Document:

Exhibit 10.1

 

[***]CERTAIN
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 

EXHIBIT A

 

Qnexa OB-305 TASK ORDER

 

MEDPACE Task Order Number: 06

 

MEDPACE Project Number: VOB305

 

This Task Order,
dated December 15, 2008, is between Medpace, Inc. (“MEDPACE”), and VIVUS, Inc. (“VIVUS”).

 

RECITALS:

 

WHEREAS, MEDPACE and VIVUS have entered into that
certain Master Services Agreement dated September 12, 2007 (the “Master
Services Agreement”); and

 

WHEREAS, pursuant to the Master Services
Agreement, MEDPACE has agreed to perform certain Services in accordance with
Task Orders from time to time entered into by the Parties and VIVUS and MEDPACE
now desire to enter into such a Task Order; and

 

WHEREAS, MEDPACE and VIVUS desire that MEDPACE
provide certain services with respect to phase 3, double blind, placebo
controlled multicenter extension study (from study OB-303) to determine the
safety and efficacy of VI-0521 for the long-term treatment of obesity in adults
with obesity-related co-morbid conditions (the “Study”)
for the study of the product VI-0521 (“Study  Product”) as set out in the Protocol Number: OB-305, which
is attached hereto as Appendix 1;

 

NOW,
THEREFORE, in
consideration of the mutual covenants contained herein, the Parties hereby
agree as follows:

 

1.                                       Scope of Work:  MEDPACE shall perform the services described
in the Scope of Work, attached hereto as Appendix 2, in accordance with the
Project Schedule, attached hereto as Appendix 3 and any other documents
attached to and specifically referenced in this Task Order (“Services”)

 

2.                                       Compensation:  For performance of these Services, VIVUS
shall pay to MEDPACE an amount equal to the Project Budget set forth in
Appendix 4, which amount shall be payable pursuant to the Payment Schedule set
forth in Appendix 5.

 

1

 

3.                                       Transfer of
Obligations:  Sponsor
Obligations transferred to MEDPACE by VIVUS (consistent with the regulations
set forth in 21 C.F.R. Section 312, Subpart D) are identified in Appendix
6.

 

4.                                       MSA. The provisions
of the Master Services Agreement are hereby expressly incorporated by reference
into and made a part of this Task Order.

 

 

IN
WITNESS WHEREOF,
the Parties have hereunto signed this Task Order effective as of the day and
year first written above.

 

	
  MEDPACE, INC.

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
  /s/ John Wynne

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  (Print Name)

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SPONSOR

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
  /s/ Timothy Morris

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  (Print Name)

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
							

 

List of
Appendices:

 

Appendix 1:  Protocol

Appendix 2:  Scope of
Work

Appendix 3: 
Project Schedule

Appendix 4:  Project
Budget

Appendix 5:  Payment
Schedule

Appendix 6:  Transfer
of Obligations

 

2

 

CLINICAL PROTOCOL

 

A PHASE 3, DOUBLE-BLIND,
PLACEBO-CONTROLLED, MULTICENTER EXTENSION STUDY (FROM STUDY OB-303) TO
DETERMINE THE SAFETY AND EFFICACY OF VI-0521 FOR THE LONG-TERM TREATMENT OF
OBESITY IN ADULTS WITH OBESITY-RELATED CO-MORBID CONDITIONS

 

	
  Compound:

  	
  VI-0521

  
	
   

  	
   

  
	
  Compound
  Name (if applicable):

  	
  Phentermine
  hydrochloride plus topiramate

  
	
   

  	
   

  
	
  US
  IND Number (if applicable):

  	
  [***]

  
	
   

  	
   

  
	
  Protocol
  Number:

  	
  OB-305

  
	
   

  	
   

  
	
  Phase:

  	
  3

  
	
   

  	
   

  
	
  Medical
  Monitor:

  	
  [***]

  
	
   

  	
   

  
	
  Sponsor:

  	
  VIVUS, Inc.

  1172 Castro St.

  Mountain View, CA 94040

  Tel: (650) 934-5200

  Fax: (650) 934-5209

  
	
   

  	
   

  
	
  Version
  and Date:

  	
  [***]

  

 

This
document contains confidential information belonging to VIVUS, Inc. Except
as otherwise agreed to in writing, by accepting or reviewing this document, you
agree to hold this information in confidence and not copy or disclose it to
others (except where required by applicable law) or use it for unauthorized
purposes. In the event of any actual or suspected breach of this obligation,
VIVUS, Inc. must be promptly notified.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

 

INTERNAL PROTOCOL APPROVAL

 

Protocol Number: OB-305

 

Title:  A Phase 3,
Double-Blind, Placebo-Controlled, Multicenter Extension Study (from Study
OB-303) to Determine the Safety and Efficacy of VI-0521 for the Long-Term
Treatment of Obesity in Adults with Obesity-Related Co-Morbid Conditions

 

The
signature below documents that the reviewer has read and approved the attached
protocol.

 

	
   

  	
   

  	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Author:
  Craig Peterson

  Sr. Director, Clinical Research

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wesley
  Day, PhD

  VP, Clinical Development

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jacqueline
  Dombroski, PhD

  Sr. Director, Regulatory Affairs

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ted
  Broman

  Sr. Director, Pharmaceutical

  Development

  	
   

  	
   

  	
   

  	
   

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

2

 

PRINCIPAL INVESTIGATOR SIGNATURE

 

Protocol Number: OB-305

 

Title:  A Phase 3,
Double-Blind, Placebo-Controlled, Multicenter Extension Study (from Study
OB-303) to Determine the Safety and Efficacy of VI-0521 for the Long-Term
Treatment of Obesity in Adults with Obesity-Related Co-Morbid Conditions

 

The signature below indicates that the principal
investigator has read and understands the protocol and agrees to conduct the
study in accordance with the protocol, applicable guidelines for Good Clinical
Practice, the Declaration of Helsinki, and all applicable regulatory guidelines
and requirements. Please return one copy of this executed page to VIVUS, Inc.

 

 

	
  Printed
  Name:

  	
   

  
	
   

  
	
   

  
	
  Signature:

  	
   

  	
  Date:

  
	
   

  
	
   

  
	
  Facility
  Name:

  	
   

  
	
   

  
	
   

  
	
  Address:

  	
   

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

3

 

PROTOCOL SYNOPSIS

 

Rationale:

 

Obesity leads to the development of co-morbidities
such as hypertension, type 2 diabetes, dyslipidemia, coronary artery disease,
and stroke. Weight reduction in obese individuals has been shown to delay or
prevent the onset of these co-morbidities, or even reverse the damage caused by
these co-morbidities. Diet, exercise, and behavior modification therapy can be
effective short-term treatments; however, many people experience difficulty in
achieving and maintaining weight reduction without pharmacotherapy. VI-0521 is
an investigational weight loss therapy that is a new combination of two
currently approved drugs, phentermine and topiramate. This novel combination
treatment may provide a safe and effective option for the achievement and
long-term maintenance of weight loss in obese adults.

 

Objectives:

 

The objectives of this study are to evaluate the
long-term efficacy and safety of VI-0521 compared to placebo for the treatment
of overweight and obesity in adults who have completed study OB-303 at selected
study sites.

 

Study
Design:

 

In this double-blind, placebo-controlled, extension
study, subjects who have completed study OB-303 will be evaluated for an
additional year. [***].

 

Subjects will return [***] for clinic assessments.
[***]. Subjects who discontinue treatment during the study [***].

 

Study
Subjects:

 

The study population will include up to 1000 adults
who have completed study OB-303 on treatment with a body mass index [***], and
who have not developed conditions that would contraindicate the administration
of study medication or prevent continued compliance with protocol requirements.
These subjects will be recruited from [***].

 

Efficacy
Endpoints:

 

The primary efficacy endpoints are weight loss and
percent weight loss from the start of treatment in study OB-303 at monthly time
points during the second year of treatment.

 

Secondary efficacy endpoints are the following:

 

·                  Percentages of subjects who achieve reductions
in total body weight from study OB-303 baseline of at least 5% and 10% and

 

·                  Change from study OB-303 baseline in waist
circumference.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has been
requested with respect to the omitted portions.

 

4

 

Other efficacy endpoints are the following:

 

·                  Change from study OB-303 baseline in
Framingham risk score;

 

·                  Percent changes from study OB-303 baseline in
low-density lipoprotein cholesterol (LDL-C), high-density lipoprotein
cholesterol (HDL-C), total cholesterol (TC), and triglycerides (TG);

 

·                  Changes from study OB-303 baseline in
hemoglobin A1c (HbA1c), fasting blood glucose, and fasting
insulin;

 

·                  Changes from study OB-303 baseline in
systolic blood pressure (SBP) and diastolic blood pressure (DBP);

 

·                  Time to onset of type 2 diabetes (in subjects
without a diagnosis of diabetes at entry into study OB-303); and

 

·                  Changes from the start of study OB-305 (Week
56) to the completion of study OB-305 (Week 108) in primary and secondary
efficacy endpoints.

 

Subgroup analyses, including
but not limited to analysis by disease status, gender, age, and race, may be
performed.

 

Safety
Endpoints:

 

Safety will be assessed by an evaluation of adverse
events, including [***] and [***]; and [***]. In addition to [***], [***];[***]
and [***].

 

[***] will be reviewed by
[***] to determine which events [***].

 

Statistical
Methods:

 

All subjects who receive one or more doses of study
medication in this extension study and have at least one post-treatment
efficacy measurement will be included in the efficacy analyses.

 

Percent weight loss will be compared between
treatment groups using an analysis of [***]. Percentage of subjects with [***]
weight loss will be compared between treatment groups [***]. The [***] will be
employed [***].

 

The
[***] that is planned for the [***],[***],and [***].

 

Time
to [***] will be compared between treatment groups [***] will be derived from a
[***].

 

[***] will be defined by any
of the following [***]:

 

·                  [***] or

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

5

 

·                  [***].

 

The [***] will be determined for each treatment
group. [***] and [***] will be derived.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

6

 

	
  TABLE
  OF CONTENTS

  	
   

  
	
   

  	
   

  
	
  INTERNAL PROTOCOL APPROVAL

  	
  2

  
	
  PRINCIPAL INVESTIGATOR SIGNATURE

  	
  3

  
	
  PROTOCOL SYNOPSIS

  	
  4

  
	
  1. INTRODUCTION

  	
  12

  
	
  1.1. Background

  	
  12

  
	
  1.2. Rationale

  	
  13

  
	
  2. STUDY OBJECTIVES

  	
  13

  
	
  3. STUDY DESIGN

  	
  13

  
	
  4. SUBJECT SELECTION

  	
  14

  
	
  4.1. Inclusion Criteria

  	
  14

  
	
  4.2. Exclusion Criteria

  	
  15

  
	
  4.3. Life Style Guidelines

  	
  15

  
	
  5. STUDY TREATMENTS

  	
  15

  
	
  5.1. Allocation to Treatment

  	
  15

  
	
  5.2. Breaking the Blind

  	
  16

  
	
  5.3. Drug Supplies

  	
  16

  
	
  5.3.1. Formulation and Packaging

  	
  16

  
	
  5.3.2. Preparation and Dispensing

  	
  16

  
	
  5.3.3. Administration

  	
  17

  
	
  5.3.4. [***]

  	
  17

  
	
  5.3.5. Compliance

  	
  17

  
	
  5.4. Drug Storage and Drug
  Accountability

  	
  17

  
	
  5.5. Concomitant Medications

  	
  18

  
	
  5.5.1. Excluded Medications

  	
  18

  
	
  5.5.2. Other Restricted
  Medications

  	
  18

  
	
  5.5.3. Documentation of
  Concomitant Medication Use

  	
  18

  
	
  5.6. Treatment of Diabetes

  	
  18

  
	
  5.7. Treatment of [***]

  	
  19

  
	
  5.8. Treatment of [***]

  	
  19

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

7

 

	
  6. STUDY PROCEDURES

  	
  19

  
	
  6.1. Screening (Visit 1)

  	
  19

  
	
  6.2. Treatment (Visits 2 to 13)

  	
  20

  
	
  6.3. End of Treatment (Visit 14
  or Early Termination)

  	
  20

  
	
  6.4. Study Period

  	
  21

  
	
  6.5. Subject Withdrawal

  	
  21

  
	
  7. ASSESSMENTS

  	
  22

  
	
  7.1. Weight Assessment and Waist
  Circumference Measurement

  	
  22

  
	
  7.1.1. Weight Assessment

  	
  22

  
	
  7.1.2. Waist Circumference
  Measurement

  	
  23

  
	
  7.2. Vital Signs

  	
  23

  
	
  7.3. Questionnaires

  	
  24

  
	
  7.3.1. [***]

  	
  24

  
	
  7.3.2. [***]

  	
  24

  
	
  7.4. [***]

  	
  24

  
	
  7.5. Laboratory Tests

  	
  24

  
	
  7.5.1. Blood Chemistry

  	
  24

  
	
  7.5.2. Hematology

  	
  25

  
	
  7.5.3. Urinalysis

  	
  25

  
	
  7.5.4. Hemoglobin A1c

  	
  25

  
	
  7.5.5. Oral Glucose Tolerance
  Test

  	
  25

  
	
  7.5.6. Urine Pregnancy Test

  	
  25

  
	
  7.6. Physical Examination

  	
  25

  
	
  7.7. Electrocardiogram

  	
  26

  
	
  7.8. Framingham Risk Score

  	
  26

  
	
  7.9. [***]

  	
  26

  
	
  8. ADVERSE EVENT REPORTING

  	
  26

  
	
  8.1. Adverse Events

  	
  26

  
	
  8.1.1. Severity Assessment

  	
  27

  
	
  8.1.2. Causality Assessment

  	
  27

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

8

 

	
  8.1.3. Abnormal Test Findings

  	
  27

  
	
  8.2. Serious Adverse Events

  	
  28

  
	
  8.2.1. Definition of
  Hospitalization

  	
  28

  
	
  8.3. Eliciting Adverse Event Information

  	
  29

  
	
  8.3.1. [***]

  	
  29

  
	
  8.3.2. [***]

  	
  29

  
	
  8.3.3. [***]

  	
  29

  
	
  8.4. Reporting Period

  	
  30

  
	
  8.5. Reporting Requirements

  	
  30

  
	
  8.5.1. Serious Adverse Event
  Reporting Requirements

  	
  30

  
	
  8.5.2. Non-Serious Adverse Event
  Reporting Requirements

  	
  30

  
	
  8.5.3. [***]

  	
  31

  
	
  8.6. [***]

  	
  31

  
	
  9. DATA ANALYSIS/STATISTICAL METHODS

  	
  31

  
	
  9.1. Sample Size Determination

  	
  31

  
	
  9.2. Efficacy Analysis

  	
  31

  
	
  9.2.1. Analysis of Primary
  Endpoints

  	
  31

  
	
  9.2.2. Analysis of Secondary and
  Other Endpoints

  	
  32

  
	
  9.3. [***]

  	
  32

  
	
  9.4. [***]

  	
  32

  
	
  9.5. Safety Analysis

  	
  33

  
	
  9.5.1. Adverse Events

  	
  33

  
	
  9.5.2. Clinical Laboratory Tests

  	
  33

  
	
  9.5.3. Vital Signs and Other
  Safety Evaluations

  	
  33

  
	
  9.5.4. Questionnaire Assessments

  	
  33

  
	
  9.6. [***]

  	
  34

  
	
  10. QUALITY CONTROL AND QUALITY ASSURANCE

  	
  34

  
	
  11. DATA HANDLING AND RECORD KEEPING

  	
  34

  
	
  11.1. Case Report
  Forms/Electronic Data Record

  	
  34

  
	
  11.2. Record Retention

  	
  35

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

9

 

	
  12. ETHICS

  	
  35

  
	
  12.1. Institutional Review Board

  	
  35

  
	
  12.2. Ethical Conduct of the
  Study

  	
  36

  
	
  12.3. Subject Information and
  Consent

  	
  36

  
	
  12.4. Disclosure of Data

  	
  36

  
	
  13. REGULATORY CORRESPONDENCE

  	
  36

  
	
  14. DEFINITION OF END OF STUDY

  	
  37

  
	
  15. SPONSOR DISCONTINUATION CRITERIA

  	
  37

  
	
  16. PUBLICATION OF STUDY RESULTS

  	
  37

  
	
  17. REFERENCES

  	
  39

  
	
  APPENDIX 1: SCHEDULE OF STUDY ACTIVITIES

  	
  41

  
	
  APPENDIX 2:

  	
  42

  
	
  [***]

  	
  42

  
	
   

  	
   

  
	
  TABLES

  	
   

  
	
  [***]

  	
   

  
	
  FIGURES

  	
   

  
	
  Figure 1. Measuring Tape Position
  for Waist Circumference Assessments

  	
  23

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

10

 

	
  LIST OF ABBREVIATIONS

  	
   

  
	
   ACE

  	
  angiotensin-converting
  enzyme

  
	
   [***]

  	
   

  
	
   CRF

  	
  case report form

  
	
   [***]

  	
   

  
	
   DBP

  	
  diastolic blood pressure

  
	
   [***]

  	
   

  
	
   DSM-IV

  	
  Diagnostic and
  Statistical Manual IV

  
	
   ECG

  	
  electrocardiogram

  
	
   FDA

  	
  Food and Drug Administration

  
	
   [***]

  	
   

  
	
   GCP

  	
  Good Clinical Practice

  
	
   HbA1c

  	
  hemoglobin A1c

  
	
   HDL-C

  	
  high-density
  lipoprotein cholesterol

  
	
   ICH

  	
  International
  Conference on Harmonisation

  
	
   IRB

  	
  Institutional Review
  Board

  
	
   IVRS

  	
  Interactive Voice
  Response System

  
	
   LDL-C

  	
  low-density lipoprotein
  cholesterol

  
	
   LOCF

  	
  last observation
  carried forward

  
	
   MedDRA

  	
  Medical Dictionary for
  Regulatory Activities

  
	
   OGTT

  	
  oral glucose tolerance
  test

  
	
   [***]

  	
   

  
	
   SBP

  	
  systolic blood pressure

  
	
   TC

  	
  total cholesterol

  
	
   TG

  	
  triglycerides

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

11

 

1.
INTRODUCTION

 

VI-0521 is an investigational weight loss therapy
that is a combination of two approved drugs, phentermine and topiramate.
Phentermine hydrochloride (phentermine), [***]. It is postulated that [***],
and there is [***]. Topiramate, an [***]. However, the [***]. The
present study is being conducted to evaluate the long-term effects of the
combined use of phentermine and topiramate at doses of 7.5 mg phentermine/46 mg
topiramate and 15 mg phentermine/92 mg topiramate in the treatment of
obesity in adult subjects.

 

1.1. Background

 

Recent studies have shown that about 129 million
adults in the United States are clinically overweight or obese.(6) In
recent years, there has been a dramatic increase in obesity in both children
and adults.(7),(8) Results from the National Health and Nutrition
Examination Survey showed an overall 32.2% prevalence of obesity during
2003-2004, with obesity increasing from 27.5% in 1999-2000 to 31.1% in
2003-2004 in men but remaining relatively unchanged in women (1999-2000, 33.4%;
2003-2004, 33.2%).(8)

 

Obesity is associated with numerous co-morbidities
including dyslipidemia, coronary artery disease, hypertension, stroke, and type
2 diabetes.(7),(9) Epidemiological data indicate that obesity is
associated with increased mortality,(10) and a recent study of over
500,000 individuals concluded that excess body weight during midlife was
associated with an increased risk of death.(11) A modest weight loss (5%-10%)
can result in a marked reduction in obesity-related metabolic and
cardiovascular risk factors.(12),(13),(14) Diet, exercise, and behavior
modification are standard treatments for obesity although most obese
individuals do not achieve prolonged weight reduction without supplemental
pharmacotherapy. However, the medications currently approved by the Food and
Drug Administration (FDA) for weight loss are often poorly tolerated due to
side effects and often fail to maintain long-term efficacy.(15)

 

Phentermine hydrochloride, a synthetic
sympathomimetic amine, is an anorectic agent approved by the FDA as a
short-term adjunct to a weight loss regimen based on exercise, behavior
modification and caloric restriction. The usual adult dosage is [***]
administered either once daily or in divided doses.(1) The mechanism of
action of phentermine for weight loss is similar to that of other anorectic
agents; it decreases appetite and stimulates the central nervous system.(1) It
is postulated that [***]. Increased [***] levels may also result in a
decrease in [***], which may result in increased satiety and decreased
appetite.

 

Topiramate, a sulfamate-substituted monosaccharide,
is an anticonvulsant agent indicated as adjunctive therapy for partial onset
seizures, primary generalized tonic-clonic seizures, seizures associated with
Lennox-Gastaut syndrome, and migraine headache prophylaxis.(5) The
recommended total daily dose of topiramate for treatment of seizures in adults
[***] is recommended. Topiramate is known to [***]. Recent clinical
studies have shown that 

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

12

 

topiramate can promote weight loss in [***]. The exact
mechanism by which topiramate exerts its anorectic effect is not understood
although it is postulated to [***].

 

VI-0521 has been studied in a Phase 2, randomized,
double-blind clinical study of 200 otherwise healthy obese adults under an
investigator-initiated Investigational New Drug Application.(19) Subjects were
randomized to one of four treatment groups: 
[***]. Treatment was continued for [***] (including [***]). Weight loss
among subjects treated [***] compared to [***]. Subjects treated with VI-0521
[***] than subjects in the other treatment groups. Significant decreases versus
[***] and [***] were observed in subjects treated [***]. No deaths or serious
adverse events were reported during the study, and no significant changes in
heart valve morphology were observed. The most commonly reported adverse events
in subjects treated with VI-0521 were [***].

 

1.2. Rationale

 

Obesity
leads to the development of co-morbidities such as hypertension, type 2
diabetes, dyslipidemia, coronary artery disease, and stroke. Weight reduction
in obese individuals has been shown to delay or prevent the onset of these
co-morbidities, or even reverse the damage caused by these co-morbidities.
Diet, exercise, and behavior modification therapy can be effective short-term treatments;
however, many people experience difficulty in achieving and maintaining weight
reduction without pharmacotherapy. VI-0521 is an investigational weight loss
therapy that is a new combination of two currently approved drugs, phentermine
and topiramate. This novel combination treatment may provide a safe and
effective option for the achievement and maintenance of weight loss in obese
adults.

 

2.
STUDY OBJECTIVES

 

The objectives of this study
are to evaluate the long-term efficacy and safety of VI-0521 compared to
placebo for the treatment of overweight and obesity in adults who have
completed study OB-303 at selected study sites.

 

3.
STUDY DESIGN

 

In this double-blind, placebo-controlled extension
study, subjects from selected sites [***] 
will be evaluated for an additional year. Subjects who agree to
participate in this extension study will [***]. Subjects who had their dose
[***] in this extension study. [***] will only be performed if requested by the
subject and when the investigator is in agreement that it is the appropriate
course of action.

 

Subjects will return [***] for clinic assessments.
[***]. Subjects who discontinue treatment during the study will be [***].

 

The
primary efficacy endpoints are [***].

 

Secondary
efficacy endpoints will be assessed over time and include the following:

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

13

 

·                  Percentages of subjects who achieve
reductions in total body weight from study OB-303 baseline of at least 5% and
10% and

 

·                  Change from study OB-303 baseline in waist
circumference.

 

Other efficacy endpoints
will also be assessed over time and include the following:

 

·                  Change from study OB-303
baseline in Framingham risk score;

 

·                  Percent changes from study
OB-303 baseline in low-density lipoprotein cholesterol (LDL-C), high-density
lipoprotein cholesterol (HDL-C), TC, and TG;

 

·                  Changes from study OB-303
baseline in hemoglobin A1c (HbA1c), fasting blood glucose, and fasting
insulin;

 

·                  Changes from study OB-303
baseline in systolic blood pressure (SBP) and diastolic blood pressure (DBP);

 

·                  Time to onset of type 2
diabetes (in subjects without a diagnosis of diabetes at entry into study
OB-303); and

 

·                  Changes from the start of
study OB-305 (Week 56) to the completion of study OB-305 (Week 108) in primary
and secondary efficacy endpoints.

 

Subgroup analyses, including
but not limited to analysis by disease status, gender, age, and race, may be
performed.

 

Safety
will be assessed by an evaluation of adverse events, including [***]; and
[***]. In addition to adverse event data, [***].

 

Adverse
events will be reviewed by a [***] to determine which events meet the
pre-specified criteria for [***] as defined by the [***].

 

4.
SUBJECT SELECTION

 

The study population will include up to 1000 adults
who have completed study OB-303 on treatment, and who have not developed
conditions that would contraindicate the administration of study medication or
prevent continued compliance with protocol requirements. These subjects will be
recruited from [***].

 

4.1. Inclusion
Criteria

 

To be eligible for enrollment into this study,
subjects must meet all of the following criteria:

 

·                  Completion of study OB-303 on treatment and
compliance with all protocol requirements;

 

·                  Written informed consent;

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

14

 

·                  Female subjects of childbearing potential
must be using adequate contraception, defined as double-barrier methods, stable
hormonal contraception plus single barrier method, or tubal ligation. Female
subjects are considered to be of childbearing potential unless they have
undergone a hysterectomy or bilateral oophorectomy, are >55 years of age
and experienced spontaneous cessation of menses for at least 1 year, or have a
documented follicle-stimulating hormone level >40 IU/L; and

 

·                  Willingness and ability to comply with
scheduled visits, treatment plan, laboratory tests, and other study procedures.

 

4.2. Exclusion
Criteria

 

Subjects will not be included in the study if they
meet any of the following:

 

·                  Body mass index <22 kg/m2 at the completion of
study OB-303;

 

·                  Off study medication at completion of study
OB-303 for longer than 4 weeks continuously due to an event-driven holiday, or
off study medication with no plans to restart;

 

·                  Development of any condition during study
OB-303 that, in the opinion of the investigator, would contraindicate the
administration of study medication, affect compliance, interfere with study
evaluations, or confound the interpretation of study results; or

 

·                  Participation in a formal weight loss program
(including:  Weight Watchers and related
dietary/lifestyle intervention programs; prepared food programs; prescribed or
over-the-counter weight loss medications; dietary supplement or herbal
preparations, teas, or tinctures intended for weight loss; or any supervised
fast or very low calorie diet).

 

4.3. Life Style
Guidelines

 

Subjects enrolled in this study will continue to
receive counseling on how to reduce their caloric intake by 500 kcal/day, and
will be advised to increase their daily water intake. Subjects will continue to
review appropriate elements of the LEARN® Program for
Weight Management (which was given to subjects as part of study OB-303), and
will be presented with supplemental information on diet recommendations,
portion control, and activity guidelines as the study progresses. Site
personnel will continue to discuss these materials with subjects at each study
visit.

 

5.
STUDY TREATMENTS

 

5.1. Allocation to
Treatment

 

Subjects who agree to participate in this extension
study will [***]. Subjects who had their dose [***] will retain the option to
have [***] in this extension study. [***] will only be performed if 

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

15

 

requested by the subject and when the investigator
is in agreement that it is the appropriate course of action.

 

Study medication will be administered in a
double-blind manner. Each participating site will be pre-stocked with titration
cards and treatment bottles corresponding to each treatment group. Site
personnel will contact an Interactive Voice Response System (IVRS) and provide
the information required regarding the study subject. The IVRS will instruct
site personnel to dispense a specific card or bottle number to the study
subject. Additional cards and bottles will be shipped to the site to replace
those dispensed.

 

5.2. Breaking the
Blind

 

Study medication must not be unblinded during the
study unless it is considered necessary by the investigator for the management
of an adverse event or other medical emergency. Under such conditions, the identity
of the study treatment will be obtained by contacting the IVRS. Any subject
whose treatment assignment has been unblinded must discontinue participation in
the study.

 

VIVUS, Inc. will be notified of any unblinding
of subject treatment group [***]. Additionally, investigators are required to
ensure that any potential serious adverse events are reported according to the
requirements outlined in Sections 8.2 and 8.5 and to provide a written report
on the reason for unblinding [***].

 

5.3. Drug Supplies

 

5.3.1.
Formulation and Packaging

 

Study medication for this study will consist of
[***]. Doses specified for each treatment group will be achieved by [***] added
to each capsule. Regardless of the dosage assignment, all study treatments will
be administered [***].

 

Clinical supplies will be manufactured for VIVUS, Inc.
[***] in accordance with current Good Manufacturing Practices. All clinical
supplies will be labeled with information required by national regulations.
Study medication will be packaged into treatment bottles which will consist of
[***] of study medication at the specified dose. Each bottle will be labeled
with the [***].

 

For subjects [***] study medication, study
medication will also be packaged into [***] will contain [***].

 

5.3.2.
Preparation and Dispensing

 

Clinical supplies provided by the Sponsor are to be
dispensed only by or under the direct supervision of qualified investigators to
subjects meeting the criteria for study entry and in accordance with this
protocol. Assignment of specific titration cards and treatment bottles to 

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

16

 

study subjects will require the use of the IVRS;
however, no other preparation of clinical supplies is required of the
investigational staff.

 

5.3.3.
Administration

 

Investigators will instruct subjects to take one
capsule of study medication every morning. Investigators will also instruct
subjects to return all study medication to the site at each study visit.

 

5.3.4.
[***]

 

Every [***] are options for subjects who experience
[***]. The decision to [***] is implemented through [***], and will be done
without [***]. Every [***] are also options for subjects who [***].

 

When [***] is not appropriate or when [***] may be
required [***], subjects may [***]. All subjects undergoing [***] may be [***]
based on [***] and with the [***]. If [***] has been [***] should be ordered
through [***]. Subjects who have [***] will undergo [***]. For subjects having
[***], attempts should be made to [***]. For [***], subjects may [***].

 

If [***], subjects may be [***]. Subjects [***] will
be encouraged to [***]. The last date on which the subject [***]. If the
subject [***]. If the subject [***].

 

5.3.5.
Compliance

 

Subject compliance with study medication will be
assessed by [***], and [***] should implement any corrective action necessary.
Subjects who remain noncompliant with study dosing despite corrective actions
by site personnel may be discontinued from the study.

 

5.4. Drug Storage and
Drug Accountability

 

All unused study medication must be stored in its
packaging at room temperature in a dry, secure area. Access to drug storage
areas should be limited to the investigator and designated staff involved with
the study. All used and unused medication must be maintained at the study site
and made available for audits by VIVUS, Inc. personnel or their designee.

 

It should be noted that one component of the study
medication combination is a Schedule IV controlled substance. The investigator
should take all appropriate measures to control access to and dispensing of
study medication.

 

The investigator must maintain records documenting
the amount, condition, and date of delivery of all study medication received
from the Sponsor. In addition, all medication dispensed to study subjects
during the course of the study must [***]. Subjects must be instructed to [***]
by each subject. No investigational drug or packaging, used or unused, may be
discarded. All packaging and used and unused drug must be returned to the
Sponsor upon completion of the study.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

17

 

5.5. Concomitant
Medications

 

5.5.1.
Excluded Medications

 

Subjects must not take the following medications
during their participation in this study:

 

·                  [***];

 

·                  [***];

 

·                  [***];

 

·                  [***]; or

 

·                  [***].

 

5.5.2.
Other Restricted Medications

 

Subjects using [***] must be on doses that are
stable and will not be changed during the study. Subjects who develop symptoms
indicative of [***] during the course of the study need not withdraw but should
be evaluated and managed as indicated (Section 5.8).

 

[***] are permitted, provided that the dose is
stable and will not be changed during the study, and the frequency of use does
not exceed [***].

 

5.5.3.
Documentation of Concomitant Medication Use

 

All concomitant medications, including
over-the-counter products, vitamins, and nutritional/herbal supplements, must
be listed on the appropriate CRF at study entry. Any changes in concomitant
medication during the study must be noted on the appropriate CRF.

 

5.6. Treatment of
Diabetes

 

Subjects who become diabetic during the study will
be provided [***]. Subjects that [***]. Diabetic subjects will be instructed to
[***]. Diabetic subjects will [***].

 

[***] is suggested as the initial therapy for [***]
type 2 diabetes [***], including [***], should be reserved for subjects who
cannot achieve adequate control with other modes of treatment. [***] are
prohibited, and subjects requiring treatment with these medications must be
discontinued from the study.

 

Subjects with consistently elevated fasting blood
glucose values should [***]. Subjects who note [***] fasting glucose values
[***] in daily glucose monitoring logs during the week prior to a study visit
(in the absence of an intercurrent event or illness) would be considered
appropriate for [***]. Subjects whose fasting blood glucose [***] should be
discontinued from study treatment and referred back to their primary healthcare
provider for additional glycemic management. Subjects may continue attending
study visits [***].

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

18

 

During treatment, subjects whose fasting blood
glucose is [***].

 

When discontinuing medications, [***] should be
discontinued first, followed by [***], and finally [***].

 

5.7. Treatment of
[***]

 

For subjects whose [***]. If these medications are
already present, [***].

 

Subjects whose [***] should be discontinued from
study treatment and referred back to their primary healthcare provider for more
intensive management. Subjects may continue attending study visits [***].

 

For subjects whose [***]. For this study, it is
recommended that [***] be the first medications to be reduced or withdrawn
followed by [***] and lastly [***].

 

5.8. Treatment of
[***]

 

Subjects who [***] need not be discontinued from
therapy. These subjects should be assessed clinically and with laboratory
testing [***]. Following evaluation, subjects found [***], as appropriate.

 

6.
STUDY PROCEDURES

 

This study is an extension of study OB-303 to
evaluate the long-term efficacy and safety of two doses of VI-0521. Subjects
who elect to participate in this study will continue with the same daily
treatment that they were receiving at the completion of study OB-303. Efficacy
and safety parameters will be evaluated every 4 weeks for an additional year.

 

6.1. Screening (Visit
1)

 

Screening activities will take place at Visit 1. The
screening visit of this study coincides with [***]. Procedures performed at the
[***] study are not listed as part of this study. Activities at screening
(Visit 1) include the following:

 

·                  Obtain written informed
consent;

 

·                  Evaluate inclusion/exclusion
criteria;

 

·                  Question subject about
contraception compliance and warn about risk of pregnancy (women of
childbearing potential only);

 

·                  Perform brief review of dietary
and lifestyle recommendations from study OB-303 and ask that subjects continue
to adhere to these guidelines;

 

·                  Contact IVRS to dispense
study medication and provide instructions for proper use; and

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

19

 

·                  Schedule the next study
visit in 4 weeks (± 7 days).

 

6.2. Treatment (Visits
2 to 13)

 

Subjects will return to the site at 4-week intervals
for evaluation and to obtain additional study medication. Activities include
the following:

 

·                  Obtain weight and waist
circumference measurements;

 

·                  Obtain vital signs;

 

·                  Assess adverse events (including
eye symptoms);

 

·                  Assess concomitant
medications;

 

·                  [***];

 

·                  Collect urine sample for
pregnancy test (women of childbearing potential only) and perform pregnancy
test;

 

·                  Question subject about
contraception compliance and warn about risk of pregnancy (women of
childbearing potential only);

 

·                  Perform brief review of
dietary and lifestyle guidelines and answer questions, if any;

 

·                  Obtain fasting blood samples
for chemistry testing (Visit 8 and Visit 11
only);

 

·                  Obtain blood sample for HbA1c (Visit 8 only);

 

·                  Obtain blood samples for
hematology testing (Visit 8 only);

 

·                  Collect study medication
from previous visit, assess for treatment compliance, and perform drug
accountability;

 

·                  Contact IVRS to dispense
study medication and provide the proper instructions for use; and

 

·                  Schedule the next study
visit in 4 weeks (± 7 days).

 

6.3. End of Treatment
(Visit 14 or Early Termination)

 

The end of treatment for subjects completing the
study is Visit 14. End-of-treatment testing will also be performed for subjects
who are withdrawn from treatment prior to completion of the study at the time
of their treatment termination.

 

For subjects who withdraw from the study prior to
completion, the site will attempt to contact the subject at approximately the
108-week time point to obtain weight and waist circumference measurements
(additional informed consent for these activities may be required). The site
will also attempt to contact withdrawn subjects by phone at the 108-week time
point to assess any hospitalizations that may have occurred since withdrawing
from the study.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

20

 

Activities at the end-of-treatment visit include the
following:

 

·                  Obtain weight and waist circumference
measurements;

 

·                  Obtain vital signs;

 

·                  Assess adverse events (including eye
symptoms);

 

·                  Assess concomitant medications;

 

·                  [***];

 

·                  Complete end-of-treatment questions;

 

·                  Perform oral glucose tolerance test (OGTT);

 

·                  Collect urine sample for pregnancy test
(women of childbearing potential only) and perform pregnancy test;

 

·                  Collect urine sample for urinalysis;

 

·                  Obtain fasting blood samples for hematology
and chemistry testing;

 

·                  Obtain blood sample for HbA1c;

 

·                  Perform complete physical examination
(including neurological examination and auscultation for heart sounds);

 

·                  Perform 12-lead ECG; and

 

·                  Collect study medication from previous visit,
assess treatment compliance, and perform drug accountability.

 

6.4. Study Period

 

The study period for each subject will begin when
written informed consent is provided and will continue until Visit 14 (Week 108
or Early Termination) is completed. Sites should link the scheduling of visits
to the screening visit (Visit 1, Week 56). Visit windows are provided to allow
subject and site scheduling convenience. However, every effort should be made
to ensure that visits occur within these windows so that the overall treatment
duration for subjects who complete all visits is 108 weeks, including 56 weeks
of treatment as part of study OB-303. In certain instances, adverse event
information may be required for events occurring after the study period (Section 8.4).

 

6.5. Subject
Withdrawal

 

Subjects may withdraw from the study at any time and
for any reason. Additionally, the subject may be withdrawn for any of the
following reasons:

 

·                  Adverse event,

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

21

 

·                  Subject lost to follow-up,

 

·                  Requirement for other medical treatment
excluded by the protocol,

 

·                  Lack of compliance with the provisions of the
protocol,

 

·                  Treatment unblinded by investigator,

 

·                  Pregnancy,

 

·                  Lack of efficacy, or

 

·                  Termination of the study.

 

Withdrawn subjects will not be replaced.

 

Subjects discontinued from treatment should be
[***]. Subjects who withdraw completely from the study at any point should
[***]. The date of last dose should be recorded.

 

Every effort should be made to document subject outcome.
For subjects who elect to withdraw from the study [***].

