shall be in writing) that the Trustee
or the Collateral Agent, as the case may be, reasonably believes conflicts with any applicable law,
this Indenture, the Notes, the Note Guarantees or the Collateral Documents, that the Trustee or the
Collateral Agent, as the case may be, determines may be unduly prejudicial to the rights of another
Holder, or that may subject the Trustee or the Collateral Agent, as the case may be, to personal
liability; provided that the Trustee or the Collateral Agent, as the case may be, may take
any other action deemed proper by the Trustee or the Collateral Agent, as the case may be, which is
not inconsistent with such direction (which direction, if sent to the Trustee or the Collateral
Agent, as the case may be, shall be in writing).

          SECTION 6.06 Limitation on Suits.

     A Holder may not pursue any remedy with respect to this Indenture or the Notes unless:

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

     (2) subject to Section 2.09, Holders of at least 25% in aggregate principal
amount of the outstanding Notes voting as a single class make a written request to the
Trustee to institute proceedings in respect of that Event of Default;

     (3) such Holders offer to the Trustee security or indemnity reasonably satisfactory to
the Trustee against any loss, liability or expense to be incurred in compliance with such
request;

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

     (5) during such sixty (60) day period the Holders of a majority in aggregate principal
amount of the outstanding Notes do not give the Trustee a written direction which, in the
opinion of the Trustee, is inconsistent with the request.

     The foregoing limitations shall not apply to a suit instituted by a Holder for the enforcement
of the payment of principal of, premium, if any, or interest on such Note on or after the
respective due dates set forth in such Note (including upon acceleration thereof) or the
institution of any proceeding with respect to this Indenture or any remedy hereunder, including
acceleration, by the Holders of a majority in principal amount of outstanding Notes;
provided that upon institution of any proceeding or exercise of any remedy, such Holders
provide the Trustee with prompt notice thereof.

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

          SECTION 6.07 Rights of Holders to Receive Payment.

     Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of principal of, premium, if any, and interest on a Note, on or after the respective due
dates expressed in

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such Note, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such Holder.

          SECTION 6.08 Collection Suit by Trustee or Collateral Agent.

     If an Event of Default in payment of principal of, premium, if any, or interest specified in
Section 6.01(1) or (2) occurs and is continuing, subject to the Intercreditor
Agreement, the Trustee and the Collateral Agent may recover judgment (i) in its own name and
(ii)(x) in the case of the Trustee, as trustee of an express trust or (y) in the case of the
Collateral Agent, as collateral agent on behalf of each of the Holders, in each case against the
Company or any other obligor on the Notes for the whole amount of principal, premium, if any, and
accrued interest remaining unpaid, together with interest on overdue principal and, to the extent
that payment of such interest is lawful, interest on overdue installments of interest at the rate
set forth in Section 4.01 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, the Collateral Agent and their respective agents and counsel and any other
amounts due the Trustee under the Collateral Documents and Section 7.07 hereof.

          SECTION 6.09 Trustee May File Proofs of Claim.

          The Trustee and the Collateral Agent are 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 or
the Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, the Collateral Agent, their respective agents and counsel) and the
Holders allowed in any judicial proceedings relating to the Company or any other obligor upon the
Notes, any of their respective creditors or any of their respective property and, subject to the
Intercreditor Agreement, shall be entitled and empowered to collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same, and any Custodian in
any such judicial proceedings is hereby authorized by each Holder to make such payments to the
Trustee or Collateral Agent and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee or Collateral Agent any amount due to it
for the reasonable compensation, expenses, taxes, disbursements and advances of the Trustee, the
Collateral Agent, their respective agents and counsel, and any other amounts due any such Person
under the Collateral Documents and Section 7.07. The Company’s payment obligations under
this Section 6.09 shall be secured in accordance with the provisions of Section
7.07. Nothing herein contained shall be deemed to authorize the Trustee or Collateral Agent to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or
to authorize the Trustee or the Collateral Agent, as the case may be, to vote in respect of the
claim of any Holder in any such proceeding.

          SECTION 6.10 Priorities.

          If the Trustee collects any money or property pursuant to this Article Six, it shall,
subject to the terms of the Intercreditor Agreement, pay out the money in the following order:

     First: to the Trustee, the Collateral Agent, the Paying Agent and the
Registrar for amounts due under Section 7.07 (including payment of all compensation
expense, all liabilities incurred and all advances made by the Trustee or the Collateral
Agent, as the case may be, and the costs and expenses of collection);

     Second: if the Holders are forced to proceed against the Company directly
without the Trustee or the Collateral Agent, to Holders for their collection costs;

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

     Fourth: to the Company or any other obligor on the Notes, as their interests
may appear, or as a court of competent jurisdiction may direct;

provided, that the application of any such proceeds of Note Collateral that constitutes
Secondary Collateral shall be subject to the terms of the Intercreditor Agreement.

          The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment to Holders pursuant to this Section 6.10.

          SECTION 6.11 Undertaking for Costs.

          All parties to this Indenture agree, and each Holder by its acceptance of its Note shall be
deemed to have agreed, that in any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee or the Collateral Agent, as the case may be, for any
action taken or omitted by it as Trustee or the Collateral Agent, as the case may be, 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 or the Collateral Agent, as the case may be, a suit by a
Holder pursuant to Section 6.06, or a suit by a Holder or Holders of more than 10% in
principal amount of the outstanding Notes voting as a single class.

          SECTION 6.12 Restoration of Rights and Remedies.

          If the Trustee, the Collateral Agent or any Holder has instituted any proceedings to enforce
any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee, the Collateral Agent or to such
Holder, then and in every such case, subject to any determination in such proceeding, the Company,
the Trustee, the Collateral Agent and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the Trustee, the
Collateral Agent and the Holders shall continue as though no such proceeding has been instituted.

          SECTION 6.13 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein conferred upon
or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

          SECTION 6.14 Delay or Omission not Waiver

     No delay or omission of the Trustee or the Collateral Agent or of any Holder of any Note to
exercise any right or remedy accruing upon any Event of Default shall impair any such right or
remedy or

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constitute a waiver of any such Event of Default or in acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.

ARTICLE SEVEN

TRUSTEE

          SECTION 7.01 Duties of Trustee.

     The duties and responsibilities of the Trustee shall be as provided by the TIA and as set
forth herein or in any Collateral Document. All provisions of this Article Seven
applicable to the Trustee shall also apply to the Collateral Agent.

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

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

     (1) the duties of the Trustee shall be determined solely by the express provisions of
this Indenture and the TIA, and the Trustee need perform only those duties as are
specifically set forth in this Indenture and no covenants or obligations shall be implied in
or 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; provided, however, in case of any such certificates or opinions
furnished to the Trustee which by the provisions hereof are furnished to the Trustee, the
Trustee shall examine the certificates and opinions to determine whether or not they conform
to the requirements of this Indenture but need not confirm or investigate the accuracy of
mathematical calculation or other facts stated herein.

          (c) Notwithstanding anything to the contrary herein contained, the Trustee may not be relieved
from liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

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

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

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

     Sections 7.01(c)(1), (2) and (3) shall be in lieu of Section
315(d)(1), 315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and 315(d)(3)
are herein expressly excluded from this Indenture, as permitted by the TIA.

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          (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any liability or expense. The Trustee shall be under no obligation to exercise
of any of its rights or powers under this Indenture, the Intercreditor Agreement or the Collateral
Document at the request of any Holders unless such Holder has offered to the Trustee security and
indemnity satisfactory to the Trustee against such risk, liability or expense is not reasonably
assured to it.

          (e) 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), (c) and
(d) of this Section 7.01.

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

          (g) Anything in this Indenture to the contrary notwithstanding, in no event shall the Trustee,
the Paying Agent or the Registrar be liable under or in connection with this Indenture for
indirect, special, incidental, punitive or consequential losses or damages of any kind whatsoever,
including but not limited to lost profits, whether or not foreseeable, even if the Trustee, the
Paying Agent or the Registrar has been advised of the possibility thereof and regardless of the
form of action in which such damages are sought.

          (h) The Trustee shall not be liable for the failure to perform its duties and obligations
hereunder to the extent such failure is directly caused by the failure of the Company to perform
its obligations hereunder.

          SECTION 7.02 Rights of Trustee.

     Subject to Section 7.01:

          (a) The Trustee may conclusively rely and shall be fully protected in acting or refraining
from acting upon any resolution, certificate, statement instrument, opinion, report, request
direction, consent, order, bond, note or other paper or 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 consult with counsel and may
require an Officers’ Certificate or an Opinion of Counsel, or both, which shall conform to
Sections 11.04 and 11.05. The Trustee shall not be liable for any action it takes
or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.
The written advice of the Trustee’s counsel or any Opinion of Counsel shall be full and complete
authorization and protection from liability in respect of any action taken, suffered or omitted by
the Trustee hereunder in good faith and in reliance thereon.

          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent appointed with due care and in good faith.

          (d) The Trustee shall not be liable for any action taken, suffered, or omitted to be taken in
good faith which it reasonably believes to be authorized or within its rights or powers under this
Indenture.

          (e) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, notice, request, direction,
consent,

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order, bond, debenture, or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit and, if the
Trustee shall determine to make such further inquiry or investigation, it shall be entitled, upon
reasonable notice to the Company, to examine the books, records and premises of the Company,
personally or by agent or attorney and to consult with the officers and representatives of the
Company, including the Company’s accountants and attorneys at the sole cost of the Company and
shall incur no liability or additional liability of any kind by reason of such inquiry or
investigation. Except as expressly stated herein to the contrary, in no event shall the Trustee
have any responsibility to ascertain whether there has been compliance with any of the covenants or
provisions of Articles Four or Five hereof.