 

At about the [***] withdrawn subjects who have
[***]. Additional informed consent for these activities may be required. The
site will also attempt to contact withdrawn subjects by phone at the [***] to
assess any hospitalizations that may have occurred since withdrawing from the
study.

 

If a subject withdraws from the study and also
withdraws consent for disclosure of future information, [***].[***].

 

Investigators must discontinue study participation
for all subjects if the Sponsor terminates the study, and evaluations that
would normally be performed upon study completion should be made at that time.
For subjects who have received [***] this includes obtaining information
requested for the Visit 14 (Week 108) end-of-treatment visit.

 

7.
ASSESSMENTS

 

7.1. Weight Assessment
and Waist Circumference Measurement

 

Subjects will be weighed and a waist circumference
measurement obtained at Visits 2 to 14.

 

7.1.1.
Weight Assessment

 

Subjects should be weighed in kilograms using a
calibrated digital scale. The same scale should be used for each measurement
and measurements should be taken by the same site personnel at each visit,
whenever possible. Subject weights should be obtained, whenever possible, under
the same conditions (e.g., no shoes, clothing of similar weight) that were
employed at the first weighing. Subjects should be encouraged to complete their
weigh-in visits in the morning and should be fasting prior to weigh-in.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

22

 

7.1.2.
Waist Circumference Measurement

 

Waist circumference measurements (cm) will be taken
using a measuring tape provided by VIVUS, Inc. and should be obtained by
the same individual at each visit, whenever possible. To measure the waist
circumference, locate the top of the right iliac crest. Place the measuring
tape in a horizontal plane (parallel to the floor) around the abdomen at the
level of the top of the iliac crest as shown in Figure 1.

 

 

Figure
1. Measuring Tape Position for Waist
Circumference Assessments

 

Ensure that the subject is relaxed. Ensure that the
tape is snug but does not indent or compress the skin, and make the measurement
(in centimeters) at the end of a normal expiration.(20)

 

7.2. Vital Signs

 

Vital signs (SBP, DBP, heart rate, respiration rate,
and temperature) will be assessed at Visits [***] to [***]. Subjects
should be seated comfortably for at least [***] prior to assessing vital signs.
Pulse rate and respiratory rate measurements should be made by counting events
(heartbeats or breaths) for a period of 30 seconds and multiplying these values
by 2 to obtain the rates per minute. A calibrated cuff should be employed for
blood pressure measurements. Whenever possible, the same person should perform
all assessments for a given subject.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

23

 

7.3. Questionnaires

 

7.3.1.
[***]

 

[***].

 

Because this instrument is intended to be completed
[***] it is important that [***] on this questionnaire in any way. Should
subjects ask [***]. Because this questionnaire assesses [***] over a specific
time frame ([***]),[***]. Site personnel, therefore, must carefully review
questionnaires for completeness before [***].

 

[***] is being used to assess [***]. This
questionnaire will be completed at Visits [***] 
to [***]. Answers to the questionnaire may [***]. It is the
responsibility of the investigator to evaluate [***] and to perform [***]. The
evaluation by the investigator will be guided by the [***]. Investigators
should document any such problems [***]. It is expected that any subject
presenting with a [***].

 

7.3.2.
[***]

 

The [***] is an [***]. Each of the [***] and is
answered on a yes/no basis. This assessment will be administered to all
subjects at Visits [***] to [***] in order to confirm [***]. All [***]
assessments must be administered by a trained interviewer. If any assessments
[***] then the results must be [***].

 

7.4. [***]

 

At the [***] (Visit [***], Week [***] or [***]), subjects
will be asked to [***]. These questions are the following:

 

·                  [***];

 

·                  [***]; and

 

·                  [***].

 

7.5. Laboratory Tests

 

Laboratory tests will be performed at a licensed,
certified central testing laboratory identified by the Sponsor. Urine pregnancy
tests will be performed at the site using kits supplied by VIVUS, Inc.
Testing will be conducted according to the schedule of study activities
(Appendix 1). For blood chemistry tests, the subject must have fasted for a
minimum of 8 hours before the sample can be drawn.

 

7.5.1.
Blood Chemistry

 

Fasting blood chemistries will be evaluated at Visit
8 (Week 84), Visit 11 (Week 96), and end of treatment (Visit 14, Week 108 or
Early Termination). Chemistry parameters include the 

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

24

 

following: 
albumin, alkaline phosphatase, alanine transaminase, aspartate amino
transferase, blood urea nitrogen, serum calcium, serum chloride, serum sodium,
bicarbonate, creatinine, creatinine clearance, direct bilirubin, gamma-glutamyl
transferase, glucose, lactate dehydrogenase, serum phosphorus, serum potassium,
total bilirubin, total protein, uric acid, LDL-C, HDL-C, TC, and TG.

 

7.5.2.
Hematology

 

Hematology studies will be evaluated at Visit 8
(Week 84) and end of treatment (Visit 14, Week 108 or Early Termination)
for hemoglobin, hematocrit, red blood cell count, white blood cell count, white
blood cell differential (neutrophils, lymphocytes, monocytes, eosinophils, and
basophils), and platelet count.

 

7.5.3.
Urinalysis

 

A routine midstream urinalysis with reflex microscopic
evaluation will be obtained at the end of treatment (Visit 14, Week 108 or
Early Termination).

 

7.5.4.
Hemoglobin A1c

 

Hemoglobin A1c testing will be performed at Visit 8 (Week 84)
and end of treatment (Visit 14, Week 108 or Early Termination).

 

7.5.5.
Oral Glucose Tolerance Test

 

An OGTT will be obtained at the end of treatment
(Visit 14, Week 108 or Early Termination). The OGTT will use a 75 g
glucose loading dose; samples will be obtained at baseline and at 2 hours
post dose for evaluation of both glucose and insulin levels.

 

7.5.6.
Urine Pregnancy Test

 

A urine sample for pregnancy testing will be
obtained from women of childbearing potential at Visits 2 to 14. Urine
pregnancy testing will be performed at the site and results reported on the
appropriate CRF.

 

Female subjects who have undergone a hysterectomy or bilateral oophorectomy, who have a
[***] are considered to be
not of childbearing potential. Urine pregnancy testing is not required in these
subjects.

 

7.6. Physical
Examination

 

A complete physical examination will be performed at
the end of treatment (Visit 14, Week 108 or Early Termination). The physical
examination will consist of the following: 
general appearance, skin, head, eyes, ears, nose, throat, neck
(including thyroid), lymph nodes, chest, 

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

25

 

heart (including auscultation for heart sounds and
murmurs), abdomen, extremities, and neurological examination.

 

7.7. Electrocardiogram

 

Twelve-lead electrocardiographic studies will be
obtained at the end of treatment (Visit 14, Week 108 or Early
Termination). Whenever possible, the ECG should be obtained in the morning with
the timing of the studies matched as closely as possible. Parameters including
QRS, QT, and QTc intervals will be recorded.

 

7.8. Framingham Risk
Score

 

The Framingham risk assessment evaluates the 10-year
risk for development of coronary heart disease.(25) The Framingham risk
assessment will be calculated at the end of treatment (Visit 14, Week 108 or
Early Termination) based on data provided from CRFs and laboratory tests.

 

7.9. [***]

 

[***] will be defined by any of the following (only
subjects who were [***] will be considered for this analysis):

 

·                  [***] or

 

·                  [***].

 

8.
ADVERSE EVENT REPORTING

 

8.1. Adverse Events

 

Adverse events are defined as any untoward medical
occurrences in subjects administered study treatment, whether or not they have
a causal relationship to the treatment. All observed or volunteered adverse
events regardless of suspected causal relationship to the investigational
product must be reported as described in the following sections.

 

The investigator must pursue and obtain information
adequate to describe adverse events, their severity and relationship to study
treatment, and their outcomes. Descriptions of neurological or psychological
adverse events should be consistent with standard diagnostic criteria and
terminology (such as the Diagnostic and Statistical Manual IV [DSM-IV]) rather
than general reports of symptoms. For adverse events with a causal relationship
to the investigational product, follow-up by the investigator is required for
up to 28 calendar days after the last dose of study medication or until the
events or their sequelae resolve or stabilize at a level acceptable to the
investigator, and VIVUS, Inc. concurs with that assessment. Investigators
must also assess whether adverse events meet the criteria for classification as
serious adverse events (Section 8.2) requiring immediate notification to
VIVUS, Inc. or its designated representative.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

26

 

8.1.1.
Severity Assessment

 

The investigator will assess the severity of all
adverse events using [***] to describe the maximum intensity of each adverse
event. For purposes of consistency, these intensity grades are defined as
follows:

 

·                  [***];

 

·                  [***]; or

 

·                  [***].

 

Note the distinction between the severity and the
seriousness of an adverse event. A [***] is not necessarily [***]. For example,
a headache may be [***] but would not be classified as serious unless it met
one of the criteria for [***].

 

8.1.2.
Causality Assessment

 

Investigators are required to provide an assessment
of causality for all adverse events (serious and non-serious) observed during
this study. This assessment will provide a determination of whether, in the
investigator’s judgment, there exists a reasonable possibility that the
investigational product caused or contributed to an adverse event. For this
assessment, investigators must categorize the causality as either “related” or “not
related.” For an adverse event to be considered “related” to the study
treatment, there should be evidence that the event follows a reasonable
temporal sequence from the administration of study treatment or that the event
follows a known response pattern to the medication. Causality would be further
confirmed by improvement in the adverse event upon stopping the study treatment
and reappearance of the event upon rechallenge.

 

8.1.3.
Abnormal Test Findings

 

The criteria for determining whether an abnormal
objective test finding should be reported as an adverse event are as follows:

 

·                  Test result is associated with accompanying
symptoms;

 

·                  Test result requires additional diagnostic
testing or medical/surgical intervention;

 

·                  Test result leads to a change in study dosing
or discontinuation from the study, significant additional concomitant drug
treatment, or other therapy; or

 

·                  Test result is considered by the investigator
or Sponsor to represent a clinically significant finding.

 

Merely repeating an abnormal test, in the absence of
any of the above conditions, does not constitute an adverse event. Any abnormal
test result that is determined to be an error does not require reporting as an
adverse event.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

27

 

8.2. Serious Adverse
Events

 

As defined in the Code of Federal Regulations (21
CFR 312.32), a serious adverse event or serious adverse drug reaction is any
untoward medical occurrence at any dose that:

 

·                  Results in death,

 

·                  Is life-threatening (immediate risk of
death),

 

·                  Requires inpatient hospitalization or
prolongation of existing hospitalization,

 

·                  Results in persistent or significant
disability/incapacity, or

 

·                  Results in congenital anomaly/birth defect.

 

Important medical events that may not result in
death, be life-threatening, or require hospitalization may be considered
serious adverse drug experiences when, based on appropriate medical judgment,
they may jeopardize the subject and may require medical or surgical
intervention to prevent one of the outcomes listed above. Adverse events that,
in the investigator’s judgment, significantly jeopardize study subjects or
require medical or surgical intervention in order to prevent any of the
outcomes listed above should therefore be reported as serious adverse events.

 

8.2.1.
Definition of Hospitalization

 

Adverse events reported from clinical studies that
result in hospitalization or prolong an existing hospitalization are considered
serious. Any initial admission (even if less than 24 hours) to a healthcare
facility meets these criteria.

 

Outpatient ambulatory surgical procedures (same-day
surgeries) and routine emergency room treatment do not qualify as
hospitalizations. Additionally, hospitalization in the absence of a
precipitating clinical adverse event is not in itself a serious adverse event.
Examples include, but are not limited to any of the following:

 

·                  Admission for treatment of a pre-existing
condition not associated with the development of a new adverse event or with a
worsening of the pre-existing condition (e.g., for work-up of persistent
pre-treatment lab abnormality);

 

·                  Administrative admission (e.g., for yearly
physical exam);

 

·                  Optional admission not associated with a
precipitating clinical adverse event (e.g., for elective cosmetic surgery); or

 

·                  Pre-planned treatments or surgical procedures
should be noted in the baseline documentation for the entire protocol and/or
for the individual subject.

 

Diagnostic and therapeutic non-invasive and invasive
procedures, such as surgery, should not be reported as adverse events. However,
the medical condition for which the procedure was 

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

28

 

performed should be reported if it meets the
definition of an adverse event. For example, an acute appendicitis that begins
during the adverse event reporting period should be reported as the adverse
event, and the resulting appendectomy should be recorded as treatment of the
adverse event.

 

8.3. Eliciting Adverse
Event Information

 

The investigator is to report all directly observed
adverse events and all adverse events spontaneously reported by the study
subject. In addition, study subjects should be [***]

 

Certain adverse events require prompt and specific
action by the investigator in any clinical study. [***].

 

8.3.1.
[***]

 

At each visit, subjects will be queried regarding
[***] Subject responses will be recorded as adverse events, where appropriate.
If any subject reports [***] the subject should be referred to [***]. Treatment
with study medication should be discontinued until the [***].

 

8.3.2.
[***]

 

Subjects will be screened for the presence [***]
throughout the study period using a [***] in a primary care setting. The [***]
based directly on the [***] will also be assessed throughout the study period
[***].

 

Should this additional assessment indicate the
presence of [***]. Any such event must be [***]. Subjects must be [***].

 

[***].

 

8.3.3.
[***]

 

Guidelines for the reporting of adverse events based
on results obtained in [***] by study subjects are summarized in Table 1.

 

Table 1.
Guidelines for Adverse Event Reports Based on [***]

 

	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

29

 

8.4. Reporting Period

 

The reporting period for adverse events begins when
the subject provides written informed consent and extends until [***] after the
last dose of the investigational product is administered. All adverse events
that occur during this period and are known to the investigator must be
reported according to the requirements outlined in Section 8.5.

 

Adverse events that [***]. Adverse events that
[***].

 

8.5. Reporting
Requirements

 

All adverse events will be reported on the adverse
event page of the CRF. In addition, serious adverse events must also be
reported on a separate serious adverse event form. For cases in which the same
data are collected, the forms must be completed in a consistent manner. For
example, the same adverse event term should be used on both forms. Adverse
events should be reported using concise medical terminology on the CRFs as well
as on the form for collection of serious adverse event information.

 

8.5.1.
Serious Adverse Event Reporting Requirements

 

If a serious adverse event occurs, VIVUS, Inc.
or its designee is to be notified within 1 business day of awareness of the
event by the investigator. In particular, if the serious adverse event is fatal
or life-threatening, notification to VIVUS, Inc. or its designee must be
made immediately, irrespective of the extent of available adverse event
information. This timeframe also applies to additional new information
(follow-up) on previously forwarded serious adverse event reports.

 

[***].

 

For all serious adverse events, the investigator is
obligated to pursue and provide information to VIVUS, Inc. or its designee
in accordance with the timeframes for reporting specified above. In addition,
an investigator may be requested by VIVUS, Inc. or its designee to obtain
specific additional follow-up information in an expedited fashion. This
information may be more detailed than that captured on the Adverse Event CRF.
In general, this will include a description of the adverse event in sufficient
detail to allow for a complete medical assessment of the case and independent
determination of possible causality. Information on other possible causes of
the event, such as concomitant medications and illnesses, must be provided. In
the case of a subject death, a summary of available autopsy findings must be
submitted as soon as possible to VIVUS, Inc. or its designee.

 

8.5.2.
Non-Serious Adverse Event Reporting Requirements

 

Non-serious adverse events are to be reported on the
Adverse Event CRFs, which are to be submitted to VIVUS, Inc. or its
designee.

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

30

 

8.5.3.
[***]

 

If any study subject becomes or is found to be
pregnant while receiving the investigational product, the investigator must
submit this information to VIVUS, Inc. or its designee on [***].

 

The investigator will follow [***] and then notify VIVUS, Inc.
or its designee of the outcome. The investigator will provide this information
as a follow up to the [***].

 

For reported [***]. The status of [***].

 

If [***] meet the criteria for immediate
classification as a serious adverse event [***], the investigator should follow
the procedures for reporting serious adverse events. Similarly, any [***] that
are considered to be adverse events should be reported as such on the
appropriate CRF. However, [***] need not be reported as an adverse event if there
is no associated adverse outcome.

 

For reporting purposes, [***] should be reported as
serious adverse events, but because [***].

 

8.6. [***]

 

All adverse [***] meeting pre-specified criteria
will be [***] When an eligible event is reported, [***] will be requested.
[***].

 

[***].

 

[***].

 

9. DATA
ANALYSIS/STATISTICAL METHODS

 

9.1. Sample Size Determination

 

[***].

 

9.2. Efficacy Analysis

 

9.2.1.
Analysis of Primary Endpoints

 

The
primary efficacy endpoints are weight loss and percent weight loss from the
start of treatment in study OB-303 at monthly time points during the second
year of treatment.

 

The
primary hypothesis is the following:

 

[***].

 

[***].

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

31

 

The
primary analysis population will include all subjects who [***]. Percent weight
loss will be analyzed using [***] model with [***].

 

In
addition to the comparison of treatment groups at [***], other summaries of
particular interest will include understanding and estimating the weight loss
profile [***]. Graphical presentations of weight loss over time will be
presented to display the maintenance of weight loss into a second year of
treatment with VI-0521.

 

9.2.2.
Analysis of Secondary and Other Endpoints

 

Secondary efficacy endpoints include the following:

 

·                  Percentages of subjects who achieve
reductions in total body weight from study OB-303 baseline of at least 5% and
10% and

 

·                  Change from study OB-303 baseline in waist
circumference.

 

Other efficacy endpoints include the following:

 

·                  Change from study OB-303 baseline in
Framingham risk score;

 

·                  Percent changes from study OB-303 baseline in
LDL-C, HDL-C, TC, and TG;

 

·                  Changes from study OB-303 baseline in HbA1c, fasting blood glucose, and
fasting insulin;

 

·                  Changes from study OB-303 baseline in SBP and
DBP;

 

·                  Time to onset of type 2 diabetes (in subjects
without a diagnosis of diabetes at entry into study OB-303); and

 

·                  Changes from the start of study OB-305 (Week
56) to the completion of study OB-305 (Week 108) in primary and secondary
efficacy measures.

 

[***].
Change in waist circumference and changes in obesity-associated risk factors
will be analyzed using [***].

 

[***].

 

[***].

 

9.3.
[***]

 

For
subjects who [***]. For subjects who do not have a [***].

 

9.4. [***]

 

[***].

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

32

 

9.5. Safety Analysis

 

Safety will be assessed by an evaluation of adverse
events [***].

 

Safety analyses will be performed on the set of subjects
who [***].

 

9.5.1.
Adverse Events

 

Adverse
events will be coded using the Medical Dictionary for Regulatory Activities
(MedDRA). The number and percentage of subjects with adverse events will be
summarized for each treatment group by MedDRA system organ class and preferred
term.

 

Subsets
of adverse events that are considered serious or require discontinuation of
study medication will be listed by subject and presented separately.

 

Adverse events will be reviewed by a [***] to
determine which events meet the criteria for major adverse [***].

 

9.5.2.
Clinical Laboratory Tests

 

Summaries
of observed values and change from baseline will be presented for laboratory
parameters with numerical measures using descriptive statistics.

 

For
analysis purposes, a laboratory value that is above or below its normal range
will be considered an abnormal value. For selected laboratory parameters,
threshold limits of potential clinical concern will be defined as
multiplicative factors of the normal ranges. The list of multiplicative factors
for each laboratory parameter will be included in the Statistical Analysis
Plan. The number and percentage of subjects with laboratory results above or
below the normal range and threshold limits at each scheduled assessment or any
time during the treatment period will be summarized by treatment group.

 

9.5.3.
Vital Signs and Other Safety Evaluations

 

Mean
blood pressures, heart rate, respiration rate, and temperature, at each visit
will be summarized by treatment group. Medications, other than study
medication, taken during the study will be considered as concomitant
medications and will be summarized by the World Health Organization Drug
Dictionary Anatomical Therapeutic Chemical Classification and preferred term
for each treatment group and in total.

 

9.5.4.
Questionnaire Assessments

 

Changes
in total [***] will be summarized by treatment group [***]. Since the proposed
indication for the study medication is weight loss, [***]. Descriptive
summaries of individual questionnaire items will also be presented.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

33

 

9.6. [***]

 

[***].

 

10. QUALITY CONTROL
AND QUALITY ASSURANCE

 

During the study, VIVUS, Inc. and/or its
designee will conduct periodic monitoring visits to ensure that the protocol
and Good Clinical Practice (GCP) are being followed. The monitors may review
source documents to confirm that the data recorded on CRFs are accurate. The
investigator and institution will allow VIVUS, Inc. monitors and its
designees and appropriate regulatory authorities direct access to all
appropriate source documents to perform this verification.

 

The study site and study-related documents may be
subject to review by the Institutional Review Board (IRB), and/or to quality
assurance audits performed by VIVUS, Inc. or its designee, and/or to
inspection by appropriate regulatory authorities.

 

It is important that the investigator(s) and
their relevant personnel are available during the monitoring visits and
possible audits or inspections and that sufficient time is devoted to the
process by the investigator and site personnel.

 

11. DATA HANDLING AND
RECORD KEEPING

 

11.1. Case Report Forms/Electronic Data
Record

 

As used in this protocol, the term CRF should be
understood to refer to either a paper form or an electronic data record or
both, depending on the data collection method used in this study.

 

Case report forms are required and should be
completed for each included subject. The completed original CRFs are the sole
property of VIVUS, Inc. and should not be made available in any form to
third parties, except for authorized representatives of VIVUS, Inc. or
appropriate regulatory authorities, without written permission from VIVUS, Inc.

 

It is the investigator’s responsibility to ensure
CRF completion and to review and approve all CRFs. All CRFs must be signed by
the investigator or by an authorized staff member. These signatures serve to
attest that the information contained on the CRFs is complete and accurate. At
all times, the investigator has final personal responsibility for the accuracy
and authenticity of all clinical and laboratory data entered on the CRFs.
Subject source documents are the physician’s subject records maintained at the
study site. In most cases, the source documents will be the hospital’s or the
physician’s chart. In cases where the source documents are the hospital or the
physician’s chart, the information collected on the CRFs must match those
charts.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

34

 

11.2. Record Retention

 

To enable evaluations and/or audits from regulatory
authorities or VIVUS, Inc., the investigator will keep records, including
the identity of all participating subjects (sufficient information to link
records, e.g., CRFs and hospital records), all original signed informed consent
forms, copies of all CRFs, serious adverse event forms, source documents, and
detailed records of treatment disposition. The records should be retained by
the investigator according to specifications in the International Conference on
Harmonisation (ICH) guidelines, local regulations, or as specified in the
Clinical Study Agreement, whichever is longer. The investigator must obtain
written permission from VIVUS, Inc. before disposing of any records, even
if retention requirements have been met.

 

If the investigator relocates, retires, or for any
reason withdraws from the study, VIVUS, Inc. should be prospectively
notified. The study records must be transferred to an acceptable designee, such
as another investigator, another institution, or to VIVUS, Inc.

 

12. ETHICS

 

12.1. Institutional Review Board

 

Regulations require that an IRB oversee all
investigational drug studies. This board or committee, the makeup of which must
conform to local and regional regulations, will approve all aspects of the
study, including the protocol, advertising, and written informed consent form
to be used prior to initiation of the study. It is the responsibility of the
investigator to have prospective approval of the study protocol, protocol
amendments, informed consent forms, and other relevant documents, e.g.,
advertisements, if applicable, from the IRB. All correspondence with the IRB
should be retained in the Investigator File. Copies of IRB approvals should be
forwarded to VIVUS, Inc. or its designee. All correspondence with the IRB
should be retained in the Investigator File and copies forwarded to VIVUS, Inc.
or its designee.

 

All amendments to the protocol must be reviewed and
approved by VIVUS, Inc. and the IRB prior to implementation. The only
circumstance in which an amendment may be initiated prior to IRB approval is
where the change is necessary to eliminate apparent immediate hazards to the
subjects. In that event, the investigator must notify the IRB and VIVUS, Inc.
in writing within 2 working days after the implementation.

 

The investigator is responsible for obtaining annual
(at a minimum) IRB renewal for the duration of the study. The investigator is
also responsible for keeping the IRB advised of the progress of the study, of
any changes made to the protocol as deemed appropriate, but at least once a
year. Copies of the investigator’s report and of the IRB extension approval
must be forwarded to VIVUS, Inc. or its designee.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

35

 

12.2. Ethical Conduct of the Study

 

The study will be performed in accordance with the
protocol, ICH-GCP guidelines, and applicable local regulatory requirements and
laws.

 

12.3. Subject Information and Consent

 

The informed consent form and any changes to the
informed consent form made during the course of the study must be agreed to by
VIVUS, Inc. or its designee and the IRB prior to its use and must be in
compliance with all ICH-GCP, local regulatory requirements, and legal
requirements.

 

The investigator must ensure that each study subject
is fully informed about the nature and objectives of the study and possible
risks associated with participation and must ensure that the subject has been
informed of his/her rights to privacy. The investigator will obtain written
informed consent from each subject before any study-specific activity is
performed and should document in the source documentation that consent was
obtained prior to enrollment in the study. The original signed copy of the
informed consent form must be maintained by the investigator and is subject to
inspection by a representative of VIVUS, Inc., its designee, auditors, the
IRB, and/or regulatory agencies. A copy of the signed informed consent form
will be given to the subject.

 

12.4. Disclosure of Data

 

Data generated by this study must be available for
inspection by the FDA, the Sponsor, a designee acting on behalf of the Sponsor,
applicable foreign health authorities, and the IRB as appropriate. Subjects may
request their medical information be given to their personal physician or other
appropriate medical personnel responsible for their welfare.

 

Subject medical information obtained during the
study is confidential and disclosure to third parties other than those noted
above is prohibited.

 

13. REGULATORY
CORRESPONDENCE

 

The study site and study-related documents may be
subject to review by the IRB, and/or to quality assurance audits performed by
VIVUS, Inc. or its designee, and/or to inspection by the FDA and/or
applicable foreign health authorities. The investigator will notify VIVUS, Inc.
within [***]  working days following any
FDA or other regulatory agency contact with the investigative site regarding
this study. The investigator will provide VIVUS, Inc. with copies of all
correspondence with the FDA or other regulatory agency which may affect the
review of the current study (e.g., Form 483, Inspection Observations) or
their qualification as an investigator in studies conducted by VIVUS, Inc.
(e.g., warning letters).

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

36

 

14. DEFINITION OF END
OF STUDY

 

The end of study is defined as the date when the
last subject completes the last study visit.

 

Data and materials that are required by the Sponsor
before any study site’s activity can be considered complete include the
following:

 

·                  All completed CRFs, appropriately signed by
the investigator;

 

·                  All laboratory findings, clinical data, and
special test results collected during the study period;

 

·                  Completed drug accountability and
investigational materials return records;

 

·                  Statement of outcome for any serious adverse
events reported during the study; and

 

·                  Copy of notification to IRB indicating study
completion.

 

15. SPONSOR
DISCONTINUATION CRITERIA

 

Premature termination of this clinical study may
occur because of a regulatory authority decision, change in opinion of the IRB,
drug safety problems, or at the discretion of VIVUS, Inc. In addition,
VIVUS, Inc. retains the right to discontinue development of VI-0521 at any
time.

 

If a study is prematurely terminated or
discontinued, VIVUS, Inc. will promptly notify the investigator. After
notification, the investigator must contact all participating subjects within
15 days. As directed by VIVUS, Inc., all study materials must be
collected and all CRFs completed to the greatest extent possible.

 

16. PUBLICATION OF
STUDY RESULTS

 

All information and data, including the terms of
this protocol, and all data, clinical results, and research conducted hereunder
concerning VIVUS, Inc.’s products and operations including VIVUS, Inc.
patent applications, formulas, manufacturing processes, basic scientific data,
and formulation information that has been supplied by VIVUS, Inc. and not
previously published are considered confidential by VIVUS, Inc. and will
remain the sole property of VIVUS, Inc. The investigator understands and
agrees that said proprietary and/or confidential information disclosed to or
produced by him/her thereunder is highly valuable to VIVUS, Inc. and will
be used exclusively by the investigator in accomplishing this study and will
not be used for any other purposes without VIVUS, Inc.’s prior written
consent. The investigator agrees that he/she will not use any such proprietary
and/or confidential information for any other purpose. The investigator also
understands and agrees that such disclosure will not be deemed to grant to the
investigator a license for use of said proprietary and/or confidential
information, except as expressly provided herein.

 

It is understood by the investigator that the
information developed in the clinical study will be used by VIVUS, Inc. in
connection with the development of this product. This information, 

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

37

 

therefore, may be disclosed and used solely by VIVUS, Inc.
as required to such third parties and agencies as VIVUS, Inc., in its sole
discretion, warrants. In order to allow for the use of the information derived
from the clinical studies, it is understood that there is an obligation to
provide to VIVUS, Inc. complete test results and all data developed in
this study. The investigator agrees to promptly answer all inquiries from VIVUS, Inc.
regarding completion, legibility, or accuracy of study data in the case report.

 

VIVUS, Inc. recognizes the value of
disseminating research results and expects that publication of all results from
this study will be undertaken by a collaborative group of study investigators
who made significant contributions to the study design, the treatment of study
subjects, and evaluation of study data. However, after submission of the
multicenter results for publication, notification [***].

 

Investigators shall furnish [***] with a written
copy of any proposed publication or other disclosure of study results
(including disclosures at research seminars, lectures and professional
meetings) [***] prior to submission for publication or disclosure so that [***]
may have a reasonable opportunity to protect its proprietary rights to
information, inventions, or products developed under this study and to insure
that reported data are factually correct. Upon [***] the investigator shall not
publish or disclose information related to this study. Further, if [***]
believes that such publication or disclosure contains confidential information,
the investigator agrees to remove such confidential information from the
proposed publication or disclosure.

 

*** Certain information has been omitted and filed separately
with the Commission.  Confidential
treatment has been requested with respect to the omitted portions.

 

38

 

17. REFERENCES

 

1.               Adipex-P® [package
insert]. Sellersville, PA: Teva Pharmaceuticals USA; 2005.

 

2.               Nelson D, Cox M. Obesity and Regulation of
Body Mass. In: Lehninger Principles of Biochemistry. 4th ed. New York, New
York: WH Freeman and Company; 2005:912-913.

 

3.               Montague CT, Farooqi IS, Whitehead JP, et al.
Congenital leptin deficiency is associated with severe early-onset obesity in
humans. Nature 1997;387:903-908.

 

4.               Heymsfield SB, Greenberg AS, Fujioka K, et
al. Recombinant leptin for weight loss in obese and lean adults: a randomized,
controlled, dose-escalation trial. JAMA 1999;282:1568-1575.

 

5.               Topamax® [package
insert]. Titusville, NJ: Ortho-McNeil-Janssen Pharmaceuticals, Inc.; 2008.

 

6.               Flegal K, Carroll M, Ogden C, Johnson C.
Prevalence and trends in obesity among US adults, 1999-2000. JAMA
2002;288:1723-1727.

 

7.               Poirier P, Giles TD, Bray GA, et al. Obesity
and cardiovascular disease:  pathophysiology,
evaluation, and effect of weight loss: an update of the 1997 American Heart
Association Scientific Statement on Obesity and Heart Disease from the Obesity
Commission of the Council on Nutrition, Physical Activity, and Metabolism.
Circulation 2006;113:898-918.

 

8.               Ogden CL, Carroll MD, Curtin LR, McDowell MA,
Tabak CJ, Flegal KM. Prevalence of overweight and obesity in the United States,
1999-2004. JAMA 2006;295:1549-1555.

 

9.               Must A, Spadano J, Coakley EH, Field AE,
Colditz G, Dietz WH. The disease burden associated with overweight and obesity.
JAMA 1999:282;1523-1529.

 

10.         Katzmarzyk PT, Janssen
I, Ardern CI. Physical inactivity, excess adiposity and premature
mortality. Obes Rev 2003;4:257-290.

 

11.         Adams KF, Schatzkin A, Harms TB, et al. Overweight,
obesity, and mortality in a large prospective cohort of persons 50 to 71 years
old. New Engl J Med 2006;355:763-778.

 

12.         Goldstein DJ.
Beneficial health effects of modest weight loss. Int J Obes Relat Metab Disord 1992;16:397-415.

 

13.         Pasanisi F, Contaldo F, de Simone G, Mancini M.
Benefits of sustained moderate weight loss in obesity. Nutr Metab Cardiovasc
Dis 2001;11:401-406.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

39

 

14.   Douketis JD,
Macie C, Thabane L, Williamson DF. Systematic review of long-term weight loss
studies in obese adults: clinical significance and applicability to clinical
practice. Int J Obes (Lond) 2005;29:1153-1167.

 

15.   Padwal RS,
Majumdar SR. Drug treatments for obesity: orlistat, sibutramine, and
rimonabant. Lancet 2007;369:71-77.

 

16.   Ben-Menachem E,
Axelsen M, Johanson EH, Stagge A, Smith U. Predictors of weight loss in adults
with topiramate-treated epilepsy. Obes Res 2003;11:556-562.

 

17.   Bray GA, Hollander P, Klein S, et al. A 6-month
randomized, placebo-controlled, dose-ranging trial of topiramate for weight
loss in obesity. Obes Res 2003;11:722-733.

 

18.   Wilding J, Van
Gaal L, Rissanen A, Vercruysse F, Fitchet M, of the OBES-002 Study Group. A
randomized double-blind placebo-controlled study of the long-term efficacy and
safety of topiramate in the treatment of obese subjects. Int J Obes Relat Metab
Disord 2004;28:1399-1410.

 

19.   Clinical Study
Report: A Phase II, 24-Week, Randomized, Double-Blind, Placebo-Controlled,
Single-Center Study to Examine Safety, Tolerability and Efficacy of Topiramate
and Phentermine Combination Therapy for Weight Loss in Healthy Obese Subjects.

 

20.   National Heart,
Lung and Blood Institute Obesity Education Initiative. The Practical Guide:
Identification, Evaluation and Treatment of Overweight and Obesity in Adults.
NIH Publication No. 00-4084. October 2000.

 

21.   [***].

 

22.   [***].

 

23.   [***].

 

24.   [***]

 

25.   Wilson P, D’Agostino
R, Levy D, Belanger A, Silbershatz H, Kannel W. Prediction of coronary heart
disease using risk factor categories. Circulation 1998;97:1837-1847.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

40

 

APPENDIX
1: SCHEDULE OF STUDY ACTIVITIES

 

	
   

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
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***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

41

 

APPENDIX
2:

 

[***]

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

42

 

	
  Task
  Order #06

  	
   

  
	
  Appendix
  2–Scope of Work

  	
   

  
	
  VIVUS, Inc.

  	
   

  
	
  OB-305 Qnexa

  	
  

  

 

PROJECT OVERVIEW

 

OB-305

The
OB-305 trial is a phase 3, double blind, placebo controlled multicenter
extension study (from study OB-303) to determine the safety and efficacy of
VI-0521 for the long-term treatment of obesity in adults with obesity-related
co-morbid conditions.

 

PROJECT TEAM

 

Study Management

 

The
overall management of the study will be the responsibility of the Clinical
Trial Manager (CTM).  The CTM will
oversee and coordinate the management of the study as a whole.  This will ensure consistency and allow VIVUS
Study Management to have one primary contact. 
The Medpace CTM assigned to OB-305 will work closely with the VIVUS
Study Manager, Medpace Medical Expert, and VIVUS Clinical Leader to address
protocol questions and interpretations while maintaining close oversight of
study-related processes and documents. 
The OB-305 CTM will supervise all Clinical Research Associates (CRAs)
and Project Coordinators assigned to the project.

 

The
Project Coordinators will be responsible for day-to-day study management
functions, including the generation of status reports, organization of
supplies, generation and compilation of newsletters, and input of all study
information into the ClinTrak® Study Management System, a
web-based, proprietary research management system designed by Medpace.  The Project Coordinators will organize
teleconferences and team meetings, including the compilation of agendas and
meeting minutes.

 

The
Study Start-Up Manager and Study Start-Up Coordinators will work closely with
the CTM and Project Coordinators to ensure sites become active in the most time
effective manner.

 

The
Medpace Contracts Attorney will be responsible for the execution of
Investigator contracts (upon VIVUS defined process).  The Contracts
Attorney will work closely with the Start-Up Manager and Medpace CTM to ensure
contracts are executed in a timely manner.

 

The
Medpace Medical Expert assigned to this project will work closely with the
VIVUS Clinical Leader.  The Medpace
Medical Expert will assist with protocol design and medical interpretation of
entry criteria and adverse events (AEs). 
The Medical Expert will also be involved in the training of CRAs and
other staff members participating in the

 

	
  CONFIDENTIAL

  	
  December 19, 2008

  

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

1

 

project.  The Medical Expert will review and approve
the coding of concomitant medications, medical histories, AEs, and will provide
the medical context for the statistical analysis and medical writing.

 

The
Medical Expert will assist in the review of the protocol, train Medpace
personnel internally as to the background of the study compound and design of
the study, participate in the project teleconferences and meetings, work
hand-in-hand with the OB-305 CTM, and have heavy involvement in the clinical
study report.  The Medical Expert’s role
and decision making rights are dictated by VIVUS (e.g. inclusion/exclusion of
patients, discussions with Investigators about withdrawing a patient,
etc.).  This decision making power often
times reduces the oversight needed by the Sponsor.  For questions the OB-305 CTM is not
comfortable answering, she will contact the Medical Expert for guidance.  Obviously, VIVUS will be involved in study
oversight based on pre-defined terms with the VIVUS Clinical Development
Team.  The Medpace Medical Expert is
available 24 hours a day, 7 days a week via the Medpace Project Helpline.

 

Clinical
Monitoring

 

Medpace
operates in North America with a primarily centralized monitoring team of over
200 CRAs to promote greater standardization, cohesiveness, support, and
stability.  Each of the Medpace CRAs
assigned to this project have monitoring experience and strong clinical
backgrounds.

 

Clinical Safety

 

The
Clinical Safety will be managed by VIVUS or its designee.  The VIVUS Clinical Leader will be involved
with casualty assignment for all Serious Adverse Events (SAEs).

 

Data Management

 

A
Data Manager will serve as the primary contact for the Data Management
team.  Data Coordinators will be involved
in the day-to-day operations and report issues to the Data Manager.  Data Entry Specialists and Database
Programmers will also be utilized.

 

Biometrics

 

Key
members of our Biometrics team include Biostatisticians and Statistical
Analysts.  The Biostatistician assigned
to this project will develop the analysis plan and coordinate biometrics
activities.  The Lead Statistical Analyst
will work closely with the Biostatistician to ensure a clear understanding of
the analysis plan and communicate any programming issues that may arise.

 

Medical Writing

 

The
Medical Writing team works in collaboration with the Medical Experts to prepare
research reports meeting International Conference on Harmonisation (ICH) and
Sponsor

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

2

 

guidelines.  All Medpace Medical Writers have extensive
experience in regulatory submission preparation.  The Medical Writing team is actively involved
throughout the conduct of the trial.

 

PROJECT START-UP

 

Protocol

 

Medpace
will prepare the protocol.  VIVUS will
review the protocol and provide comments before it is finalized.  Medpace assumes VIVUS will submit the
protocol to the FDA.

 

Case Report Forms

 

Medpace
will design the electronic case report forms (eCRFs) for the trial, including
completion instructions, according to the final protocols and the Medpace
template.  VIVUS must review and approve
the eCRFs before they are finalized. 
Medpace will also have the PHQ9 form printed on a 2-part CRF.

 

Project Initiation

 

A
project kickoff meeting will not be necessary for OB-305.

 

Interactive Voice
Response System

 

Medpace
will provide a customized (study-specific) interactive voice response system
(IVRS) to provide patient randomization, and drug management.  The Medpace IVRS is a proprietary in-house
developed system.  The system provides
both voice and web access and has been developed in conjunction with our web
based Clintrak® system providing seamless functionality
throughout the conduct of the study.  The
VIVUS Team (no limit applied to number of team members) will have access to
review reports within the IVRS.  Medpace
will perform the User Acceptance Testing (UAT) for each site.

 

The
IVRS will include:

 

·                  Subject Screens/Screen Failures;

 

·                  Subject randomization;

 

·                  Patient visit tracking;

 

·                  Inventory management (site supply set-up,
initial bulk supply, and resupply of one additional shipment per patient);

 

·                  Notifications of site shipments;

 

·                  Confirmation of receipt of shipments; and

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

3

 

·                  Customized reports.

 

VIVUS
will review IVRS and approve system prior to finalization.

 

Study Medication
Supply and Storage

 

VIVUS
will be responsible for the supply, packaging, labeling, storage, and
destruction of study medication. 
Distribution of the study medication will be tracked and initiated via
the Medpace IVRS.  Study medication
accountability procedures will follow Medpace standard operating procedures
(SOPs) and utilize a study medication accountability log that has been approved
by VIVUS.

 

[***].

 

Site Selection and
Pre-study Visits

 

VIVUS,
in conjunction with Medpace, has identified [***]  sites from the OB-303 study that will be
allowed to participate in OB-305. 
Pre-study visits will not be required for this study.

 

Study Start-up
Team

 

Medpace
will utilize its Study Start-up team during the initial phase of this trial to
expedite the overall study start-up for each of the [***]  sites.

 

The
Study Start-up team works directly with the CTM and the Project
Coordinators.  The team is comprised of a
Study Start-up Manager and several experienced Study Start-up
Coordinators.  The team is responsible
for many of the key start-up activities, including:

 

·                  Submission to the central IRB;

 

·                  Coordination and tracking of essential
documents packages for each site;

 

·                  Investigator meeting presentations and
binders; and

 

·                  Site tools.

 

Central Laboratory
Selection

 

Medpace
Reference Laboratories (MRL) will be utilized for processing the clinical
laboratory samples.  MRL is committed to
providing comprehensive laboratory services of the highest quality to the
pharmaceutical and biotechnology industries.

 

Investigators’
Meeting

 

An Investigators’ Meeting
will be held for the OB-305 study.  VIVUS
will arrange the meeting (including contracting with a third-party vendor) and
Medpace will prepare the meeting materials, including preparation and
distribution of binders.  The Medpace OB-

 

*** Certain information has been
omitted and filed separately with the Commission.  Confidential treatment has been requested
with respect to the omitted portions.

 

4

 

305 Team will attend the
meeting.  Medpace assumes the meeting
will be one-day and one-night in duration. 
VIVUS will open the meeting and Medpace will present on the topics
delegated by VIVUS.  The meeting minutes
will be prepared by Medpace, reviewed and approved by VIVUS, and distributed to
the study sites by Medpace.  The
preparation of the meeting minutes is optional; however, is included in the
budget.

 

Clinical Trial
Agreements for Sites, Central Laboratory, and EDC Vendor

 

Medpace
will prepare and provide sample clinical trial agreements (including
budgets-which will be based on the OB-303 budget and template) for the study
sites.  VIVUS will review and approve the
final draft versions of the clinical trial agreements.  The agreements will be distributed and
negotiated with each site by Medpace (with final approval by VIVUS if outside
agreed upon parameters).  Medpace will
make payments to the clinical sites according to the VIVUS-approved
schedule.  All payments for sites will be
made electronically to Medpace within seven (7) days of invoice
receipt.  Medpace Reference Laboratories
and Phase Forward payments will be made within thirty (30) days of invoice
receipt.  If electronic payment exceeds
or falls below actual costs, VIVUS will adjust based on the prior month’s
payment reconciliation.  Investigator
payment invoices will include the following detail:

 

·                  Clinical study
number;

·                  PI or Site #;

·                  Patient ID;

·                  Amounts paid
per visit;

·                  Total amount
earned to date;

·                  Prior payments;
and

·                  Current payment
amount.

 

Institutional
Review Board and Initial Essential Documents Packages

 

Medpace
will select a central Institutional Review Board (IRB) and coordinate the
initial submissions to the IRB.  VIVUS
must approve the central IRB selected. 
Medpace will be responsible for payments to the central IRB utilizing
funds provided in the same manner as described above.

 

A
study-specific, prototype informed consent form (ICF) will be designed by
Medpace.  The ICFs will be reviewed and
approved by VIVUS.  Medpace will
distribute the ICFs to the Central IRB. 
Medpace will be responsible for negotiating changes to the informed
consents with the central IRB.

 

Deviations
from the VIVUS template must be brought to the attention of the VIVUS Clinical
Leader who will facilitate VIVUS legal review and approval, if required.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

5

 

All
components of the Initial Essential Documents Package will be collected,
tracked, and maintained by Medpace according to Medpace SOPs.  The Medpace Study Start-up team will review
all documents, negotiate any changes with study site personnel, and correct any
errors.  The Initial Essential Document
Package includes the following:

 

·                  Signed protocol signature pages;

 

·                  Financial disclosure questionnaires (FDQs)
(template to be provided by VIVUS, Medpace to collect the forms);

 

·                  Clinical study agreement (includes study
budget);

 

·                  FDA Form 1572;

 

·                  Laboratory certifications and reference
values;

 

·                  Curricula vitae for all Investigators;

 

·                  IRB approval of the protocol (and any
amendments), the informed consent and sponsor approved advertisements; and

 

·                  Qualification of IRB members.

 

The
FDQs shall apply throughout the entire term of the study and for one year
following last patient last visit (LPLV). 
If there is any change in the accuracy of a particular site’s FDQ during
that time period, that site will be responsible for notifying Medpace of the
change.  Medpace will send a fax to all
sites once the study has ended reminding them of their responsibilities (one of
which includes notifying Medpace of any FDQ changes).  If a site notifies Medpace of a change in
staff from LPLV to one year after LPLV, Medpace will collect an updated FDQ and
forward on to VIVUS.  Costs associated
with this task are included in the budget.

 

Site Initiation
Visits

 

Site
initiation visits will be conducted by the Medpace CRAs consistent with Medpace
SOPs.  The site initiation visits will
either take place in conjunction with an OB-302/303 routine-closeout monitoring
visit or via phone.  The budget reflects
initiation visits will not require travel time. 
A site initiation visit report will be completed and forwarded to VIVUS
within 10 business days of the visit. 
These visits will include, but are not limited to, the following tasks:

 

·                  Train site and applicable study personnel on
the protocol and study procedures;

 

·                  Ensure the site has received all study
supplies required for the conduct of the study, including study medication and
access to eCRFs;

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

6

 

·                  Provide and review the Trial Master File
binder.  Medpace CRAs will provide
instruction to the site personnel on the organization and maintenance of the
documents in the binder;

 

·                  Review study medication accountability
procedures;

 

·                  Provide eCRF completion instructions; and

 

·                  Explain the serious adverse event (SAE)
reporting procedures.

 

CLINICAL OPERATIONS

 

Monitoring Data
Review Guidelines

 

The
Medpace Lead CRA in collaboration with the project team members will develop a
project-specific Monitoring Plan for the study. 
This plan will include detailed interpretations of study expectations
for the CRAs assigned to the study. 
Issues are discussed and updated on an ongoing basis throughout the
project.  Medpace will request that VIVUS
approve the initial document and then re-approve the document on a quarterly
basis.

 

Routine Clinical
Monitoring Visits

 

Medpace
will conduct routine monitoring visits at each site consistent with Medpace
SOPs.  The frequency of the visits will
be determined by the site’s activity, but will be conducted on average every
eight weeks. All travel arrangements must be made no less than fourteen (14)
days prior to the scheduled date of travel/site visit.  Arrangements made less than fourteen (14)
days in advance will require the prior written approval of VIVUS.  Failure to gain said approval may result in
VIVUS’ refusal to reimburse for those travel expenses.  Visits at the beginning and end of the study
may be more frequent based on the needs of the study, including, but not
limited to quality data and study close-out activities.  The CRA will perform 100% source
documentation.  In addition, data queries
will be resolved during the visits, eCRF changes will be verified, and
supporting documentation for SAEs will be obtained.  The Medpace CRA will verify all laboratory
samples have been obtained according to guidelines and the results are
available in the patient’s source documents. 
A monitoring visit report will be forwarded to VIVUS within 10 business
days of the visit.  VIVUS will be notified
of any significant issues by phone within one business day.

 

The
following tasks will also be performed:

 

·                  Train any new site personnel and review study
issues with applicable site personnel;

 

·                  Ensure the site has sufficient study supplies
(including study medication);

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

7

 

·                  Ensure the site is entering eligible patients
into the study in a timely manner, and notify the Medpace CTM immediately of
any problems;

 

·                  Detect any significant compliance or other
issues and notify the Medpace CTM by phone, within one business day of the
monitoring visit;

 

·                  Confirm the Trial Master File is complete and
current, and the site is complying with applicable regulations and the
protocol.  VIVUS will be notified
immediately of any significant deviations;

 

·                  Ensure the site is completing eCRFs in a
timely manner;

 

·                  Ensure all completed eCRFs are reviewed,
verified, corrected, and transmitted to Medpace;

 

·                  Review eCRFs for accuracy and protocol
adherence;

 

·                  Verify study medication dispensing,
compliance, and accountability for each patient; and

 

·                  Ensure the Investigator reported all SAEs to
Sentrx and the applicable IRB.

 

Medpace
will provide a follow-up letter to the study site after each visit.  The letter will include, but will not be
limited to, the following:

 

·                  Important findings during the visit;

 

·                  Recommendations of corrective actions to be
taken by the site; and

 

·                  Follow-up information regarding questions
asked during the visit.

 

The
Monitoring Visit Reports with all attachments including follow-up letters, will
be available for view through the Medpace web based Clintrak® Study Management system within 10 days of the
monitoring visit.

 

In-house Clinical
Monitoring Activities

 

Investigators
will be contacted on a regular basis to ensure progress at the study site.  The CRA will take the opportunity to answer
protocol-related questions, discuss eCRF completion issues, obtain information
regarding AEs, provide guidance on patient retention, and ensure completion of
the study in a timely manner and in accordance with the protocol.

 

Telephone
contacts will be entered in the Medpace ClinTrak Study Management system.  Contacts requiring urgent attention will be
relayed to VIVUS immediately and will be resolved in collaboration with the
Medpace CTM and the VIVUS Study Manager.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

8

 

Withdrawals Due to
Adverse Events

 

Withdrawals
due to AEs will be tracked and reconciled with the eCRF database on an ongoing
basis by Medpace.  The CRA will be
responsible for reporting withdrawals due to AEs to VIVUS using the monitoring
visit report.

 

Medpace
safety will write narratives for all withdrawals due to AEs, for use in the
clinical trial study report.  In not
knowing the potential number of withdrawals due to AEs, the budget reflects an
assumption of 100 narratives as well as a unitized cost which will allow
reconciliation at the end of the study.

 

Status Reporting

 

The
Medpace CTM will serve as the central channel for communication between Medpace
and VIVUS.  The OB-305 CTM will work in
conjunction with the clinical monitoring group to track study progress and
report to VIVUS on a weekly basis.  In
addition, the OB-305 CTM will be responsible for overall management of site
information, overseeing the status of Investigator contracts, direct
supervision of CRAs, tracking of patient status information, and distribution
of study supplies.  The Medpace OB-305
CTM will be the primary contact for the sites to address protocol
interpretations and inclusion/exclusion criteria.  All protocol-related issues will be recorded
in an ongoing document to ensure consistency. 
The CTM is available 24 hours a day, 7 days a week via the Medpace
Project Helpline.

 

Medpace
will maintain the same communication platform established for the OB-302 and
OB-303 studies.  Utilization of IVRS will
also allow the project team to review patient status on a real time basis.

 

The
Medpace CTM will collaborate with the Medpace Medical Expert and the VIVUS
Study Manager to address any questions that may arise.  The ClinTrak Study Management databases will
serve as the primary source of project status information and will allow the
Medpace CTM to report on any aspect of the study.  The databases are updated on a real-time
basis, providing accurate and up-to-date information.

 

Elements
of ClinTrak include:

 

·                  Phone contacts;

 

·                  Monitoring visit reports;

 

·                  Patient status including details on
withdrawals during the treatment phase;

 

·                  Study supplies; and

 

·                  Protocol deviations.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

9

 

Medpace
will provide weekly status reports via a secure project website, to include the
following status by site:

 

·                  Number of patients randomized;

 

·                  Number of patients dropped with drop rates;
and

 

·                  Number of patients completed.

 

In
addition, monthly reports will be provided, to include the following:

 

·                  Monitoring visits scheduled; and

 

·                  Monitoring visits completed.

 

Data
Management status reports will be provided monthly via a secure website.  These reports will include the following:

 

·                  Cumulative and interval eCRF status by site
(including number of eCRFs transmitted and cleaned);

 

·                  Cumulative and interval patient status by
site (including number of patients ongoing, completed, and early terminations)
based on eCRF data in-house; and

 

·                  Cumulative and interval query status by site
(including number of queries issued and days outstanding).

 

Project Website

 

Medpace
will develop a secure OB-305 website that will be available to all project team
members and site personnel.  The website
will include information and tools relevant to the study, such as status
reports, meeting agendas and minutes, newsletters, monitor visit status, and
the project timeline.  Access is
controlled by the type of user.  Access
to the tabs (sections) on the websites are controlled by the user type so that
sites can have access to the section specifically designed for site
access.  Medpace can set up an automatic
notification process of updates to the user email accounts.  Clinical sites will have access only to parts
of the website that pertain to their function. 
They will have the ability to receive study information and download
study-related forms.

 

Team Meetings

VIVUS and Medpace

 

Medpace
assumes that one face-to-face meeting, other than the Investigators’ meeting,
will take place for the OB-305 study at VIVUS.

 

Unique
OB-305 teleconferences will be held every other week once OB-303 teleconferences
have ended (budget only reflects unique OB-305 calls as initial OB-305 calls
will overlap with OB-303 calls).  It is
also important to note that the OB-305 teleconferences will occur weekly for
the final 6 weeks of the project.  The
teleconferences

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

10

 

will
be held to discuss study progress and review project documents (as
necessary).  The Medpace Project
Coordinators will be responsible for preparing and distributing agendas and
minutes for each meeting/teleconference.

 

Additional
meetings/teleconferences will be scheduled throughout the project, as needed.

 

Internal Meetings

 

Medpace
will develop a project-specific internal project development/training program
for all project team members.  Included
in this program will be the following:

 

·                  Protocol/eCRF review meeting;

 

·                  Medical in-services;

 

·                  Periodic Monitoring Plan meetings; and

 

·                  Periodic project meetings.

 

Newsletter

 

Medpace
will prepare a unique 2-4 page full color site newsletter every other
month for OB-305 as an additional avenue of communication and training for all
site personnel.  VIVUS will provide input
and approval of the newsletter prior to distribution.  Medpace will be responsible for printing and
distributing two copies of each newsletter to each site.

 

Closeout Visits

 

Medpace
will conduct closeout visits at each site consistent with Medpace SOPs after
all patients have completed or discontinued from the study at the respective
site.  This visit may be performed as
part of a final routine site monitoring visit. 
Site closeout visit reports will be forwarded to VIVUS within 10
business days of the visit.  The
following tasks will be performed:

 

·                  Resolve outstanding data queries;

 

·                  Ensure all study medication supplies are
accounted for and that medication records and unused supplies are returned to
VIVUS;

 

·                  Ensure the Investigator’s copies of data and
source documents are properly stored;

 

·                  Ensure the Trial Master File is complete,
correct, and properly stored;

 

·                  Ensure the Investigator is aware of record
retention requirements and other obligations, and a final site status report is
sent to the IRB and VIVUS; and

 

·                  Instruct the site to update the FDQs for one
year after the study is completed.

 

Site Audits

 

Site
audit visits will be conducted, as deemed necessary, by VIVUS.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

11

 

Medpace
will respond to any audit findings and ensure the proper actions are taken to
resolve outstanding issues.

 

REGULATORY AFFAIRS AND SAFETY REPORTING

 

Serious Adverse
Events

 

All
SAEs will be reported immediately, within 24 hours of discovery or notification
of the event, by the clinical study site to VIVUS, or its designee, according
to SOPs specified by VIVUS.

 

VIVUS
will be responsible for submitting all immediately reportable SAEs (serious,
causally related and unexpected) to the Food and Drug Administration (FDA) in
accordance with the current regulations.

 

If
a SAE has occurred at a site, the Medpace CRA will always 100% source document
verify the event during the monitoring visit to ensure it has been recorded,
documented, and reported appropriately and accurately.  In addition, data queries will be resolved
during the visits, CRF changes will be verified, and supporting documentation
for SAEs will be obtained.

 

Medpace
will provide VIVUS listings of non-serious adverse events from all sites to
support filing of the Annual Safety Reports. 
Medpace will reconcile SAE listings with the AE database.

 

DATA MANAGEMENT

 

Data
Management activities performed by Medpace will include eCRF tracking,
preparation of a data management documents, eCRF review, coding of adverse
events/concomitant medications/medical histories, data cleaning/editing,
querying, query tracking, final database quality review, and delivery of the
final SAS® database. 
The data cleaning process will be performed on an ongoing basis
following Medpace Data Management SOPs. 
Six data transfers (SAS transport files) will be performed: a test
transfer prior to FPFV, four transfers related to Data Monitoring Committee
(DMC) meetings, and a final transfer.  A
unit price for additional data transfers has been provided in the budget.

 

Database
Development and Data Management Documents

 

Medpace
will design and validate the data entry systems prior to entry of data.  Data Management Documents will be prepared
for the study using the OB-302 and OB-303 templates, and will include the
following:

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

12

 

·                  Database specifications, based on VIVUS
specifications;

 

·                  Guidelines for the tracking of eCRFs and data
queries;

 

·                  Data Management Guidelines, which will
include guidelines for reviewing the data, and description of the database edit
check specifications to be performed for data cleaning; and

 

·                  Description of the database quality control
(QC) plan.

 

The
documents will be reviewed and approved by VIVUS.

 

Data from the
Central Laboratory

 

Medpace
will arrange periodic data transfers from MRL. 
Medpace will track and reconcile discrepancies between the MRL
demographic data and the eCRF database, which are generated during the data
cleanup process throughout each project.

 

Data Entry and
Data Querying

 

Data
is entered by site personnel that have been trained on the eCRF system.  Data will be reviewed according to Medpace
Data Management Guidelines and edits.  A
data query will be generated electronically within the eCRF system.  The resolutions/corrections are made by site
personnel by changing the data.  All
changes are recorded in an audit trail. 
All answered queries are verified/closed by Medpace Data
Management.  All resolutions/corrections
will be performed consistent with Medpace SOPs. 
The Data Coordinators will work directly with the site personnel in
resolving queries.

 

Coding

 

Medpace
will be responsible for coding adverse events, medical histories, and
concomitant medications.

 

·                  MedDRA will be used to code adverse events
and medical histories.  Adverse events
and medical histories will be coded to the lowest level term, preferred term,
and system organ class.

 

·                  WHODrug will be used to code concomitant
medications.  Concomitant medications
will be coded to the generic name and anatomic therapeutic class 3.  It is assumed by Medpace that VIVUS holds a
valid agreement with the Uppsala Monitoring Centre (UMC) for the WHODrug
dictionary.

 

All
coding will be done on a single version of each coding system (versions to be
agreed upon by VIVUS).  Medpace will
provide the coding dictionaries.

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

13

 

STATISTICAL ANALYSIS

 

Programming
activities will begin after finalization of the DAP. All analysis programming
will be performed using SASâ version 9.1.3 or higher.

 

Medpace
will perform full testing and validation of all analysis programs following
Medpace SOPs. Validation protocols will be written to describe the processes to
be followed to test and validate the analysis programs. In general, validation
will be accomplished using two independent Statistical Analysts programming
each analysis. A Quality Control Reviewer will review all output and will
document all issues on a validation report. The report will be returned to the
Statistical Analysts to address any issues discovered during validation. This
process will be repeated until all issues are resolved.

 

All
programs will be fully validated prior to database lock and will be re-tested
after database lock. All output will be available electronically in Microsoft
Word and in hard copy.

 

[***]

 

Results Review Meeting

 

One
Results Review meeting will be held one week after delivery of the analysis
results. This meeting will include representatives from Medpace and VIVUS.  The purpose of this meeting is to review and
interpret the analysis results, and to provide guidance to the medical writing
team in preparing the final study report.

 

MEDICAL WRITING

 

The
Medpace Medical Writing team works in collaboration with the Medpace Medical
Expert to provide a clinical study report according to FDA/ICH guidelines.  The preparation of the Integrated
Clinical/Statistical Study Report involves three stages of development: (1) the
Study Report Shell (SRS), (2) the Pre-Final Study Report (PFSR), and (3) the
Final Study Report (FSR).

 

The
SRS is prepared after sign-off of the Final DAP.  The SRS is created using a template and/or
style guide provided by VIVUS, or by utilizing the Medpace standard report
template, which adheres to the ICH guideline, “Structure and Content of
Clinical Study Reports,” and follows the American
Medical Association Manual of Style. 
The SRS incorporates information from the protocol, amendments, and
eCRFs into sections of the

 

***
Certain information has been omitted and filed separately with the
Commission.  Confidential treatment has
been requested with respect to the omitted portions.

 

14

 

report,
including but not limited to the study design, study population, treatments
administered, and the evaluation schedule. 
The statistical methods and results sections encompass information
derived from the Final DAP.  The results
sections include mock-up in-text tables and text.  The SRS undergoes a complete team review,
which includes the Medical Monitor, Statistician, CTM, Data Manager, and other
team members, if applicable.  After the
Medical Writer incorporates all team changes into the SRS, the SRS undergoes
Medpace’s comprehensive document QC process. 
Once all changes from the document QC process are implemented into the
SRS, the SRS is forwarded to the VIVUS for review.

 

Preparation
of the PFSR occurs after receipt and implementation of VIVUS comments on the
SRS, declaration of a clean database, and completion of Pre-Final
Analyses.  If necessary, a results review
meeting is conducted with key members of the Medpace and VIVUS project team as
the Medical Writer begins preparing the PFSR. 
The PFSR is a complete version of the report without the
appendices.  The PFSR undergoes a
complete team review, which includes the Medical Monitor, Statistician, CTM,
Data Manager, and other team members, if applicable.  After the Medical Writer incorporates all
team changes into the PFSR, the PFSR undergoes Medpace’s comprehensive document
QC process.  Once all changes from the
document QC process are implemented into the PFSR, the PFSR is forwarded to
VIVUS for review.

 

The
FSR is prepared once VIVUS’ comments on the PFSR are returned and all requested
changes are agreed upon (including the acceptance of final text for all
complicated or sensitive sections, which may require sending non-QC’d drafts of
the report to VIVUS), and the Final Analyses are completed.  The FSR is a complete version of the report
including paginated appendices and/or supplements.  The FSR undergoes a complete internal QC
review and is forwarded to VIVUS for sign-off. 
The signed cover sheet is returned by VIVUS to verify their acceptance
of the FSR.

 

STUDY CLOSEOUT

 

At
the conclusion of each study, once all deliverables have been met, Medpace will
return the original study files to VIVUS. 
These will include:

 

·                  General project administration files (this
file includes items such as: Outside Vendor Correspondence, Multiple Site
Correspondence (e.g. faxes to all sites), Central IRB Correspondence, Project
Specific SOPs and Procedures, Monitoring Plan, Trial Master File, Project
Timelines, Newsletters, and Meeting Minutes)

 

·                  Site files (this file includes site items
such as: Essential Documents, Budget, Site Correspondence, Monitoring Visit
Reports, Drug shipment documents, Study Supply forms, and Protocol Deviations);

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

15

 

·                  Final statistical tables and listings with
results;

 

·                  Data management documentation (this file
includes items such as: Database Definition Document, Final eCRFs, External
Database Import Specs., Data Management Plan, Coding Reports, Analysis Plan,
and Randomization Code); and

 

·                  Final clinical study report.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

16

 

Assumptions

 

	
  OB-305

  	
   

  	
  Description

  
	
  Number
  of Investigators

  	
   

  	
  [***]

  
	
  Number
  of Randomized Patients

  	
   

  	
  [***]

  
	
  Duration
  of Enrollment Period

  	
   

  	
  [***]

  
	
  Duration
  of Treatment Period

  	
   

  	
  [***]

  
	
  Number
  of Investigators’ Meetings

  	
   

  	
  [***]

  
	
  Number
  of Kickoff Meetings

  	
   

  	
  [***]

  
	
  Number
  of Sponsor Meetings (at VIVUS)

  	
   

  	
  [***]

  
	
  Number
  of Conference Calls

  	
   

  	
  [***]

  
	
  Frequency
  of Conference Calls

  	
   

  	
  [***]

  
	
  Number
  of Clinical Monitors

  	
   

  	
  [***]

  
	
  Number
  of Pre-study Visits

  	
   

  	
  [***]

  
	
  Number
  of Initiation Visits/Teleconferences

  	
   

  	
  [***]

  
	
  Number
  of Routine Monitoring Visits

  	
   

  	
  [***]

  
	
  Number
  of Closeout Visits

  	
   

  	
  [***]

  
	
  Monitoring
  Frequency

  	
   

  	
  [***]

  
	
  Number
  of Newsletters per Site (bi-monthly)

  	
   

  	
  [***]

  
	
  Estimated
  Number of eCRFs per Completed Patient

  	
   

  	
  [***]

  
	
  Estimated
  Number of Unique eCRFs per Completed Patient

  	
   

  	
  [***]

  
	
  Total
  Number of eCRFs

  	
   

  	
  [***]

  
	
  Estimated
  Number of AE Codes Per Patient

  	
   

  	
  [***]

  
	
  Estimated
  Number of Medical History Codes Per Patient

  	
   

  	
  [***]

  
	
  Estimated
  Number of Concomitant Medications Codes Per Patient

  	
   

  	
  [***]

  
	
  Estimated
  Number of Queries Per Patient

  	
   

  	
  [***]

  
	
  External
  Data Sources

  	
   

  	
  [***]

  

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

17

 

	
  Data
  Transfers from Medpace to VIVUS

  	
   

  	
  [***]

  
	
  Number
  of Raw Listings

  	
   

  	
  [***]

  
	
  Number
  of Unique TFs

  	
   

  	
  [***]

  
	
  Number
  of Version TFs

  	
   

  	
  [***]

  

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

18

 

	
  Task
  Order #06

  	
   

  
	
  Appendix
  3–Project Schedule

  	
   

  
	
  VIVUS, Inc.

  	
   

  
	
  OB-305

  	
  

  

 

Milestones

 

	
  OB-305

  	
   

  	
  Date

  
	
  Medpace Begins Work

  	
   

  	
  [***]

  
	
  Protocol Finalized

  	
   

  	
  [***]

  
	
  First Patient First Visit

  	
   

  	
  [***]

  
	
  Last Patient First Visit

  	
   

  	
  [***]

  
	
  Last Patient Last Visit

  	
   

  	
  [***]

  
	
  Final Database Lock

  	
   

  	
  [***]

  
	
  Final TFLs Available

  	
   

  	
  [***]

  
	
  Delivery of Final Clinical Study Report

  	
   

  	
  [***]

  

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

1

 

	
  Task
  Order #06

  	
   

  
	
  Appendix
  4–Budget

  	
   

  
	
  VIVUS, Inc.

  	
   

  
	
  OB-305

  	
  

  

 

Appendix 4

 

Medpace Fee Estimate

 

[***]

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

2

 

	
  Task
  Order #06

  	
   

  
	
  Appendix
  5–Payment Schedule

  	
   

  
	
  VIVUS, Inc.

  	
   

  
	
  OB-305

  	
  

  

 

Payment Schedule

 

As set forth in this Agreement, professional
service fees totalling $[***] will be
paid by VIVUS for professional services rendered by Medpace according to the
following schedule:

 

[***]

 

Pass-through
expenses will be billed to VIVUS on a monthly basis as incurred.  Medpace will make payments to the clinical
sites according to the VIVUS-approved schedule.  All funds Medpace
requires for payments to sites, Phase Forward and any other third-party vendors
will be made electronically to Medpace within seven days of invoice
receipt.  If electronic payment exceeds or falls below actual costs, VIVUS
will adjust based on the prior month’s payment reconciliation. 
Investigator payment invoices will include the following detail:

 

·                  Clinical study
number;

·                  PI or Site #;

·                  Patient ID;

·                  Amounts paid
per visit;

·                  Total amount
earned to date;

·                  Prior payments;
and

·                  Current payment
amount

 

The
first Wire-Transfer payment will be invoiced prior to any site becoming active
to ensure funds are available for site payments.  Medpace will pay sites
immediately following receipt of Wire-Transfers.

 

Payment
Information and General Conditions

 

[***].

 

Inflation

 

The
fees stipulated in the fee estimate include inflation
for the duration of the study as specified in this proposal.  Any significant shift in timelines will
require a revision to the fees.

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.

 

1

 

	
  Appendix 6

  	
  Transfer of Obligations
  Form

  

 

CONFIDENTIAL

 

Directions:  Complete a form for each clinical study where
Sponsor obligations have been transferred in accordance with 21 CFR Part 312,
Subpart D (Responsibilities of Sponsors). 
Forward the completed form to Sponsor’s Regulatory Affairs Department
for submission to the applicable regulatory agencies.

 

	
  Drug:

  	
  VI-0521

  	
   

  	
  Study
  ID:

  	
  OB
  305

  
	
  Study
  Title:

  	
  A
  phase 3, double blind, placebo controlled multicenter extension study (from
  study OB-303) to determine the safety and efficacy of VI-0521 for the
  long-term treatment of obesity in adults with obesity-related co-morbid
  conditions.

  
	
  CRO
  Name:

  	
  Medpace, Inc.

  
	
  CRO
  Address:

  	
  [***]

  

 

OBLIGATIONS
TRANSFERRED TO MEDPACE: x THE
APPROPRIATE BOX(ES).

o  All obligations
in 21 CFR 312, Subpart D (Responsibilities of Sponsors) have been transferred
to Medpace.

x  The following
obligations have been transferred to Medpace:

 

Sec. 312.32:  IND Safety Reports

x          Promptly review safety
information.  *Sponsor will be notified
within one (1) business day of discovery of significant new or serious
adverse events or risks, or any unusual frequency of reactions with respect to
the drug.

o            Notify all participating investigators
in a written IND safety report of any AE associated with the drug that is both
serious and unexpected.

o            Notify the FDA in a written
IND safety report of any AE associated with the drug that is both serious and
unexpected.

 

Sec. 312.53:  Selecting investigators and monitors

x          (a) Select qualified
investigators

x          (b) Control
investigational drug shipment

x          (c) Obtain information
from investigators

x         (1) Signed Form FDA-1572

x         (2) CV or other
qualification statement

x         (3) Clinical protocol
outline

x         (4) Financial disclosure
information

x          (d) Select qualified
monitors

 

Sec. 312.54:  Emergency research

o            (a) Monitor the progress
of all studies involving an exception from informed consent.

o            (b) Monitor such studies
to identify when an IRB determines that it can’t approve the research.

 

Sec. 312.55:  Informing
investigators

x          (a) Provide sites with
the current Inv. Brochure.

x          (b) Inform investigators
of new observations on the drug, particularly with respect to AEs and safe use.

 

Sec. 312.56:  Review of ongoing
investigations

o            (a) Monitor the progress
of all IND studies.

x          (b) Secure compliance
from noncompliant investigators or discontinue drug shipments and end the
investigator’s participation in the study.

o            (c) Review and evaluate
the safety and efficacy results as it is obtained from the investigator.

x          (d) Discontinue use of
the investigational drug if it is determined to present an unreasonable and
significant risk to subjects, notify all IRBs and investigators, and assure the
return or alternate disposition of the drug from the investigators.

 

Sec. 312.57:  Record keeping and record retention

x          (a) Maintain adequate
records showing investigational drug receipt, shipment, or other
disposition.  *Master Drug Logs will
include the name of the Investigator to whom the drug is shipped, the date, and
the quantity and batch of each such shipment.

x          (b) Maintain complete
and accurate records showing any financial interests of the investigator
subject to 21 CFR 54.

x          (c) Retain the records
and reports required by the regulations for 2 years after the marketing
application is approved, or if not approved, until 2 years after
investigational drug shipment is discontinued and FDA has been notified.

o            (d) Retain reserve
samples of any test article and reference standard identified and used in
bioequivalence or bioavailability studies.

 

Sec. 312.58:  Inspection of sponsor’s records and reports

x          (a) Permit FDA personnel
to have access to and copy and verify any records and reports related to the
clinical investigation.

x          (b) Permit DEA personnel
to have access to and copy records related to the shipment, delivery, receipt
and disposition of any investigational controlled substance.  Assure adequate storage precautions are taken
for investigational new drug substances listed in any schedule of the
Controlled Substances Act.

 

Sec. 312.59:  Disposition of unused supply of
investigational drug

x          Assure the return (or
alternate disposition) of all unused supplies of the investigational drug from
each discontinued/terminated investigator; maintain written records of any
disposition of the investigational drug.