          (f) Neither the Trustee nor the Collateral Agent, as the case may be, will be under any
obligation to exercise any of the rights or powers vested in it by this Indenture or any Collateral
Document at the request, order or direction of any of the Holders pursuant to the provisions of
this Indenture unless such Holders shall have offered to the Trustee or the Collateral Agent, as
the case may be, reasonable indemnity satisfactory to the Trustee or Collateral Agent, as the case
may be, against the costs, expenses and liabilities which may be incurred by it in compliance with
such request, order or direction.

          (g) The Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder.

          (h) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company and any
resolution of the Board of Directors shall be sufficient if evidenced by a copy of such resolution
certified by an Officer of the Company to have been duly adopted and in full force and effect on
the date hereof.

          (i) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and shall not be responsible for any
willful misconduct or negligence on the part of any agent or attorney appointed with due care and
in good faith by it hereunder.

          (j) The Trustee shall not be liable for any action taken, suffered or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the discretion, rights or
powers conferred upon it by this Indenture.

          (k) The Trustee shall not be deemed to have notice or be charged with knowledge of any Default
or Event of Default unless the Trust Officer or the Trustee shall have received from the Company,
any Guarantor or any other obligor upon the Notes or from any Holder written notice thereof at its
address set forth in Section 11.02 hereof, and such notice references the Notes and this
Indenture.

          (l) The rights, privileges, protections, immunities and benefits given to the Trustee,
including 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.

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

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          (n) The permissive right of the Trustee to take any action under this Indenture or any
Collateral Document shall not be construed as a duty to so act.

          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, any Subsidiary of the Company or their respective
Affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same
with like rights. However, the Trustee must comply with Sections 7.10 and 7.11 of
this Indenture, and the Trustee is subject to TIA Sections 310(b) and 311.

          SECTION 7.04 Trustee’s Disclaimer.

     The Trustee makes no representation as to the validity, adequacy or sufficiency of this
Indenture, the Notes, the Intercreditor Agreement or the Collateral Documents, and it shall not be
accountable for the Company’s use of the proceeds from the Notes, and it shall not be responsible
for any statement of the Company in this Indenture, the Notes, the Intercreditor Agreement, the
Collateral Documents or any other documents connected with the issuance of the Notes other than the
Trustee’s certificate of authentication, which shall be taken as the statement of Company, and the
Trustee assumes no responsibility for their correctness.

     Beyond the exercise of reasonable care in the custody thereof and the fulfillment of its
obligations under this Indenture and the Collateral Documents, the Trustee shall have no duty as to
any Collateral in its possession or control or in the possession or control of any agent or bailee
or any income thereon or as to preservation of rights against prior parties or any other rights
pertaining thereto. The Trustee shall be deemed to have exercised reasonable care in the custody
of the Collateral in its possession if the Collateral is accorded treatment substantially equal to
that which it accords its own property.

     The Trustee makes no representations as to and shall not be responsible for the existence,
genuineness, value, sufficiency or condition of any of the Collateral or as to the security
afforded or intended to be afforded thereby, hereby or by any Collateral Document, or for the
validity, perfection, priority or enforceability of the Liens or security interests in any of the
Collateral created or intended to be created by any of the Collateral Documents, whether impaired
by operation of law or by reason of any action or omission to act on its part hereunder, except to
the extent such action or omission constitutes gross negligence or willful misconduct on the part
of the Trustee, for the validity or sufficiency of the Collateral, any Collateral Documents or any
agreement or assignment contained in any thereof, for the validity of the title of the Company or
any Guarantor to the Collateral, for insuring the Collateral or for the payment of taxes, charges,
assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. The
Trustee shall have no duty to ascertain or inquire as to the performance or observance of any of
the terms of this Indenture or any other Collateral Document by the Company or any other Person
that is a party thereto or bound thereby.

          SECTION 7.05 Notice of Default.

     If a Default or an Event of Default occurs and is continuing and if a Trust Officer has actual
knowledge or has received written notice from the Company or any Holder, the Trustee shall mail to
each Holder, with a copy to the Company, notice of the Default or Event of Default within thirty
(30) days thereof unless such Default or Event of Default shall have been cured or waived before
the giving of such notice. Except in the case of a Default or an Event of Default in payment of
principal of, premium, if any, or interest on, any Note, including an accelerated payment and the
failure to make payment on the Change of Control Payment Date pursuant to a Change of Control Offer
and, except in the case of a failure to

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comply with Article Five, the Trustee may withhold the notice if and so long as its
Board of Directors, the executive committee of its Board of Directors or a committee of its
directors and/or Trust Officers in good faith determines that withholding the notice is in the
interest of the Holders.

          SECTION 7.06 Reports by Trustee to Holders.

     Within sixty (60) days after each March 15, beginning with March 15, 2008, the Trustee shall,
to the extent that any of the events described in TIA Section 313(a) occurred within the previous
twelve months, but not otherwise, mail to each Holder a brief report dated as of such date that
complies with TIA Section 313(a). The Trustee also shall comply with TIA Sections 313(b) and (c).

     A copy of each report at the time of its mailing to Holders shall be mailed to the Company and
filed by the Trustee with the SEC and each stock exchange or market, if any, on which the Notes are
listed or quoted.

     The Company shall promptly notify the Trustee if the Notes become listed, quoted on or
delisted from any stock exchange or market and the Trustee shall comply with TIA Section 313(d).

          SECTION 7.07 Compensation and Indemnity.

     The Company shall pay to the Trustee, the Collateral Agent, the Paying Agent and the Registrar
(each an “Indemnified Party”) from time to time compensation for their respective services
as Trustee, Collateral Agent, Paying Agent or Registrar, as the case may be, as the Trustee,
Collateral Agent and the Company shall have agreed. The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company shall reimburse
each Indemnified Party upon request for all reasonable out-of-pocket expenses, disbursements and
advances incurred or made by it in connection with the performance of its duties under, as the case
may be, this Indenture, the Collateral Documents or the Intercreditor Agreement. Such expenses,
disbursements and advances shall include the reasonable fees, expenses, disbursements and advances
of each of such Indemnified Party’s agents and counsel.

     The Company and the Guarantors, jointly and severally, hereby indemnify each Indemnified Party
and its agents, employees, stockholders and directors and officers for, and holds each of them
harmless against, any loss, damage, cost, claim, liability or expense (including taxes) incurred by
any of them except for such actions to the extent caused by any gross negligence or willful
misconduct on the part of such Indemnified Party, arising out of or in connection with this
Indenture, the Intercreditor Agreement or the Collateral Documents or the administration of this
trust, including the reasonable costs and expenses of enforcing this Indenture against the Company
or any Guarantor (including this Section 7.07) and defending themselves against any claim
or liability in connection with the exercise or performance of any of their rights, powers or
duties hereunder or thereunder (including the reasonable fees and expenses of counsel). The
Trustee shall notify the Company promptly of any claim asserted against an Indemnified Party for
which such Indemnified Party has advised the Trustee that it may seek indemnity hereunder or under
the Collateral Documents or Intercreditor Agreement. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. At the Indemnified Party’s
sole discretion, the Company shall defend the claim and the Indemnified Party shall cooperate and
may participate in the defense; provided that any settlement of a claim shall be approved
in writing by the Indemnified Party. Alternatively, the Indemnified Party may at its option have
separate counsel of its own choosing and the Company shall pay the reasonable fees and expenses of
such counsel; provided that the Company shall not be required to pay such fees and expenses
if it assumes the Indemnified Party’s defense and there is no conflict of interest between the
Company and the Indemnified Party in connection with such defense as reasonably determined by the
Indemnified Party. The Company

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need not pay for any settlement made without its written consent, which consent shall not be
unreasonably withheld.

     To secure the Company’s and each Guarantor’s payment obligations in this Section 7.07,
the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the
Trustee or the Collateral Agent, in its capacity as such, for any amount owing it or any
predecessor Trustee, except money or property held in trust to pay principal of or interest on any
particular Notes or held in the Escrow Account.

     When an Indemnified Party incurs expenses or renders services after an Event of Default
specified in Section 6.01(9) or (10) occurs, such expenses (including the
reasonable fees and expenses of its counsel) and the compensation for such services are intended to
constitute expenses of administration under any Bankruptcy Code.

     The obligations of the Company under this Section 7.07 shall survive the satisfaction
and discharge of this Indenture, termination of the Collateral Documents or the Intercreditor
Agreement or the resignation or removal of the Trustee.

     The Trustee shall comply with the provisions of TIA Section 312(b)(2) to the extent
applicable.

          SECTION 7.08 Replacement of Trustee.

     The Trustee may resign upon 45 days’ prior written notice to the Company. The Holders of a
majority in aggregate principal amount of the outstanding Notes voting as a single class may remove
the Trustee by so notifying the Company and the Trustee in writing and may appoint a successor
Trustee. The Company, by a Board Resolution, may remove the Trustee if:

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

     (2) the Trustee is adjudged bankrupt or insolvent;

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

     (4) the Trustee becomes incapable of acting with respect to the Notes.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall notify each Holder in writing of such event and shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the Holders of a
majority in aggregate principal amount of the outstanding Notes may appoint a successor Trustee to
replace the successor Trustee appointed by the Company.

     A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company and thereupon the resignation or removal of the retiring Trustee shall
become effective and such successor Trustee, without any further act, deed or conveyance, shall
become vested with all rights, powers, trusts, duties and obligations of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property and money held by
such Trustee so ceasing to act hereunder subject nevertheless to its Lien, if any, provided for in
Section 7.07. Upon request of the Company or the successor Trustee, such retiring Trustee
shall at the expense of the Company and upon payment of the charges of the Trustee then unpaid,
execute and deliver an instrument transferring to such successor Trustee all the rights, powers and
trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.

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Upon request of any such successor Trustee or the Holders of a majority in aggregate principal
amount of the outstanding Notes, the Company shall execute any and all instruments for more fully
and certainly vesting in and confirming to such successor Trustee all such rights, powers and
trusts. Immediately after that, the retiring Trustee shall transfer all property held by it as
Trustee to the successor Trustee, subject to the lien provided in Section 7.07, the
resignation or removal of the retiring Trustee shall become effective, and the successor Trustee
shall have all the rights, powers and duties of the Trustee under this Indenture.

     If a successor Trustee does not take office within thirty (30) days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in
aggregate principal amount of the outstanding Notes voting as a single class may petition any court
of competent jurisdiction at the expense of the Company for the appointment of a successor Trustee.

     If the Trustee fails to comply with Section 7.10, any Holder who satisfies the
requirements of TIA Section 310(b)(iii) may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.

     The Company shall give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders in writing. Each notice shall include the name
of the successor Trustee and the address of its Corporate Trust Office.

     Notwithstanding any resignation or replacement of the Trustee pursuant to this Section
7.08, the Company’s obligations under Section 7.07 shall continue for the benefit of
the retiring Trustee.

          SECTION 7.09 Successor Trustee by Merger, Etc.

     If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another Person, the resulting, surviving or transferee
Person without any further act shall, if such resulting, surviving or transferee Person is
otherwise eligible hereunder, be the successor Trustee; provided, however, that
such Person shall be otherwise qualified and eligible under this Article Seven.

     In case any Notes have been authenticated, but not delivered, by the Trustee then in office,
any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes.

          SECTION 7.10 Eligibility; Disqualification.

          (a) This Indenture shall always have a Trustee who satisfies the requirements of TIA Sections
310(a)(1), (2), (3) and (5). The Trustee (or, in the case of a Trustee that is an Affiliate of a
bank holding company system, the related bank holding company) shall have a combined capital and
surplus of at least $50,000,000 as set forth in its most recent published annual report of
condition. In addition, if the Trustee is a corporation included in a bank holding company system,
the Trustee, independently of such bank holding company, shall meet the capital requirements of TIA
Section 310(a)(2). The Trustee shall comply with TIA Section 310(b); provided,
however, that there shall be excluded from the operation of TIA Section 310(b)(1) any
indenture or indentures under which other securities, or certificates of interest or participation
in other securities, of the Company are outstanding if the requirements for such exclusion set
forth in TIA Section 310(b)(1) are met. The provisions of TIA Section 310 shall apply to the
Company, as obligor of the Notes.

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          (b) If the Trustee has or acquires a conflicting interest within the meaning of the TIA, the
Trustee shall (i) eliminate such conflict within 90 days, (ii) apply to the SEC for permission to
continue as Trustee hereunder (if this Indenture has been qualified under the TIA) or (iii) resign,
to the extent and in the manner provided by, and subject to the provisions of, the TIA and this
Indenture.

          SECTION 7.11 Preferential Collection of Claims Against Company.

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

          SECTION 7.12 Trustee as Collateral Agent and Paying Agent.

     References to the Trustee in Sections 7.01(f), 7.02, 7.03,
7.04, 7.07 and 7.08 and the first paragraph of Section 7.09 shall
include the Trustee in its role as Collateral Agent and Paying Agent.

          SECTION 7.13 Co-Trustees, Co-Collateral Agent and Separate Trustees, Collateral Agent.

          (a) At any time or times, for the purpose of meeting the legal requirements of any
jurisdiction in which any of the Collateral may at the time be located, the Company and the Trustee
shall have the power to appoint, and, upon the written request of the Trustee or of the Holders of
at least 25% in principal amount of the Notes outstanding voting as a single class, the Company
shall for such purpose join with the Trustee in the execution, delivery and performance of all
instruments and agreements necessary or proper to appoint, one or more Persons approved by the
Trustee either to act as co-trustee, jointly with the Trustee, of all or any part of the
Collateral, to act as co-collateral agent, jointly with the Collateral Agent, or to act as separate
trustees or Collateral Agent of any such property, in either case with such powers as may be
provided in the instrument of appointment, and to vest in such Person or Persons in the capacity
aforesaid, any property, title, right or power deemed necessary or desirable, subject to the other
provisions of this Section 7.13. As of the Issue Date, the Company hereby appoints U. S.
Bank National Association as the initial Collateral Agent and U. S. Bank National Association
hereby accepts such appointment and agrees to act and serve in such capacity. If the Company does
not join in such appointment within fifteen (15) days after the receipt by it of a request so to
do, or in case an Event of Default has occurred and is continuing, the Trustee alone shall have the
power to make such appointment.

          (b) Should any written instrument from the Company be required by any co-trustee,
co-Collateral Agent or separate trustee or separate Collateral Agent so appointed for more fully
confirming to such co-trustee or separate trustee such property, title, right or power, any and all
such instruments shall, on request, be executed, acknowledged and delivered by the Company.

          (c) Every co-trustee, co-collateral agent or separate trustee or separate collateral agent
shall, to the extent permitted by law, but to such extent only, be appointed subject to the
following terms, namely:

     (i) The Notes shall be authenticated and delivered, and all rights, powers, duties and
obligations hereunder in respect of the custody of securities, cash and other personal
property held by, or required to be deposited or pledged with, the Trustee hereunder, shall
be exercised solely, by the Trustee.

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     (ii) The rights, powers, duties and obligations hereby conferred or imposed upon the
Trustee shall be conferred or imposed upon and exercised or performed by the Trustee or by
the Trustee and such co-trustee or separate trustee, or by the Collateral Agent and such
co-Collateral Agent or separate Collateral Agent, jointly as shall be provided in the
instrument appointing such co-trustee or separate trustee or co-Collateral Agent or separate
Collateral Agent, except to the extent that under any law of any jurisdiction in which any
particular act is to be performed, the Trustee shall be incompetent or unqualified to
perform such act, in which event such rights, powers, duties and obligations shall be
exercised and performed by such co-trustee or separate trustee, Collateral Agent or
co-Collateral Agent or separate Collateral Agent.

     (iii) The Trustee at any time, by an instrument in writing executed by it, with the
concurrence of the Company evidenced by a Board Resolution, may accept the resignation of or
remove any co-trustee or separate trustee appointed under this Section 7.13, and, in
case an Event of Default has occurred and is continuing, the Trustee shall have power to
accept the resignation of, or remove, any such co-trustee, co-collateral agent, separate
trustee or separate collateral agent without the concurrence of the Company. Upon the
written request of the Trustee, the Company shall join with the Trustee in the execution,
delivery and performance of all instruments and agreements necessary or proper to effectuate
such resignation or removal. A successor to any co-trustee, co-collateral agent, separate
trustee or separate collateral agent so resigned or removed may be appointed in the manner
provided in this Section 7.13.

     (iv) No co-trustee, co-collateral agent, separate trustee or separate collateral agent
hereunder shall be personally liable by reason of any act or omission of the Trustee or the
Collateral Agent, or any, other such trustee or collateral agent hereunder.

     (v) Any act of Holders delivered to the Trustee shall be deemed to have been delivered
to each such co-trustee or separate trustee and any act of Holders delivered to the
Collateral Agent shall be deemed to have been delivered to each such co-collateral agent or
separate collateral agent.

ARTICLE EIGHT

SATISFACTION AND DISCHARGE OF INDENTURE

          SECTION 8.01 Legal Defeasance and Covenant Defeasance.

          (a) The Company may, at its option and at any time, elect to have either paragraph (b)
or paragraph (c) below be applied to the outstanding Notes upon compliance with the
applicable conditions set forth in paragraph (d).

          (b) Upon the Company’s exercise under paragraph (a) of the option applicable to this paragraph
(b), the Company and the Guarantors shall be deemed to have been released and discharged from their
obligations with respect to the outstanding Notes, the Note Guarantees and the Collateral Documents
on the date the applicable conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, such Legal Defeasance means that the Company shall be deemed
to have paid and discharged the entire Indebtedness represented by the outstanding Notes, which
shall thereafter be deemed to be “outstanding” only for the purposes of the Sections and matters
under this Indenture referred to in clause (i) and (ii) below, and the Company and the Guarantors
shall be deemed to have satisfied all their other obligations under such Notes and this Indenture,
the Note Guarantees and the Collateral Documents, except for the following which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of Holders of outstanding Notes
to receive solely from the trust fund

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described in paragraph (d) below and as more fully set forth in such paragraph payments in
respect of the principal of, and premium, if any, and interest on such Notes when such payments are
due, (ii) obligations listed in Section 8.03, subject to compliance with this Section
8.01 and (iii) the rights, powers, trusts, duties and immunities of the Trustee and the
Company’s obligations in connection therewith. The Company may exercise its option under this
paragraph (b) notwithstanding the prior exercise of its option under paragraph (c) below with
respect to the Notes.