 

Other

o            Please describe any other
applicable transfers below:

 

November 10, 2008

 

*** Certain information has been omitted and filed
separately with the Commission. 
Confidential treatment has been requested with respect to the omitted
portions.Exhibit 4.1

 

Execution Version

 

REGAL CINEMAS CORPORATION

 

AND

 

U.S. BANK NATIONAL
ASSOCIATION

 

AS TRUSTEE

 

8.625% SENIOR NOTES DUE 2019

 

INDENTURE

 

DATED AS OF JULY 15, 2009

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I Definitions and Incorporation by Reference

  	
  1

  
	
  Section 1.01

  	
  Definitions

  	
  1

  
	
  Section 1.02

  	
  Other Definitions

  	
  24

  
	
  Section 1.03

  	
  Incorporation by Reference of
  Trust Indenture Act

  	
  24

  
	
  Section 1.04

  	
  Rules of Construction

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE II The Securities

  	
  26

  
	
  Section 2.01

  	
  Amount of Securities; Issuable in
  Series

  	
  26

  
	
  Section 2.02

  	
  Form and Dating

  	
  27

  
	
  Section 2.03

  	
  Execution and Authentication

  	
  27

  
	
  Section 2.04

  	
  Registrar and Paying Agent

  	
  28

  
	
  Section 2.05

  	
  Paying Agent To Hold Money in
  Trust

  	
  28

  
	
  Section 2.06

  	
  Holder Lists

  	
  29

  
	
  Section 2.07

  	
  Replacement Securities

  	
  29

  
	
  Section 2.08

  	
  Outstanding Securities

  	
  29

  
	
  Section 2.09

  	
  Temporary Securities

  	
  29

  
	
  Section 2.10

  	
  Cancellation

  	
  30

  
	
  Section 2.11

  	
  Defaulted Interest

  	
  30

  
	
  Section 2.12

  	
  CUSIP Numbers, Common Codes or
  ISINs

  	
  31

  
	
  Section 2.13

  	
  Computation of Interest

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE III Redemption

  	
  32

  
	
  Section 3.01

  	
  Notices to Trustee

  	
  32

  
	
  Section 3.02

  	
  Selection of Securities To Be
  Redeemed

  	
  32

  
	
  Section 3.03

  	
  Notice of Redemption

  	
  32

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
  33

  
	
  Section 3.05

  	
  Deposit of Redemption Price

  	
  33

  
	
  Section 3.06

  	
  Securities Redeemed in Part

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV Covenants

  	
  34

  
	
  Section 4.01

  	
  Payment of Securities

  	
  34

  
	
  Section 4.02

  	
  Corporate Existence

  	
  34

  
	
  Section 4.03

  	
  Payment of Taxes and Other Claims

  	
  34

  
	
  Section 4.04

  	
  Maintenance of Properties

  	
  35

  
	
  Section 4.05

  	
  Limitation on Consolidated
  Indebtedness

  	
  35

  
	
  Section 4.06

  	
  Limitation on Restricted Payments

  	
  35

  
	
  Section 4.07

  	
  Limitation on Transactions with
  Affiliates

  	
  39

  
	
  Section 4.08

  	
  Limitation on Liens Securing
  Indebtedness

  	
  41

  
	
  Section 4.09

  	
  Limitation on Dividend and Other
  Payment Restrictions Affecting Subsidiaries

  	
  41

  
	
  Section 4.10

  	
  Future Guarantors

  	
  43

  
	
  Section 4.11

  	
  Change of Control

  	
  43

  
	
  Section 4.12

  	
  Provision of Financial Information

  	
  44

  

 

i

 

	
  Section 4.13

  	
  Statement as to Compliance

  	
  44

  
	
  Section 4.14

  	
  Waiver of Certain Covenants

  	
  44

  
	
  Section 4.15

  	
  Further Instruments and Acts

  	
  45

  
	
  Section 4.16

  	
  Payment for Consent

  	
  45

  
	
  Section 4.17

  	
  Covenant Suspension

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE V Successor Company

  	
  46

  
	
  Section 5.01

  	
  Consolidation

  	
  46

  
	
  Section 5.02

  	
  Successor Substituted

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI Defaults and Remedies

  	
  47

  
	
  Section 6.01

  	
  Events of Default

  	
  47

  
	
  Section 6.02

  	
  Acceleration; Rescission and
  Annulment

  	
  49

  
	
  Section 6.03

  	
  Other Remedies

  	
  51

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
  51

  
	
  Section 6.05

  	
  Control by Majority

  	
  51

  
	
  Section 6.06

  	
  Limitation on Suits

  	
  51

  
	
  Section 6.07

  	
  Rights of Holders to Receive
  Payment

  	
  52

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
  52

  
	
  Section 6.09

  	
  Trustee May File Proofs of
  Claim

  	
  52

  
	
  Section 6.10

  	
  Priorities

  	
  52

  
	
  Section 6.11

  	
  Undertaking for Costs

  	
  53

  
	
  Section 6.12

  	
  Waiver of Stay or Extension Laws

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII Trustee

  	
  53

  
	
  Section 7.01

  	
  Duties of Trustee

  	
  53

  
	
  Section 7.02

  	
  Rights of Trustee

  	
  55

  
	
  Section 7.03

  	
  Individual Rights of Trustee

  	
  56

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
  56

  
	
  Section 7.05

  	
  Notice of Defaults

  	
  56

  
	
  Section 7.06

  	
  Reports by Trustee to Holders

  	
  56

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
  56

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
  57

  
	
  Section 7.09

  	
  Successor Trustee by Merger

  	
  58

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
  58

  
	
  Section 7.11

  	
  Preferential Collection of Claims
  Against Company

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII Discharge of Indenture; Defeasance

  	
  59

  
	
  Section 8.01

  	
  Discharge of Liability on
  Securities; Defeasance

  	
  59

  
	
  Section 8.02

  	
  Conditions to Defeasance

  	
  60

  
	
  Section 8.03

  	
  Application of Trust Money

  	
  61

  
	
  Section 8.04

  	
  Repayment to Company

  	
  61

  
	
  Section 8.05

  	
  Indemnity for Government
  Obligations

  	
  62

  
	
  Section 8.06

  	
  Reinstatement

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX Amendments

  	
  62

  
	
  Section 9.01

  	
  Without Consent of Holders

  	
  62

  

 

ii

 

	
  Section 9.02

  	
  With Consent of Holders

  	
  63

  
	
  Section 9.03

  	
  Compliance with Trust Indenture
  Act

  	
  64

  
	
  Section 9.04

  	
  Revocation and Effect of Consents
  and Waivers

  	
  64

  
	
  Section 9.05

  	
  Notation on or Exchange of
  Securities

  	
  64

  
	
  Section 9.06

  	
  Trustee To Sign Amendments

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE X Guarantees

  	
  65

  
	
  Section 10.01

  	
  Parent Guarantee and Subsidiary
  Guarantees

  	
  65

  
	
  Section 10.02

  	
  Execution and Delivery of Parent Guarantee and Subsidiary
  Guarantees

  	
  67

  
	
  Section 10.03

  	
  Limitation on Liability;
  Termination, Release and Discharge

  	
  67

  
	
  Section 10.04

  	
  Right of Contribution

  	
  69

  
	
  Section 10.05

  	
  No Subrogation

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI Miscellaneous

  	
  69

  
	
  Section 11.01

  	
  Trust Indenture Act Controls

  	
  69

  
	
  Section 11.02

  	
  Notices

  	
  70

  
	
  Section 11.03

  	
  Communication by Holders with
  Other Holders

  	
  71

  
	
  Section 11.04

  	
  Certificate and Opinion as to
  Conditions

  	
  71

  
	
  Section 11.05

  	
  Statements Required in
  Certificate or Opinions

  	
  71

  
	
  Section 11.06

  	
  When Securities Disregarded

  	
  72

  
	
  Section 11.07

  	
  Rules by Trustee, Paying
  Agent and Registrar

  	
  72

  
	
  Section 11.08

  	
  Legal Holidays

  	
  72

  
	
  Section 11.09

  	
  Governing Law

  	
  72

  
	
  Section 11.10

  	
  No Recourse Against Others

  	
  72

  
	
  Section 11.11

  	
  Successors

  	
  73

  
	
  Section 11.12

  	
  Separability Clause

  	
  73

  
	
  Section 11.13

  	
  Reliance on Financial Data

  	
  73

  
	
  Section 11.14

  	
  Multiple Originals

  	
  73

  
	
  Section 11.15

  	
  Table of Contents; Headings

  	
  73

  

 

	
  Exhibit A

  	
   

  	
  Provisions
  Relating to Initial Securities and Exchange Securities

  
	
  Appendix
  I to Exhibit A

  	
   

  	
  Form of
  Initial Security

  
	
  Exhibit B

  	
   

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

  
	
  Exhibit C

  	
   

  	
  Form of
  Guarantee

  
	
  Exhibit D

  	
   

  	
  Form of
  Supplemental Indenture to Add Guarantors

  

 

iii

 

INDENTURE dated as of July 15, 2009, among
REGAL CINEMAS CORPORATION, a Delaware corporation (the “Company”), the
Guarantors party hereto from time to time and U.S. Bank National Association,
as Trustee (the “Trustee”). 
Certain capitalized terms used herein have the respective meanings set
forth in Article I hereof.

 

For and in consideration of the premises and the
purchase of the Securities by the Holders thereof, each party agrees as follows
for the benefit of the other party and for the equal and ratable benefit of the
Holders of (i) the Company’s 8.625% Senior Notes due 2019, issued on the
date hereof and the guarantees thereof by the Parent Guarantor and certain of
the Company’s subsidiaries (the “Initial Securities”), (ii) if and
when issued, an unlimited principal amount of additional 8.625% Senior Notes
due 2019 that may be offered from time to time in one or more series subsequent
to the Issue Date as provided for in this Indenture and the guarantees thereof
by certain of the Company’s subsidiaries (the “Additional Securities”)
and (iii) if and when issued, the Company’s 8.625% Senior Notes due 2019
and the guarantees thereof by certain of the Company’s subsidiaries, that may
be issued from time to time in exchange for Initial Securities or for
Additional Securities each in offers registered under the Securities Act as
provided in a Registration Rights Agreement (as hereinafter defined) (the “Exchange
Securities”) or if and when issued pursuant to a private exchange of
Initial Securities or Additional Securities (the “Private Exchange
Securities,” and together with the Exchange Securities, the Initial
Securities and Additional Securities, the “Securities”):

 

ARTICLE I

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01           Definitions.

 

“Acquired
Indebtedness” of any particular Person means Indebtedness of any
other Person existing at the time such other Person merged with or into or
became a Subsidiary of such particular Person or assumed by such particular
Person in connection with the acquisition of assets from any other Person, and
not incurred by such other Person in connection with, or in contemplation of,
such other Person merging with or into such particular Person or becoming a
Subsidiary of such particular Person or such acquisition.

 

“Additional Interest”
means the additional interest, if any, to be paid on the Initial
Securities or any Additional Securities pursuant to any Registration Rights
Agreement as described in Exhibit A.  All references in this Indenture to
“interest” shall include any Additional Interest.

 

“Affiliate”
means, with respect to any specified Person: (i) any other Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with 

 

1

 

such specified Person; or (ii) any
other Person that owns, directly or indirectly, 10% or more of such Person’s
Capital Stock or any officer or director of any such Person or other Person or
with respect to any natural Person, any person having a relationship with such
Person by blood, marriage or adoption not more remote than first cousin. 
For the purposes of this definition, “control” when used with respect to any
specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Applicable Premium” means, with respect to
any Securities on any redemption date, the greater of: (1) 1.0% of the
principal amount of the Security; or (2) the excess, if any, of (a) the
present value at such redemption date of (i) the redemption price of the
Security at July 15, 2014 (such redemption price being set forth in the
paragraph 5(c) of the Securities set forth in Exhibit A), plus (ii) all required interest
payments due on such Security through July 15, 2014 (excluding accrued but
unpaid interest to the redemption date), computed using a discount rate equal
to the Treasury Rate as of such redemption date plus 50 basis points; over (b) the principal amount of
such Security.

 

“Bankruptcy Laws”
means the bankruptcy laws of the United States and the law of any other
jurisdiction relating to bankruptcy, insolvency, winding up, liquidation,
reorganization or relief of debtors.

 

“Bankruptcy Order”
means any court order made in a proceeding pursuant to or within the meaning of
any Bankruptcy Law, containing an adjudication of bankruptcy or insolvency, or
providing for liquidation, winding up, dissolution or reorganization, or
appointing a Custodian of a debtor or of all or any substantial part of a
debtor’s property, or providing for the staying, arrangement, adjustment or
composition of indebtedness or other relief of a debtor.

 

“Board of
Directors” means the Board of Directors of the Company or any
committee of such Board of Directors duly authorized to act under this
Indenture.

 

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

 

“Business Day”
means any day other than a Saturday or Sunday or other day on which banks in
New York, New York, or the city in which the Corporate Trust Office is located,
or, if no Security is outstanding, the city in which the principal corporate
trust office of the Trustee is located, are authorized or required to be
closed.

 

2

 

“Capital Lease Obligations” of any Person
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.

 

“Capital Stock” of any
Person means any and all shares, interests, participations or other equivalents
(however designated) of such Person’s capital stock, including preferred stock,
any rights (other than debt securities convertible into capital stock), warrants
or options to acquire such capital stock, whether now outstanding or issued
after the date of this Indenture.

 

“Cash Equivalents” means:
(i) United States dollars; (ii) securities issued or directly and
fully guaranteed or insured by the United States government or any agency or
instrumentality; (iii) certificates of deposit and eurodollar time
deposits with maturities of six months or less from the date of acquisition,
bankers’ acceptances with maturities not exceeding six months and overnight
bank deposits, in each case with any United States domestic commercial bank
having capital and surplus in excess of $500.0 million and a Keefe Bank
Watch Rating of “B” or better; (iv) repurchase obligations with a term of
not more than seven days for underlying securities of the types described in
clauses (ii) and (iii) above entered into with any financial
institution meeting the qualifications specified in clause (iii) above; (v) commercial
paper having one of the two highest rating categories obtainable from Moody’s
or S&P in each case maturing within six months after the date of
acquisition; (vi) readily marketable direct obligations issued by any
State of the United States of America or any political subdivision thereof
having one of the two highest rating categories obtainable from Moody’s or
S&P; and (vii) investments in money market funds which invest at least
95% of their assets in securities of the types described in clauses (i) through
(vi) of this definition.

 

“Change of Control” means
the occurrence of, after the date of this Indenture, any of the following
events: (i) any “person” or “group” as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act other than one or
more Permitted Holders is or becomes the “beneficial owner” (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that such person or group shall be
deemed to have “beneficial ownership” of all shares that any such person or
group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, by way of merger,
consolidation or other business combination or purchase of 50% or more of the
total voting power of the Voting Stock of the Company; (ii) the adoption
of a plan relating to the liquidation or dissolution of the Company; (iii) the
sale, lease, transfer or other conveyance, in one or a series of related
transactions, of all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole, to any Person other than one or more Permitted
Holders; (iv) the
first day on which a majority of the members of the REG board of directors are
not Continuing Directors; or (v) a change of control under any of the
indentures relating to the Existing Notes.

 

“Company” means the
Person named as the “Company” in the first paragraph of this Indenture, until a
successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Company” shall mean such successor
Person.  To the extent necessary to comply with the requirements of the
provisions of Sections 310 through 

 

3

 

317 of the TIA as they are applicable to the
Company, the term “Company” shall include any other obligor with respect to the
Securities for the purposes of complying with such provisions.

 

“Consolidated EBITDA”
means, with respect to any Person for any period, the Consolidated Net Income
(Loss) of such Person for such period increased (to the extent deducted in
determining Consolidated Net Income (Loss)) by the sum of:

 

(i)         deferred lease expenses;

 

(ii)        all income taxes of such Person and its
Subsidiaries paid or accrued in accordance with GAAP for such period (other
than income taxes attributable to extraordinary, unusual or non-recurring gains
or losses);

 

(iii)       Consolidated Interest Expense of such
Person and its Subsidiaries for such period;

 

(iv)       depreciation expense of such Person and
its Subsidiaries for such period;

 

(v)        amortization expense of such Person and
its Subsidiaries for such period including amortization of capitalized debt
issuance costs;

 

(vi)       any other non-cash charges of such Person
and its Subsidiaries for such period (including non-cash expenses recognized in
accordance with Financial Accounting Standard Number 106), all determined
on a consolidated basis in accordance with GAAP; and

 

(vii)      any fees, expenses, charges or premiums
relating to any issuance of Capital Stock or issuance, repayment, refinancing,
amendment or modification of Indebtedness (in each case, whether or not
successful), including, without limitation any fees, expenses or charges
related to the offering of the Securities;

 

provided, further, that, solely with respect
to calculations of the Consolidated EBITDA Ratio:

 

(i)         Consolidated EBITDA shall include the effects of incremental
contributions the Company reasonably believes in good faith could have been
achieved during the relevant period as a result of a Theatre Completion had
such Theatre Completion occurred as of the beginning of the relevant period; provided, 

 

4

 

however, that such
incremental contributions were identified and quantified in good faith in an
Officers’ Certificate delivered to the Trustee at the time of any calculation
of the Consolidated EBITDA Ratio;

 

(ii)        Consolidated EBITDA shall be calculated
on a pro forma basis after giving effect to any motion picture theatre or
screen that was permanently or indefinitely closed for business, at any time on
or subsequent to the first day of such period as if such theatre or screen was
closed for the entire period; and

 

(iii)       All preopening expense and theatre
closure expense which reduced (increased) Consolidated Net Income (Loss) during
any applicable period shall be added to (subtracted from) Consolidated EBITDA.

 

“Consolidated EBITDA Ratio”
of any Person means, for any period, the ratio of Consolidated EBITDA to
Consolidated Interest Expense for such period (other than any non-cash
Consolidated Interest Expense attributable to any amortization or write-off of
deferred financing costs); provided
that, in making such computation:

 

(i)         if the Company or any Subsidiary:

 

(a)        has Incurred any Indebtedness
subsequent to the commencement of the period for which the Consolidated EBITDA
Ratio is being calculated and on or prior to the date on which the event for
which the calculation of the Consolidated EBITDA Ratio is made, then the
Consolidated EBITDA Ratio will be calculated giving pro forma effect to such
Incurrence of Indebtedness and the use of the proceeds therefrom as if the same
had occurred at the beginning of the applicable four-quarter reference period
(except that in making such computation, the amount of Indebtedness under any
revolving credit facility outstanding on the date of such calculation will be
deemed to be:

 

(1)       the average daily balance of such
Indebtedness during such four fiscal quarters or such shorter period for which
such facility was outstanding; or

 

(2)       if such facility was created after the
end of such four fiscal quarters, the average daily balance of such
Indebtedness during the period from the date of creation of such facility to
the date of such calculation); and

 

5

 

the discharge of any other Indebtedness repaid, repurchased, defeased
or otherwise discharged with the proceeds of such new Indebtedness as if such
discharge had occurred on the first day of such period; or

 

(b)        has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of the period that is
no longer outstanding on such date of determination or if the transaction
giving rise to the need to calculate the Consolidated EBITDA Ratio involves a
discharge of Indebtedness (in each case other than Indebtedness Incurred under
any revolving credit facility unless such Indebtedness has been permanently
repaid and the related commitment terminated), Indebtedness, Consolidated
EBITDA and Consolidated Interest Expense for such period will be calculated
after giving effect on a pro forma basis to such discharge of such
Indebtedness, including with the proceeds of such new Indebtedness, as if such
discharge had occurred on the first day of such period.

 

(ii)           the Consolidated Interest Expense
attributable to interest on any Indebtedness computed on a pro forma basis and
bearing a floating interest rate shall be computed as if the rate in effect on
the date of computation had been the applicable rate for the entire period; and

 

(iii)          with respect to any Indebtedness which
bears, at the option of such Person, a fixed or floating rate of interest, such
Person shall apply, at its option, either the fixed or floating rate.

 

“Consolidated Interest Expense”
of any Person means, without duplication, for any period, as applied to any
Person: (i) the sum of (a) the aggregate of the interest expense on
Indebtedness of such Person and its consolidated Subsidiaries for such period,
on a consolidated basis, including, without limitation: (1) amortization
of debt discount; (2) the net cost under Interest Rate Protection
Agreements (including amortization of discounts); (3) the interest portion
of any deferred payment obligation; and (4) accrued interest; plus (b) the interest component of
the Capital Lease Obligations paid, accrued and/or scheduled to be paid or
accrued by such Person and its consolidated Subsidiaries during such period  (other than any contingent rent paid on
Capital Lease Obligations that is deemed to be interest for purposes of GAAP or
any interest expense attributable to Deemed Capitalized Leases), minus (ii) the cash interest income
(exclusive of deferred financing fees) of such Person and its consolidated
Subsidiaries during such period, in each case as determined in accordance with
GAAP consistently applied.

 

“Consolidated Net Income (Loss)” means,
with respect to any specified Person for any period, the aggregate of the Net
Income of such Person and its Subsidiaries for such period, on a consolidated
basis, determined in accordance with GAAP, provided,
however, in the case of the Company and its Subsidiaries, (i) Consolidated
Net Income shall not include management fees from Unrestricted Subsidiaries
except to the extent actually received by the Company and its Subsidiaries, (ii) accrued
but unpaid compensation expenses related to any stock appreciation, restricted
stock or stock option plans shall not be deducted until such time as such
expenses 

 

6

 

result
in a cash expenditure and (iii) compensation expenses related to tax
payment plans implemented by the Company from time to time in connection with
the exercise and/or repurchase of restricted stock or stock options shall not
be deducted from Net Income to the extent of the related tax benefits arising
therefrom; provided, further,
that: (1) the Net Income of any Person that is not a Subsidiary or that is
accounted for by the equity method of accounting will be included only to the
extent of the amount of dividends, distributions or other payments paid in cash
to the specified Person or a Subsidiary of the specified Person (or, in the
case of a loss, only to the extent funded with cash from the specified Person
or a Subsidiary of the specified Person); and (2) any non-cash goodwill or
other intangible asset impairment charges incurred subsequent to the Issue Date
resulting from the application of SFAS No. 142 (or similar pronouncements)
shall be excluded.

 

“Construction Indebtedness”
means Indebtedness incurred by the Company or its Subsidiaries in connection
with the construction of motion picture theatres or screens.

 

“Continuing Directors” means, as of
any date of determination, any member of the board of directors of REG who: (1) was
a member of REG’s board of directors on the date of this Indenture; (2) was
nominated for election or elected to such board of directors with the approval
of a majority of the Continuing Directors who were members of such board at the
time of such nomination or election; or (3) was nominated for election
pursuant to the provisions of the Stockholders Agreement as in effect on the
date of this Indenture.

 

“Corporate Trust Office”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date of
execution of this Indenture is located at 60 Livingston Avenue, St. Paul, MN
55107-1419, Attention: Corporate Trust Administration.

 

“Credit Agreement” means that certain Fifth
Amended and Restated Credit Agreement, dated as of October 27, 2006, among
Regal Cinemas Corporation, a Delaware corporation, the lenders and issuers
party thereto party thereto from time to time, Credit Suisse, Cayman Islands
Branch, as administrative agent, and Credit Suisse Securities (USA) LLC, as
sole lead arranger and sole book runner, and any related notes, collateral
documents, letters of credit, guarantees and other documents, and any
appendices, exhibits or schedules to any of the foregoing, as any or all of
such agreements may be amended, restated, modified or supplemented from time to
time, together with any extensions, revisions, increases, refinancings,
renewals, refundings, restructurings or replacements thereof.

 

“Credit Facilities” means
one or more (i) debt facilities or commercial paper facilities, providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to lenders or to special purpose entities
formed to borrow from lenders against such receivables) or letters of credit,
including, without limitation, the Credit Agreement, (ii) debt securities,
indentures or other forms of debt financing (including convertible or
exchangeable debt instruments or bank guarantees or bankers’ acceptances), or (iii) instruments
or agreements evidencing any other Indebtedness, in each case, with the same or
different borrowers or issuers and, in each case, as amended, supplemented,
modified, extended, 

 

7

 

restructured, renewed, refinanced, restated,
replaced or refunded in whole or in part from time to time.

 

“Currency Hedging Obligations”
means the obligations of any Person pursuant to an arrangement designed to
protect such Person against fluctuations in currency exchange rates.

 

“Custodian” means any receiver, interim
receiver, receiver and manager, trustee, assignee, liquidator, sequestrate or
similar official under any Bankruptcy Law or any other person with like powers.

 

“DCIP” means Digital
Cinema Implementation Partners, LLC, a Delaware limited liability company, and
any similar Person with a primary business purpose of facilitating the
implementation of digital cinemas in theatres and agreements and arrangements
with respect to the financing of digital cinema and any Person that is a direct
or indirect parent thereof and has no independent operations.

 

“Deemed Capitalized Leases” means
obligations of the Company or any Subsidiary of the Company that are classified
as “capital lease obligations” under GAAP due to the application of Emerging
Issues Task Force Regulation 97-10 or any subsequent pronouncement having
similar effect and, except for such regulation or pronouncement, such
obligation would not constitute Capital Lease Obligations.

 

“Default” means any event
which is, or after notice or the passage of time or both, would be, an Event of
Default.

 

“Digital Projector Financing” means any
financing arrangement in respect of digital projector equipment for use in the
ordinary course of business in theatres owned, leased or operated by the
Company and its Subsidiaries.

 

“DTC” means The
Depository Trust Company, a New York corporation, and its successors.

 

“Equity Interests” means
Capital Stock and all warrants, options or other rights to acquire Capital
Stock (but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock).

 

“Equity Offering” means a
public or private sale for cash by the Company or of a direct or indirect
parent of the Company (the proceeds of which have been contributed to the
Company) of common stock or preferred stock (other than Redeemable Capital
Stock), or options, warrants or rights with respect to such Person’s common
stock or preferred stock (other 

 

8

 

than Redeemable Capital Stock), other than
public offerings with respect to such Person’s common stock, preferred stock
(other than Redeemable Capital Stock), or options, warrants or rights,
registered on Form S-4 or S-8.

 

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

 

“Existing Notes” means (i) the
61⁄4 % convertible senior notes due 2011 issued by REG and (ii) the Existing
Subordinated Notes.

 

“Existing Subordinated Notes” means the 9 3/8% senior
subordinated notes due 2012 issued by the Company.

 

“Fair Market Value”
means, with respect to any asset or property, the sale value that would be obtained
in an arm’s-length transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to
buy.

 

“Generally Accepted Accounting
Principles” or “GAAP”
means generally accepted accounting principles in the United States as in
effect on the Issue Date, consistently applied.

 

“Government Securities”
means direct obligations (or certificates representing an ownership interest in
such obligations) of, or obligations guaranteed by, the United States of
America (including any agency or instrumentality thereof) for the payment of
which the full faith and credit of the United States of America is pledged and
which are not callable or redeemable at the issuer’s option.

 

“Guarantee” means, with
respect to any Person, any obligation, contingent or otherwise, of such Person
directly or indirectly guaranteeing any Indebtedness or other obligation of any
other Person and, without limiting the generality of the foregoing, any
obligation, direct or indirect, contingent or otherwise, of such Person: (i) to
purchase or pay (or advance or supply funds for the purchase or payment of)
such Indebtedness or other obligation of such other Person (whether arising by
virtue of partnership arrangements, or by agreements to keep-well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise); or (ii) entered into for purposes of
assuring in any other manner the obligee of such Indebtedness or other obligation
of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. The term “Guarantee” used as a verb
has a corresponding meaning.

 

“Guaranteed Indebtedness”
of any Person means, without duplication, all Indebtedness of any other Person
referred to in the definition of Indebtedness and all dividends 

 

9

 

of other Persons for the payment of which, in
either case, such Person is directly or indirectly responsible or liable as
obligor, guarantor or otherwise.

 

“Guarantor” means each of Parent Guarantor
and Subsidiary Guarantors.

 

“Guarantor Subordinated Obligation”
means, with respect to a Guarantor, any Indebtedness of such Guarantor (whether
outstanding on the Issue Date or thereafter Incurred) which is expressly
subordinate in right of payment to the obligations of such Guarantor under its
Guarantee pursuant to a written agreement.

 

“Hedging Obligation” of
any Person means any Currency Hedging Obligation entered into solely to protect
the Company or any of its Subsidiaries from fluctuations in currency exchange
rates and not to speculate on such fluctuations and any obligations of such
Person pursuant to any Permitted Interest Rate Protection Agreement.

 

“Holder” means the Person
in whose name a Security is registered on the Security register described in Section 2.04
as the registered holder of any Security.

 

“Incur” means, with
respect to any Indebtedness or other obligation of any Person, to create,
issue, incur (by merger, conversion, exchange or otherwise), extend, assume,
Guarantee or become liable in respect of such Indebtedness or other obligation
or the recording, as required pursuant to GAAP or otherwise, of any such
Indebtedness or obligation on the balance sheet of such Person (and “Incurrence” and “Incurred” shall have meanings correlative
to the foregoing); provided, however, that a change in GAAP that
results in an obligation (including, without limitation, preferred stock,
temporary equity, mezzanine equity or similar classification) of such Person
that exists at such time, and is not theretofore classified as Indebtedness, becoming
Indebtedness shall not be deemed an Incurrence of such Indebtedness; provided further, however, that any Indebtedness or other
obligations of a Person existing at the time such Person becomes a Subsidiary
(whether by merger, consolidation, acquisition or otherwise) shall be deemed to
be Incurred by such Subsidiary at the time it becomes a Subsidiary; and provided further, however, that solely for purposes of
determining compliance with Section 4.05, amortization of debt discount
shall not be deemed to be the Incurrence of Indebtedness, provided that in the case of Indebtedness
sold at a discount, the amount of such Indebtedness Incurred shall at all times
be the aggregate principal amount at stated maturity.

 

“Indebtedness” means,
with respect to any Person, without duplication: (i) all indebtedness of
such Person for borrowed money or for the deferred purchase price of property
or services, excluding (x) any trade payables and other accrued current
liabilities Incurred in the ordinary course of business and (y) Deemed
Capitalized Leases, but including, without limitation, all obligations of such
Person in connection with any letters of credit and acceptances issued under
letter of credit facilities, acceptance facilities or other similar facilities,
now or hereafter outstanding; (ii) all obligations of such Person
evidenced by bonds, notes, debentures or other 

 

10

 

similar instruments; (iii) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even if
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), but
excluding trade accounts payable arising in the ordinary course of business; (iv) all
indebtedness referred to in clauses (i) through (iii) above of
other Persons and all dividends of other Persons, the payment of which is
secured by (or for which the holder of such indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the payment
of such indebtedness; (v) all Guaranteed Indebtedness of such Person; (vi) all
obligations under Interest Rate Protection Agreements of such Person; (vii) all
Currency Hedging Obligations of such Person; (viii) all Capital Lease
Obligations of such Person; and (ix) any amendment, supplement,
modification, deferral, renewal, extension or refunding of any liability of the
types referred to in clauses (i) through (viii) above.

 

“Indenture” means this
instrument as originally executed (including all exhibits and schedules hereto)
and as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof.

 

“Interest Rate Protection Agreement”
means any interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement,
option or future contract or other similar agreement or arrangement designed to
protect the Company or any of its Subsidiaries against fluctuations in interest
rates.

 

“Investment Grade Rating” means a rating
equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or
the equivalent) by S&P, or an equivalent rating by any other Rating Agency.

 

“Issue Date” means July 15,
2009.

 

“Lien” means any
mortgage, lien (statutory or other), pledge, security interest, encumbrance,
claim, hypothecation, assignment for security, deposit arrangement or
preference or other security agreement of any kind or nature whatsoever. A
Person shall be deemed to own subject to a Lien any property which it has
acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
relating to Indebtedness of such Person. The right of a distributor to the
return of its film held by a Person under a film licensing agreement is not a
Lien as used herein. Reservation of title under an operating lease by the
lessor and the interest of the lessee therein are not Liens as used herein.

 

11

 

“Maturity” means, with
respect to any Security, the date on which the principal of such Security
becomes due and payable as provided in such Security or this Indenture, whether
at the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.

 

“Moody’s” means Moody’s
Investors Service, Inc. or any successor to the rating agency business
thereof.

 

“NCM”
means National
CineMedia, Inc., or its subsidiary National CineMedia, LLC, and any
successor entities thereto, respectively.

 

“Net Cash Proceeds,” with
respect to any issuance or sale of Capital Stock, means the cash proceeds of
such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’
or placement agents’ fees, listing fees, discounts or commissions and brokerage,
consultant and other fees and charges actually Incurred in connection with such
issuance or sale and net of taxes paid or payable as a result of such issuance
or sale (after taking into account any available tax credit or deductions and
any tax sharing arrangements).

 

“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, any gain or loss (net of related costs, fees,
expenses and with any related provision for taxes on such gain or loss)
realized in connection with: (a) any asset sale or (b) the
disposition of any securities by such Person or any of its Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Subsidiaries.

 

“Net Senior Secured Indebtedness”
of any Person means, as of any date of determination, (a) the aggregate
amount of Senior Indebtedness secured by a Lien (other than Capital Lease
Obligations) of the Company and its Subsidiaries as of such date, less (b) cash
and Cash Equivalents of the Company and its Subsidiaries, in each case
determined on a consolidated basis in accordance with GAAP.

 

“Non-Recourse Indebtedness”
means Indebtedness as to which: (i) none of the Company or any of its
Subsidiaries: (a) provides credit support (including any undertaking,
agreement or instrument which would constitute Indebtedness); or (b) is
directly or indirectly liable.

 

“Obligations” means any
principal (including reimbursement obligations and guarantees), premium, if
any, interest (including interest accruing on or after the filing of, or which
would have accrued but for the filing of, any petition in bankruptcy or for
reorganization relating to the Company whether or not a claim for post-filing
interest is allowed in such proceedings), penalties, fees, expenses,
indemnifications, reimbursements, claims for rescission, 

 

12

 

damages, gross-up payments and other liabilities
payable under the documentation governing any Indebtedness or otherwise.

 

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

 

“Officers’ Certificate”
means a certificate signed by two Officers.  Each such certificate shall
include the statements provided for in TIA Section 314(e) to the
extent applicable.

 

“Opinion of Counsel”
means a written opinion of counsel to the Company or any other Person reasonably
satisfactory to the Trustee.

 

“Parent Entity” means any Person that is
a direct or indirect parent of the Company.

 

“Parent Guarantee” means the Guarantee
provided by the Parent Guarantor.

 

“Parent Guarantor” means REG that shall
provide a Parent Guarantee on the date of this Indenture; provided, however, that the Parent Guarantee shall not be directly subject to the
covenants under this Indenture.

 

“Permitted Holder” means (a) Anschutz
Company and any of its Affiliates and (b) REG and wholly-owned Subsidiaries
thereof.

 

“Permitted Indebtedness”
means the following:

 

(i)         Indebtedness of the Company in respect
of (x) the Initial Securities (and Indebtedness of the Guarantors in
respect of the Subsidiary Guarantees), in each case issued on the Issue Date,
and (y) any Exchange Securities or Private Exchange Securities (and
Indebtedness of the Guarantors in respect of the Subsidiary Guarantees thereon)
issued upon an exchange of such Initial Securities and Subsidiary Guarantees in
any registered exchange offer;

 

(ii)        Indebtedness of the Company or any
Guarantor under Credit Facilities together with the Guarantees thereunder and
the issuance and creation of letters of credit and bankers’ acceptances
thereunder (with letters of credit and bankers’ acceptances being deemed to
have a principal amount equal to the face 

 

13

 

amount thereof) in an aggregate
principal amount at any one time outstanding not to exceed
$1,850.0 million;

 

(iii)       Indebtedness of REG or the Company
and its Subsidiaries under the Existing Notes;

 

(iv)       Indebtedness of the Company or any of its
Subsidiaries outstanding on the Issue Date (other than the Existing Notes or
Indebtedness outstanding under the Credit Facility);

 

(v)        Indebtedness of the Company or any of
its Subsidiaries consisting of Permitted Interest Rate Protection Agreements;

 

(vi)       Indebtedness of the Company or any of its
Subsidiaries to any one or the other of them;

 

(vii)      Indebtedness Incurred to renew, extend,
refinance or refund (each, a “refinancing”) the Existing Notes or any other
Indebtedness outstanding on the Issue Date (including the Initial Securities)
in an aggregate principal amount not to exceed the principal amount of the
Indebtedness so refinanced plus the amount of any premium required to be paid
in connection with such refinancing pursuant to the terms of the Indebtedness
so refinanced or the amount of any premium reasonably determined by the Company
as necessary to accomplish such refinancing by means of a tender offer or
privately negotiated repurchase, plus the expenses of the Company incurred in
connection with such refinancing;

 

(viii)     Indebtedness of the Parent Guarantor or any
Subsidiary Incurred in connection with the Guarantee of any Indebtedness of the
Company or the Guarantors in accordance with the provisions of this Indenture; provided that in the event such
Indebtedness that is being Guaranteed is a Subordinated Obligation or Guarantor
Subordinated Obligation, then the related Guarantee shall be subordinated in
right of payment to the Parent Guarantee or the Subsidiary Guarantee, as the
case may be;

 

(ix)       Indebtedness relating to Currency Hedging
Obligations entered into solely to protect the Company or any of its
Subsidiaries from fluctuations in currency exchange rates and not to speculate
on such fluctuations;

 

(x)        Capital Lease Obligations of the Company
or any of its Subsidiaries;

 

14

 

(xi)       Indebtedness of the Company or any of its
Subsidiaries in connection with one or more standby letters of credit or
performance bonds issued in the ordinary course of business or pursuant to
self-insurance obligations;

 

(xii)      Indebtedness represented by property,
liability and workers’ compensation insurance (which may be in the form of
letters of credit);

 

(xiii)     Acquired Indebtedness; provided that such Indebtedness, if
incurred by the Company, would be in compliance with Section 4.05;

 

(xiv)     Indebtedness of the Company or any of its
Subsidiaries to an Unrestricted Subsidiary for money borrowed; provided that such Indebtedness is
subordinated in right of payment to the Securities and the Weighted Average
Life of such Indebtedness is greater than the Weighted Average Life of the
Securities;

 

(xv)      Construction Indebtedness in an aggregate
principal amount that does not exceed $100.0 million at any time outstanding;

 

(xvi)     Indebtedness of the Company or a Subsidiary
Guarantor not otherwise permitted to be Incurred pursuant to clauses (i) through
(xv) above which, together with any other Indebtedness Incurred pursuant to
this clause (xvi), has an aggregate principal amount that does not exceed
$500.0 million at any time outstanding; and

 

(xvii)    Indebtedness incurred by the Company
or any of its Subsidiaries with respect to Digital Projector Financing in an
aggregate principal amount incurred not to exceed $200.0 million.

 

“Permitted Interest Rate Protection
Agreements” means, with respect to any Person, Interest Rate
Protection Agreements entered into in the ordinary course of business by such
Person that are designed to protect such Person against fluctuations in
interest rates with respect to Permitted Indebtedness and that have a notional
amount no greater than the payment due with respect to Permitted Indebtedness
hedged thereby.