          (c) Upon the Company’s exercise under paragraph (a) of the option applicable to this
paragraph (c), the Company and its Restricted Subsidiaries shall be released and discharged from
their obligations under any covenant contained in Sections 4.05 and 4.08,
Sections 4.10 through 4.24 (provided that the release and discharge of the
Company’s obligations under Section 4.24 shall in no way relieve the Company of its
obligation to pay any Additional Interest when due and payable) and clause (4) of the first
paragraph of Section 5.01 with respect to the outstanding Notes on and after the date the
conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”), and the
Notes shall thereafter be deemed to be not “outstanding” for the purpose of any direction, waiver,
consent or declaration or act of Holders (and the consequences of any thereof) in connection with
such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it
being understood that such Notes shall not be deemed outstanding for accounting purposes). For
this purpose, such Covenant Defeasance means that, with respect to the outstanding Notes and the
Note Guarantees, the Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of any reference in any
such covenant to any other provision herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Section 6.01, but, except as
specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In
addition, upon the Company’s exercise under paragraph (a) hereof of the option applicable
to this paragraph (c), subject to the satisfaction of the conditions set forth in
paragraph (d) below, Section 6.01(4), 6.01(5) (solely as such Section
6.01(5) pertains to Sections 4.05 and 4.08, Sections 4.10 through
4.24 (provided that the release and discharge of the Company’s obligations under
Section 4.24 shall in no way relieve the Company of its obligation to pay any Additional
Interest when due and payable) and clause (4) of the first paragraph of Section
5.01), 6.01(6), 6.01(7), 6.01(8), 6.01(11) and 6.01(12)
shall not constitute Events of Default.

          (d) The following shall be the conditions to application of either paragraph (b) or
paragraph (c) above to the outstanding Notes:

     (1) the Company shall have irrevocably deposited in trust with the Trustee, in trust,
for the benefit of the Holders, U.S. Legal Tender or non-callable U.S. Government
Obligations or a combination thereof, in such amounts and at such times as are sufficient,
in the opinion of a nationally-recognized firm of independent public accountants, to pay the
principal of, and premium, if any, and interest on the outstanding Notes on the stated dates
for payment or redemption, as the case may be;

     (2) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States 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,

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in either case to the effect that, and based thereon such Opinion of Counsel shall confirm
that, the Holders will not recognize income, gain or loss for federal income tax purposes as
a result of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

     (3) in the case of Covenant Defeasance, the Company shall have delivered to the Trustee
an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming
that the Holders will not recognize income, gain or loss for federal income tax purposes as
a result of such Covenant Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

     (4) no Default or Event of Default shall have occurred and be continuing on the date of
such deposit pursuant to clause (1) of this paragraph (except such Default or Event of
Default resulting from the failure to comply with Section 4.12 or Section
4.18 as a result of the borrowing of funds required to effect such deposit);

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

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

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

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

Notwithstanding the foregoing, the Opinion of Counsel required by Section 8.01(d)(2) above
with respect to a Legal Defeasance need not be delivered if all Notes not theretofore delivered to
the Trustee for cancellation (1) have become due and payable or (2) shall become due and payable on
the Maturity Date within one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the Company.

     In the event all or any portion of the Notes are to be redeemed through such irrevocable
trust, the Company must make arrangements reasonably satisfactory to the Trustee, at the time of
such deposit, for the giving of the notice of such redemption or redemptions by the Trustee in the
name and at the expense of the Company.

          SECTION 8.02 Satisfaction and Discharge.

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     In addition to the Company’s rights under Section 8.01, this Indenture (subject to
Section 8.03) and the Collateral Documents will be discharged and will cease to be of
further effect as to all outstanding Notes, when:

     (1) either:

     (a) all the Notes theretofore authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid as provided in Section 2.07 and
Notes for whose payment money has theretofore been deposited in trust or segregated and held
in trust by the Company and thereafter repaid to the Company or discharged from such trust)
have been delivered to the Trustee for cancellation; or

     (b) all Notes not theretofore delivered to the Trustee for cancellation (i) have become
due and payable by reason of the mailing of a notice of redemption, or (ii) (A) shall become
due and payable at their stated maturity within one year or (B) are to be called for
redemption within one year under arrangements reasonably satisfactory to the Trustee, and
the Company or any Guarantor has irrevocably deposited or caused to be deposited with the
Trustee funds in trust solely for the benefit of the Holders U.S. Legal Tender, non-callable
U.S. Government Obligations, or a combination of U.S. Legal Tender and non-callable U.S.
Government Obligations in an amount sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on the Notes not theretofore
delivered to the Trustee for cancellation, for principal of, and premium, if any, and
interest on the Notes to the date of stated maturity or such redemption, as the case may be;

     (2) all other sums payable under this Indenture and the Collateral Documents by the
Company or any Guarantor have been paid;

     (3) the Company has delivered irrevocable instruments 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; and

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

          SECTION 8.03 Survival of Certain Obligations.

     Notwithstanding the occurrence of Legal Defeasance or Covenant Defeasance under Section
8.01 or the satisfaction and discharge of this Indenture and of the Notes under Section
8.02, the respective obligations of the Company and the Trustee under Sections 2.02,
2.03, 2.04, 2.05, 2.06, 2.07, 2.10 and
6.07, Article Seven and Sections 8.05, 8.06 and 8.07 (and,
solely in the case of Covenant Defeasance, Sections 2.14, 4.01 and 4.02)
shall survive until the Notes are no longer outstanding, and thereafter the obligations of the
Company and the Trustee under Sections 7.07, 8.05, 8.06 and 8.07
shall survive.

          SECTION 8.04 Acknowledgment of Discharge by Trustee.

     Subject to Section 8.07, after the conditions of clauses (1), (2), (3) and (4) of
Section 8.02 have been satisfied, the Trustee upon written request shall acknowledge in
writing the discharge of the Company’s obligations under this Indenture except for those surviving
obligations specified in Section 8.03.

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          SECTION 8.05 Application of Trust Moneys.

     The Trustee shall hold any U.S. Legal Tender or U.S. Government Obligations deposited with it
in the irrevocable trust established pursuant to Section 8.01 or 8.02. The Trustee
shall apply the deposited U.S. Legal Tender or the U.S. Government Obligations, together with
earnings thereon, through the Paying Agent, in accordance with this Indenture and the terms of the
irrevocable trust agreement established pursuant to Section 8.01 or 8.02, to the
payment of principal of, premium, if any, and interest on the Notes. Anything in this Article
Eight to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from
time to time upon the Company’s request any U.S. Legal Tender or U.S. Government Obligations held
by it as provided in Section 8.01(d) or Section 8.02(1)(b) which, in the opinion of
a nationally-recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance or satisfaction and
discharge of this Indenture.

          SECTION 8.06 Repayment to the Company; Unclaimed Money.

     Subject to Sections 7.07, 8.01 and 8.02, the Trustee and the Paying
Agent shall promptly pay to the Company upon written request from the Company any excess U.S. Legal
Tender or U.S. Government Obligations held by them at any time. The Trustee and the Paying Agent
shall pay to the Company, upon receipt by the Trustee or the Paying Agent, as the case may be, of a
written request from the Company any money held by it for the payment of principal, premium, if
any, or interest that remains unclaimed for two years after payment to the Holders is required,
without interest thereon; provided, however, that the Trustee and the Paying Agent
before being required to make any payment may, but need not, at the expense of the Company cause to
be published once in a newspaper of general circulation in The City of New York or mail to each
Holder entitled to such money notice that such money remains unclaimed and that after a date
specified therein, which shall be at least thirty (30) days from the date of such publication or
mailing, any unclaimed balance of such money then remaining shall be repaid to the Company, without
interest thereon. After payment to the Company, Holders entitled to money must look solely to the
Company for payment as general creditors unless an applicable abandoned property law designated
another Person, and all liability of the Trustee or Paying Agent with respect to such money shall
thereupon cease.

          SECTION 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender or U.S. Government
Obligations in accordance with Section 8.01 or 8.02 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 each Guarantor’s
obligations under this Indenture, the Collateral Documents, the Note Guarantees and the Notes shall
be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 or
8.02 until such time as the Trustee or Paying Agent is permitted to apply all such U.S.
Legal Tender or U.S. Government Obligations in accordance with Section 8.01 or
8.02; provided, however, that if the Company has made any payment of
premium, if any, or interest on or principal of 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 U.S. Government Obligations held by the Trustee or Paying Agent.

          SECTION 8.08 Indemnity for Government Obligations. The Company shall pay and
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S.
Government Obligations deposited pursuant to Section 8.01 or Section 8.02 or the principal and
interest

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received in respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 9.01 Without Consent of Holders.

     From time to time, the Company, the Guarantors, the Trustee and, if such amendment,
modification, waiver or supplement relates to any Collateral Document, the Collateral Agent,
without the consent of the Holders, may amend, amend and restate, waive or supplement provisions of
this Indenture, the Collateral Documents, the Notes, and the Note Guarantees:

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

     (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 obligations to Holders in accordance
with Section 5.01 or Section 10.04, as the case may be;

     (4) to make any change that would provide any additional rights or benefits to the
Holders or that does not, in the good faith judgment of the Company’s Board of Directors
adversely affect the legal rights under the Indenture Documents or the Intercreditor
Agreement of any such Holder in any material respect;

     (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 any Indenture Document to any provision of the “Description
of Notes” section of the Offering Circular to the extent that such provision in such
“Description of Notes” section was intended to be a verbatim recitation of a provision of
such Indenture Document;

     (7) to add any additional assets to the Note Collateral;

     (8) to allow any Subsidiary or any other Person to guarantee the Notes;

     (9) to comply with the rules of any applicable securities depositary;

     (10) to provide for a successor Trustee in accordance with the terms of this Indenture
or to otherwise comply with any requirement of this Indenture;

     (11) to reflect the grant of Liens on the Note Collateral for the benefit of an
additional secured party, to the extent that such Indebtedness and the Lien securing such
Indebtedness is permitted by the terms of this Indenture; or

     (12) to release Note Collateral from the Lien of this Indenture and the Collateral
Documents when permitted or required by this Indenture or the Collateral Documents
(including in the case where such Collateral constitutes Secondary Collateral, the
Intercreditor Agreement).

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     Notwithstanding the foregoing, in formulating its opinion in regards to this Section
9.01 the Trustee or the Collateral Agent, as applicable, is entitled to rely on such evidence
as it deems appropriate, including solely on an Opinion of Counsel.

          SECTION 9.02 With Consent of Holders.

     Subject to Section 6.07, the Company, the Guarantors and the Trustee or the Collateral
Agent, as applicable, together, with the written consent of the Holder or Holders of at least a
majority in aggregate principal amount of the outstanding Notes voting as a single class (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes)
(subject to Section 2.09), may amend or supplement this Indenture, the Notes, the
Collateral Document or the Note Guarantees without notice to any other Holders. Subject to
Section 6.07 and Section 2.09, the Holder or Holders of a majority in aggregate
principal amount of the outstanding Notes voting as a single class (including consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes) may waive any existing
Default or Event of Default or compliance by the Company with any provision of this Indenture, the
Collateral Documents or the Notes without notice to any other Holder. However, no amendment,
supplement or waiver, including a waiver pursuant to Section 6.04, shall without the
consent (including consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Notes) of:

     (a) each Holder affected thereby (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,
amendment and restatement, supplement or waiver of any provision of this Indenture, the
Notes, the Collateral Documents or the Note Guarantees;

     (2) reduce the principal of or change the fixed maturity of any Note or alter
the provisions set forth in Article Three;

     (3) reduce the rate of or change the time for payment of interest (including
default interest but excluding Additional Interest) on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or
interest or premium, if any, on the Notes (except a rescission of acceleration of
the Notes by Holders holding at least a majority in aggregate principal amount of
the Notes and a waiver of the payment default that resulted from such acceleration);

     (5) make any Notes payable in currency other than that stated in this
Indenture;

     (6) make any change in the provisions of this Indenture relating to waivers of
past Defaults (other than to add sections of this Indenture subject thereto) or the
rights of Holders to receive payments of principal of, or interest or premium, if
any, on the Notes;

     (7) amend, change or modify in any material respect the obligation of the
Company to make and consummate a Change of Control Offer after the occurrence of a
Change of Control, make and consummate an Event of Loss Offer after the occurrence
of an Event of Loss or make and consummate an Asset Sale Offer with respect to any
Asset Sale that has been consummated or modify any of the provisions or definitions
with respect thereto;

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     (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;

     (9) contractually subordinate the Notes or any Note Guarantee to any other
indebtedness; or

     (10) make any change to Section 9.01 or this Section 9.02; and

     (b) the Holders holding at least 75% in aggregate principal amount of the Notes,
adversely change the priority of the Holders’ Liens in the Note Collateral or release all or
substantially all of the Note Collateral from the Liens created by the Collateral Documents
except as specifically provided for in this Indenture and the Collateral Documents.

     It shall not be necessary for the consent of the Holders under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but it shall be
sufficient if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective,
the Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture.

          SECTION 9.03 Compliance with TIA.

     Every amendment, waiver or supplement of this Indenture, the Notes, the Collateral Documents,
the Intercreditor Agreement or the Note Guarantees shall comply with the TIA as then in effect.

          SECTION 9.04 Revocation and Effect of Consents.

     Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a
continuing consent by the Holder 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. Subject to the following paragraph, any such Holder or subsequent Holder may
revoke the consent as to such Holder’s Note or portion of such Note by written notice to the
Trustee and the Company received before the date on which the Trustee, and if such amendment,
waiver or supplement relates to any Collateral Document, the Collateral Agent, receives an
Officers’ Certificate certifying that the Holders of the requisite principal amount of Notes have
consented (and not theretofore revoked such consent) to the amendment, supplement or waiver.

     The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver, which record
date shall be either (i) at least thirty (30) days prior to the first solicitation of such consent
or (ii) the date of the most recent list furnished to the Trustee under Section 2.05. If a
record date is fixed, then notwithstanding the last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to revoke any consent previously given, whether or not
such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than ninety (90) days after such record date.

     After an amendment, supplement or waiver becomes effective, it shall bind every Holder unless
it makes a change described in any clauses of Section 9.02, in which case, the amendment,
supplement or waiver shall bind only each Holder of a Note who has consented to it and every
subsequent Holder of a

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Note or portion of a Note that evidences the same debt as the consenting Holder’s Note;
provided that any such waiver shall not impair or affect the right of any Holder to receive
payment of principal of, premium, if any, and interest on a Note, on or after the respective due
dates expressed in such Note, or to bring suit for the enforcement of any such payment on or after
such respective dates without the consent of such Holder.

          SECTION 9.05 Notation on or Exchange of Notes.

     If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require the
Holder of the Note to deliver the Note to the Trustee. The Trustee at the written direction of the
Company may place an appropriate notation on the Note about the changed terms and return it to the
Holder and the Trustee may place an appropriate notation on any Note thereafter authenticated.
Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Note
shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure
to make an appropriate notation, or issue a new Note, shall not affect the validity and effect of
such amendment, supplement or waiver. Any such notation or exchange shall be made at the sole cost
and expense of the Company. Failure to make the appropriate notation or issue a new Note shall not
effect the validity and effect of such amendment, supplement or waiver.

          SECTION 9.06 Trustee to Sign Amendments, Etc.

          The Trustee and/or the Collateral Agent, as applicable, shall execute any amendment,
supplement or waiver authorized pursuant to this Article Nine; provided that the
Trustee or the Collateral Agent, as the case may be, may, but shall not be obligated to, execute
any such amendment, supplement or waiver which adversely affects the rights, duties or immunities
of the Trustee or the Collateral Agent, as the case may be, under this Indenture or any Collateral
Document. The Trustee or the Collateral Agent, as the case may be, shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel and an Officers’ Certificate
each stating that the execution of any amendment, supplement or waiver authorized pursuant to this
Article Nine is authorized or permitted by this Indenture. Such Opinion of Counsel shall
also state that the amendment or supplement is a valid and enforceable obligation of the Company.
Such Opinion of Counsel shall not be an expense of the Trustee or the Collateral Agent, as the case
may be, and shall be paid for by the Company.

          SECTION 9.07 Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article Nine shall conform to the
requirements of the TIA as then in effect.

ARTICLE TEN

GUARANTEE

          SECTION 10.01 Guarantee.

     Each Guarantor hereby fully, irrevocably and unconditionally, jointly and severally,
unconditionally and irrevocably guarantees (such guarantee to be referred to herein as the
“Note Guarantee”), to each of the Holders and to the Trustee and the Collateral Agent and
their respective successors and assigns that (i) the principal of, premium, if any and interest on
the Notes shall be promptly paid in full when due, subject to any applicable grace period, whether
upon redemption pursuant to the terms of the Notes, by acceleration or otherwise, and interest on
the overdue principal (including interest accruing at the then applicable rate provided in the
Indenture Documents after the occurrence of

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any Event of Default set forth in Section 6.01(9) or (10), whether or not a
claim for post-filing or post-petition interest is allowed under applicable law following the
institution of a proceeding under bankruptcy, insolvency or similar laws), if any, and interest on
any interest, if any, to the extent lawful, of the Notes and all other obligations of the Company
to the Holders, the Trustee and the Collateral Agent hereunder, thereunder or under any Collateral
Document or the Intercreditor Agreement shall be promptly paid in full or performed, all in
accordance with the terms hereof, thereof and of the Collateral Documents and Intercreditor
Agreement; and (ii) in case of any extension of time of payment or renewal of any of the Notes or
of any such other obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in the case of
clauses (i) and (ii) above, to the limitations set forth in Section 10.03.
The Note Guarantee of each Guarantor shall rank senior in right of payment to all existing and
future subordinated Indebtedness of such Guarantor that expressly provides such Indebtedness shall
be so subordinate and equal in right of payment with all other existing and future senior
obligations of such Guarantor, including borrowings or guarantees of borrowings under the ABL
Facility. Each Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes, this Indenture, any
Collateral Document or the Intercreditor Agreement, the absence of any action to enforce the same,
any waiver or consent by any of the Holders with respect to any provisions hereof or thereof, any
release of any other Guarantor, the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor. Each Guarantor hereby waives 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 covenants that this Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes, this Indenture and in this Note Guarantee.
Each Guarantor may consolidate with or merge into or sell its assets to the Company or another
Guarantor without limitation in accordance with Sections 5.01 and 4.16. If any
Holder or the Trustee is required by any court or otherwise to return to the Company, any
Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to
the Company or any Guarantor, any amount paid by the Company or any Guarantor to the Trustee, the
Collateral Agent or such Holder, this Note Guarantee, to the extent theretofore discharged, shall
be reinstated in full force and effect. Each Guarantor further agrees that, as between each
Guarantor, on the one hand, and the Holders, the Collateral Agent and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in
Article Six 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
(y) in the event of any acceleration of such obligations as provided in Article Six, such
obligations (whether or not due and payable) shall forthwith become due and payable by each
Guarantor for the purpose of this Note Guarantee.

          SECTION 10.02 Release of a Guarantor.