 

“Permitted Liens” means,
with respect to any Person:

 

(i)         Liens on the property and assets of the
Company and the Guarantors securing Indebtedness and the Guarantees permitted
to be Incurred under this Indenture (other than Subordinated Obligations and
Guarantor Subordinated Obligations) in an aggregate principal amount not to
exceed the greater of (a) the 

 

15

 

maximum principal amount of
Indebtedness that, as of the date such Indebtedness was Incurred, and after
giving effect to the Incurrence of such Indebtedness and the application of
proceeds therefrom on such date, would not cause the Senior Secured Leverage
Ratio of the Company to exceed 2.75 to 1.00 and (b) the aggregate
principal amount of Indebtedness permitted to be Incurred pursuant to clause (ii) of
the definition of “Permitted Indebtedness;” provided that
in each case the Company may elect pursuant to an Officer’s Certificate
delivered to the Trustee to treat all or any portion of the commitment under
any Indebtedness as being Incurred at such time, in which case any subsequent
Incurrence of Indebtedness under such commitment shall not be deemed, for
purposes of this clause (i), to be an Incurrence at such subsequent time;

 

(ii)        pledges or deposits by such Person under
workmen’s compensation laws, unemployment insurance laws or similar
legislation, or good faith deposits in connection with bids, tenders, contracts
(other than for the payment of Indebtedness) or leases to which such Person is
a party, or deposits to secure public or statutory obligations of such Person
or deposits of cash or United States government bonds to secure surety or
appeal bonds to which such Person is a party, or deposits as security for
contested taxes or import or customs duties or for the payment of rent, in each
case Incurred in the ordinary course of business;

 

(iii)       Liens imposed by law, including
carriers’, warehousemen’s and mechanics’ Liens and other similar Liens, on the
property of the Company or any Subsidiary, in each case arising in the ordinary
course of business and securing payment of obligations that are not more than
60 days past due, or are being contested in good faith by appropriate
proceedings if a reserve or other appropriate provisions, if any, as shall be
required by GAAP shall have been made in respect thereof;

 

(iv)       Liens for taxes, assessments or other
governmental charges not yet subject to penalties for non-payment or which are
being contested in good faith by appropriate proceedings provided appropriate
reserves required pursuant to GAAP have been made in respect thereof;

 

(v)        Liens on the Capital Stock of
Unrestricted Subsidiaries;

 

(vi)       Liens in favor of issuers of surety or
performance bonds or letters of credit or bankers’ acceptances issued pursuant
to the request of and for the account of such Person in the ordinary course of
its business; provided, however, that such letters of credit do
not constitute Indebtedness;

 

16

 

(vii)      encumbrances, ground leases, 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, building codes or other restrictions (including, without limitation,
minor defects or irregularities in title and similar encumbrances) as to the
use of real properties or liens incidental to the conduct of the business of
such Person or to the ownership of its properties which 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;

 

(viii)     Liens securing Hedging Obligations so long
as the related Indebtedness is, and is permitted to be under this Indenture,
secured by a Lien on the same property securing such Hedging Obligation;

 

(ix)       leases, licenses, subleases and
sublicenses of assets (including, without limitation, real property and
intellectual property rights) which do not materially interfere with the
ordinary conduct of the business of the Company and any of its Subsidiaries
taken as a whole;

 

(x)        judgment Liens not giving rise to an
Event of Default so long as such Lien is adequately bonded and any appropriate
legal proceedings which may have been duly initiated for the review of such
judgment have not been finally terminated or the period within which such
proceedings may be initiated has not expired;

 

(xi)       Liens for the purpose of securing the
payment of all or a part of the purchase price of purchase money obligations or
other payments Incurred to finance the acquisition, improvement or construction
of, assets or property acquired or constructed in the ordinary course of
business provided that:

 

(a)        the aggregate principal amount of
Indebtedness (excluding Acquisition Indebtedness) secured by such Liens does
not exceed the cost of the assets or property so acquired or constructed and
such Indebtedness (excluding Acquisition Indebtedness) does not exceed
$100.0 million in the aggregate at any one time outstanding and does not
exceed the cost of assets or property so acquired or constructed (provided, however,
that Deemed Capitalized Leases shall not be subject to this
clause (xi)(a)); and

 

(b)        such Liens are created within 180 days
of construction or acquisition of such assets or property and do not encumber
any other assets or property of the Company or any Subsidiary other than such
assets or property and assets affixed or appurtenant thereto;

 

17

 

(xii)      Liens arising solely by virtue of any
statutory or common law provisions relating to banker’s Liens, rights of
set-off or similar rights and remedies as to deposit accounts or other funds
maintained with a depositary institution;

 

(xiii)     Liens arising from Uniform Commercial Code
financing statement filings regarding operating leases entered into by the
Company and its Subsidiaries in the ordinary course of business;

 

(xiv)     Liens existing on the Issue Date (excluding
Liens relating to obligations under the Credit Facilities and Liens of the kind
referred to in clause (xi) above);

 

(xv)      Liens on property or shares of stock of a
Person at the time such Person becomes a Subsidiary; provided, however, that
such Liens are not created, Incurred or assumed in connection with, or in
contemplation of, such other Person becoming a Subsidiary; provided further, however, that any such Lien may not extend
to any other property owned by the Company or any Subsidiary;

 

(xvi)     Liens on property at the time the Company
or a Subsidiary acquired the property, including any acquisition by means of a
merger or consolidation with or into the Company or any Subsidiary; provided,
however, that such Liens are not created, Incurred or assumed in connection
with, or in contemplation of, such acquisition; provided further, however, that
such Liens may not extend to any other property owned by the Company or any
Subsidiary;

 

(xvii)    Liens securing Indebtedness or other
obligations of a Subsidiary owing to the Company or another Subsidiary;

 

(xviii)   Liens securing the Securities, the Parent
Guarantee and the Subsidiary Guarantees;

 

(xix)      Liens securing Indebtedness Incurred to
refinance Indebtedness that was previously so secured (other than Liens
Incurred pursuant to clauses (i), (xxii) or (xxiii)), provided that any such
Lien is limited to all or part of the same property or assets (plus
improvements, accessions, proceeds or dividends or distributions in respect
thereof) that secured (or, under the written arrangements under which the
original Lien arose, could secure) the Indebtedness being refinanced;

 

18

 

(xx)       any interest or title of a lessor under
any Capital Lease Obligation or operating lease;

 

(xxi)      Liens securing Construction Indebtedness
not to exceed $100.0 million;

 

(xxii)     Liens securing letters of credit in an
amount not to exceed $30.0 million in the aggregate at any one time; and

 

(xxiii)    other Liens securing Indebtedness in an
amount not to exceed $50.0 million in the aggregate at any one time.

 

“Person” means any
individual, corporation, partnership, limited liability company, joint venture,
association, joint stock company, trust, estate, unincorporated organization or
government or any agency or political subdivision thereof.

 

“Preferred Stock” as
applied to the Capital Stock of any corporation, means Capital Stock of any
class or classes (however designated) which is preferred as to the payment of
dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such corporation, over shares of
Capital Stock of any other class of such corporation.

 

“Rating
Agencies” means
Moody’s and S&P or if Moody’s or S&P or both shall not make a rating on
the Securities publicly available, a nationally recognized statistical rating
agency or agencies, as the case may be, selected by the Company that shall be
substituted for Moody’s or S&P or both, as the case may be.

 

“Redeemable Capital Stock”
means any Capital Stock that, either by its terms, by the terms of any security
into which it is convertible or exchangeable or otherwise, is or upon the
happening of an event or passage of time would be required to be redeemed prior
to the final Stated Maturity of the Securities or is mandatorily redeemable at
the option of the holder thereof at any time prior to such final Stated
Maturity (except for any such Capital Stock that would be required to be
redeemed or is redeemable at the option of the holder if the issuer thereof may
redeem such Capital Stock for consideration consisting solely of Capital Stock
that is not Redeemable Capital Stock), or is convertible into or exchangeable
for debt securities at any time prior to such final Stated Maturity at the
option of the holder thereof.

 

“REG” means Regal Entertainment Group, a Delaware
corporation, and any successor entities thereto.

 

19

 

“Registration Rights Agreement”
means the registration rights agreement among the Company, the Guarantors and
Credit Suisse Securities (USA) LLC, as representative of the other initial
purchasers, entered into on the Issue Date regarding the Initial Securities and
any similar registration rights agreements executed in connection with an
offering of any Additional Securities.

 

“Restricted Payments” has
the meaning set forth in Section 4.06.

 

“S&P” means Standard &
Poor’s Ratings Service or any successor to the rating agency business thereof.

 

“SEC” means the
Securities and Exchange Commission.

 

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

 

“Senior Indebtedness”
means, whether outstanding on the Issue Date or thereafter issued, created,
Incurred or assumed, all amounts payable by the Company and its Subsidiaries
under or in respect of Indebtedness of the Company and its Subsidiaries,
including the Securities, and premiums and accrued and unpaid interest
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company or any of its
Subsidiaries at the rate specified in the documentation with respect thereto
whether or not a claim for post filing interest is allowed in such proceeding)
and fees relating thereto; provided,
however, that Senior Indebtedness
will not include:

 

(i)         any obligation of the Company to any
Subsidiary or any obligation of a Subsidiary to the Company or another
Subsidiary;

 

(ii)       any liability for Federal, state,
foreign, local or other taxes owed or owing by the Company or any of its
Subsidiaries;

 

(iii)       any accounts payable or other liability
to trade creditors arising in the ordinary course of business (including
Guarantees thereof or instruments evidencing such liabilities);

 

(iv)       any Indebtedness, Guarantee or obligation
of the Company or any of its Subsidiaries that is expressly subordinate or junior
in right of payment to any other Indebtedness, Guarantee or obligation of the
Company or any of its Subsidiaries, as the case may be, including, without
limitation, any Subordinated Obligations or Guarantor Subordinated Obligations;
or

 

20

 

(v)        any Capital Stock.

 

“Senior Secured Leverage Ratio”
of any Person means, for any period, the ratio of (a) Net Senior Secured
Indebtedness of such Person and its Subsidiaries as of the date of
determination to (b) Consolidated EBITDA of such Person for the four
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is
Incurred; provided, however, that if the Company or any
Subsidiary:

 

(i)         has Incurred any Indebtedness
subsequent to the commencement of the period for which the Senior Secured
Leverage Ratio is being calculated and on or prior to the date on which the
event for which the calculation of the Senior Secured Leverage Ratio is made,
then the Consolidated EBITDA for such period will be calculated after giving
effect on a pro forma basis to such Incurrence of Indebtedness and the use of
the proceeds therefrom as if the same had been Incurred at the beginning of the
applicable four-quarter reference period (except that in making such
computation, the amount of Indebtedness under any revolving credit facility
outstanding on the date of such calculation will be deemed to be:

 

(a)        the average daily balance of such
Indebtedness during such four fiscal quarters or such shorter period for which
such facility was outstanding; or

 

(b)        if such facility was created after the
end of such four fiscal quarters, the average daily balance of such
Indebtedness during the period from the date of creation of such facility to
the date of such calculation); and

 

the discharge of any other Indebtedness repaid, repurchased, defeased
or otherwise discharged with the proceeds of such new Indebtedness as if such
discharge had occurred on the first day of such period; or

 

(ii)        has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of the period that is
no longer outstanding on such date of determination or if the transaction
giving rise to the need to calculate the Senior Secured Leverage Ratio involves
a discharge of Indebtedness (in each case other than Indebtedness Incurred
under any revolving credit facility unless such Indebtedness has been
permanently repaid and the related commitment terminated), Indebtedness, Consolidated
EBITDA and Consolidated Interest Expense for such period will be calculated
after giving effect on a pro forma basis to such discharge of such
Indebtedness, including with the proceeds of such new Indebtedness, as if such
discharge had occurred on the first day of such period.

 

21

 

“Significant Subsidiary”
means any Subsidiary that would be a “Significant Subsidiary” of the Company
within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC.

 

“Stated Maturity,” when
used with respect to any Security or any installment of interest thereof, means
the date specified in such Security as the fixed date on which the principal of
such Security or such installment of interest is due and payable.

 

“Stockholders
Agreement” means the Amended and Restated Stockholders
Agreement, dated May 14, 2002, between REG and Anschutz Company.

 

“Subordinated Obligation”
means any Indebtedness of the Company that is subordinate or junior in right of
payment to the Securities pursuant to a written agreement.

 

“Subsidiary” of any
person means: (i) any corporation of which more than 50% of the
outstanding shares of Capital Stock having ordinary voting power for the
election of directors is owned directly or indirectly by such Person; and (ii) any
partnership, limited liability company, association, joint venture or other
entity in which such Person, directly or indirectly, has more than a 50% equity
interest, and, except as otherwise indicated herein, references to Subsidiaries
shall refer to Subsidiaries of the Company.  Notwithstanding the
foregoing, for purposes hereof, an Unrestricted Subsidiary shall not be deemed
a Subsidiary of the Company other than for purposes of the definition of
“Unrestricted Subsidiary” unless the Company shall have designated in writing
to the Trustee an Unrestricted Subsidiary as a Subsidiary.  A designation
of an Unrestricted Subsidiary as a Subsidiary may not thereafter be rescinded.

 

“Subsidiary Guarantee”
means, individually, any Guarantee of payment of the Securities pursuant to
this Indenture by a Subsidiary Guarantor and any supplemental indenture
applicable thereto (including pursuant to Exhibit D), and,
collectively, all such Guarantees.  Each such Subsidiary Guarantee will be
in the form prescribed in this Indenture.

 

“Subsidiary Guarantor” means
each Subsidiary of the Company that provides a Subsidiary Guarantee on the date
of this Indenture and any other Subsidiary of the Company that provides a
Subsidiary Guarantee in accordance with this Indenture; provided that upon the release or
discharge of such Subsidiary from its Subsidiary Guarantee in accordance with
this Indenture, such Subsidiary shall cease to be a Subsidiary Guarantor.

 

“Surviving Entity” has
the meaning set forth in Section 5.01.

 

“Theatre Completion”
means any motion picture theatre or screen which was first opened for business
by the Company or a Subsidiary, including through mergers, acquisitions or
consolidations, during any applicable period.

 

22

 

“TIA” means the Trust
Indenture Act of 1939 (15 U.S.C.77aaa-77bbbb) as in effect on the Issue Date; provided,
however, that, in the event the TIA is amended after such date,
“TIA” means, to the extent required by any such amendments, the Trust Indenture
Act of 1939 as so amended.

 

“Trust Officer” means any
officer within the [Corporate Trust Administration] department of the Trustee
(or any successor group of the Trustee) with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.

 

“Trustee” means the
Person named as the “Trustee” in the first paragraph of this instrument, until
a successor Trustee shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Trustee” shall mean such
successor Trustee.

 

“U.S. Dollars,” “United States Dollars,” “US$” and the symbol “$” each mean currency of the United States
of America.

 

“Uniform Commercial Code”
means the New York Uniform Commercial Code as in effect from time to time.

 

“Unrestricted Subsidiary”
means a Subsidiary of the Company designated in writing to the Trustee: (i) whose
properties and assets, to the extent they secure Indebtedness, secure only
Non-Recourse Indebtedness; and (ii) that has no Indebtedness other than
Non-Recourse Indebtedness; and (iii) that has no Subsidiaries other than
Unrestricted Subsidiaries.  Notwithstanding the foregoing, DCIP shall
be an Unrestricted Subsidiary to the extent the Company acquires additional
Equity Interests in DCIP pursuant to a merger or acquisition such that DCIP
becomes a Subsidiary of the Company.

 

“Voting Stock” of a
Person means all classes of Capital Stock or other interests (including
partnership interests) of such Person then outstanding and normally entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof.

 

“Weighted Average Life”
means, as of any date, with respect to any debt security, the quotient obtained
by dividing (i) the sum of the products of the number of years from such
date to the dates of each successive scheduled principal payment (including any
sinking fund payment requirements) of such debt security multiplied by the
amount of such principal payment, by (ii) the sum of all such principal
payments.

 

23

 

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

 

Section 1.02           Other Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
  “Additional Securities”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.11

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.11

  	
   

  
	
  “Change of Control Purchase Price”

  	
   

  	
  4.11

  	
   

  
	
  “covenant defeasance option”

  	
   

  	
  8.01

  	
   

  
	
  “Covenant Suspension Event”

  	
   

  	
  4.17

  	
   

  
	
  “Default Interest Payment Date”

  	
   

  	
  2.11

  	
   

  
	
  “Default Interest Record Date”

  	
   

  	
  2.11

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Exchange Securities”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Global Security”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Guarantor Obligations”

  	
   

  	
  10.01

  	
   

  
	
  “Initial Securities”

  	
   

  	
  Exhibit A

  	
   

  
	
  “legal defeasance option”

  	
   

  	
  8.01

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  11.08

  	
   

  
	
  “OID”

  	
   

  	
  2.01

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.04

  	
   

  
	
  “Private Exchange Securities”

  	
   

  	
  Exhibit A

  	
   

  
	
  “QIB”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Registered Exchange Offer”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Registrar”

  	
   

  	
  2.04

  	
   

  
	
  “Relevant Person”

  	
   

  	
  11.13

  	
   

  
	
  “Reversion Date”

  	
   

  	
  4.17

  	
   

  
	
  “Securities”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Securities Custodian”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Shelf Registration Statement”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Suspended Covenants”

  	
   

  	
  4.17

  	
   

  
	
  “Suspension Date”

  	
   

  	
  4.17

  	
   

  
	
  “Suspension Period”

  	
   

  	
  4.17

  	
   

  

 

Section 1.03           Incorporation by Reference of Trust Indenture Act.  Prior to the effectiveness of the
registration statement relating to the Registered Exchange Offer or the Shelf
Registration Statement, this Indenture shall incorporate and be governed by the
provisions of the TIA.  After the effectiveness of either the registration
statement relating to the Registered Exchange Offer or the Shelf Registration
Statement, this Indenture shall be subject to the provisions of the TIA that
are required to be a part of this Indenture and shall, to the extent 

 

24

 

applicable, be governed by
such provisions.  The following TIA terms have the following meanings:

 

“Commission” means the SEC.

 

“Indenture securities” means the Securities.

 

“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 and any other
obligor on the indenture securities.

 

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 have
the meanings assigned to them by such definitions.

 

Section 1.04           Rules of Construction. 
Unless the context otherwise requires:

 

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

 

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

 

(c)        “or” is not
exclusive;

 

(d)        “including”
means including without limitation;

 

(e)        words in the
singular include the plural and words in the plural include the singular;

 

(f)         unsecured
Indebtedness shall not be deemed to be subordinate or junior to secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness; and

 

25

 

(g)        the principal
amount of any non-interest bearing or other discount security at any date shall
be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP.

 

ARTICLE II

 

THE SECURITIES

 

Section 2.01           Amount of Securities; Issuable in Series.  As provided
for in Exhibit A hereto, the aggregate principal amount of the
Securities which may be authenticated and delivered under this Indenture is
unlimited.  All Securities shall be substantially identical in all
respects other than issue prices, issuance dates and denominations.  The
Securities may be issued in one or more series; provided, however,
that any Securities issued with original issue discount (“OID”) for Federal
income tax purposes shall not be issued as part of the same series as any
Securities that are issued with a different amount of OID or are not issued
with OID.

 

Subject to Section 2.03, the Trustee shall authenticate Initial
Securities for original issue on the Issue Date in the aggregate principal
amount of $400,000,000.  With respect to any Securities issued after the
Issue Date (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, Initial Securities pursuant
to Section 2.07, 2.09 or 3.06 or Exhibit A), there shall be
established in or pursuant to a resolution of the Board of Directors, and
subject to Section 2.03, set forth, or determined in the manner provided
in an Officers’ Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of such Securities:

 

(a)        whether such
Securities shall be issued as part of a new or existing series of Securities
and the title of such Securities (which shall distinguish the Securities of the
series from Securities of any other series);

 

(b)        the aggregate
principal amount of such Securities that may be authenticated and delivered
under this Indenture (which shall be calculated without reference to any
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the same series pursuant to Section 2.07,
2.09 or 3.06 or Exhibit A or any Securities which, pursuant to Section 2.03,
are deemed never to have been authenticated and delivered hereunder);

 

(c)        the issue
price and issuance date of such Securities, including the date from which
interest on such Securities shall accrue;

 

(d)        if
applicable, that such Securities shall be issuable in whole or in part in the
form of one or more Global Securities and, in such case, the respective
depositories for such Global Securities, the form of any legend or legends that
shall be borne by any such 

 

26

 

Global Security in addition to or in lieu of that set
forth in Appendix I to Exhibit A and any circumstances in addition
to or in lieu of those set forth in Section 2.3 of Exhibit A
in which any such Global Security may be exchanged in whole or in part for
Securities registered, and any transfer of such Global Security in whole or in
part may be registered, in the name or names of Persons other than the
depository for such Global Security or a nominee thereof; and

 

(e)        if
applicable, that such Securities shall not be issued in the form of Initial
Securities or Additional Securities, but shall be issued in the form of Private
Exchange Securities or Exchange Securities.

 

If any of the terms of any series are established by action taken
pursuant to a resolution of the Board of Directors, a copy of an appropriate
record of such action shall be certified by the Secretary or any Assistant
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate or the trust indenture supplemental
hereto setting forth the terms of the series.

 

Section 2.02           Form and Dating.  Provisions relating to the
Securities are set forth in Exhibit A, which is hereby incorporated
in and expressly made part of this Indenture.   The Securities of
each series and the Trustee’s certificate of authentication shall be
substantially in the form of Appendix I to Exhibit A which is
hereby incorporated in and expressly made a part of this Indenture. Without
limiting the generality of the foregoing, Securities offered and sold to QIBs
in reliance on Rule 144A shall include the form of assignment set forth in
Appendix I to Exhibit A and Securities offered and sold in offshore
transactions in reliance on Regulation S (other than Initial Securities offered
on the Issue Date) shall include the form of certificate set forth in Exhibit B. 
The Securities of each series may have notations, legends or endorsements
required by law, stock exchange rule, agreements to which the Company is
subject, if any, or usage; provided that
any such notation, legend or endorsement is in a form reasonably acceptable to
the Company.  Each Security shall be dated the date of its
authentication.  The terms of the Securities of each series set forth in Appendix
I to Exhibit A are part of the terms of this Indenture.

 

Section 2.03           Execution and Authentication.  Two Officers (or one
Officer and the Vice President and Secretary of the Company) shall sign the
Securities for the Company by manual or facsimile signature.

 

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

 

At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a written order of
the Company in the form of an Officers’ Certificate for the authentication and
delivery of such Securities, and the Trustee in accordance with such written
order of the Company shall authenticate and deliver such Securities.

 

27

 

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

 

The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate the Securities.  Unless limited by the
terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee may do so.  Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.  An
authenticating agent has the same rights as any Registrar, Paying Agent or
agent for service of notices and demands.

 

The Trustee shall not be required to authenticate such Securities if
the issue thereof will adversely affect the Trustee’s own rights, duties,
indemnities or immunities under the Securities and this Indenture.

 

Section 2.04           Registrar and Paying Agent.  The Company shall maintain
an office or agency where Securities may be presented for registration of
transfer or for exchange (the “Registrar”) and an office or agency where
Securities may be presented for payment (the “Paying Agent”).  The
Registrar shall keep a register of the Securities and of their transfer and
exchange.  The Company may have one or more co-registrars and one or more
additional paying agents.  The term “Paying Agent” includes any additional
paying agent and “Registrar” includes any co-registrar.

 

The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to this Indenture, which shall
incorporate the terms of the TIA.  The agreement shall implement the
provisions of this Indenture that relate to such agent.  The Company shall
notify the Trustee of the name and address of any such agent.  If the
Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as
such and shall be entitled to appropriate compensation therefor pursuant to Section 7.07. 
The Company or any of its domestic Wholly Owned Subsidiaries may act as Paying
Agent, Registrar or transfer agent.

 

The Company initially appoints the Trustee as Registrar and Paying
Agent in connection with the Securities.

 

Section 2.05           Paying Agent To Hold Money in Trust.  Prior to each due
date of the principal and interest (including any Additional Interest) on any
Security, the Company shall deposit with the Paying Agent a sum sufficient to
pay such principal and interest so becoming due.  The Company shall
require each Paying Agent (other than the Trustee) to agree in writing that the
Paying Agent shall hold in trust for the benefit of Holders or the Trustee all
money held by the Paying Agent for the payment of principal of or interest on
the Securities and shall notify the Trustee of any default by the Company or
any Guarantor in making any such payment.  If the Company or a domestic
Wholly Owned Subsidiary acts as Paying Agent, it shall segregate the money held
by it as Paying Agent and hold it as a separate trust fund.  The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee and to account for any 

 

28

 

funds disbursed by the
Paying Agent.  Upon complying with this Section, the Paying Agent (if
other than the Company or a domestic Wholly Owned Subsidiary) shall have no
further liability for the money delivered to the Trustee.

 

Section 2.06           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 Holders and shall otherwise comply with TIA Section 312(a). 
If the Trustee is not the Registrar, the Company on its own behalf and on the
behalf of each of the Guarantors shall furnish to the Trustee, in writing at
least five Business Days before each interest payment date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of
Holders and the Company and the Guarantors shall otherwise comply with TIA Section 312(a).

 

Section 2.07           Replacement Securities.  If a mutilated security is
surrendered to the Registrar or if the Holder of a Security claims that such
Security has been lost, destroyed or wrongfully taken, the Company shall issue
and the Trustee shall authenticate a replacement Security if the requirements
of Section 8-405 of the Uniform Commercial Code are met and the Holder
satisfies any other reasonable requirements of the Trustee.  If required
by the Trustee or the Company, such Holder shall furnish an indemnity bond
sufficient in the judgment of the Company and the Trustee to protect the
Company, the Trustee, the Paying Agent, the Registrar and any co-registrar from
any loss which any of them may suffer if a Security is replaced.  The
Company and the Trustee may charge the Holder for their expenses in replacing a
Security.

 

Every replacement Security is an additional obligation of Company.

 

Section 2.08           Outstanding Securities.  Securities outstanding at any
time are all Securities authenticated by the Trustee except for those canceled
by it, those delivered to it for cancellation and those described in this Section as
not outstanding.  A Security does not cease to be outstanding because the
Company or an Affiliate of the Company holds the Security.

 

If a Security is replaced pursuant to Section 2.07, it ceases to
be outstanding unless the Trustee and the Company receive proof satisfactory to
them that the replaced Security is held by a protected purchaser.

 

If the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a redemption date or maturity date money sufficient to pay
all principal and interest payable on that date with respect to the Securities
(or portions thereof) to be redeemed or maturing, as the case may be, and the
Paying Agent is not prohibited from paying such money to the Holders on that
date pursuant to the terms of this Indenture, then on and after that date such
Securities (or portions thereof) cease to be outstanding and interest, on them
ceases to accrue.

 

Section 2.09           Temporary Securities.  Until definitive Securities are
ready for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities.  Temporary Securities shall be substantially in the
form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities.  Without 

 

29

 

unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities
and deliver them in exchange for temporary Securities.  After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company far that purpose
and such exchange shall be without charge to the Holder.  Upon surrender
for cancellation of any one or more temporary Securities, the Company shall
execute, and the Trustee shall authenticate and make available for delivery in
exchange therefor, one or more definitive Securities representing an equal
principal amount of Securities.  Until so exchanged, the Holder of
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as a Holder of definitive Securities.

 

Section 2.10           Cancellation.  The Company at any time may deliver
Securities to the Trustee for cancellation.  The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment.  The Trustee and no one else shall
cancel (subject to the record retention requirements of the Exchange Act) all
Securities surrendered for registration of transfer, exchange, payment or
cancellation and deliver cancelled Securities to the Company upon a written
direction of the Company.  Except as expressly permitted herein, the
Company may not issue new Securities to replace Securities it has redeemed,
paid or delivered to the Trustee for cancellation.

 

If the Company or any Guarantor acquires any of the Securities, such
acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.10. 
The Company may not issue new Securities to replace Securities it has paid or
delivered to the Trustee for cancellation for any reason other than in
connection with a registration of transfer or exchange of such Securities.

 

At such time as all beneficial interests in a Global Security have
either been exchanged for definitive Securities, transferred, redeemed,
repurchased or canceled, such Global Security shall be returned by DTC to the
Trustee for cancellation or retained and canceled by the Trustee.  At any
time prior to such cancellation, if any beneficial interest in a Global
Security is exchanged for definitive Securities, transferred in exchange for an
interest in another Global Security, redeemed, repurchased or canceled, the principal
amount of Securities represented by such Global Security shall be reduced and
an adjustment shall be made on the books and records of the Trustee (if it is
then the Securities Custodian for such Global Security) with respect to such
Global Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

 

Section 2.11           Defaulted Interest.  If the Company defaults in a payment
of interest on the Securities, the Company shall pay the defaulted interest
(plus interest on such defaulted interest at the rate borne by the Securities
to the extent lawful) in any lawful manner.  The Company shall notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each Security and the date (not less than 30 days after such notice) of the
proposed payment (the “Default Interest Payment Date”), and at the same time
the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such defaulted interest or
shall make arrangements satisfactory to the Trustee 

 

30

 

for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such defaulted interest as in this
clause provided.  Thereupon the Trustee shall fix a record date (the
“Default Interest Record Date”) for the payment of such defaulted interest,
which date shall be not more than 15 days and not less than 10 days prior to
the Default Interest Payment Date and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment.  The Trustee shall
promptly notify the Company of such Default Interest Record Date, and in the
name and at the expense of the Company, shall cause notice of the proposed
payment of such defaulted interest and the Default Interest Record Date and
Default Interest Payment Date therefor to be given in the manner provided for
in Section 11.02, not less than 10 days prior to such Default Interest
Record Date.  Notice of the proposed payment of such defaulted interest
and the Default Interest Record Date and Default Interest Payment Date therefor
having been so given, such defaulted interest shall be paid on the Default
Interest Payment Date to the Persons in whose names the Securities (or their
respective predecessor Securities) are registered at the close of business on
such Default Interest Record Date and shall no longer be payable.

 

The Company may make payment of any defaulted interest in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.

 

Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of, transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.

 

Section 2.12           CUSIP Numbers, Common Codes or ISINs.  The Company in
issuing the Securities may use “CUSIP” numbers, “Common Codes” or “ISINs” (if
then generally in use) and, if so, the Trustee shall use “CUSIP” numbers,
“Common Codes” or “ISINs” in notices of redemption as a convenience to Holders;
provided, however, that neither the Company nor the
Trustee shall have any responsibility for any defect in the “CUSIP” number,
“Common Code” or “ISIN” that appears on any Security, check, advice of payment
or redemption notice, and any such notice may state that no representation is
made as to the correctness of such numbers either as printed on the Securities
or as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Securities, and any
such redemption shall not be affected by any defect in or omission of such
numbers.  The Company shall promptly notify the Trustee in writing of any
change in the CUSIP number, Common Code or ISIN.

 

Section 2.13           Computation of Interest.  Interest on the Securities
shall be computed on the basis of a 360-day year of twelve 30-day months.

 

31

 

ARTICLE III

 

REDEMPTION

 

Section 3.01          Notices
to Trustee.  If the Company elects to redeem Securities
pursuant to paragraph 5 of the Securities, it shall notify the Trustee in
writing of the redemption date, the principal amount of Securities to be redeemed,
the redemption price and that such redemption is being made pursuant to
paragraph 5 of the Securities.

 

The Company shall give notice to the Trustee provided for in this
Section 3.01 at least 45 days but not more than 60 days before the
redemption date unless the Trustee consents to a shorter period.  Such
notice shall be accompanied by an Officers’ Certificate and an Opinion of
Counsel from the Company to the effect that such redemption will comply with
the conditions herein.

 

Section 3.02           Selection
of Securities To Be Redeemed.  If fewer than all
the Securities are to be redeemed at any time, not more than 60 days prior to
the redemption date, the Trustee shall select the Securities to be redeemed pro
rata or by lot or by a method that complies with applicable legal and
securities exchange requirements, if any, and that the Trustee considers fair
and appropriate and in accordance with methods generally used at the time of
selection by fiduciaries in similar circumstances.  The Trustee shall make
the selection from outstanding Securities not previously called for
redemption.  The Trustee may select for redemption portions of the
principal of Securities that have denominations larger than $2,000. 
Securities and portions of them the Trustee selects shall be in amounts of
$2,000 or whole multiples of $1,000 in excess thereof.  Provisions of this
Indenture that apply to Securities called for redemption also apply to portions
of Securities called for redemption.  The Trustee shall notify the Company
promptly of the Securities or portions of Securities to be redeemed.

 

Section 3.03           Notice
of Redemption.  At least 30 days but not more than 60 days
before a date for redemption of Securities, the Company shall mail a notice of
redemption by first-class mail to each Holder of Securities to be redeemed at
its registered address.

 

The notice shall identify the Securities (or portion thereof) to be
redeemed (including CUSIP numbers if any) and shall state:

 

(a)        the
redemption date;

 

(b)        the
redemption price;

 

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

 

32

 

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

 

(e)        if fewer
than all the outstanding Securities are to be redeemed, or if a Security is to
be redeemed in part only, the identification and principal amounts of the
particular Securities (or portion thereof) to be redeemed;

 

(f)         that,
unless the Company defaults in making such redemption payment or the Paying
Agent is prohibited from making such payment pursuant to the terms of this
Indenture, interest on Securities (or portion thereof) called for redemption
ceases to accrue on and after the redemption date; and

 

(g)        that no
representation is made as to the correctness or accuracy of the CUSIP number,
if any, listed in such notice or printed on the Securities.

 

At the Company’s written request, the Trustee shall give the notice of
redemption in the Company’s name and at the Company’s expense.  In such event,
the Company shall provide the Trustee with the information required by this
Section at least 45 days before the redemption date, unless the Trustee
consents to a shorter period.

 

Section 3.04           Effect
of Notice of Redemption.  Once notice of redemption is mailed,
Securities called for redemption become due and payable on the redemption date
and at the redemption price stated in the notice.  Upon surrender to the
Paying Agent, such Securities shall be paid at the redemption price stated in
the notice, plus accrued interest (including any Additional Interest) to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the related interest payment date that
is on or prior to the date of redemption).  Failure to give notice or any
defect in the notice to any Holder shall not affect the validity of the notice
to any other Holder.

 

Section 3.05           Deposit
of Redemption Price.  Prior to 10:00 a.m., New York City
time, on the redemption date, the Company shall deposit with the Paying Agent
(or, if the Company or a domestic Wholly Owned Subsidiary is the Paying Agent,
shall segregate and hold in trust) money sufficient to pay the redemption price
of and accrued interest (including any Additional Interest) (subject to the
right of Holders of record on the relevant record date to receive interest
(including any Additional Interest) due on the related interest payment date
that is on or prior to the date of redemption) on all Securities to be redeemed
on that date other than Securities or portions of Securities called for
redemption that have been delivered by the Company to the Trustee for
cancellation.

 

Section 3.06           Securities
Redeemed in Part.  Upon surrender of a Security that is
redeemed in part, the Company shall execute and the Trustee shall authenticate
for the Holder (at the Company’s expense) a new Security equal in principal
amount to the unredeemed portion of the Security surrendered.

 

33

 

ARTICLE IV

 

COVENANTS

 

Section 4.01           Payment
of Securities.  The Company shall promptly pay the principal
of, premium, if any, and interest (including any Additional Interest) on the
Securities, in immediately available funds, on the dates and in the manner
provided in the Securities and in this Indenture.  Principal, premium, if
any, and interest (including any Additional Interest) shall be considered paid
on the date due if on such date the Trustee or the Paying Agent holds in
accordance with this Indenture money sufficient to pay all principal, premium,
if any, and interest then due and the Trustee or the Paying Agent, as the case
may be, is not prohibited from paying such money to the Holders on that date
pursuant to the terms of this Indenture.

 

The Company shall pay interest on overdue principal at the rate
specified therefore in the Securities, and it shall pay interest on overdue
installments of interest (including any Additional Interest) at the rate borne
by the Securities to the extent lawful.

 

The Company and the Guarantors will pay any present or future stamp,
court or documentary taxes or any other excise or property taxes, charges or
similar levies that arise in any jurisdiction from the execution, delivery,
enforcement or registration of the Securities, the Parent Guarantee, the
Subsidiary Guarantees, this Indenture or any other document or instrument in
relation thereof, or the receipt of any payments with respect to the
Securities, the Parent Guarantee, or the Subsidiary Guarantees, excluding such
taxes, charges or similar levies imposed by any jurisdiction outside of the
United States, the jurisdiction of incorporation of any successor of the
Company or any Guarantor or any jurisdiction in which a Paying Agent is
located, other than those resulting from, or required to be paid in connection
with, the enforcement of the Securities, the Parent Guarantee, the Subsidiary
Guarantees or any other such document or instrument following the occurrence of
any Event of Default with respect to the Securities.  The Company or the
Guarantors will indemnify the Holders for any such taxes paid by such Holders.

 

Section 4.02           Corporate
Existence.  Subject to Article V, the Company will
do or cause to be done all things necessary to preserve and keep in full force
and effect the corporate existence and corporate power and authority of the
Company and each Subsidiary; provided, however, that the Company shall not be
required to preserve any such corporate existence and corporate power and
authority if the Company shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and its
Subsidiaries taken as a whole.

 

Section 4.03           Payment
of Taxes and Other Claims.  The Company will pay or discharge or
cause to be paid or discharged, before the same shall become delinquent,

 

(a)        all
material taxes, assessments and governmental charges levied or imposed upon the
Company or any Subsidiary or upon the income, profits or property of the
Company or any Subsidiary; and

 

34

 

(b)        all
material lawful claims for labor, materials and supplies, which, if unpaid,
might by law become a Lien upon the property of the Company or any Subsidiary
that could produce a material adverse effect on the consolidated financial
condition of the Company; 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
contested in good faith by appropriate proceedings.

 

Section 4.04           Maintenance
of Properties.  The Company will cause all properties owned
by the Company or any Subsidiary or used or held for use in the conduct of its
business or the business of any Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times, except, in every case, as
and to the extent that the Company may be prevented by fire, strikes, lockouts,
acts of God, inability to obtain labor or materials, governmental restrictions,
enemy action, civil commotion or unavoidable casualty or similar causes beyond
the control of the Company; provided, however, that nothing in this
Section 4.04 shall prevent the Company from discontinuing the maintenance
of any such properties if such discontinuance is, in the judgment of the
Company, desirable in the conduct of its business or the business of any
Subsidiary and not disadvantageous in any material respect to the Holders.

 

Section 4.05           Limitation
on Consolidated Indebtedness. (a) The Company
shall not, and shall not permit any of its Subsidiaries to, Incur any
Indebtedness (other than Permitted Indebtedness) unless after giving effect to
such event on a pro forma basis the Company’s Consolidated EBITDA Ratio
for the four full fiscal quarters immediately preceding such event for which
internal financial statements are available, taken as one period, is greater
than or equal to 2.00 to 1.00.

 

(b)           For purposes of determining compliance with this
Section 4.05, in the event that an item of Indebtedness (or any portion
thereof) meets the criteria of one or more of the categories of Permitted
Indebtedness or is entitled to be Incurred pursuant to the ratio set forth in
Section 4.05(a) hereof, the Company shall, in its sole discretion,
classify or reclassify, or later divide, classify or reclassify, such item of
Indebtedness (or any portion thereof) in any manner that complies with this
Section 4.05.