     Notwithstanding the foregoing, a Guarantor will be automatically and unconditionally released
from its Note Guarantee and the Collateral Documents (and may subsequently dissolve) without any
action required on the part of the Trustee or any Holder:

     (1) in connection with any sale or other disposition of all or substantially all of the
assets of that Guarantor (including by way of merger, consolidation or otherwise) by the
Company or a Restricted Subsidiary of the Company, if the sale or other disposition complies
with the provisions of Section 4.16;

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     (2) in connection with any sale or other disposition of all of the Capital Stock of a
Guarantor by the Company or a Subsidiary of the Company, if the sale or other disposition
complies with Section 4.16;

     (3) if the Company designates any Restricted Subsidiary that is a Guarantor to be an
Unrestricted Subsidiary in accordance with the applicable provisions of this Indenture;

     (4) if the Company exercises its Legal Defeasance option or its Covenant Defeasance
option as described in Section 8.01; or

     (5) upon satisfaction and discharge of this Indenture or payment in full of the
principal and premium, if any, and accrued and unpaid interest on the Notes and all other
Note Obligations that are then due and payable.

     The Trustee shall promptly deliver an appropriate instrument evidencing such release upon
receipt of a request by the Company accompanied by an Officers’ Certificate certifying as to the
compliance with this Section 10.02. At the Company’s request and expense, the Trustee will
execute and deliver an instrument evidencing such release. Any Guarantor not so released remains
liable for the full amount of its Note Guarantee as provided in this Article Ten.

          SECTION 10.03 Limitation of Guarantor’s Liability.

     Each Guarantor and, by its acceptance hereof, each of the Holders hereby confirms that it is
the intention of all such parties that the guarantee by such Guarantor pursuant to its Note
Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Code,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal
or state law. To effectuate the foregoing intention, the Holders and such Guarantor hereby
irrevocably agree that the obligations of such Guarantor under the Note Guarantee shall be limited
to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities
of such Guarantor and after giving effect to any collections from or payments made by or on behalf
of any other Guarantor in respect of the obligations of such other Guarantor under its Note
Guarantee or pursuant to Section 10.05, result in the obligations of such Guarantor under
the Note Guarantee not constituting such fraudulent transfer or conveyance.

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

     Each Guarantor (other than any Guarantor whose Note Guarantee is to be released in accordance
with the terms of this Indenture in connection with any transaction complying with this Section
10.04 and Section 4.10) will not, and the Company will not cause or permit any such
Guarantor to, 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), any
Person other than the Company or any other Guarantor unless:

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

     (2) either

     (a) the Person acquiring the property in any such sale or disposition or the
Person formed by or surviving any such consolidation or merger (if other than the
Guarantor or the Company):

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     (1) is a corporation, limited liability company or limited liability
partnership organized and existing under the laws of the United States or
any State thereof or the District of Columbia; and

     (2) assumes all the obligations of that Guarantor under this Indenture
and its Note Guarantee pursuant to a supplemental indenture and appropriate
Collateral Documents reasonably satisfactory to the Trustee and in
connection therewith shall cause such instruments and Uniform Commercial
Code financing statements to be filed and recorded in such jurisdictions and
take such other actions as may be required by applicable law to perfect or
continue the perfection of the Note Lien created under the Collateral
Documents on the Note Collateral owned by or transferred to such Person; or

     (b) in the case of any such sale or disposition (including by way of any such
consolidation or merger), the Net Proceeds of such sale or disposition is made in
compliance with the provisions Section 4.16.

          SECTION 10.05 Contribution.

     In order to provide for just and equitable contribution among the Guarantors, the Guarantors
agree, inter se, that each Guarantor that makes a payment or distribution under a Note Guarantee
shall be entitled to a pro rata contribution from each other Guarantor hereunder based on the net
assets of each other Guarantor. The preceding sentence shall in no way affect the rights of the
Holders of Notes to the benefits of this Indenture, the Notes or the Note Guarantees.

          SECTION 10.06 Waiver of Subrogation.

     Each Guarantor agrees that it shall 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.

          SECTION 10.07 Waiver of Stay, Extension or Usury Laws.

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

ARTICLE ELEVEN

MISCELLANEOUS

          SECTION 11.01 Trust Indenture Act Controls.

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

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of the TIA which is required to be included in a qualified Indenture, but not expressly
included herein, shall be deemed to be included by this reference.

          SECTION 11.02 Notices.

     Any notices or other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telex, by telecopier, by email or other
electronic format (including PDF file), by overnight courier or registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:

if to the Company:

Sterling Chemicals, Inc.

333 Clay Street Suite 3600

Houston, TX 77002-4109

Attention: General Counsel

Facsimile Number: (713) 654-9557

if to the Trustee:

U. S. Bank National Association

10 West Market Street, Suite 1150

Indianapolis, Indiana 46204

Attention: Corporate Trust Services

Facsimile Number: (317) 636-1951

if to the Collateral Agent:

U. S. Bank National Association

10 West Market Street, Suite 1150

Indianapolis, Indiana 46204

Attention: Corporate Trust Services

Facsimile Number: (317) 636-1951

if to the Registrar or Paying Agent:

U. S. Bank National Association

West Side Operations Center

60 Livingston Avenue

St. Paul, Minnesota

Attention: Corporate Trust Services

     Each of the Company and the Trustee by written notice to each other may designate additional
or different addresses for notices to such Person. Any notice or communication to the Company or
the Trustee shall be deemed to have been given or made as of the date so delivered if personally
delivered; when answered back, if telexed; when receipt is acknowledged, if faxed, emailed or sent
in other electronic form; one (1) Business Day after mailing if sent by overnight courier; and five
(5) calendar days after mailing if sent by registered or certified mail, postage prepaid (except
that a notice of change of address or a notice sent by mail to the Trustee shall not be deemed to
have been given until actually received by the addressee).

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     Any notice or communication mailed to a Holder shall be mailed to such Holder by first class
mail or other equivalent means at such Holder’s address as it appears on the registration books of
the Registrar and shall be sufficiently given to such Holder if so mailed within the time
prescribed.

     Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. If a notice or communication is mailed in the manner
provided above, it is duly given, whether or not the addressee receives it.

          SECTION 11.03 Communications by Holders with Other Holders.

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

          SECTION 11.04 Certificate and Opinion as to Conditions Precedent.

     Upon any request or application by the Company or any Guarantor to the Trustee or the
Collateral Agent, as the case may be, to take any action under this Indenture, any Collateral
Document or any other Indenture Document, the Company shall furnish to the Trustee or the
Collateral Agent, as the case may be, upon request:

          (a) an Officers’ Certificate, in form and substance reasonably satisfactory to the Trustee or
the Collateral Agent, as the case may be, stating that, in the opinion of the signers, all
conditions precedent to be performed by the Company or the applicable Guarantor (as the case may
be), if any, provided for in this Indenture, any Collateral Document, the Notes or the Note
Guarantees relating to the proposed action have been complied with; and

          (b) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent to be performed by the Company or the applicable Guarantor (as the case may be), if any,
provided for in this Indenture relating to the proposed action have been complied with.

          SECTION 11.05 Statements Required in Certificate or Opinion.

     Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture or any Collateral Document, other than the Officers’ Certificate required by
Section 4.06, shall include:

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

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

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

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

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          SECTION 11.06 Rules by Trustee, Paying Agent, Registrar.

     The Trustee may make reasonable rules in accordance with the Trustee’s customary practices for
action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable rules for
its functions.

          SECTION 11.07 Legal Holidays.

     A “Legal Holiday” used with respect to a particular place of payment is a Saturday, a
Sunday or a day on which banking institutions in New York, New York or Indianapolis, Indiana at
such place of payment are not required to be open. If a payment date is a Legal Holiday at such
place, payment may be made at such place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.

          SECTION 11.08 Governing Law.

     THIS INDENTURE, THE NOTES, THE COLLATERAL DOCUMENTS (OTHER THAN THE MORTGAGES) AND THE
GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS (OTHER THAN N.Y. GEN. OBL. LAW § 5-1401). EACH OF THE PARTIES
HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES, THE GUARANTEES, THE COLLATERAL
DOCUMENTS (OTHER THAN THE MORTGAGES) OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE.

          SECTION 11.09 No Adverse Interpretation of Other Agreements.

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

          SECTION 11.10 No Recourse Against Others.

          No affiliate, director, manager, officer, employee, incorporator, member or holder of any
equity interests in the Company, a Guarantor or the Trustee or any direct or indirect parent
corporation of the Company, a Guarantor or the Trustee, as such, will have any liability for any
obligations of the Company or any Guarantor under the Notes, this Indenture, the Note Guarantees or
the Collateral Documents, 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 parties hereto acknowledge that such waiver may not be effective to waive liabilities under the
federal securities laws.

          SECTION 11.11 Successors.

     All agreements of the Company and the Guarantors in this Indenture, the Notes, and the Note
Guarantees shall bind their successors. All agreements of the Trustee and the Collateral Agent in
this Indenture shall bind their respective successors.

          SECTION 11.12 Duplicate Originals.

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     All parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together shall represent the same agreement.

          SECTION 11.13 Severability.

     In case any one or more of the provisions in this Indenture, the Notes or in the Note
Guarantees shall be held invalid, illegal or unenforceable, in any respect for any reason, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it being intended that
all of the provisions hereof shall be enforceable to the full extent permitted by law.

          SECTION 11.14 Waiver of Jury Trial.

     EACH OF THE COMPANY, THE GUARANTORS, THE TRUSTEE, THE COLLATERAL AGENT, AND BY ITS ACCEPTANCE
THEREOF, EACH HOLDER OF A NOTE, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS
INDENTURE, THE COLLATERAL DOCUMENTS, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS
CONTEMPLATED BY THIS INDENTURE.