 

Section 4.06           Limitation
on Restricted Payments. (a) The Company shall not, and
shall not permit its Subsidiaries to, directly or indirectly:

 

(i)    declare or pay any dividend on, or make any distribution in
respect of, any shares of the Company’s or any Subsidiary’s Capital Stock
(excluding dividends or distributions payable in shares of the Company’s
Capital Stock or in options, warrants or other rights to purchase such Capital
Stock, but including dividends or distributions payable in Redeemable Capital
Stock or in options, warrants or other rights to purchase Redeemable 

 

35

 

Capital Stock (other than dividends
on such Redeemable Capital Stock payable in shares of such Redeemable Capital
Stock)) held by any Person other than the Company or any of its Wholly Owned
Subsidiaries;

 

(ii)   purchase, redeem or acquire or retire for value any Capital
Stock of the Company or any Affiliate thereof (other than any Wholly Owned
Subsidiary of the Company) or any options, warrants or other rights to acquire
such Capital Stock; or

 

(iii)  purchase, repurchase, redeem, defease or otherwise acquire or
retire for value, prior to scheduled maturity, scheduled repayment or scheduled
sinking fund payment, any Subordinated Obligations or Guarantor Subordinated
Obligations (other than the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Subordinated Obligations or Guarantor
Subordinated Obligations 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, redemption, defeasance or other
acquisition or retirement);

 

(such payments or any other actions described in
(i), (ii) and (iii) above are collectively referred to as “Restricted
Payments”) unless at the time of and after giving effect to the proposed
Restricted Payment (the amount of any such Restricted Payment, if other than
cash, as determined by the Board of Directors, whose determination shall be
conclusive and evidenced by a Board Resolution): (A) no Default or Event
of Default shall have occurred and be continuing; (B) the Company could
incur $1.00 of additional Indebtedness (other than Permitted Indebtedness)
under the provisions of Section 4.05; and (C) the aggregate amount of
all Restricted Payments declared or made after the Issue Date (including the
proposed Restricted Payment) does not exceed the sum of (excluding Restricted
Payments permitted by Sections 4.06(b)(iii), 4.06(b)(iv), 4.06(b)(v),
4.06(b)(vi), 4.06(b)(vii), 4.06(b)(viii), and 4.06(b)(x)):

 

(1)       (x) Consolidated EBITDA minus (y) 1.70 times
Consolidated Interest Expense, each calculated for the period
(taken as one accounting period) from March 28, 2009 to the last day of
the Company’s fiscal quarter preceding the date of the applicable proposed
Restricted Payment; plus

 

(2)       100% of the aggregate net proceeds, including the Fair Market
Value of property other than cash (as determined by the Board of Directors,
whose determination shall be conclusive, except that for any property whose
Fair Market Value exceeds $25.0 million such Fair Market Value shall be
confirmed by an independent appraisal obtained by the Company), received after
the Issue Date by the Company from the issuance or sale (other than to any of
its Subsidiaries) of shares of Capital 

 

36

 

Stock of the Company (other than
Redeemable Capital Stock) or warrants, options or rights to purchase such
shares of Capital Stock; plus

 

(3)       100% of the aggregate net proceeds, including the Fair Market
Value of property other than cash (as determined by the Board of Directors,
whose determination shall be conclusive, except that for any property whose
Fair Market Value exceeds $25.0 million such Fair Market Value shall be
confirmed by an independent appraisal obtained by the Company), received after
the Issue Date by the Company from debt securities that have been converted
into or exchanged for Capital Stock of the Company or any Parent Entity (other
than Redeemable Capital Stock) to the extent such debt securities were
originally sold for such net proceeds plus the aggregate cash received by the
Company at the time of such conversion; plus

 

(4)       100% of the
principal amount of any of the Existing Subordinated Notes that are converted
into Capital Stock of the Company or any Parent Entity (other than Redeemable
Capital Stock) after the Issue Date; plus

 

(5)       100% of the
aggregate amount of cash and the Fair Market Value of marketable securities or
other property contributed to the capital of the Company following the Issue
Date (other than by a Subsidiary); plus

 

(6)       to the
extent not already included in Consolidated EBITDA, 100% of the aggregate
amount of cash and the Fair Market Value of marketable securities or other property
received by the Company or a Subsidiary following the Issue Date by means of
the sale (other than to the Company or a Subsidiary) of (a) an
Unrestricted Subsidiary, or (b) the property held by an Unrestricted
Subsidiary, or (c) the Capital Stock of an Unrestricted Subsidiary (other
than to the extent the Indebtedness in the Unrestricted Subsidiary constituted
Permitted Indebtedness), or receipt of a dividend or any other distribution
from an Unrestricted Subsidiary after the Issue Date; plus

 

(7)       in the case
of the designation of an Unrestricted Subsidiary as a Subsidiary after the
Issue Date, the Fair Market Value of the Company’s and its Subsidiaries’
aggregate interests in such Unrestricted Subsidiary (as determined by the Board
of Directors, whose determination shall be conclusive, except that if the Fair
Market Value of such interest exceeds $50.0 million such Fair Market Value
shall be 

 

37

 

confirmed by an independent appraisal obtained by the Company)
at the time of the designation of such Unrestricted Subsidiary as a Subsidiary.

 

(b)        Notwithstanding
Section 4.06(a), the Company or any of its Subsidiaries may:

 

(i)                       pay dividends on its Capital Stock within 60 days of the
declaration thereof if, on the declaration date, such dividends could have been
paid in compliance with the foregoing limitation;

 

(ii)                    acquire,
redeem or retire Capital Stock in exchange for, or in connection with a
substantially concurrent issuance of, Capital Stock of the Company (other than
Redeemable Capital Stock);

 

(iii)                 make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Guarantor made by exchange for, or out of the proceeds of
the substantially concurrent (a) sale of, Capital Stock of the Company or
any Parent Entity (other than Redeemable Capital Stock and other than Capital
Stock issued or sold to a Subsidiary or an employee stock ownership plan or similar
trust to the extent such sale to an employee stock ownership plan or similar
trust is financed by loans from or Guaranteed by the Company or any Subsidiary
unless such loans have been repaid with cash on or prior to the date of
determination), or (b) contributions to the capital of the Company or any
Parent Entity (other than by a Subsidiary); provided,
however, that the net proceeds
from such sale of Capital Stock will be excluded from clause (c)(ii) of
Section 4.06(a) hereof;

 

(iv)                make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Subordinated Obligations of the Company or Guarantor Subordinated
Obligations of any Guarantor made by exchange for, or out of the proceeds of
the substantially concurrent sale of, Subordinated Obligations of the Company
or any purchase, repurchase, redemption, defeasance or other acquisition or
retirement of Guarantor Subordinated Obligations made by exchange for or out of
the proceeds of the substantially concurrent sale of Guarantor Subordinated
Obligations that, in each case, is permitted to be Incurred pursuant to
Section 4.05 hereof;

 

(v)                   in
the case of a Subsidiary, pay dividends (or in the case of any partnership or
limited liability company, any similar distribution) to the holders of its
Capital Stock on a pro rata basis;

 

38

 

(vi)                make any purchase,
repurchase, redemption, defeasance or other acquisition or retirement of
Capital Stock of the Company or any Parent Entity (A) deemed to occur upon
the exercise of stock options to the extent such Capital Stock represents a
portion of the exercise price of such options or (B) in connection with
the terms of any restricted stock option agreement awarded to any employee,
officer or director of the Company or its Subsidiaries;

 

(vii)             make interest
payments in connection with, or any other payments for the retirement or
redemption of, the Existing Subordinated Notes, or make distributions to the
Parent Guarantor solely for the purpose of making interest payments in
connection with, or any payment for the retirement or redemption of, the 61⁄4%
convertible senior notes due 2011 issued by the Parent Guarantor;

 

(viii)          make other  Restricted Payments in
an aggregate amount not to exceed $400.0 million;

 

(ix)                  make
any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of any Subordinated Obligation at a purchase price not
greater than 101% of the principal amount of such Subordinated Obligation plus
accrued and unpaid interest in the event of a Change of Control in accordance
with provisions similar to Section 4.11 hereof; provided that, prior to or
simultaneously with such purchase, repurchase, redemption, defeasance or other
acquisition or retirement, the Company has made the Change of Control Offer (as
defined herein) as provided in such covenant with respect to the Securities and
has completed the repurchase or redemption of all such Securities validly
tendered for payment in connection with such Change of Control Offer; and

 

(x)                     the declaration and
payment of any dividend or distribution by the Company to the holders of its
Capital Stock on a pro rata basis (a) the Capital Stock of NCM or net
proceeds from the sale or disposition of Capital Stock of NCM, or (b) in
an aggregate amount not to exceed $150.0 million during any twelve month
period.

 

Section 4.07           Limitation
on Transactions with Affiliates.  (a) The Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, enter into or suffer to exist any transaction or series of related
transactions (including, without limitation, the sale, purchase, exchange or
lease of assets, property or services) with any Affiliate of the Company (other
than a Wholly Owned Subsidiary of the Company) involving aggregate
consideration in excess of $5.0 million, unless: (i) such transaction
or series of transactions is on terms that are no less favorable to the Company
or such Subsidiary, as the case may be, than would be available at the time of
such transaction or series of transactions in a comparable transaction in an
arm’s-

 

39

 

length dealing with an
unaffiliated third party; (ii) such transaction or series of transactions
is in the best interests of the Company; and (iii) with respect to a
transaction or series of transactions involving aggregate payments equal to or
greater than $50.0 million, a majority of disinterested members of the Board of
Directors determines that such transaction or series of transactions complies
with clauses (i) and (ii) above, as evidenced by a Board Resolution.

 

(b)        Notwithstanding
the foregoing limitation, the Company and its Subsidiaries may enter into or
suffer to exist the following:

 

(i)    any transaction pursuant to any contract in existence on the Issue Date;

 

(ii)   transactions
with a Person that is an Affiliate of the Company solely because REG, directly
or indirectly, owns Capital Stock in, or controls, such Person;

 

(iii)  any Restricted Payment permitted to be made pursuant to the
provisions of Section 4.06;

 

(iv)  any transaction or series of transactions between the Company
and one or more of its Subsidiaries or between two or more of its Subsidiaries
(provided that no more than 5% of
the equity interest in any such Subsidiary is owned, directly or indirectly
(other than by direct or indirect ownership of an equity interest in the
Company), by any Affiliate of the Company other than a Subsidiary);

 

(v)   the payment of compensation (including amounts paid pursuant
to employee benefit plans) for the personal services of, and indemnity provided
on behalf of, officers, directors and employees of the Company or any of its
Subsidiaries; and

 

(vi)  the existence of, or the performance by the Company or any of
its Subsidiaries of its obligations under the terms of, any agreements that are
described in REG’s Annual Report on Form 10-K for the fiscal year ended
January 1, 2009, and any amendments thereto; provided, however,
that the existence of, or the performance by the Company or any of its
Subsidiaries of its obligations under, any future amendment to such agreements
shall only be permitted by this clause (vi) to the extent that the terms
of any such amendment, taken as a whole, are not more disadvantageous to the
Company and its Subsidiaries in any material respect than the terms of such
agreements in effect on the Issue Date.

 

40

 

Section 4.08           Limitation
on Liens Securing Indebtedness.  The Company
shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, create, Incur or suffer to exist any Lien (other than Permitted
Liens) upon any of its property or assets (including Capital Stock of
Subsidiaries of the Company), whether owned on the date of this Indenture or
acquired after that date, which Lien is securing any Indebtedness, unless
contemporaneously with the Incurrence of such Liens effective provision is made
to secure the Indebtedness due under this Indenture and the Securities or, in
respect of Liens on any Subsidiary Guarantor’s property or assets, any
Subsidiary Guarantee of such Subsidiary, equally and ratably with (or prior to
in the case of Liens with respect to Subordinated Obligations or Guarantor
Subordinated Obligations) the Indebtedness secured by such Lien for so long as
such Indebtedness is so secured.

 

Section 4.09           Limitation
on Dividend and Other Payment Restrictions Affecting Subsidiaries.. (a) The
Company shall not, directly or indirectly, create or permit to exist or become effective any
encumbrance or restriction on the ability of any of its Subsidiaries to:

 

(i)     pay
dividends or make any other distributions on its Capital Stock to the Company
or any of its 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 Subsidiaries;

 

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

 

(iii)   transfer any of its properties or assets to the Company or any of its
Subsidiaries.

 

(b)        However,
the restrictions in Section 4.09(a) shall not apply to encumbrances
or restrictions existing under or by reason of:

 

(i)     agreements
governing Indebtedness as in effect on the Issue Date (including, without
limitation, the Indebtedness under the Existing Notes and the Credit
Facilities) and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings thereof;
provided that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are no more restrictive,
taken as a whole, with respect to such dividend and other payment restrictions
than those contained in those agreements as in effect on the Issue Date;

 

(ii)    the Indenture,
the Securities, the Parent Guarantee and the Subsidiary Guarantees;

 

41

 

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

 

(iv)   any
instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Subsidiaries as in effect at the time of such acquisition
(except to the extent such Indebtedness 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 the Indenture to be incurred;

 

(v)    any
agreement existing on the Issue Date to the extent and in the manner such
agreements are in effect on the Issue Date;

 

(vi)   customary
non-assignment provisions in leases, licenses, franchise agreements,
conveyances and other commercial agreements entered into in the ordinary course
of business;

 

(vii)  purchase
money obligations for property acquired in the ordinary course of business that
impose restrictions on the property so acquired of the nature described in
Section 4.09(a)(iii);

 

(viii) any agreement
for the sale or other disposition of assets or Capital Stock of a Subsidiary
that restricts distributions by such Subsidiary pending its sale or other
disposition;

 

(ix)   Liens
securing Indebtedness otherwise permitted to be incurred pursuant to the
provisions of Section 4.08 that limit the right of the applicable Company
or any of its Subsidiaries to dispose of the assets subject to such Lien;

 

(x)    provisions
with respect to the disposition or distribution of assets or property in joint
venture agreements, stockholder agreements, asset sale agreements, stock sale
agreements and other similar agreements entered into in the ordinary course of
business;

 

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

 

42

 

(xii)  restrictions contained in the terms
of Indebtedness permitted to be incurred under the covenant described under Section 4.05;
provided that such restrictions are no more restrictive, taken as a whole, than
the terms contained in any of the Credit Facilities or the indentures governing
the Existing Notes as in effect on the Issue Date; and

 

(xiii) restrictions that are not materially
more restrictive, taken as a whole, than customary provisions in comparable
financings and that the management of the Company determines will not
materially impair the Company’s ability to make payments as required under the
Securities.

 

Section 4.10           Future Guarantors.  After the Issue Date, the Company
shall cause each Subsidiary which guarantees obligations under the Credit
Agreement or any other Indebtedness of the Company or any Guarantor to execute
and deliver to the Trustee a supplemental indenture pursuant to which such
Subsidiary shall unconditionally Guarantee, on a joint and several basis, the
full and prompt payment of the principal of, premium, if any, and interest
(including any Additional Interest), if any, on the Securities on a senior
unsecured basis. Each Subsidiary Guarantee will be limited to an amount not to
exceed the maximum amount that can be guaranteed by that Subsidiary without
rendering the Subsidiary Guarantee as it relates to such Subsidiary, voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer
or similar laws affecting the rights of creditors generally. Notwithstanding
the foregoing, if a Guarantor is released and discharged in full from its
obligations under its Guarantees of (a) the Credit Agreement and related
documentation and (b) all other Indebtedness of the Company and its
Subsidiaries, then the Subsidiary Guarantee of such Subsidiary Guarantor shall
be automatically and unconditionally released and discharged.

 

Section 4.11           Change of Control.  Upon the occurrence of a Change of
Control, the Company shall be required to make an offer (a “Change of Control
Offer”) to purchase all outstanding Securities at a purchase price (the “Change
of Control Purchase Price”) equal to 101% of their principal amount plus
accrued and unpaid interest (including any Additional Interest), if any, to the
date of purchase (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest  payment date).

 

Within 30 days following the date upon which the Change of Control
occurred, the Company must send, by first class mail, a notice to each Holder,
with a copy to the Trustee, which notice shall govern the terms of the Change
of Control Offer.  Such notice shall state, among other things, the
purchase date, which must be no earlier than 30 days nor later than 60 days
from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”).  The Change of Control Offer is
required to remain open for at least 20 Business Days and until the close of
business on the Change of Control Payment Date.

 

In the event that the Company makes a Change of Control Offer to
purchase the Securities pursuant to this Section 4.11, the Company shall
comply with any applicable securities laws and regulations, including any
applicable requirements of Section 14(e) of, and Rule 14e-1
under, the Exchange Act.

 

43

 

Section 4.12           Provision of Financial Information.

 

(a)        Notwithstanding
that the Company may not be subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, REG shall file with the SEC and provide the
Trustee and the Holders with such annual reports and such information,
documents and other reports as are specified in Sections 13 and 15(d) of
the Exchange Act and applicable to a U.S. corporation subject to such Sections,
such information, documents and reports to be so filed and provided at the
times specified for the filing of such information, documents and reports under
such Sections; provided, however, that REG shall not be so
obligated to file such information, documents and reports with the SEC if the
SEC does not permit such filings but shall still be obligated to provide such
information, documents and reports to the Trustee and the Holders. 
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee’s receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from any information contained therein, including the Company’s compliance
with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

 

(b)        In addition,
unless it or REG (provided that REG is still a Guarantor) is then subject to
the reporting requirements of Section 13(d) or 15 of the Exchange
Act, the Company will, upon request, furnish to any prospective purchaser of
Securities or beneficial owner of Securities in connection with any sale
thereof the information required by Rule 144A(d)(4) under the
Securities Act, until such time as the Company has either exchanged the
Securities for the Exchange Securities or until such time as the Holders
thereof have disposed of such Securities pursuant to a Shelf Registration
Statement.

 

Section 4.13           Statement as to Compliance.  The Company shall deliver to
the Trustee, within 90 days after the end of each fiscal year ending after the
date hereof (the fiscal year as of the date hereof is the 52/53 week period
ending on the Thursday nearest March 31), a brief certificate of its
principal executive officer, principal financial officer or principal
accounting officer stating whether, to such officer’s knowledge, the Company is
in compliance with all covenants and conditions to be complied with by it under
this Indenture in accordance with TIA Section 314(a)(4).  For
purposes of this Section 4.13, such compliance shall be determined without
regard to any period of grace or requirement of notice under this Indenture.

 

When a Default has occurred and is continuing or if the Trustee, any
Holder or the trustee for or the Holder of any other evidence of Indebtedness
of the Company or any Subsidiary gives any notice or takes any other action
with respect to a claimed Default, the Company shall deliver to the Trustee an
Officers’ Certificate specifying such Default, notice or other action within 10
Business Days of its occurrence.

 

Section 4.14           Waiver of Certain Covenants.  The Company may omit in any
particular instance to comply with any covenant or condition set forth in
Sections 4.03 to 4.11 and Section 4.12(a), if before the time for such
compliance, the Holders of a majority in aggregate principal amount of the
Securities at the time outstanding shall, by written direction of such Holders,
waive such compliance in such instance with such covenant or condition, but no 

 

44

 

such waiver shall extend to
or affect such covenant or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the Company
and the duties of the Trustee in respect of any such covenant or condition
shall remain in full force and effect.

 

Section 4.15           Further Instruments and Acts.  Upon request of the
Trustee, the Company shall execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

Section 4.16           Payment for Consent.  The Company shall not, and shall
not permit any of its Subsidiaries to, directly or indirectly, pay or cause to
be paid any consideration, whether by way of interest, fee or otherwise, to any
Holder for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Securities unless such
consideration is offered to be paid or 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.

 

Section 4.17           Covenant
Suspension.  (a) During any period of time that: (i) the
Securities have Investment Grade Ratings from both Rating Agencies, and (ii) no
Default has occurred and is continuing under this Indenture (the occurrence of
the events described in the foregoing clauses (i) and (ii) being
collectively referred to as a “Covenant Suspension Event”), the Company
and its Subsidiaries shall not be subject to the following provisions of this
Indenture:

 

(1)       Section 4.05;

 

(2)       Section 4.06;

 

(3)       Section 4.07;

 

(4)       Section 4.08;

 

(5)       Section 4.09;

 

(6)       Section 4.10; and

 

(7)       clause (c) of Section 5.01.

 

(collectively,
the “Suspended Covenants”).

 

(b)        In the event
that the Company and its Subsidiaries are not subject to the Suspended
Covenants for any period of time commencing upon the date of a Covenant 

 

45

 

Suspension
Event (the “Suspension Date”), and on any subsequent date (the “Reversion
Date”) one or both of the Rating Agencies withdraws its Investment Grade
Rating or downgrades the rating assigned to the Securities below an Investment
Grade Rating or a Default or Event of Default occurs and is continuing, then
the Company and its Subsidiaries shall thereafter again be subject to the
Suspended Covenants with respect to future events.  The period of time between the Suspension Date
and the Reversion Date is referred to herein as the “Suspension Period.”  Notwithstanding that the Suspended Covenants
may be reinstated, no Default or Event of Default shall be deemed to have
occurred as a result of a failure to comply with the Suspended Covenants during
the Suspension Period (or upon termination of the Suspension Period or after
that time based solely on events that occurred during the Suspension Period).

 

(c)        On the
Reversion Date, all Indebtedness incurred during the Suspension Period shall be
classified to have been incurred or issued pursuant to Section 4.05 to the
extent such Indebtedness would be permitted to be incurred or issued thereunder
as of the Reversion Date and after giving effect to Indebtedness incurred or
issued prior to the Suspension Period and outstanding on the Reversion Date. To
the extent such Indebtedness would not be so permitted to be incurred or issued
pursuant to Section 4.05, such Indebtedness shall be deemed to have been
existing outstanding on the Issue Date, so that it is classified as permitted
under clause (iv) of the definition of “Permitted Indebtedness.”

 

(d)        Calculations
made after the Reversion Date of the amount available to be made as Restricted
Payments under Section 4.06 will be made as though such covenant had been
in effect from the Issue Date and throughout the Suspension Period.  Restricted Payments made during the
Suspension Period shall be deemed to have been made pursuant to clause (viii) of
Section 4.06(b).

 

ARTICLE V

 

SUCCESSOR COMPANY

 

Section 5.01          Consolidation.  The Company shall not, in a single
transaction or through a series of related transactions, consolidate with or
merge with or into any other Person (other than any Wholly Owned Subsidiary) or
sell, assign, transfer, lease or otherwise dispose of all or substantially all
of its properties and assets to any Person (other than any Wholly Owned
Subsidiary) or group of affiliated Persons unless at the time and after giving
effect thereto:

 

(a)        either: (i) the
Company shall be the continuing corporation; or (ii) the Person (if other
than the Company) formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance, transfer, lease or
disposition the properties and assets of the Company substantially as an
entirety (the “Surviving Entity”) shall be a corporation duly organized
and validly existing under the laws of the United States of America, any state
thereof or the District of Columbia and shall, in either case, expressly assume
all the Obligations of the Company under the Securities and the Indenture and
its obligations under any Registration Rights Agreement;

 

46

 

(b)        immediately
after giving effect to such transaction on a pro forma basis, no Default or
Event of Default shall have occurred and be continuing;

 

(c)        immediately
after giving effect to such transaction on a pro forma basis, except in the
case of the consolidation or merger of any Subsidiary with or into the Company,
the Company (or the Surviving Entity if the Company is not the continuing
corporation) could incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) pursuant to Section 4.05; and

 

(d)        each
Guarantor (unless it is the other party to the transactions above, in which
case clause (a)(ii) shall apply) shall have by supplemental indenture
confirmed that its Guarantee shall apply to such Person’s obligations in
respect of the outstanding Securities and the Indenture and its obligations
under any Registration Rights Agreement shall continue to be in effect.

 

In connection with any consolidation, merger, transfer or lease
contemplated hereby, the Company shall deliver, or cause to be delivered, to
the Trustee, in form and substance reasonably satisfactory to the Trustee, an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, transfer or lease and the supplemental indenture in
respect thereto comply with the provisions described herein and that all
conditions precedent herein provided for or relating to such transaction have
been complied with.

 

Section 5.02           Successor Substituted.  Upon any consolidation or merger
or any transfer of all or substantially all of the assets of the Company in accordance
with Section 5.01, the successor corporation formed by such a
consolidation or into which the Company is merged or to which such transfer is
made shall succeed to, shall be substituted for and may exercise every right
and power of the Company under the Securities and this Indenture, with the same
effect as if such successor corporation had been named as the Company
herein.  In the event of any transaction (other than a lease) described
and listed in Section 5.01 in which the Company is not the continuing
corporation, the successor Person formed or remaining shall succeed to, be
substituted for and may exercise every right and power of the Company, and the
Company shall be discharged from all obligations and covenants under the
Securities and this Indenture.

 

ARTICLE VI

 

DEFAULTS AND REMEDIES

 

Section 6.01           Events of Default.  “Event of Default,” wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

 

47

 

(a)        default in
the payment of any interest (including any Additional Interest) on any Security
when it becomes due and payable and continuance of such default for a period of
30 days;

 

(b)        default in
the payment of the principal of or premium, if any, on any Security at its
Maturity (upon acceleration, optional redemption, required purchase or
otherwise);

 

(c)        failure to
comply with the requirements of Article V;

 

(d)        default in
the performance, or breach, of any covenant or warranty of the Company
contained in this Indenture (other than a default in the performance, or
breach, of a covenant or warranty which is specifically dealt with in clause
(a), (b) or (c) above) and continuance of such default or breach for
a period of 60 days after written notice shall have been given to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding;

 

(e)        (i) one
or more defaults in the payment of principal of or premium, if any, on
Indebtedness of the Company or any Significant Subsidiary, aggregating $25.0
million or more, when the same becomes due and payable at the stated maturity
thereof, and such default or defaults shall have continued after any applicable
grace period and shall not have been cured or waived or (ii) Indebtedness
of the Company or any Significant Subsidiary, aggregating $25.0 million or
more, shall have been accelerated or otherwise declared due and payable, or
required to be prepaid or repurchased (other than by regularly scheduled prepayment)
prior to the stated maturity thereof;

 

(f)         any holder
of any Indebtedness in excess of $25.0 million in the aggregate of the Company
or any Significant Subsidiary shall notify the Trustee of the intended sale or
disposition of any assets of the Company or any Significant Subsidiary that
have been pledged to or for the benefit of such Person to secure such
Indebtedness or shall commence proceedings, or take action (including by way of
set-off) to retain in satisfaction of any such Indebtedness, or to collect on,
seize, dispose of or apply, any such asset of the Company or any Significant
Subsidiary pursuant to the terms of any agreement or instrument evidencing any
such Indebtedness of the Company or any Significant Subsidiary or in accordance
with applicable law;

 

(g)        one or more
final judgments or orders shall be rendered against the Company or any
Significant Subsidiary for the payment of money, either individually or in an
aggregate amount, in excess of $25.0 million and shall not be discharged and either
(i) an enforcement proceeding shall have been commenced by any creditor
upon such judgment or order or (ii) there shall have been a period of 60
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, was not in effect;

 

48

 

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

 

(i)    commences a voluntary case or proceeding;

 

(ii)   consents to the entry of a Bankruptcy Order
in an involuntary case or proceeding or the commencement of any case against
it;

 

(iii)  consents to the appointment of a Custodian of
it or for any substantial part of its property;

 

(iv)  makes a general assignment for the benefit of
its creditors or files a proposal or other scheme of arrangement involving the
rescheduling or composition of its indebtedness;

 

(v)   files a petition in bankruptcy or an answer
or consent seeking reorganization or relief; or

 

(vi)  consents to the filing of such petition in
bankruptcy or the appointment of or taking possession by a Custodian;

 

(i)         a court of
competent jurisdiction in any involuntary case or proceeding enters a
Bankruptcy Order against the Company or any Significant Subsidiary, and such
Bankruptcy Order remains unstayed and in effect for 60 consecutive days;

 

(j)         a Custodian
shall be appointed out of court with respect to the Company or any Significant
Subsidiary, or with respect to all or any substantial part of the property of
the Company or any Significant Subsidiary; and

 

(k)        except as
permitted by this Indenture, any Subsidiary Guarantee shall be held in any
judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect or any Guarantor, or any Person acting on
behalf of any Guarantor, shall deny or disaffirm its obligations under its
Subsidiary Guarantee.

 

Section 6.02           Acceleration; Rescission and Annulment.  (a) If an
Event of Default (other than an Event of Default specified in Section 6.01(h),
(i) or (j)) shall occur and is continuing, then and in every such case the
Trustee, by notice to the Company, or the Holders of not less than 25% in
aggregate principal amount of the Securities outstanding, by notice to the Company
and the Trustee, may declare the principal of, premium, if any, and accrued and
unpaid interest (including any Additional Interest), if any, on all the
Securities to be due and payable.  If 

 

49

 

an Event of Default
specified in Section 6.01(h), (i) or (j) shall occur and is
continuing, then the principal of, premium, if any, and accrued and unpaid
interest (including any Additional Interest), if any, on, all the Securities
shall automatically become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.  The
Company shall deliver to the Trustee, within 10 days after the occurrence
thereof, notice of any default or acceleration referred to in Sections 6.01(d) and
6.01(e).

 

(b)        At any time
after a declaration of acceleration has been made, but before a judgment or
decree for payment of the money due has been obtained by the Trustee as
provided hereinafter in this Article VI, the Holders of a majority in
aggregate principal amount of the outstanding Securities, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if:

 

(i)     the Company has paid or deposited, or
caused to be paid or deposited, with the Trustee a sum sufficient to pay:

 

(A)      all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel;

 

(B)       all overdue interest (including
Additional Interest, if any) on all Securities;

 

(C)       the principal of (and premium, if any,
on) any Securities that has become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by the Securities; and

 

(D)      to the extent that payment of such
interest is lawful, interest upon overdue interest (including any Additional
Interest) at the rate borne by the Securities; and

 

(ii)    all Events of Default, other than the
non-payment of principal of the Securities which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 6.04.

 

No such rescission shall affect any subsequent default or impair any
right consequent thereon.

 

50

 

(c)        Notwithstanding
Section 6.02(b), in the event of a declaration of acceleration in respect
of the Securities because an Event of Default specified in Section 6.01(e) shall
have occurred and be continuing, such declaration of acceleration shall be
automatically annulled if the Indebtedness that is the subject of such Event of
Default (i) is Indebtedness in the  form of a Capital Lease
Obligation, (ii) has been discharged or the holders thereof have rescinded
their declaration of acceleration in respect of such Indebtedness, and (iii) written
notice of such discharge or rescission, as the case may be, shall have been
given to the Trustee by the Company and countersigned by the holders of such
Indebtedness or a trustee, fiduciary or agent for such holders, within 30 days
after such declaration of acceleration in respect of the Securities, and no
other Event of Default has occurred during such 30-day period which has not
been cured or waived during such period.

 

Section 6.03           Other Remedies.  If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal of or interest on the Securities or to enforce the performance of
any provision of the Securities or this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding.  A
delay or omission by the Trustee or any 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.

 

Section 6.04           Waiver of Past Defaults.  Subject to Section 6.02,
the Holders of a majority in aggregate principal amount of the Securities then
outstanding by notice to the Trustee may waive an existing Default and its
consequences except (a) a Default in the payment of the principal of or
interest on a Security, (b) a Default arising from a failure to make or consummate
a Change of Control Offer in accordance with the provisions of Section 4.11,
or (c) a Default in respect of a provision that under Section 9.02
cannot be amended without the consent of each Holder affected.  When a
Default is waived, it is deemed cured, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.

 

Section 6.05           Control by Majority.  The Holders of a majority in
aggregate principal amount of the Securities then outstanding may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee with
respect to the Securities.  However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture or, subject to Section 7.01,
that the Trustee determines is unduly prejudicial to the rights of other
Holders or would involve the Trustee in personal liability; provided,
however, that subject to Section 315 of the TIA, the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction.  Prior to taking any action hereunder, the Trustee
shall be entitled to reasonable indemnification against all losses and expenses
caused by taking or not taking such action.

 

Section 6.06           Limitation on Suits.  A Holder may not pursue any remedy
with respect to this Indenture or the Securities unless:

 

51

 

(a)        such Holder
shall have previously given to the Trustee written notice of a continuing Event
of Default;

 

(b)        the Holders
of at least 25% in aggregate principal amount of the Securities then
outstanding shall have made a written request, and such Holder of or Holders
shall have offered reasonable indemnity, to the Trustee to pursue such
proceeding as trustee; and

 

(c)        the Trustee
has failed to institute such proceeding and has not received from the Holders
of at least a majority in aggregate principal amount of the Securities
outstanding a direction inconsistent with such request, within 60 days after
such notice, request and offer.

 

The foregoing limitations on the pursuit of remedies by a Holder shall
not apply to a suit instituted by a Holder of Securities for the enforcement of
payment of the principal of or interest on such Security on or after the
applicable due date specified in such Security.  A Holder may not use this
Indenture to prejudice the rights of another Holder or to obtain a preference
or priority over another 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 and interest on the securities held by such Holder, on
or after the respective due dates expressed in the Securities, or to bring suit
for the enforcement of any such payment on or after such respective dates,
shall not be impaired or affected without the consent of such Holder.

 

Section 6.08           Collection Suit by Trustee.  If an Event of Default
specified in Section 6.01(a) or (b) occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount then due and owing (together
with interest on any unpaid interest to the extent lawful) and the amounts
provided for in Section 7.07.

 

Section 6.09           Trustee May File Proofs of Claim.  The Trustee may
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee and the Holders allowed in
any judicial proceedings relative to the Company, its creditors or its property
and, unless prohibited by law or applicable regulations, may vote on behalf of
the Holders in any election of a trustee in bankruptcy or other Person
performing similar functions, and any Custodian in any such judicial proceeding
is hereby authorized by each Holder to make payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and its counsel, and any other amounts due the Trustee under Section 7.07.

 

Section 6.10           Priorities.  If the Trustee collects any money or property
pursuant to this Article VI, it shall pay out the money or property in the
following order:

 

52

 

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

 

SECOND: to Holders for amounts due and unpaid on the securities for
principal and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Securities for principal and
interest respectively; and

 

THIRD: to the Company.

 

The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section.  At least 15 days before such record
date, the Company shall mail to each Holder and the Trustee a notice that
states the record date, the payment date and amount to be paid.

 

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

 

Section 6.12           Waiver of Stay or Extension Laws.  The Company (to the
extent it may lawfully do so) shall not at any time insist upon, or plead, or
in any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and 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 VII

 

TRUSTEE

 

Section 7.01           Duties of Trustee.  (a)  If an Event of Default has
occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the
circumstances in the conduct of such Person’s own affairs.

 

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

 

53

 

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

 

(ii)    in the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture.  However, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture (but need not confirm or investigate the accuracy of mathematical
calculations or other facts stated therein).

 

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

 

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

 

(ii)    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

 

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

 

(d)        Every
provision of this Indenture that in any way relates to the Trustee is subject
to subsections (a), (b) and (c) of this Section.

 

(e)        The Trustee
shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.

 

(f)         Money held
in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

 

(g)        No provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur financial liability in the performance of any of its duties
hereunder or in the exercise of any of its rights or powers.

 

54

 

(h)        Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section and to the provisions of the TIA, and the provisions of this Article VII
shall apply to the Trustee in its role as Registrar, Paying Agent and Security
Custodian.

 

(i)         The Trustee
shall not be deemed to have notice of a Default or an Event of Default unless (a) the
Trustee has received written notice thereof from the Company or any Holder or (b) a
Trust Officer shall have actual knowledge thereof.

 

(j)         Except with
respect to Section 4.01, the Trustee shall have not duty to inquire as to
the performance of the Company with respect to the covenants contained in Article 4.
 In addition, the Trustee shall not be deemed to have knowledge of an
Event of Default except (i) any Default or Event of Default occurring
pursuant to Sections 4.01, 6.01(a) or 6.01(b) or (ii) any
Default or Event of Default of which the Trustee shall have received written
notification or obtained actual knowledge.

 

Section 7.02           Rights of Trustee. 
Subject to 315(a) through 315(d) of the TIA:

 

(a)        The Trustee
may rely on any document believed by it to be genuine and to have been signed
or presented by the proper person.  The Trustee need not investigate any
fact or matter stated in the document.  The Trustee may, however, in its
discretion 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 to examine the books,
records and premises of the Company, personally or by agent or attorney.

 

(b)        Before the
Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel.  The Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance on the Officers’
Certificate or Opinion of Counsel.

 

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

 

(d)        The Trustee
shall not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within its rights or powers; provided,
however, that the Trustee’s conduct does not constitute willful
misconduct or negligence.

 

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

 

55

 

(f)         The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified herein.

 

Section 7.03           Individual Rights of Trustee.  The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company or its Affiliate with the same rights
it would have if it were not Trustee.  Any Paying Agent, Registrar or
co-registrar may do the same with like rights.  However, the Trustee must
comply with Sections 7.10 and 7.11.

 

Section 7.04           Trustee’s Disclaimer.  The Trustee shall not be
responsible for and makes no representation as to the validity, priority or
adequacy of this Indenture or the Securities, it shall not be accountable for
the Company’s use of the proceeds from the Securities, and it shall not be
responsible for any statement of the Company in this Indenture or in any
document issued in connection with the sale of the Securities or in the
Securities other than the Trustee’s certificate of authentication.

 

Section 7.05           Notice of Defaults.  If a Default or Event of Default
occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Holder notice of the Default or Event of Default within 90 days
after it is known to a Trust Officer or written notice of it is received by the
Trustee.  Except in the case of a Default or Event of Default in payment
of principal of or interest on any Security, the Trustee may withhold the
notice if and so long as a committee of its Trust Officers in good faith
determines that withholding the notice is in the interests of Holders.

 

Section 7.06           Reports by Trustee to Holders.  As promptly as
practicable after each December 31 beginning with December 31, 2009,
and in any event prior to March 31 in each year thereafter, the Trustee
shall mail to each Holder a brief report dated as of March 31 each year
that complies with TIA Section 313(a), if and to the extent required by
such subsection.  The Trustee shall also comply with TIA Section 313(b) and
(c).

 

A copy of each report at the time of its mailing to Holders shall be
filed with the SEC and each stock exchange (if any) on which the Securities are
listed.  The Company agrees to notify promptly the Trustee whenever the
Securities become listed on any stock exchange and of any delisting thereof.

 

Section 7.07           Compensation and Indemnity.  The Company shall pay to the
Trustee and any predecessor Trustee from time to time such compensation for its
services as shall from time to time be agreed to in writing by the Company and
the Trustee.  The Trustee’s compensation shall not be limited by any law
on compensation of a trustee of an express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred or made by it, including costs of collection, in addition to the
compensation for its services.  Such expenses shall include the reasonable
compensation and expenses, disbursements and advances of the Trustee’s agents,
counsel, accountants and experts.  The Company shall indemnify the Trustee
against any and all loss, liability or expense (including reasonable attorneys’
fees) incurred by it in connection with the acceptance and administration of
this trust and the performance of its duties hereunder.  The Trustee shall
notify the Company 

 

56

 

promptly of any claim for
which it may seek indemnity.  Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder.  The
Company shall defend the claim and the Trustee may have separate counsel and
the Company shall pay the fees and expenses of such counsel.  The Company
need not reimburse any expenses or indemnify against any loss, liability or
expense incurred by the Trustee through the Trustee’s own willful misconduct,
negligence or bad faith.  The Company need not pay for any settlement made
by the Trustee without the Company’s consent, such consent not to be
unreasonably withheld.  All indemnifications and releases from liability
granted hereunder to the Trustee shall extend to its officers, directors,
employees, agents, successors and assigns.

 

To secure the Company’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee other than money or property held in trust to pay
principal of and interest on particular Securities.

 

The Company’s payment obligations pursuant to this Section shall
survive the resignation or removal of the Trustee and the discharge of this
Indenture.  When the Trustee incurs expenses after the occurrence of a
Default specified in Section 6.01(h), (i) or (j) with respect to
the Company, the expenses are intended to constitute expenses of administration
under the Bankruptcy Law.

 

The provisions of this Section shall survive the resignation or
removal of the Trustee and the termination of this Indenture.

 

Section 7.08           Replacement of Trustee.  The Trustee may resign at any
time by so notifying the Company.  The Holders of a majority in aggregate
principal amount of the Securities then outstanding may remove the Trustee by
so notifying the Trustee and may appoint a successor Trustee.  The Company
shall remove the Trustee if:

 

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

 

(b)        the Trustee
is adjudged bankrupt or insolvent;

 

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

 

(d)        the Trustee
otherwise becomes incapable of acting.

 

If the Trustee resigns, is removed by the Company or by the Holders a
majority in aggregate principal amount of the Securities then outstanding and
such Holders do not reasonably promptly appoint a successor Trustee, or if a
vacancy exists in the office of Trustee 

 

57

 

for any reason (the Trustee in such event
being referred to herein as the retiring Trustee), the Company shall promptly
appoint a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture.  The successor Trustee shall mail a notice of its
succession to Holders.  The retiring Trustee shall promptly transfer all
property held by it as Trustee to the successor Trustee, subject to the lien
provided for in Section 7.07.

 

If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee or the Holders of
10% in aggregate principal amount of the Securities then outstanding may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

 

If the Trustee fails to comply with Section 7.10, any Holder who
has been a bona fide Holder of a Security for at least six months may petition
any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

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

 

Section 7.09           Successor Trustee by Merger.  If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking
association without any further act shall be the successor Trustee.  In
case at the time such successor or successors by merger, conversion or
consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not delivered,
any such successor to the Trustee may adopt the certificate of authentication
of any predecessor trustee, and deliver such Securities so authenticated; and
in case at that time any of the Securities shall not have been authenticated;
any such successor to the Trustee may authenticate such Securities either in
the name of any predecessor hereunder or in the name of the successor to the
Trustee; and in all such cases such certificates shall have the full force
which it is anywhere in the Securities or in this Indenture provided  that the certificate of the Trustee shall
have.

 

Section 7.10           Eligibility;
Disqualification.  The Trustee shall at all times satisfy the
requirements of TIA Section 310(a).  The Trustee shall have (or, in
the case of a corporation included in 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 (or its related bank holding company’s)
most recent published annual report of condition.  The Trustee shall
comply with TIA Section 310(b), subject to the penultimate paragraph
thereof; 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 

 

58

 

Company are outstanding if
the requirements for such exclusion set forth in TIA Section 310(b)(1) are
met.

 

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.

 

ARTICLE VIII

 

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 8.01           Discharge of Liability on Securities; Defeasance.  (a) When
(i) either (A) all outstanding Securities that have been
authenticated (other than Securities replaced pursuant to Section 2.07 and
Securities for whose payment money has been deposited in trust and thereafter
repaid to the Company) have been delivered by the Company to the Trustee for
cancellation or (B) all outstanding Securities that have not been
delivered by the Company to the Trustee for cancellation have become due and
payable, whether at Maturity or upon redemption or will become due and payable
within one year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
pursuant to Article III and the Company irrevocably deposits or causes to
be deposited with the Trustee funds in trust solely for the benefit of the
Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest, to pay and discharge the entire
Indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation for principal, premium, if any, and accrued interest (including
Additional Interest, if any) to the date of Maturity or redemption; (ii) no
Default or Event of Default shall have occurred and be continuing on the date
of such deposit or shall occur as a result of such deposit and such deposit
will not result in a breach or violation of, or constitute a default under, any
other instrument to which the Company or any Guarantor is a party or by which
the Company or any Guarantor is bound; (iii) the Company or any Guarantor
has paid or caused to be paid all sums payable by it under this Indenture and
the Securities; and (iv) the Company has delivered irrevocable
instructions to the Trustee under this Indenture to apply the deposited money
toward the payment of such Securities at Maturity or the redemption date, as
the case may be, then upon demand of the Company (accompanied by an Officers’
Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent specified herein relating to the satisfaction and
discharge of this Indenture have been complied with) this Indenture shall cease
to be of further effect with respect to the Securities and the Trustee shall
acknowledge satisfaction and discharge of this Indenture, at the cost and
expense of the Company.

 

(b)        Subject to
Sections 8.01(c) and 8.02, the Company may, at its option, and at any time
elect to terminate (i) all of its and the Guarantors’ obligations under
the Securities, the Subsidiary Guarantees and this Indenture (“legal defeasance
option”) or (ii) its and the Guarantors’ obligations under Section 5.01(c) and
Sections 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, and 4.12 and the operation
of Section 6.01(c) (with respect to a Event of Default due 

 

59

 

to a
failure to meet obligations under Section 5.01(c)) and Sections 6.01(d),
(e), (f) and (g) (“covenant defeasance option”).  The Company
may exercise its legal defeasance option notwithstanding its prior exercise of
its covenant defeasance option.

 

If the Company exercises its legal defeasance option, payment of the
Securities may not be accelerated because of an Event of Default.  If the
Company exercises its covenant defeasance option, payment of the Securities may
not be accelerated because of an Event of Default specified in Sections 6.01(d) (with
respect to Sections 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12 and
5.01(c)), (e), (f) or (g).

 

Upon satisfaction of the conditions set forth herein and upon request
of the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.

 

(c)        Notwithstanding
subsections (a) and (b) above, the Company’s obligations in Sections
2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 4.03, 4.13, 7.07, 7.08,
8.03, 8.04, 8.05 and 8.06 shall survive until the Securities have been paid in
full.  Thereafter, the Company’s obligations in Sections 7.07, 8.04, 8.05
and 8.06 shall survive.

 

Section 8.02           Conditions to Defeasance.  The Company may exercise its
legal defeasance option or its covenant defeasance option only if:

 

(a)        The Company
shall irrevocably have deposited or caused to be deposited with the Trustee (or
another trustee satisfying the requirements of Section 7.10 who shall
agree to comply with the provisions of this Article VIII applicable to it)
as trust funds in trust for the benefit of the Holders of the Securities, cash
in U.S. Dollars, non-callable Government Securities or a combination thereof,
in such amounts as will be sufficient, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge and which
shall be applied by the Trustee (or other qualifying trustee) to pay the
principal of (and premium, if any) and interest (including any Additional
Interest) on the outstanding Securities on the Stated Maturity (or redemption
date, if applicable) of such principal (and premium, if any) or installment of
interest; provided that the
Trustee shall have been irrevocably instructed to apply such money or the
proceeds of such Government Securities to said payments with respect to the
Securities.  Before such a deposit, the Company may give the Trustee, in
accordance with Section 3.01 hereof, a notice of its election to redeem
all of the outstanding Securities at a future date in accordance with Article III,
which notice shall be irrevocable;

 

(b)        No Default or
Event of Default shall have occurred and be continuing on the date of such
deposit or, insofar as Section 6.01(h), (i) or (j) is concerned,
at any time during the period ending on the 91st day after the date of such
deposit (it being understood that this condition shall not be deemed satisfied
until the expiration of such period);

 

60

 

(c)        the deposit
does not constitute a default hereunder or under any other material agreement
binding on the Company;

 

(d)        the Company
delivers to the Trustee an Opinion of Counsel to the effect that the trust
resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;

 

(e)        in the case
of the legal defeasance option, the Company shall have delivered to the Trustee
an Opinion of Counsel stating that (i) the Company has received from, or
there has been published by, the Internal Revenue Service a ruling, or (ii) since
the date of this Indenture there has been a change in the applicable U.S.
Federal income tax law, in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, the Holders will not recognize
income, gain or loss for U.S. Federal income tax purposes as a result of such
legal defeasance and will be subject to U.S. Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such defeasance had not occurred;

 

(f)         in the case
of the covenant defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders will not recognize
income, gain or loss for U.S. Federal income tax purposes as a result of such
covenant defeasance and will be subject to U.S. 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; and

 

(g)        the Company
delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent to the defeasance and discharge of
the Securities as contemplated by this Article VIII have been complied
with.

 

Section 8.03           Application of Trust Money.

 

The Trustee shall hold in trust money or Government Securities
deposited with it pursuant to this Article VIII.  It shall apply the
deposited money and the money from Government Securities through the Paying
Agent and in accordance with this Indenture to the payment of principal of and
interest on the Securities.

 

Section 8.04           Repayment to Company.  The Trustee and the Paying Agent
shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.

 

Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon request any money held by them for
the payment of 

 

61

 

principal, premium, if any, or interest that
remains unclaimed for two years, and, thereafter, Holders entitled to the money
must look to the Company for payment as general creditors.

 

Section 8.05           Indemnity for Government Obligations.  The Company shall
pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited Government Securities or the principal
and interest received on such Government Securities.

 

Section 8.06           Reinstatement.  If the Trustee or Paying Agent is unable
to apply any money or Government Securities in accordance with this Article VIII
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s obligations under this Indenture and the
Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article VIII until such time as the Trustee or Paying
Agent is permitted to apply all such money or Government Securities in
accordance with this Article VIII; provided, however, that, if the Company has made
any payment of interest on or principal of any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

ARTICLE IX

 

AMENDMENTS

 

Section 9.01           Without Consent of Holders.  The Company, the Guarantors
and the Trustee may amend this Indenture or the Securities or the Guarantees
without notice to or consent of any Holder:

 

(a)        to cure any
ambiguity, omission, defect or inconsistency;

 

(b)        to comply
with Article V;

 

(c)        to provide
for uncertificated Securities in addition to or in place of certificated
Securities; provided, however, that the uncertificated
Securities are issued in registered form for purposes of Section 163(f) of
Title 26 of the United States Code or in a manner such that the uncertificated
Securities are described in Section 163(f)(2)(B) of Title 26 of the
United States Code;

 

(d)        to add
additional Guarantees with respect to the Securities or to secure the
Securities;

 

62

 

(e)        to add to the
covenants of the Company for the benefit of the Holders or to surrender any
right or power herein conferred upon the Company;

 

(f)         to comply
with any requirements of the SEC in connection with qualifying, or maintaining
the qualification of, this Indenture under the TIA; or

 

(g)        to make any
change that does not adversely affect the rights of any Holder.

 

After an amendment under this Section becomes effective, the
Company shall mail to Holders a notice briefly describing such amendment. 
The failure to give such notice to all Holders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section.

 

Section 9.02           With Consent of Holders.  The Company, the Guarantors and
the Trustee may modify or amend this Indenture or the Securities or the
Guarantees without notice to any Holder but with the written consent of the
Holders of not less than a majority in aggregate principal amount of the
Securities then outstanding (including consents obtained in connection with a
tender offer or exchange offer for the Securities).  However, without the
consent of each Holder affected thereby, a modification or amendment may not:

 

(a)        change the
Stated Maturity of the principal of, or any installment of interest (including
Additional Interest) on, any Security, or reduce the principal amount thereof
or the rate of interest (including Additional Interest, if any) thereon or any
premium payable upon the redemption thereof, or change the coin or currency in
which the principal of any Security or any premium or the interest (including
Additional Interest) thereon is payable, or impair the right to institute suit
for the enforcement of any such payment after the Stated Maturity thereof (or,
in the case of redemption, on or after the redemption date);

 

(b)        reduce the
amount of, or change the coin or currency of, or impair the right to institute
suit for the enforcement of, the Change of Control Purchase Price;

 

(c)        reduce the
percentage in principal amount of the outstanding Securities, the consent of
whose Holders is required for any such supplemental indenture, or the consent
of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture; or

 

(d)        modify any of
the provisions of this Section or Sections 6.04, 6.07 and 4.14, except to
increase the percentage of outstanding Securities the consent of whose Holders
is required for such actions or to provide that certain other provisions of
this Indenture 

 

63

 

cannot be
modified or waived without the consent of the Holder of each Security affected
thereby.

 

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

 

After an amendment under this Section becomes effective, the
Company shall mail to Holders a notice briefly describing such amendment. 
The failure to give such notice to all Holders, or any defect therein, shall
not impair or affect the validity of an amendment under this Section.

 

Section 9.03           Compliance with Trust Indenture Act.  Every amendment to
this Indenture or the Securities shall comply with the TIA as then in effect.

 

Section 9.04           Revocation and Effect of Consents and Waivers.  A consent
to an amendment or a waiver by a Holder of a Security shall bind the Holder and
every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent or waiver is not made on the Security.  However, any such
Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice
of revocation before the date the amendment or waiver becomes effective. 
After an amendment or waiver becomes effective, it shall bind every
Holder.  An amendment or waiver becomes effective upon the execution of
such amendment or waiver by the Trustee.

 

The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to give their consent or take
any other action described above or required or permitted to be taken pursuant
to this Indenture.  Such record date shall be a date not more than 30 days
prior to the first solicitation of Holders generally in connection therewith
and no later than the date such solicitation is completed.  If a record
date is fixed, then notwithstanding the immediately preceding paragraph or Section 316(c) of
the TIA, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to give such
consent or to revoke any consent previously given or to take any such action,
whether or not such Persons continue to be Holders after such record
date.  No such consent shall be valid or effective for more than 180 days
after such record date.

 

For all purposes of this Indenture, all Initial Securities, Additional
Securities of the same series, Exchange Securities for the same series of
Securities and Private Exchange Securities for the same series of Securities
shall vote together as one series of Securities under this Indenture.

 

Section 9.05           Notation on or Exchange of Securities.  If an amendment
changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver such Security to the Trustee.  The Trustee may place
an appropriate notation on the Security regarding 

 

64

 

the changed terms and return
such Security to the Holder.  Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Security shall issue and the
Trustee shall authenticate a new Security that reflects the changed
terms.  Failure to make the appropriate notation or to issue a new
Security shall not affect the validity of such amendment.

 

Section 9.06           Trustee To Sign Amendments.  The Trustee shall sign any
amendment authorized pursuant to this Article IX if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may but need not sign it.  In
signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, in addition to the documents
required by Section 11.04 and (subject to Section 7.01) shall be
fully protected in relying upon, an Officers’ Certificate and an Opinion of
Counsel stating that such amendment is authorized or permitted by this
Indenture.

 

ARTICLE
X

 

GUARANTEES

 

Section 10.01         Parent Guarantee and Subsidiary Guarantees.  Subject to
the provisions of this Article X, each Guarantor hereby fully,
unconditionally and irrevocably guarantees, as primary obligor and not merely
as surety, jointly and severally with each other Guarantor, to each Holder of
the Securities and the Trustee, the full and punctual payment when due, whether
at maturity, by acceleration, by redemption or otherwise, of the principal of,
premium, if any, and interest (including Additional Interest), if any, on the
Securities and all other obligations and liabilities of the Company under this
Indenture (including without limitation interest accruing after the filing of
any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding, relating to the Company or any Guarantor
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding and the obligations under Section 7.07) (all the foregoing
being hereinafter collectively called the “Guarantor Obligations”).  Each
Guarantor agrees that the Guarantor Obligations shall rank equally in right of
payment with other senior unsecured Indebtedness of such Guarantor, except to
the extent such other Indebtedness is subordinate to the Guarantor
Obligations.  Each Guarantor further agrees (to the extent permitted by
law) that the Guarantor Obligations may be extended or renewed, in whole or in
part, without notice or further assent from it, and that it will remain bound
under this Article X notwithstanding any extension or renewal of any
Guarantor Obligation.

 

Each Guarantor waives presentation to, demand of payment from and protest
to the Company of any of the Guarantor Obligations and also waives notice of
protest for non-payment.  Each Guarantor waives notice of any default
under the Securities or the Guarantor Obligations.

 

Each Guarantor further agrees that its Guarantee herein constitutes a
Guarantee of payment when due (and not a Guarantee of collection) and waives
any right to require that any resort be had by any Holder to any security held
for payment of the Guarantor Obligations.

 

65

 

Except as set forth in Section 10.02, the obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than payment of the Guarantor
Obligations in full), including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense of setoff,
counterclaim, recoupment or termination whatsoever or by reason of the
invalidity, illegality or unenforceability of the Guarantor Obligations or
otherwise.  Without limiting the generality of the foregoing, the
obligations of each Guarantor herein shall not be discharged or impaired or
otherwise affected by (a) the failure of any Holder to assert any claim or
demand or to enforce any right or remedy against the Company or any other
person under, this Indenture, the Securities or any other agreement or
otherwise; (b) any extension or renewal granted; (c) any rescission,
waiver, amendment or modification of any of the terms or provisions of this
Indenture, the Securities or any other agreement; (d) the release of any
security held by any Holder or the Trustee for the Guarantor Obligations or any
of them; (e) the failure of any Holder to exercise any right or remedy
against any other Guarantor; (f) any change in the ownership of the
Company; (g) any default, failure or delay, willful or otherwise, in the
performance of the Guarantor Obligations; or (h) any other act or thing or
omission or delay to do any other act or thing which may or might in any manner
or to any extent vary the risk of any Guarantor or would otherwise operate as a
discharge of such Guarantor as a matter of law or equity.

 

Subject to the provisions of Section 4.10, each Guarantor agrees
that its Guarantee herein shall remain in full force and effect until payment
in full of all the Guarantor Obligations or such Guarantor is released from its
Guarantee in compliance with Section 10.03 hereof.  Each Guarantor
further agrees that its Guarantee herein shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest on any of the Guarantor Obligations is rescinded or
must otherwise be restored by any Holder upon the bankruptcy or reorganization
of the Company or otherwise.

 

In furtherance of the foregoing and not in limitation of any other
right which any Holder has at law or in equity against any Guarantor by virtue
hereof, upon the failure of the Company to pay any of the Guarantor Obligations
when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, each Guarantor hereby promises to and will, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid,
in cash, to the Holders an amount equal to the sum of (i) the unpaid
amount of such Guarantor Obligations then due and owing and (ii) accrued
and unpaid interest on such Guarantor Obligations then due and owing (but only
to the extent not prohibited by law).

 

Each Guarantor further agrees that, as between such Guarantor, on the
one hand, and the Holders, on the other hand, (x) the maturity of the
Guarantor Obligations guaranteed hereby may be accelerated as provided in this
Indenture for the purposes of its Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Guarantor Obligations guaranteed hereby and (y) in the event of any such
declaration of acceleration of such Guarantor Obligations, such Guarantor
Obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantor for the purposes of this Guarantee.

 

66

 

Each Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorneys’ fees and expenses) incurred by the Trustee or
the Holders in enforcing any rights under this Section.

 

Section 10.02         Execution
and Delivery of Parent Guarantee and Subsidiary Guarantees.

 

To further evidence its Parent Guarantee, the Parent Guarantor hereby
agrees to execute a Guarantee, substantially in the form of Exhibit C
hereto, and deliver it to the Trustee. 
To further evidence its Subsidiary Guarantee, each Subsidiary and other
Person that is required to become a Subsidiary Guarantor hereby agrees to
execute a supplement to this Indenture, substantially in the form of Exhibit D
hereto, or a Guarantee, substantially in the form of Exhibit C
hereto, and deliver it to the Trustee. 
Each such Guarantee or supplement to this Indenture shall be executed on
behalf of the applicable Guarantor by either manual or facsimile signature of
one Officer or other person duly authorized by all necessary corporate action
of such Guarantor who shall have been duly authorized to so execute by all
requisite corporate action.  The validity and enforceability of any
Guarantee shall not be affected by the fact that it is not affixed to any
particular Security.

 

Each of the Guarantors hereby agrees that its Guarantee shall remain in
full force and effect notwithstanding any failure to endorse on each Security a
notation of such Guarantee.

 

If an Officer of a Guarantor whose signature is on this Indenture or a
Guarantee no longer holds that office at the time the Trustee authenticates the
Security on which such Guarantee is endorsed or at any time thereafter, such
Guarantor’s Guarantee of such Security shall nevertheless be valid,

 

The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Guarantee set forth in
this Indenture on behalf of each Guarantor.

 

Section 10.03         Limitation on Liability; Termination, Release and Discharge. 
(a) Any term or provision of this Indenture to the contrary
notwithstanding, the obligations of each Guarantor hereunder will be limited to
the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Guarantor (including, without limitation, any
Guarantees under the Credit Agreement) and after giving effect to any
collections from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under its Guarantee or
pursuant to its contribution obligations under this Indenture, result in the
obligations of such Guarantor under its Guarantee not constituting a fraudulent
conveyance or fraudulent transfer under federal or state law and not otherwise
being void or voidable under any similar laws affecting the rights of creditors
generally.

 

67

 

(b)        If the Parent
Guarantor and the Company merge with each other or consolidate together in a
transaction permitted by Article V, then the Parent Guarantee shall
automatically be terminated upon the consummation of such merger or
consolidation and shall no longer have any effect from such time.

 

(c)        The Company
shall not permit any Subsidiary Guarantor to consolidate with or merge with or
into any person (other than another Guarantor) and shall not permit the
conveyance, transfer or lease of substantially all of the assets of any
Subsidiary Guarantor unless:

 

(i)        the resulting, surviving or transferee
Person shall be a corporation, partnership, trust or limited liability company
organized and existing under the laws of the United States of America, any
State of the United States or the District of Columbia and such Person (if not
such Subsidiary Guarantor) shall expressly assume, by supplemental indenture,
executed and delivered to the Trustee, all the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee;

 

(ii)       immediately after giving effect to such
transaction (and treating any Indebtedness that becomes an obligation of the
resulting, surviving or transferee Person or any Subsidiary as a result of such
transaction as having been Incurred by such Person or such Subsidiary at the
time of such transaction), no Default or Event of Default shall have occurred
and be continuing;

 

(iii)      the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental indenture (if any)
comply with this Indenture; or

 

(iv)      the transaction is made in compliance with
Section 5.01 (other than clause (c) of Section 5.01).

 

Upon the sale or disposition of a Subsidiary Guarantor (by merger,
consolidation, the sale of its Capital Stock or the sale of all or
substantially all of its assets (other than by lease)) and whether or not the
Subsidiary Guarantor is the surviving corporation in such transaction to a
Person which is not the Company or a Subsidiary, such Subsidiary Guarantor will
be automatically released from all its obligations under this Indenture and its
Subsidiary Guarantee; provided, however, that (1) no Default or
Event of Default will have occurred or be continuing or would occur as a
consequence of a release of the obligations of such Subsidiary Guarantor; and (2) all
the obligations of such Subsidiary Guarantor under the Credit Agreement and
related documentation and any other obligations of such Subsidiary Guarantor
relating to any other 

 

68

 

Indebtedness of the Company or its
Subsidiaries terminate upon consummation of such transaction.

 

(d)        Each
Subsidiary Guarantor shall be deemed released from all its obligations under
this Indenture and its Subsidiary Guarantee if all the conditions to legal
defeasance set forth in Article VIII hereof are satisfied in accordance
herewith.

 

(e)        Each
Subsidiary Guarantor shall be released from its obligations under this
Indenture and its Subsidiary Guarantee if the Company designates such
Subsidiary Guarantor as an Unrestricted Subsidiary and such designation
complies with the other applicable provisions of this Indenture.

 

Section 10.04         Right of Contribution.  Each Guarantor hereby agrees that
to the extent that any Guarantor shall have paid more than its proportionate
share of any payment made on the obligations under the Guarantees, such
Guarantor shall be entitled to seek and receive contribution from and against the
Company, or any other Guarantor who has not paid its proportionate share of
such payment.  The provisions of this Section 10.04 shall in no
respect limit the obligations and liabilities of each Guarantor to the Trustee
and the Holders and each Guarantor shall remain liable to the Trustee and the
Holders for the full amount guaranteed by such Guarantor hereunder.

 

Section 10.05         No Subrogation.  Notwithstanding any payment or payments
made by each Guarantor hereunder, no Guarantor shall be entitled to be subrogated
to any of the rights of the Trustee or any Holder against the Company or any
other Guarantor or any collateral security or guarantee or right of offset held
by the Trustee or any Holder for the payment of the Guarantor Obligations, nor
shall any Guarantor seek or be entitled to seek any contribution or
reimbursement from the Company or any other Guarantor in respect of payments
made by such Guarantor hereunder, until all amounts owing to the Trustee and
the Holders by the Company on account of the Guarantor Obligations are paid in
full.  If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all of the Guarantor Obligations shall not
have been paid in full, such amount shall be held by such Guarantor in trust
for the Trustee and the Holders, segregated from other funds of such Guarantor,
and shall, forthwith upon receipt by such Guarantor, be turned over to the
Trustee in the exact form received by such Guarantor (duly indorsed by such
Guarantor to the Trustee, if required), to be applied against the Guarantor
Obligations.

 

ARTICLE
XI

 

MISCELLANEOUS

 

Section 11.01         Trust Indenture Act Controls.  If any provision of this
Indenture limits, qualifies or conflicts with another provision that is
required to be included in this Indenture by the TIA, the required provision
shall control.

 

69

 

Section 11.02         Notices.  Any notice or communication shall be in writing
and delivered in person or mailed by first-class mail or sent by facsimile
(with a hard copy delivered in person or by mail promptly thereafter) and
addressed as follows:

 

	
  if
  to the Company:

  
	
   

  
	
  Regal
  Cinemas Corporation

  
	
  c/o
  Regal Entertainment Group

  
	
  7132
  Regal Lane

  
	
  Knoxville,
  Tennessee 37918

  
	
  Attention
  of:

  	
  General
  Counsel

  
	
  Facsimile:

  	
  (865)
  922-6085

  
	
   

  	
   

  
	
  with copies (which shall not constitute notice) to:

  
	
   

  
	
  Hogan & Hartson, LLP

  
	
  One Tabor Center, Suite 1500

  
	
  1200 Seventeenth Street

  
	
  Denver, Colorado 80202

  
	
  Attention of:

  	
  Richard J. Mattera, Esq.

  
	
  Facsimile:

  	
  (303)
  899-7333

  
	
   

  
	
  if
  to the Trustee:

  
	
   

  
	
  U.S. Bank National
  Association

  
	
  Corporate Trust Services

  
	
  60 Livingston Avenue

  
	
  St. Paul, Minnesota
  55107-1419

  
	
  Attention of:

  	
  Corporate Trust
  Administration

  

 

The Company or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or
communications.  Where this Indenture provides for notice in any manner,
such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice.  Waivers of notice by Holders shall be filed
with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

 

Any notice or communication mailed to a Holder shall be mailed to the
Holder at the Holder’s address as it appears on the registration books of the
Registrar and shall be sufficiently given 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.

 

70

 

Section 11.03         Communication 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 or the Securities.  The
Company, the Trustee, the Registrar and anyone else shall have the protection
of TIA Section 312(c).

 

Section 11.04         Certificate and Opinion as to Conditions.  Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:

 

(a)        an Officers’
Certificate in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with; and

 

(b)        an Opinion of
Counsel in form and substance reasonably satisfactory to the Trustee stating
that, in the opinion of such counsel, all such conditions precedent have been
complied with.

 

Section 11.05         Statements Required in Certificate or Opinions.  Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

 

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

 

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

 

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

 

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

 

In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by, the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

 

71

 

Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous.  Any such certificate or Opinion of Counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

 

Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

 

Section 11.06         When Securities Disregarded.  In determining whether the
Holders of the required principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or the Guarantors
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with of them shall be disregarded and deemed
not to be outstanding, except that, for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Securities that a Trust Officer knows are so owned shall be so
disregarded.  Also, subject to the foregoing, only Securities outstanding
at the time shall be considered in any such determination.

 

Section 11.07         Rules by Trustee, Paying Agent and Registrar.  The
Trustee may make reasonable rules for action by or a meeting of
Holders.  The Registrar and the Paying Agent or co-registrar may make
reasonable rules for their functions.

 

Section 11.08         Legal Holidays.  A “Legal Holiday” is a Saturday, a
Sunday or a day on which banking institutions are not required to be open in
the States of New York or Missouri.  If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.  If a regular
record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.09         Governing Law.  THIS INDENTURE, THE SECURITIES AND THE
GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK.

 

Section 11.10         No Recourse Against Others.  A director, officer,
employee or stockholder, as such, of the Company and the Guarantors shall not
have any liability for any obligations of the Company or the Guarantors under
the Securities, the Guarantees or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation.  By
accepting a Security, each Holder shall waive and release all such
liability.  The waiver and release shall be part of the consideration for
the issue of the Securities.

 

72

 

Section 11.11         Successors.  All agreements of the Company any each
Guarantor in this Indenture and the Securities and the Guarantees shall bind
their respective successors.  All agreements of the Trustee in this
Indenture shall bind its successors.

 

Section 11.12         Separability Clause.  In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

Section 11.13         Reliance on Financial Data.  In computing any amounts
under this Indenture: (a) to the extent relevant, the Company shall use
audited financial statements of the Company, its Subsidiaries, any Person that
would become a Subsidiary in connection with the transaction that requires the
computation and any Person from which the Company or a Subsidiary has acquired
an operating business, or is acquiring an operating business in connection with
the transaction that requires the computation (each such Person whose financial
statements are relevant in computing any particular amount, a “Relevant
Person”) for the period or portions of the period to which the computation
relates for which audited financial statements are available on the date of
computation and unaudited financial statements and other current financial data
based on the books and records of the Relevant Person or Relevant Persons, as
the case may be, to the extent audited financial statements for the period or
any portion of the period to which the computation relates are not available on
the date of computation; and (b) the Company shall be permitted to rely in
good faith on the financial statements and other financial data derived from
the books and records of any Relevant Person that are available on the date of
the computation.

 

Section 11.14         Multiple Originals.  The parties may sign any number of
copies of this Indenture.  Each signed copy shall be an original, but all
of them together represent the same agreement.  One signed copy is enough
to prove this Indenture.

 

Section 11.15         Table of Contents; Headings.  The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

 

[signature pages follow]

 

73

 

SIGNATURES

 

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

 

	
   

  	
  ISSUER

  
	
   

  	
   

  
	
   

  	
  REGAL
  CINEMAS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David H. Ownby

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
  A
  3 THEATRES OF SAN ANTONIO, LTD.,

  
	
   

  	
  by
  A3 Theatres of Texas, Inc., its General Partner

  
	
   

  	
  A
  3 THEATRES OF TEXAS, INC.

  
	
   

  	
  CONSOLIDATED
  THEATRES MANAGEMENT, LLC

  
	
   

  	
  EASTGATE
  THEATRE, INC.

  
	
   

  	
  EDWARDS
  THEATRES, INC.

  
	
   

  	
  FREDERICK
  PLAZA CINEMAS, INC.

  
	
   

  	
  HOYTS
  CINEMAS CORPORATION

  
	
   

  	
  INTERSTATE
  THEATRES CORPORATION

  
	
   

  	
  R.C.
  COBB, INC.

  
	
   

  	
  RCI/FSSC,
  LLC

  
	
   

  	
  RCI/RMS,
  LLC

  
	
   

  	
  REGAL
  CINEMAS HOLDINGS, INC.

  
	
   

  	
  REGAL
  CINEMAS, INC.

  
	
   

  	
  REGAL
  CINEMEDIA CORPORATION

  
	
   

  	
  REGAL
  GALLERY PLACE, LLC

  
	
   

  	
  REGAL
  INVESTMENT COMPANY

  
	
   

  	
  RICHMOND
  I CINEMA, LLC

  
	
   

  	
  UA
  SWANSEA, LLC

  
	
   

  	
  UNITED
  ARTISTS PROPERTIES I CORP.

  
	
   

  	
  UNITED
  ARTISTS REALTY COMPANY

  
	
   

  	
  UNITED ARTISTS THEATRE
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David H. Ownby

  
	
   

  	
   

  	
  Title: Executive Vice President, Chief Financial Officer and
  Treasurer or Vice President and Treasurer (as applicable)

  

 

 

	
   

  	
  REGAL
  ENTERTAINMENT GROUP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David H. Ownby

  
	
   

  	
   

  	
  Name:
  David H. Ownby

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRUSTEE

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard Prokosch

  
	
   

  	
   

  	
  Name:
  Richard Prokosch

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

EXHIBIT A

 

PROVISIONS RELATING TO INITIAL

SECURITIES AND EXCHANGE SECURITIES

 

I.  DEFINITIONS

 

For the purposes of this Exhibit A the following terms
shall have the meanings indicated below:

 

“Additional Securities”
means the 8.625% Senior Notes due 2019, to be originally issued from time to
time, excluding Exchange Securities and Private Exchange Securities, in one or
more series as provided for in this Indenture.

 

“Applicable Procedures” 
means, with respect to any transfer or transaction involving a Regulation S
Global Security or beneficial interest therein, the rules and procedures
of the Depository for such Global Security, Euroclear and Clearstream, in each
case to the extent applicable to such transaction and as in effect from time to
time.

 

“Clearstream” means
Clearstream Luxembourg, a société anonyme.

 

“Definitive Security”
means a certificated Initial Security or an Exchange Security or Private
Exchange Security bearing, if required, the restricted securities legend set
forth in Section 2.3(e)(i).

 

“Depository” means The
Depository Trust Company, its nominees and their respective successors.

 

“Distribution Compliance Period,”
with respect to any Securities, means the period of 40 consecutive days
beginning on and including the later of (i) the day on which such
Securities are first offered to persons other than distributors (as defined in
Regulation S under the Securities Act) in reliance on Regulation S, notice of
which day shall be promptly given by the Company to the Trustee and (ii) the
Issue Date, and with respect to any Additional Securities that are Transfer
Restricted Securities, it means the comparable 40 consecutive days.

 

“Euroclear” means
Euroclear Clearance System Plc.

 

A-1

 

“Exchange Securities”
means the 8.625% Senior Notes due 2019, Series B to be issued pursuant to
this Indenture in connection with a Registered Exchange Offer pursuant to the
Registration Rights Agreement.

 

“Global Securities Legend”
means the legend appearing under such title on Appendix 1 to this Exhibit A.

 

“Initial Purchasers” means Credit Suisse Securities (USA) LLC,
Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Banc of America
Securities LLC, and Barclays Capital Inc.

 

“Initial Securities”
means the 8.625% Senior Notes due 2019 in the aggregate principal amount of
$400,000,000 issued on July 15, 2009.

 

“Private Exchange” means
the offer by the Company, pursuant to Section 1 of the Registration
Rights Agreement, dated July 15, 2009, or pursuant to any similar
provision of any other Registration Rights Agreement, to issue and deliver to
certain purchasers, in exchange for the Initial Securities held by such
purchasers as part of their initial distribution, a like aggregate principal
amount of Private Exchange Securities.

 

“Private Exchange Securities”
shall have the meaning set forth in Section 1 of the Registration Rights
Agreement.

 

“Purchase Agreement”
means the Purchase Agreement, dated July 9, 2009, among the Company, the
Guarantors named therein and Credit Suisse Securities (USA) LLC, as
representative of the Initial Purchasers, relating to the Initial Securities,
or any similar agreement relating to any future sale of Additional Securities
by the Company.

 

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

 

“Registered Exchange Offer”
means the offer by the Company, pursuant to a Registration Rights Agreement, to
certain Holders of Initial Securities, to issue and deliver to such Holders, in
exchange for the Initial or Additional Securities, as the case may be, a like
aggregate principal amount of Exchange Securities registered under the
Securities Act.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated July 15, 2009, among the
Company, the Guarantors and Credit Suisse Securities (USA) LLC, as
representative of the Initial Purchasers, relating to the Initial Securities,
or any similar agreement relating to any Additional Securities.

 

A-2

 

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

 

“Regulation S Securities”
means all Initial Securities offered and sold in offshore transactions in
reliance on Regulation S.

 

“Restricted Securities Legend”
means any of the restricted securities legends set forth in Section 2.3(e)(i) herein.

 

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

 

“Rule 144A Securities”
means all Initial Securities offered and sold to QIBs in reliance on Rule 144A.

 

“Securities” means the
Initial Securities, the Additional Securities, the Exchange Securities and the
Private Exchange Securities, treated as a single class.

 

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

 

“Securities Custodian”
means the custodian with respect to a Global Security (as appointed by the
Depository) or any successor person thereto, who shall initially be the
Trustee.

 

“Shelf Registration Statement”
means a registration statement filed by the Company in connection with the
offer and sale of Initial Securities, Additional Securities or Private Exchange
Securities pursuant to a Registration Rights Agreement.

 

“Transfer Restricted Securities”
means Definitive Securities and any other Securities that bear or are required
to bear the legend set forth in Section 2.3(e)(i) hereto.

 

1.1         Other Definitions.

 

	
  Term

  	
   

  	
  Defined
  in Section

  
	
  “Agent
  Members”

  	
   

  	
  2.1(b)

  
	
  “Global
  Security”

  	
   

  	
  2.1(b)

  
	
  “Regulation
  S Global Security”

  	
   

  	
  2.1(b)

  
	
  “Rule 144A
  Global Security”

  	
   

  	
  2.1(b)

  

 

A-3

 

II.  THE SECURITIES

 

2.1  Form and Dating. 
(a)  General.  The Initial Securities and any Additional
Securities will be offered and sold by the Company, from time to time, pursuant
to one or more Purchase Agreements.  Unless registered or exempt from
registration under the Securities Act, the Initial Securities and any
Additional Securities will be resold, initially only to QIBs in reliance on Rule 144A
and to non-U.S. persons in reliance on Regulation S.  Initial Securities
and Additional Securities so issued may thereafter be transferred to, among
others, QIBs and purchasers in reliance on Regulation S, subject to the
restrictions on transfers set forth herein.

 

(b) Global Securities. 
Rule 144A Securities shall be issued initially in the form of one or more
permanent global Securities in definitive, fully registered form (collectively,
the “Rule 144A Global Security”) and Regulation S Securities shall
be issued initially in the form of one or more global Regulation S global Securities
(collectively, the “Regulation S Global Security”), in each case without
interest coupons and bearing the Global Securities Legend and Restricted
Securities Legend, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Securities Custodian, and registered in
the name of the Depository or a nominee of the Depository, duly executed by the
Company and authenticated by the Trustee as provided in this Indenture. 
The Rule 144A Global Security and the Regulation S Global Security are
each referred to herein as a “Global Security” and are collectively
referred to herein as “Global Securities”; provided that the term “Global Security” when used in this Section 2.1(b) and
in Sections 2.1(c), 2.3(g)(i), 2.3(h)(i) and 2.4 shall also include any
Security in global form issued in connection with a Registered Exchange
Offer.  The aggregate principal amount of the Global Securities may from
time to time be increased or decreased by adjustments made on the records of
the Trustee and the Depository or its nominee and on the schedules thereto as
hereinafter provided.

 

(c) Book-Entry Provisions. 
This Section 2.1(c) shall apply only to a Global Security deposited
with or on behalf of the Depository.