ARTICLE TWELVE

SECURITY

          SECTION 12.01 Grant of Security Interest.

          (a) To secure the due and punctual payment of the Note Obligations when and as the same shall
be due and payable, whether on an Interest Payment Date, at maturity, by acceleration, purchase,
repurchase, redemption or otherwise, and the performance of all other Note Obligations of the
Company and the Guarantors to the Holders, the Collateral Agent or the Trustee under this
Indenture, the Collateral Documents, the Note Guarantees and the Notes, the Company and the
Guarantors hereby covenant to cause the Collateral Documents (other than the Intercreditor
Agreement) to be executed and delivered concurrently with this Indenture. If the Company or any
Guarantor acquires after the Issue Date any fee interest in any real property with a purchase price
greater than $5.0 million or any leasehold interest in any real property where the aggregate amount
of lease payments to be made over the term of the lease applicable thereto is greater than $5.0
million, the Company or such Guarantor, as the case may be, shall cause a Mortgage substantially
similar to those executed and delivered on the Issue Date to be executed and delivered in favor of
the Collateral Agent with respect to such real property. Subject to the Intercreditor Agreement,
the Collateral Documents shall provide for the grant by the Company and Guarantors party thereto to
the Collateral Agent security interests in the Collateral. Notwithstanding anything to the
contrary herein, no Collateral shall consist of any Excluded Assets. For the avoidance of doubt,
Note Collateral shall not include the Capital Stock of any Unrestricted Subsidiary or Foreign
Subsidiary.

          (b) The Trustee and each Holder, by its acceptance of a Note, consents and agrees to the terms
of each Collateral Document, as the same may be in effect or may be amended from time to time in
accordance with their respective terms, and authorizes and directs the Collateral Agent to enter
into this Indenture and the Collateral Documents and to perform its obligations and exercise its
rights thereunder in accordance therewith. The Company shall, and shall cause each of its Domestic
Restricted Subsidiaries to, do or cause to be done, at its sole cost and expense, all such actions
and things as may be required by the provisions of the Collateral Documents, to assure and confirm
to the Collateral Agent the

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security interests in the Collateral contemplated by the Collateral Documents, as from time to
time constituted, so as to render the same available for the security and benefit of this Indenture
and of the Note Obligations secured hereby, according to the intent and purpose herein and therein
expressed and subject to the Intercreditor Agreements. The Company shall, and shall cause each of
its Restricted Subsidiaries to, take any and all commercially reasonable actions required or as may
be reasonably requested by the Collateral Agent to cause the Collateral Documents to create and
maintain, as security for the Note Obligations valid and enforceable, perfected (to the extent
required therein) security interests in and on all the Collateral, in favor of the Collateral
Agent, superior to and prior to the rights of all third Persons other than as set forth in the
Intercreditor Agreement, and subject to no other Liens, in each case, except as expressly provided
herein or therein. If required for the purpose of meeting the legal requirements of any
jurisdiction in which any of the Collateral may at the time be located, the Company, the Trustee
and the Collateral Agent shall have the power to appoint, and shall take all reasonable action to
appoint, one or more Persons approved by the Trustee and reasonably acceptable to the Company to
act as co-Collateral Agent with respect to any such Collateral, with such rights and powers limited
to those deemed necessary for the Company, the Trustee or the Collateral Agent to comply with any
such legal requirements with respect to such Collateral, and which rights and powers shall not be
inconsistent with the provisions of this Indenture or any Indenture Document. The Company shall
from time to time promptly pay all reasonable financing and continuation statement recording and/or
filing fees, charges and taxes relating to this Indenture, the Collateral Documents and any
amendments hereto or thereto and any other instruments of further assurance required pursuant
hereto or thereto.

          (c) Subject to and in accordance with the provisions of the Collateral Documents, this
Indenture, so long as the Collateral Agent or any Credit Facility Agent has not exercised their
respective rights with respect to the Note Collateral upon the occurrence and during the
continuance of an Event of Default, the Company and each Guarantor will have the right to remain in
possession and retain exclusive control of the Note Collateral, to operate the Note Collateral, to
alter or repair the Note Collateral and to collect, invest and dispose of any income therefrom,
subject, in the case of the Secondary Collateral, to the provisions of the Intercreditor Agreement
and the ABL Facility Lien Security Documents.

          SECTION 12.02 Intercreditor Agreement.

     This Indenture and the Collateral Documents are subject to the terms, limitations and
conditions set forth in the Intercreditor Agreement. The Trustee and by its acceptance of its
Note(s), each Holder (a) acknowledges that it has received a copy of the Intercreditor Agreement,
(b) consents to the subordination of Liens on the Second Lien Collateral as defined, and provided
for, in the Intercreditor Agreement, (c) agrees that it will be bound by and will take no actions
contrary to the provisions of the Intercreditor Agreement and (d) authorizes and instructs the
Collateral Agent to enter into the Intercreditor Agreement as agent for and representative of such
Secured Party. The foregoing provisions are intended as an inducement to the lenders under the
Credit Facility to extend credit to the Borrowers and such lenders are intended third-party
beneficiaries of such provisions.

          SECTION 12.03 Recording and Opinions.

          (a) The Company shall furnish to the Trustee, at such time as required by TIA Section 314(b)
an Opinion of Counsel either (i) stating that, in the opinion of such counsel, this Indenture and
the Collateral Documents, financing statements and fixture filings then executed and delivered, as
applicable, and all other instruments of further assurance or amendment then executed and delivered
have been properly recorded, registered and filed to the extent necessary to perfect the security
interests created by the Collateral Documents and reciting the details of such action or referring
to prior Opinions of Counsel in which such details are given, and stating that as to such
Collateral Documents and such other

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instruments, such recording, registering and filing are the only recordings, registerings and
filings necessary to perfect such security interest and that no re-recordings, re-registerings, or
re-filings are necessary to maintain such perfection, and further stating that all financing
statements and continuation statements have been filed are necessary fully to preserve and protect
the rights of and perfect such security interests of the Trustee for the benefit of itself and the
Holders, under the Collateral Documents or (ii) stating that, in the Opinion of such Counsel, no
such action is necessary to perfect any security interest created under any of the Collateral
Documents as intended by this Indenture, the Notes or any such Collateral Document.

          (b) The Company shall furnish to the Trustee and the Collateral Agent (if other than the
Trustee), on or within one month of June 30 of each year, commencing June 30, 2008, an Opinion of
Counsel either (i) stating that, in the opinion of such counsel, all action necessary to perfect or
continue the perfection of the security interests created by the Collateral Documents and reciting
the details of such action or referring to prior Opinions of Counsel in which such details are
given have been taken or (ii) stating that, in the Opinion of such Counsel, no such action is
necessary to perfect or continue the perfection of any security interest created under any of the
Collateral Documents.

          SECTION 12.04 Release of Collateral.

          (a) Subject to the Intercreditor Agreement, the Collateral Agent shall not at any time release
Collateral from the security interests created by the Collateral Documents unless such release is
in accordance with Section 12.05, Section 12.06 or clauses (b), (d) or (f) of this
Section 12.04 or otherwise pursuant to the provisions of this Indenture, the Intercreditor
Agreement and the applicable Collateral Documents.

          (b) So long as no Default or Event of Default under this Indenture shall have occurred and be
continuing or would result therefrom and so long as such transaction would not violate this
Indenture, the Company and the Guarantors may, to the extent permitted by applicable law, without
any release or consent by the Trustee, the Collateral Agent or any Holder, conduct ordinary course
activities with respect to inventory and accounts receivable, including selling inventory or
otherwise disposing of, in any transaction or series of related transactions, any property subject
to the Note Lien of the Collateral Documents which has become worn out, defective or obsolete or
not used or useful in the business and which is, to the extent required by this Indenture or the
Collateral Documents, replaced by property of substantially equivalent or greater value which
becomes subject to the Note Lien of the Collateral Documents. The Company will deliver to the
Trustee, within 30 calendar days following the end of each year, an Officers’ Certificate to the
effect that all releases and withdrawals during the preceding twelve-month period in which no
release or consent of the Trustee was obtained were in the ordinary course of the Company’s
business and were not prohibited by this Indenture.

          (c) The release of any Collateral from the terms of the Collateral Documents shall not be
deemed to impair the security under this Indenture in contravention of the provisions hereof if and
to the extent the Collateral is released pursuant to Section 12.05, Section 12.06
or clauses (b), (d) or (f) of this Section 12.04 or otherwise pursuant to this Indenture
and the Collateral Documents or pursuant to the Intercreditor Agreement. To the extent applicable,
the Company shall cause TIA Section 314(d) relating to the release of property from the security
interests created by this Indenture and the Collateral Documents to be complied with. Any
certificate or opinion required by TIA Section 314(d) may be made by an Officer of the Company,
except in cases where TIA Section 314(d) requires that such certificate or opinion be made by an
independent Person, which Person shall be an independent engineer, appraiser or other expert
selected or approved by the Trustee in the exercise of reasonable care. A Person is “independent”
if such Person (a) is in fact independent, (b) does not have any direct financial interest or any
material indirect financial interest in the Company or in any Affiliate of the Company and (c) is
not

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an officer, employee, promoter, underwriter, trustee, partner or director or person performing
similar functions to any of the foregoing for the Company. The Trustee and the Collateral Agent
shall be entitled to receive and rely upon a certificate provided by any such Person confirming
that such Person is independent within the foregoing definition.

          (d) Collateral comprised of accounts receivable, inventory or (prior to the occurrence and
during the continuance of an Event of Default) the proceeds of the foregoing shall be subject to
release upon sales of such inventory and collection of the proceeds of such accounts receivable in
the ordinary course of business.