 

The Company shall execute and the Trustee shall, in accordance with
this Section 2.1(c) and pursuant to an order of the Company,
authenticate and deliver initially one or more Global Securities that (a) shall
be registered in the name of the Depository for such Global Security or Global
Securities or the nominee of such Depository and (b) shall be delivered by
the Trustee to such Depository or pursuant to such Depository’s instructions or
held by the Trustee as Securities Custodian.

 

Members of, or participants in, the Depository (“Agent Members”)
shall have no rights under this indenture with respect to any Global Security
held on their behalf by the Depository or by the Trustee as Securities
Custodian or under such Global Security, 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 such Global Security for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the 

 

A-4

 

Depository and its Agent Members, the
operation of customary practices of such Depository governing the exercise of
the rights of a holder of a beneficial interest in any Global Security.

 

(d)  Definitive Securities. 
Except as provided in Section 2.3, owners of beneficial interests in
Global Securities shall not be entitled to receive physical delivery of
certificated Securities.

 

2.2  Authentication. 
The Trustee shall authenticate and deliver: (a) Initial Securities for
original issue in an aggregate principal amount of $400,000,000; (b) any
Additional Securities, if and when issued pursuant to the Indenture; and (c) the
Exchange Securities for issue only in a Registered Exchange Offer or the
Private Exchange Securities for issue only in a Private Exchange, respectively,
pursuant to a Registration Rights Agreement, for a like principal amount of
Initial Securities or Additional Securities, in each case upon a written order
of the Company signed by two Officers or by an Officer and either a Treasurer
or an Assistant Treasurer or a Secretary or an Assistant Secretary of the
Company.  Such order shall specify the amount of the Securities to be
authenticated and the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Securities,
Additional Securities, Exchange Securities or Private Exchange Securities.

 

2.3  Transfer and Exchange. 
(a)  Transfer and Exchange of
Definitive Securities.  When Definitive Securities are
presented to the Registrar or a co-registrar with a request:

 

(i) to register the transfer of such Definitive Securities; or

 

(ii) to exchange such Definitive Securities for an equal principal
amount of Definitive Securities of other authorized denominations, the
Registrar or co-registrar shall register the transfer or make the exchange as
requested if its reasonable requirements for such transaction are met; provided,
however, that the Definitive Securities surrendered for transfer or
exchange:

 

(1) shall
be duly endorsed or accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company and the Registrar or co-registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing; and

 

(2) are
being transferred, or exchanged pursuant to an effective registration statement
under the Securities Act or pursuant to clause (A), (B) or (C) below,
and are accompanied by the following additional information and documents, as
applicable:

 

A-5

 

(A) if
such Definitive Securities are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

 

(B) if
such Definitive Securities are being transferred to the Company, a
certification to that effect; or

 

(C) if
such Definitive Securities are being transferred pursuant to an exemption from
registration in accordance with Rule 144 under the Securities Act or
pursuant to or in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904,
(i) a certification to that effect and (ii) if the Company so
requests, an opinion of counsel or other evidence reasonably satisfactory to it
as to the compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

 

(b) Restrictions on Transfer
of a Definitive Security for a Beneficial Interest in a Global Security. 
A Definitive Security may not be exchanged for a beneficial interest in a
Global Security except upon satisfaction of the requirements set forth
below.  Upon receipt by the Trustee of a Definitive Security, duly
endorsed or accompanied by a written instrument of transfer in form reasonably
satisfactory to the Company and the Registrar, together with;

 

(i) certification (in the form set forth on the reverse side of
the Initial Security) that such Definitive Security is being transferred (1) to
a QIB in accordance with Rule 144A or (2) outside the United States
in an offshore transaction within the meaning of Regulation S and in compliance
with Rule 904 under the Securities Act, which certification shall be
accompanied by a signed letter substantially in the form of Exhibit B;
and

 

(ii) written instructions directing the Trustee to make, or to
direct the Securities Custodian to make, an adjustment on its books and records
with respect to such Global Security to reflect an increase in the aggregate
principal amount of the Securities represented by the Global Security, such
instructions to contain information regarding the Depository account to be
credited with such increase, then the Trustee shall cancel such Definitive
Security and cause, or direct the Securities Custodian to cause, in accordance
with the standing instructions and procedures existing between the Depository
and the Securities Custodian, the aggregate principal amount of Securities
represented by the Global Security to be increased by the aggregate principal
amount of the Definitive Security to be exchanged and shall credit or cause to
be credited to the account of the Person specified in such instructions a
beneficial interest in the Global Security equal to the principal amount of the
Definitive Security so canceled.  If no Global Securities are then outstanding
and the Global Security has not been previously exchanged for certificated
securities pursuant to Section 2.4, the Company shall issue and the
Trustee shall authenticate, upon written order of the Company in the form of an
Officers’ Certificate, a new Global Security in the appropriate principal
amount.

 

A-6

 

(c) Transfer and Exchange of
Global Securities.

 

(i) The transfer and exchange of Global Securities or beneficial
interests therein shall be effected through the Depository, in accordance with
this Indenture (including applicable restrictions on transfer set forth herein,
if any) and the procedures of the Depository therefor.  A transferor of a
beneficial interest in a Global Security shall deliver a written order given in
accordance with the Depository’s procedures containing information regarding
the participant account of the Depository to be credited with a beneficial
interest in the Global Security and such account shall be credited in
accordance with such instructions with a beneficial interest in the Global
Security and the account of the Person making the transfer shall be debited by
an amount equal to the beneficial interest in the Global Security being
transferred.  Transfers by an owner of a beneficial interest in the Rule 144A
Global Security to a transferee who takes delivery of such interest through the
Regulation S Global Security, whether before or after the expiration of the
Distribution Compliance Period, shall be made only upon receipt by the Trustee
of a certification in the form provided on the reverse of the Initial
Securities from the transferor to the effect that such transfer is being made
in accordance with Regulation S or (if available) Rule 144 under the
Securities Act or pursuant to and in compliance with the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904
and that, if such transfer is being made prior to the expiration of the
Distribution Compliance Period, the interest transferred shall be held
immediately thereafter through Euroclear or Clearstream.

 

(ii) If the proposed transfer is a transfer of a beneficial
interest in one Global Security to a beneficial interest in another Global
Security, the Registrar shall reflect on its books and records the date and an
increase in the principal amount of the Global Security to which such interest
is being transferred in an amount equal to the principal amount of the interest
to be so transferred, and the Registrar shall reflect on its books and records
the date and a corresponding decrease in the principal amount of Global
Security from which such interest is being transferred.

 

(iii) Notwithstanding any other provisions of this Exhibit A
(other than the provisions set forth in Section 2.4), a Global Security
may not be transferred as a whole except by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.

 

(iv) In the event that a Global Security is exchanged for
Securities in definitive registered form pursuant to Section 2.4 prior to
the consummation of a Registered Exchange Offer or the effectiveness of a Shelf
Registration Statement with respect to such Securities, such Securities may be
exchanged only in accordance with such procedures as are substantially
consistent with the provisions of this Section 2.3 (including the
certification requirements set forth on the reverse of the Initial Securities
or Additional Securities intended to ensure that such transfers comply with Rule 144A,
Regulation S or such other applicable exemption from registration under the
Securities Act, as the case may be) and such other procedures as may from time
to time be adopted by the Company.

 

A-7

 

(d) Restrictions on Transfer
of Regulation S Global Security.  (i)  Prior to the
expiration of the Distribution Compliance Period, interests in the Regulation S
Global Security may only be held through Euroclear or Clearstream.  During
the Distribution Compliance Period, beneficial ownership interests in the
Regulation S Global Security may only be sold, pledged or transferred through
Euroclear or Clearstream in accordance with the Applicable Procedures and only (1) so
long as such security is eligible for resale pursuant to Rule 144A, to a
person whom the selling holder reasonably believes is a QIB that purchases for
its own account or for the account of a QIB to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, (2) in
an offshore transaction in accordance with Regulation S, (3) pursuant to
an exemption from registration under the Securities Act provided by Rule 144
(if applicable) under the Securities Act, or (4) pursuant to an effective
registration statement under the Securities Act, in each case in accordance
with any applicable securities laws of any state of the United States. 
Prior to the expiration of the Distribution Compliance Period, transfers by an
owner of a beneficial interest in the Regulation S Global Security to a
transferee who takes delivery of such interest through the Rule 144A
Global Security shall be made only in accordance with Applicable Procedures and
upon receipt by the Trustee of a written certification from the transferor of
the beneficial interest in the form provided on the reverse of the Initial
Security to the effect that such transfer is being made to a QIB within the meaning
of Rule 144A in a transaction meeting the requirements of Rule 144A. 
Such written certification shall no longer be required after the expiration of
the Distribution Compliance Period.

 

(ii) Upon the expiration of the Distribution Compliance Period,
beneficial ownership interests in the Regulation S Global Security shall be
transferable in accordance with applicable law and the other terms of this
Indenture.

 

(e) Legend.

 

(i) Except as permitted by the following paragraphs (ii), (iii), (iv) and
(v), each certificate evidencing the Global Securities and the Definitive
Securities and the Regulation S Global Security (prior to the expiration of the
Distribution Compliance Period) (and all Securities issued in exchange therefor
or in substitution thereof), shall bear a legend in substantially the following
form:

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF
1933 (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT
THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.

 

A-8

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE
THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904
UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR
(IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE
HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF
THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

Prior to the Distribution Compliance Period, each Regulation S Global
Security will also bear the following additional legend:

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, AND MAY NOT
BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF,
ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE
SECURITIES ACT.

 

Each Definitive Security will also bear the following additional
legend:

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

(ii) Upon any sale or transfer of a, Transfer Restricted Security
(including any Transfer Restricted Security represented by a Global Security)
pursuant to Rule 144 under the Securities Act or pursuant to and in
compliance with an exemption from the registration requirements of the Securities
Act other than Rule 144, Rule 903 or Rule 904:

 

(A) in
the case of any Transfer Restricted Security that is a Definitive Security, the
Registrar shall permit the Holder thereof to exchange such 

 

A-9

 

Transfer Restricted Security for a Definitive Security that does not
bear the legends set forth above and rescind any restriction on the transfer of
such Transfer Restricted Security; and

 

(B) in
the case of any Transfer Restricted Security that is represented by a Global
Security, the Registrar shall permit the beneficial owner thereof to exchange
such Transfer Restricted Security for a beneficial interest in a Global
Security that does not bear the legends set forth above and rescind any
restriction on the transfer of such Transfer Restricted Security, in either
case, if the Holder certifies in writing to the Registrar that its request for
such exchange was made in reliance on Rule 144 or in reliance on an
exemption from the registration requirements of the Securities Act other than Rule 144,
Rule 903 or Rule 904 (such certification to be in the form set forth
on the reverse of the Initial Security).

 

(iii) After a transfer of any Initial Securities, Additional
Securities or Private Exchange Securities, as the case may be, during the
period of the effectiveness of a Shelf Registration Statement with respect to
such Initial Securities, Additional Securities or Private Exchange Securities,
all requirements pertaining to restricted legends on such Initial Security or
such Private Exchange Securities will cease to apply, and a global Initial
Security or Private Exchange Security without restricted legends will be
available to the transferee of the beneficial interests in such Initial
Securities, Additional Securities or Private Exchange Securities.  Upon
the occurrence of any of the circumstances described in this paragraph, the
Company will deliver an Officers’ Certificate to the Trustee instructing the
Trustee to issue Securities without legends.

 

(iv) Upon the consummation of a Registered Exchange Offer with
respect to the Initial Securities or Additional Securities pursuant to which
certain Holders of such Initial Securities or Additional Securities are offered
Exchange Securities in exchange for their Initial Securities or Additional
Securities, Exchange Securities in global form without restrictive legends will
be available to Holders or beneficial owners that exchange such Initial
Securities or Additional Securities (or beneficial interests therein) in such Registered
Exchange Offer.  Upon the occurrence of any of the circumstances described
in this paragraph, the Company will deliver an Officers’ Certificate to the
Trustee instructing the Trustee to issue Securities without restricted legends.

 

(v) Upon the consummation of a Private Exchange with respect to
the Initial Securities or Additional Securities pursuant to which Holders of
such Initial Securities or Additional Securities are offered Private Exchange
Securities in exchange for their Initial Securities or Additional Securities,
as the case may be, all requirements pertaining to such Initial Securities that
Initial Securities issued to certain Holders be issued in global form will
continue to apply, and Private Exchange Securities in global form with, to the
extent required by applicable law, the Restricted Securities Legend set forth
in Appendix I hereto will be available to Holders that exchange such
Initial Securities or Additional Securities in such Private Exchange.

 

A-10

 

(vi) Upon a sale or transfer after the expiration of the
Distribution Compliance Period of any Initial Security acquired pursuant to
Regulation S, all requirements that such Initial Security bear any Restricted
Securities Legend shall cease to apply and the requirements requiring any such
Initial Security be issued in global form shall continue to apply.

 

(f) Cancellation or
Adjustment of Global Security.  At such time as all
beneficial interests in a Global Security have either been exchanged for
certificated or Definitive Securities, redeemed, repurchased or canceled, such
Global Security shall be returned by the Depository to the Trustee for
cancellation or retained and canceled by the Trustee.  At any time prior
to such cancellation, if any beneficial interest in a Global Security is
exchanged for certificated or Definitive Securities, redeemed, repurchased or
canceled, the principal amount of Securities represented by such Global
Security shall be reduced and an adjustment shall be made on the books and
records of the Trustee (if it is then the Securities Custodian for such
Global  Security) with respect to such Global Security, by the Trustee or
the Securities Custodian, to reflect such reduction.

 

(g) Obligations with Respect
to Transfers and Exchanges of Securities.

 

(i) To permit registrations of transfers and exchanges, the
Company shall execute and the Trustee shall authenticate certificated
Securities, Definitive Securities and Global Securities at the Registrar’s or
co-registrar’s request.

 

(ii) 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, assessments, or similar governmental
charge payable in connection therewith (other than any such transfer taxes,
assessments or similar governmental charge payable upon exchange or
registration of transfer pursuant to Sections 3.06, 4.11 and 9.05 of this
Indenture).

 

(iii) The Registrar or co-registrar shall not be required to
register the transfer of or exchange of any Security for a period beginning 15
days before the mailing of a notice of redemption or an offer to repurchase
Securities or 15 days before an interest payment date.

 

(iv) Prior to the due presentation for registration of transfer of
any Security, the Company, the Trustee, the Paying Agent, the Registrar or any
co-registrar may deem and treat the person in whose name a Security is
registered as the absolute owner of such Security for the purpose of receiving
payment of principal of and interest on such Security and for all other
purposes whatsoever, whether or not such Security is overdue, and none of the
Company, the Trustee, the Paying Agent, the Registrar or any co-registrar shall
be affected by notice to the contrary.

 

A-11

 

(v) All Securities issued upon any registration of transfer or
exchange pursuant to the terms of this Indenture shall evidence the same debt
and shall be entitled to the same benefits under this Indenture as the
Securities surrendered upon such registration of transfer or exchange.

 

(h) No Obligation of the
Trustee.

 

(i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Security, a member of, or a participant in the
Depository or any other Person with respect to the accuracy of the records of
the Depository or its nominee or of any participant or member thereof, with
respect to any ownership interest in the Securities or with respect to the delivery
to any participant, member, beneficial owner or other Person (other than the
Depository) of any notice (including any notice of redemption or repurchase) or
the payment of any amount, under or with respect to such Securities.  All
notices and communications to be given to the Holders and all payments to be
made to Holders under the Securities shall be given or made only to the
registered Holders (which shall be the Depository or its nominee in the case of
a Global Security).  The rights of beneficial owners in any Global
Security shall be exercised only through the Depository subject to the
applicable rules and procedures of the Depository.  The Trustee may
rely and shall be fully protected in relying upon information furnished by the
Depository with respect to its members, participants and any beneficial owners.

 

(ii) 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
Depository participants, members or beneficial owners in any Global Security)
other than to require delivery of such certificates and other documentation or evidence
as are expressly required by, and to do so if and when expressly required by,
the terms of this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.

 

2.4 Certificated Securities.

 

(a) Any Global Security deposited with the Depository or with the
Trustee as Securities Custodian pursuant to Section 2.1(b) shall be
transferred to the beneficial owners thereof in the form of certificated
Securities in an aggregate principal amount equal to the principal amount of
such Global Security, in exchange for such Global Security, only if (i) the
Depository notifies the Company that it is unwilling or unable to continue as a
Depository for such Global Security or if at any time the Depository ceases to
be a “clearing agency” registered under the Exchange Act, and a successor
depositary is not appointed by the Company within 90 days of such notice, or (ii) a
Default or an Event of Default has occurred and is continuing under the
Indenture or (iii) the Company, in its sole discretion, notifies the
Trustee in writing that it elects to cause the issuance of certificated
Securities under this Indenture.

 

A-12

 

(b) Any Global Security that is transferable to the beneficial
owners thereof pursuant to this Section 2.4 shall be surrendered by the
Depository to the Trustee located in the Borough of Manhattan, The City of New
York, to be so transferred, in whole or from time to time in part, without
charge (although the Company may require payment of a sum sufficient to cover
any tax or governmental charge imposed in connection therewith), and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Security, an equal aggregate principal amount of certificated
Securities of authorized denominations.  Certificated Securities issued in
exchange for any portion of a Global Security transferred pursuant to this Section shall
be executed, authenticated and delivered only in denominations of $2,000 and
any integral multiple of $1,000 in excess thereof and registered in such names
as the Depository shall direct.  Any certificated Initial Security
delivered in exchange for an interest in the Global Security shall, except as
otherwise provided by Section 2.3(c), bear the restricted securities
legend set forth in Appendix I hereto.

 

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

 

(d) In the event of the occurrence of any of the events specified
in Section 2.4(a)(i), (ii) or (iii), the Company will promptly make
available to the Trustee a reasonable supply of certificated Securities in
definitive, fully registered form without interest coupons.

 

A-13

 

APPENDIX I

To EXHIBIT A

 

[FORM OF FACE OF INITIAL SECURITY]

 

8.625% Senior Notes due 2019

 

	
  [No.]

  	
   

  	
  CUSIP

  No.

  
	
   

  	
   

  	
  ISIN

  

 

REGAL CINEMAS CORPORATION, a Delaware corporation, promises to pay to
Cede & Co., or registered assigns, the principal sum of
                       
Dollars (         ) on July 15,
2019.

 

Interest Payment Dates: January 15 and July 15, commencing January 15,
2010.

 

Record Dates: January 1 and July 1.

 

A-14

 

IN WITNESS WHEREOF, the parties have caused this instrument to be duly
executed as of the          day of                         ,
2009.

 

	
   

  	
  REGAL CINEMAS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  TRUSTEE’S CERTIFICATE OF AUTHENTICATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  U.S. Bank National Association as Trustee, certifies that

  this is one of the Securities referred to in the Indenture.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  

 

 

Additional provisions of this Security are set forth
on the other side of this Security.

 

A-15

 

[FORM OF REVERSE SIDE OF INITIAL SECURITY]

 

8.625% Senior Notes due 2019

 

[Global Securities Legend]

 

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

 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE.

 

[Transfer Restricted Securities Legend]

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT
OF 1933 (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY
NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.

 

THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN
THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A 

 

A-16

 

TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH
(IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

[Regulation S Legend]

 

THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT, AND MAY NOT
BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF,
ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE
SECURITIES ACT.

 

[Definitive Securities Legend]

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE
REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH
TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER
COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

1.  Interest. (a)  Regal Cinemas Corporation, a Delaware
corporation (the “Company”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.  The Company will pay
interest semiannually, in arrears, on January 15 and July 15 of each
year, commencing January 15, 2010, in immediately available funds. 
Interest on the Securities will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
issuance.  Interest shall be computed on the basis of a 360-day year of
twelve 30-day months.  The Company shall pay interest on overdue principal
at the rate borne by the Securities plus 1% per annum, and it shall pay
interest on overdue installments of interest at the rate borne by the
Securities to the extent lawful.

 

(b)  [Additional Interest.  The holder of
this Security is entitled to the benefits of a Registration Rights Agreement,
dated as of July 15, 2009, among the Company, the Guarantors party thereto
and Credit Suisse Securities (USA) LLC, as representative of the Initial
Purchasers 

 

A-17

 

named therein relating to the Initial
Securities (the “Registration Rights Agreement”).  The Additional
Interest (as defined in the Registration Rights Agreement), if any, will be
payable in cash semiannually in arrears each January 15 and July 15,
in immediately available funds.](1)

 

2.  Method of
Payment

 

The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the January 1 or July 1 next preceding the interest
payment date even if Securities are canceled after the record date and on or
before the interest payment date.  Holders must surrender Securities to a
Paying Agent to collect principal payments.  The Company will pay
principal and interest in money of the United States of America that at the
time of payment is legal tender for payment of public and private debts. 
Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of
immediately available funds to the accounts specified by The Depository Trust
Company.  The Company will make all payments in respect of a certificated
Security (including principal, premium and interest) by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on the Securities
may also be made, in the case of a Holder of at least $1,000,000 aggregate
principal amount of Securities, by wire transfer to a U.S. dollar account
maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account no later than 30 days immediately
preceding the relevant due date for payment (or such other date as the Trustee
may accept in its discretion).

 

3.  Paying Agent
and Registrar

 

Initially, U.S. Bank National Association (the “Trustee”), will
act as Paying Agent and Registrar.  The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice.  The Company or
any of its domestic Wholly Owned Subsidiaries may act as Paying Agent,
Registrar or co-registrar.

 

4.  Indenture

 

The Company issued the Securities under an Indenture dated as of July 15,
2009 (the “Indenture”), among the Company, the Guarantors party thereto
from time to time and the Trustee.  The terms of the Securities include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. 77aaa-77bbbb) as in effect on the
date of the Indenture (the “TIA”).  Terms defined in the Indenture
and not defined 

 

(1)           Section 1(b) to
be included only in Initial Securities.

 

A-18

 

herein have the meanings ascribed thereto in
the Indenture.  The Securities are subject to all such terms, and Holders
are referred to the Indenture and the TIA for a statement of those terms.

 

The Securities are senior unsecured obligations of the Company and can
be issued in an initial amount of up to $400,000,000 and additional amounts as
part of the same series or new series under the Indenture which are unlimited
(subject to Sections 2.01 and 2.10 of the Indenture).  The Indenture
imposes certain limitations on the ability of the Company and its Subsidiaries
to, among other things, incur additional indebtedness, pay dividends or make
distributions in respect of their capital stock, purchase or redeem capital
stock, enter into transactions with stockholders or certain affiliates, create
liens or consolidate, merge or sell all or substantially all of the Company’s
assets, other than in certain transactions between the Company and one or more
of its Wholly Owned Subsidiaries.  These limitations are subject to
significant exceptions.

 

5.  Optional
Redemption

 

(a)  Except as set forth below, the Securities may not be redeemed
prior to July 15, 2014.

 

(b)  At any
time prior to July 15, 2014, the Company may redeem the Securities in whole at any
time or in part from time to time at a redemption price equal to 100% of the principal
amount of the Securities redeemed plus the Applicable Premium as of, and
accrued and unpaid interest and Additional Interest, if any, to the redemption
date (subject to the rights of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date that is on or prior
to the date of redemption).

 

(c)  At any time on or after July 15, 2014, the Company may
redeem the Securities in whole at any time or in part from time to time at the
following redemption prices (expressed in percentages of principal amount),
plus accrued and unpaid interest and Additional Interest, if any, to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date that
is on or prior to the date of redemption), if redeemed during the 12-month
period beginning on or after July 15 of the years set forth below:

 

	
  Period

  	
   

  	
  Redemption Price

  	
   

  
	
  2014

  	
   

  	
  104.313

  	
  %

  
	
  2015

  	
   

  	
  102.875

  	
  %

  
	
  2016

  	
   

  	
  101.438

  	
  %

  
	
  2017 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(d)  At any time prior to July 15, 2012, the Company may on
any one or more occasions redeem up to 35% of the original aggregate principal
amount of the Securities with the Net Cash Proceeds of one or more Equity
Offerings at a redemption price of 108.625% of the 

 

A-19

 

principal amount thereof, plus accrued and
unpaid interest and Additional Interest, if any, to the redemption date
(subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date); provided that

 

(1) 
at least 65% of the original aggregate principal amount of the Securities
remains outstanding after each such redemption; and

 

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

 

6.  Mandatory Redemption

 

The Company will not be required to make mandatory redemption or
sinking fund payments with respect to the Securities.

 

7.  Notice of
Redemption

 

Notice of redemption will be mailed by first class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Securities to be redeemed at its registered address.  Securities in
denominations larger than $2,000 may be redeemed in part but only in whole
multiples of $1,000.  If money sufficient to pay the redemption price of
and accrued interest on all Securities (or portions thereof) to be redeemed on
the redemption date is deposited with the Paying Agent on or before the
redemption date and certain other conditions are satisfied, on and after such
date interest ceases to accrue on such Securities (or such portions thereof)
called for redemption.

 

8.  Repurchase
of Securities at the Option of Holders upon Change of Control

 

Upon a Change of Control, the Company will be required to make an
offer, subject to certain conditions specified in the Indenture, to repurchase
all the Securities of each Holder at a purchase price equal to 101% of the
principal amount of Securities to be repurchased plus accrued and unpaid
interest and Additional Interest, if any, to the date of purchase (subject to
the right of Holders of record on the relevant record date to receive interest
due on the interest payment date that is on or prior to the date of purchase)
as provided in, and subject to the terms of, the Indenture.

 

A-20

 

9.  Denominations;
Transfer; Exchange

 

The Securities are in registered form without coupons in denominations
of $2,000 and whole multiples of $1,000 in excess thereof.  A Holder may
transfer or exchange Securities in accordance with the Indenture.  Upon
any transfer or exchange, the Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes required by law or permitted by the Indenture.  The
Registrar need not register the transfer of or exchange any Securities selected
for redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) or to transfer or exchange any
Securities for a period of 15 days prior to a selection of Securities to be
redeemed or 15 days before an interest payment date.

 

10.  Persons
Deemed Owners

 

The registered Holder of this Security may be treated as the owner of
it for all purposes.

 

11.  Unclaimed
Money

 

If money for the payment of principal, premium or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back
to the Company at its written request unless an abandoned property law
designates another Person.  After any such payment, Holders entitled to
the money must look only to the Company and not to the Trustee for payment.

 

12.  Discharge
and Defeasance

 

Subject to certain conditions set forth in the Indenture, the Company
at any time may terminate some of or all its obligations under the Securities
and the Indenture if the Company deposits with the Trustee money or Government
Securities for the payment of principal and interest on the Securities to
redemption or maturity, as the case may be.

 

13.  Amendment,
Waiver

 

Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the Securities may be amended without notice to any Holder but
with the written consent of the Holders of at least a majority in aggregate
principal amount of the outstanding Securities and (ii) any default or
noncompliance with any provision may be waived with the written consent of 

 

A-21

 

the Holders of at least a majority in
aggregate principal amount of the outstanding Securities.  Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder of Securities, the Company and the Trustee may amend the Indenture or
the Securities: (i) to cure any ambiguity, omission, defect or
inconsistency; (ii) to comply with Article V of the Indenture; (iii) to
provide for uncertificated Securities in addition to or in place of
certificated Securities; (iv) to add additional Guarantees with respect to
the Securities; (v) to secure the Securities; (vi) to add additional
covenants of the Company or to surrender rights and powers conferred on the
Company; (vii) to make any change that does not adversely affect the rights
of any Holder; or (viii) to comply with the requirements of the SEC in
order to effect or maintain the qualification of the Indenture under the TIA.

 

14.  Defaults and
Remedies

 

If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of the Securities then
outstanding, subject to certain limitations, may declare all the Securities to
be immediately due and payable.  Certain events of bankruptcy or
insolvency are Events of Default and shall result in the Securities being
immediately due and payable upon the occurrence of such Events of Default
without any further act of the Trustee or any Holder.

 

Holders of Securities may not enforce the Indenture or the Securities
except as provided in the Indenture.  The Trustee may refuse to enforce
the Indenture or the Securities unless it receives reasonable indemnity or
security.  Subject to certain limitations, Holders of a majority in
aggregate principal amount of the Securities then outstanding may direct the
Trustee in its exercise of any trust or power under the Indenture.  The
Holders of a majority in aggregate principal amount of the Securities then
outstanding, by written notice to the Company and the Trustee, may rescind any
declaration of acceleration and its consequences if the rescission would not
conflict with any judgment or decree, and if all existing Events of Default
have been cured or waived except non-payment of principal or interest that has
become due solely because of the acceleration.

 

15.  Trustee
Dealings with the Company

 

Subject to certain limitations imposed by the TIA, the Trustee under
the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.

 

A-22

 

16.  No Recourse
Against Others

 

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

 

17.  Authentication

 

This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.

 

18.  Abbreviations

 

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

 

19.  Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 

20.  ISINs and
CUSIP Numbers

 

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

 

A-23

 

A Holder of Securities may upon written request and without charge to
the Holder receive a copy of the Indenture which has in it the text of this
Security.  Requests may be made to:

 

Regal
Cinemas Corporation

c/o
Regal Entertainment Group

7132
Regal Lane

Knoxville,
Tennessee 37918

Attention:
General Counsel

(865)
922-1123

 

A-24

 

ASSIGNMENT FORM

 

	
  To assign this Security, fill in the form below: I or we assign and
  transfer this Security to

  
	
   

  
	
   

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

  
	
   

  
	
   

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

  

 

and irrevocably appoint
                                agent
to transfer this Security on the books of the Company.  The agent may
substitute another to act for him.

 

	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Your Signature:

  	
   

  	
   

  
				

 

Sign exactly as your name appears on the other side
of this Security.

 

In connection with any transfer of any of the Securities evidenced by
this certificate occurring while the Securities are Transfer Restricted
Securities after the later of the date of original issuance of such Securities
and the last date, if any, on which such Securities were owned by the Company
or any Affiliate of the Company, the undersigned confirms that such Securities
are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

o      
(1) pursuant to an effective registration statement under the Securities
Act of 1933; or

 

o      
(2) to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933) that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that such
transfer is being made in reliance on Rule 144A, in each case pursuant to
and in compliance with Rule 144A under the Securities Act of 1933; or

 

A-25

 

o      
(3) outside the United States in an offshore transaction within the
meaning of Regulation S under the Securities Act of 1933 in compliance with Rule 904
under the Securities Act of 1933; or

 

o      
(4) pursuant to another available exemption from registration provided by Rule 144
under the Securities Act of 1933; or

 

o      
(5) (i) pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act of 1933 other than Rule 144,
Rule 903 or Rule 904 and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
State in the United States and (ii) the restrictions on transfer contained
in the Indenture and the Restricted Securities Legend are not required in order
to maintain compliance with the Securities Act.

 

Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any person
other than the registered holder thereof; provided, however, that if boxes (4) or (5) are
checked, the Trustee may require, prior to registering any such transfer of the
Securities, such legal opinions, certifications and other information as the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933.

 

	
  Date:

  	
   

  	
   

  	
  Your

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
  Signature

  	
   

  	
   

  
	
  Guarantee:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

A-26

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
SECURITY

 

The initial principal amount of this Global Security is
$        .  The following
increases or decreases in this Global Security have been made:

 

	
  Date
  of

  Exchange

  	
   

  	
  Amount of

  decrease

  in Principal

  Amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Principal

  amount

  of this Global

  Security

  following such

  decrease or

  increase

  	
   

  	
  Signature of

  authorized

  signatory

  of Trustee or

  Securities

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-27

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased by the Company
pursuant to Section 4.11 (Change of Control) of the Indenture, check the
box:  o

 

If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.11 of the Indenture, state the amount:

	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Your

  	
   

  
	
   

  	
   

  	
   

  	
  Signature

  	
   

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

  
	
  Signature

  	
   

  	
   

  
	
  Guarantee:

  	
   

  	
   

  	
   

  
						

 

Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS
CHECKED.

 

The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended, 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 the undersigned 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 the undersigned’s foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:

  

 

A-28

 

EXHIBIT B

 

Form of Certificate To Be Delivered

in Connection with Transfers

Pursuant to Regulation S

 

U.S. Bank National Association

Corporate Trust Services

60 Livingston Avenue

St. Paul, Minnesota, 55107-1419

Attention:
[                   ]

 

	
  Re:

  	
  Regal
  Cinemas Corporation (the “Company”)

  
	
   

  	
  8.625% Senior Notes due
  2019 (the “Securities”)

  

 

Ladies and Gentlemen:

 

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

 

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

 

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

 

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

 

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

 

(5)  we have advised the transferee of the transfer restrictions
applicable to the Securities.

 

B-29

 

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

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name
  of Transferor]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Authorized Signature

  

 

B-30

 

EXHIBIT C

 

GUARANTEE

 

Each of the undersigned (the “Guarantors”) hereby jointly and
severally unconditionally guarantees, to the extent set forth in the Indenture
dated as of July 15, 2009 by and among Regal Cinemas Corporation, a
Delaware corporation, as issuer (the “Company”), the Guarantors party
thereto and U.S. Bank National Association as Trustee (as amended, restated or
supplemented from time to  time, the “Indenture”), and subject to
the provisions of the Indenture, (a) the due and punctual  payment of
the principal of, and premium, if any, and interest (including Additional
Interest, if any) on the Securities, when and as the same shall become due and
payable, whether at maturity, by acceleration or otherwise, the due and
punctual payment of interest on overdue principal of, and premium and, to the
extent permitted by law, interest (including any Additional Interest, if any),
and the due and punctual performance of all other obligations of the Company to
the Holders or the Trustee, all in accordance with the terms set forth in Article X
of the Indenture, and (b) in case of any extension of time of payment or
renewal of any Securities or any of such other obligations, that the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or
otherwise.

 

The obligations of the Guarantors to the Holders and to the Trustee
pursuant to this Guarantee and the Indenture are expressly set forth in Article X
of the Indenture, and reference is hereby made to the Indenture for the precise
terms and limitations of this Guarantee.  This Guarantee is subject to
release as and to the extent set forth in Sections 8.01, 8.02 and 10.03 of the
Indenture.  Each Holder of the Security to which this Guarantee is
endorsed, by accepting such Security, agrees to and shall be bound by such
provisions.  Capitalized terms used herein and not defined are used herein
as so defined in the Indenture.

 

[signatures pages follow]

 

C-31

 

IN WITNESS WHEREOF, each of the Guarantors has caused this Guarantee to
be signed by a duly executed officer.

 

	
   

  	
  [GUARANTOR],

  
	
   

  	
  as
  a Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

C-32

 

EXHIBIT D

 

FORM OF SUPPLEMENTAL INDENTURE TO ADD
GUARANTORS

 

This Supplemental Indenture, dated as of
[              
      ], 20      
(this “Supplemental Indenture” or “Guarantee”), among [name of future Guarantor] (the “Subsidiary
Guarantor”), Regal Cinemas Corporation (together with its successors and
assigns, the “Company”), each other then existing Guarantor under the
Indenture referred to below, and U.S. Bank National Association, as Trustee
under the Indenture referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the Company, the Guarantors and the Trustee have heretofore
executed and delivered an Indenture, dated as of July 15, 2009 (as
amended, supplemented, waived or otherwise modified, the “Indenture”),
providing for the issuance of 8.625% Senior Notes due 2019 of the Company (the
“Securities”);

 

WHEREAS, Section 4.10 of the Indenture provides that the Company
is required to cause each Subsidiary that Guarantees obligations under the
Credit Agreement or any other Indebtedness of the Company or any Guarantor to
execute and deliver to the Trustee a supplemental indenture pursuant to which
such Subsidiary will unconditionally Guarantee, on a joint and several basis,
the full and prompt payment of the principal of, premium, if any, and interest
on the Securities on a senior unsecured basis; and

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee, the
Company and the Guarantors are authorized to execute and deliver this
Supplemental Indenture to amend or supplement the Indenture, without the
consent of any Holder;

 

NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which is hereby acknowledged, the
Subsidiary Guarantor, the Company, the other Guarantors and the Trustee
mutually covenant and agree for the equal and ratable benefit of the Holders of
the Securities as follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.1 Defined Terms.  As used in this
Supplemental Indenture, terms defined in the Indenture or in the preamble or
recital hereto are used herein as therein defined,

 

D-33

 

except that the term “Holders” in this
Guarantee shall refer to the term “Holders” as defined in the Indenture
and the Trustee acting on behalf or for the benefit of such Holders.  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

 

Agreement to be Bound; Guarantee

 

SECTION 2.1 Agreement to be Bound.  The Subsidiary
Guarantor hereby becomes a party to the Indenture as a Subsidiary Guarantor and
as such will have all of the rights and be subject to all of the obligations
and agreements of a Subsidiary Guarantor under the Indenture.  The
Subsidiary Guarantor agrees to be bound by all of the provisions of the Indenture
applicable to a Subsidiary Guarantor and to perform all of the obligations and
agreements of a Subsidiary Guarantor under the Indenture.

 

SECTION 2.2 Guarantee.  The Subsidiary Guarantor
agrees, on a joint and several basis with all the existing Guarantors, to
fully, unconditionally and irrevocably Guarantee to each Holder of the
Securities and the Trustee the Guarantor Obligations pursuant to Article X
of the Indenture on a senior basis.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.1 Notices.  All notices and other
communications to the Subsidiary Guarantor shall be given as provided in the
Indenture to the Subsidiary Guarantor, at its address set forth below, with a
copy to the Company as provided in the Indenture for notices to the Company.

 

SECTION 3.2 Parties.  Nothing expressed or mentioned
herein is intended or shall be construed to give any Person, firm or
corporation, other than the Holders and the Trustee, any legal or equitable
right, remedy or claim under or in respect of this Supplemental  indenture
or the Indenture or any provision herein or therein contained.

 

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.

 

D-34

 

SECTION 3.4 Ratification of Indenture; Supplemental Indentures Part of
Indenture.  Except as expressly amended hereby, the Indenture is in
all respects ratified and confirmed and all the terms, conditions and
provisions thereof shall remain in full force and effect.  This
Supplemental Indenture shall form a part of the Indenture for all purposes, and
every Holder of Securities heretofore or hereafter authenticated and delivered
shall be bound hereby.

 

SECTION 3.5 Trustee not Responsible.  The Trustee shall
not be responsible in any manner whatsoever for or in respect of the validity
or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which are made solely by the Company and the
Guarantors.

 

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.

 

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

 

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

 

	
   

  	
  [GUARANTOR],

  
	
   

  	
  as
  a Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  [Address]

  
	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  

 

D-35

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