          (e) If requested in writing by the Company, the Trustee shall instruct the Collateral Agent to
execute and deliver such documents, instruments or statements and to take such other action as the
Company may request to evidence or confirm that the Collateral required or permitted to be released
from the Notes Liens pursuant to Sections 12.05 or 12.06 or clauses (b), (d) or (f)
of this Section 12.04 or otherwise pursuant to this Indenture or any Collateral Document
has been released from the Note Liens of each of the Collateral Documents. The Collateral Agent
shall execute and deliver such documents, instruments and statements and shall take all such
actions promptly upon receipt of such instructions from the Trustee.

          (f) Notwithstanding any other provision of any Indenture Document, the consent and release of
the Collateral Agent, the Trustee or any Holder will not be required for the sale or other
disposition of Secondary Collateral in accordance with the terms of the ABL Facility or any other
Credit Facility subject to compliance with the Intercreditor Agreement.

          SECTION 12.05 Specified Releases of Note Collateral.

     (a) Subject to Section 12.04, Collateral may be released from the Note Liens at any
time or from time to time in accordance with the provisions of the Collateral Documents, including
the Intercreditor Agreement, or as provided in this Section 12.05 or clauses (b), (d) or
(f) of Section 12.04 or otherwise pursuant to this Indenture or any Collateral Documents.
Upon the request of the Company pursuant to an Officers’ Certificate certifying that all conditions
precedent hereunder have been met and without the consent of the Collateral Agent, the Trustee or
any Holder, the Company and the Guarantors will be entitled to releases of any asset included in
the Note Collateral from the Note Liens under any one or more of the following circumstances:

     (1) as required pursuant to the terms of the Intercreditor Agreement; or

     (2) upon delivery by the Company to the Collateral Agent of an Officers’ Certificate
certifying that the asset has been sold or otherwise disposed of by the Company or a
Restricted Subsidiary to a Person other than the Company or a Guarantor in a transaction
permitted by this Indenture, at the time of such sale or disposition; or

     (3) upon delivery by the Company to the Collateral Agent of an Officers’ Certificate
certifying that the asset is owned or has been acquired by a Guarantor that has been
released from its Note Guarantee (including by virtue of (x) a Guarantor becoming an
Unrestricted Subsidiary or (y) a sale by the Company or a Subsidiary thereof of all of the
Capital Stock of a Guarantor); or

     (4) upon delivery by the Company to the Collateral Agent of an Officers’ Certificate
certifying that (x) such asset is comprised of Secondary Collateral; (y) Credit Facility
Obligations remain outstanding under one or more Credit Facilities; and (z) to the extent
such consent is

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required, the Credit Facility Agent under any such Credit Facility has authorized the
release of the same.

     (b) Upon receipt of such Officers’ Certificate and any necessary or proper instruments of
termination, satisfaction or release prepared by the Company, the Collateral Agent and the Trustee
shall forthwith (i) execute, deliver or acknowledge such instruments or releases to evidence the
release of such asset included in the Note Collateral from all Note Liens pursuant to this
Indenture and all Collateral Documents and (ii) to the extent applicable to such assets, take all
action that is necessary or reasonably requested by the Company (in each case at the expense of the
Company) to release and reconvey to the Company and the Guarantors without recourse such asset, and
deliver such asset in its possession to the Company and the Guarantors.

          SECTION 12.06 Release of all Note Collateral.

     (a) The Liens on, and pledges of, all Note Collateral will be terminated and released, and
upon the request of the Company pursuant to an Officers’ Certificate certifying that all conditions
precedent hereunder have been met, the Company and the Guarantors will be entitled to releases of
all assets included in the Collateral from the Note Liens under all Collateral Documents, without
the consent of the Collateral Agent, the Trustee or any Holder, upon any of: (i) payment in full
of the principal of, premium, if any, and accrued and unpaid interest on the Notes and all other
Obligations hereunder, the Note Guarantees and the Collateral Documents that are due and payable at
or prior to the time such principal, premium, if any, and accrued and unpaid interest are paid,
(ii) a satisfaction and discharge of this Indenture in accordance with Section 8.02, (iii)
the occurrence of a Legal Defeasance or Covenant Defeasance in accordance with Section
8.01, or (iv) the written consent of at least 75% in aggregate principal amount of the
outstanding Notes voting as a single class (including consents obtained in connection with a
purchase of, or tender offer or exchange offer for, Notes).

     (b) Upon receipt of such Officers’ Certificate and any necessary or proper instruments of
termination, satisfaction or release prepared by the Company, the Collateral Agent and the Trustee
shall forthwith (i) execute, deliver or acknowledge such instruments or releases to evidence the
release of all Collateral from all Note Liens pursuant to this Indenture and all Collateral
Documents, and (ii) take all action that is necessary or reasonably requested by the Company (in
each case at the expense of the Company) to release and reconvey to the Company and the Guarantors
without recourse all of the Note Collateral, and deliver such Note Collateral in its possession to
the Company and the Guarantors.

          SECTION 12.07 Form and Sufficiency of Release.

     In the event that the Company or any Guarantor has sold, exchanged, or otherwise disposed of
or proposes to sell, exchange or otherwise dispose of any portion of the Note Collateral that may
be sold, exchanged or otherwise disposed of by the Company or such Guarantor, and the Company or
such Guarantor requests the Trustee or the Collateral Agent to furnish a written disclaimer,
release or quit-claim of any interest in such property under this Indenture and the Collateral
Documents, the Collateral Agent and the Trustee, as applicable, shall execute, acknowledge and
deliver to the Company or such Guarantor (in proper form) such an instrument promptly after
satisfaction of the conditions set forth herein for delivery of any such release. Notwithstanding
the preceding sentence, all purchasers and grantees of any property or rights purporting to be
released herefrom shall be entitled to rely upon any release executed by the Collateral Agent
hereunder as sufficient for the purpose of this Indenture and as constituting a good and valid
release of the property therein described from the Lien of this Indenture or of the Collateral
Documents.

          SECTION 12.08 Purchaser Protected.

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     No purchaser or grantee of any property or rights purporting to be released herefrom shall be
bound to ascertain the authority of the Trustee or the Collateral Agent to execute the release or
to inquire as to the existence of any conditions herein prescribed for the exercise of such
authority; nor shall any purchaser or grantee of any property or rights permitted by this Indenture
to be sold or otherwise disposed of by the Company be under any obligation to ascertain or inquire
into the authority of the Company to make such sale or other disposition.

          SECTION 12.09 Authorization of Actions to Be Taken by the Collateral Agent Under the
Collateral Documents.

     U. S. Bank National Association is hereby appointed to act in its capacity as the Collateral
Agent. Subject to the provisions of the applicable Collateral Documents and the Intercreditor
Agreement, (a) the Collateral Agent shall execute and deliver the Collateral Documents and the
Intercreditor Agreement and act in accordance with the terms thereof, (b) the Collateral Agent may,
in its sole discretion and without the consent of the Trustee or the Holders, take all actions it
deems necessary or appropriate in order to (i) enforce any of the terms of the Collateral Documents
and (ii) collect and receive any and all amounts payable in respect of the Obligations of the
Company and the Guarantors hereunder and under the Notes, the Note Guarantees, the Collateral
Documents and the Intercreditor Agreement and (c) the Collateral Agent shall have power to
institute and to maintain such suits and proceedings as it may deem expedient to prevent any
impairment of the Collateral by any act that may be unlawful or in violation of the Collateral
Documents or this Indenture, and suits and proceedings as the Collateral Agent may deem expedient
to preserve or protect its interests and the interests of the Trustee and the Holders in the
Collateral (including the power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such
enactment, rule or order would impair the security interest thereunder or be prejudicial to the
interests of the Holders, the Trustee or the Collateral Agent). Notwithstanding the foregoing, the
Collateral Agent may, at the expense of the Company, request the direction of the Holders with
respect to any such actions and upon receipt of the written consent of the Holders of at least a
majority in aggregate principal amount of the outstanding Notes voting as a single class (including
consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes),
shall take such actions; provided that all actions so taken shall, at all times, be
in conformity with the requirements of the Intercreditor Agreement.

          SECTION 12.10 Authorization of Receipt of Funds by the Collateral Agent Under the
Collateral Documents.

     The Collateral Agent is authorized to receive any funds for the benefit of itself, the Trustee
and the Holders distributed under the Collateral Documents and the Intercreditor Agreement to the
extent permitted under the Intercreditor Agreement, for turnover to the Trustee to make further
distributions of such funds to itself, the Collateral Agent and the Holders in accordance with the
provisions of Section 6.11 and the other provisions of this Indenture.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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SIGNATURES

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

	 	 	 	 	 
	 	STERLING CHEMICALS, INC.

 	 
	 	By:  	/s/ Paul G. Vanderhoven
 	 
	 	Name:  	Paul G. Vanderhoven 	 
	 	Title:  	Senior Vice President — Finance

and Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	U. S. BANK NATIONAL ASSOCIATION,
as Trustee and Collateral Agent

 	 
	 	By:  	/s/ T. Scott Fesler
 	 
	 	 	Name:  	T. Scott Fesler 	 
	 	 	Title:  	Vice President 	 
	 

Indenture

S-1

 

	 	 	 	 	 
	 	GUARANTOR:

STERLING CHEMICALS ENERGY, INC.

 	 
	 	By:  	/s/ Paul G. Vanderhoven
 	 
	 	 	Name:  	Paul G. Vanderhoven 	 
	 	 	Title:  	Vice President 	 
	 

Indenture

S-2

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