Document:

Exhibit 10.10†

 

DISTRIBUTOR SERVICE
AGREEMENT

 

THIS
DISTRIBUTOR SERVICE AGREEMENT, effective as of 15th Day of
September, 2002 (“Effective Date”) by and between DavCo Restaurants, Inc., a
Delaware corporation (“Company”); and MAINES PAPER & FOOD SERVICE, INC., a
New York corporation (“Distributor”).

 

WHEREAS,
Distributor is a wholesale distribution company providing purchasing,
marketing, warehousing, delivery and related services (“Distribution Services”)
of food, paper products and equipment along with such other items as may be
utilized in a restaurant (“Products”) to commercial customers, including
restaurant chains; and

 

WHEREAS,
Company has a chain of restaurants, owned and/or franchised, encompassing one
or more restaurant concepts (“Restaurants”) requiring the procurement of food
and related products; and

 

WHEREAS,
Company and Distributor desire to enter into Distributor Service Agreement
(“Agreement”) for the sale by Distributor and the purchase by Company, of
Products, which results in shared benefits, rewards and risks in a positively
managed business environment, designating Distributor as an exclusive
Distributor authorized to provide Distribution Services to the Company’s
Restaurants in the Territory.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Company and Distributor hereby agree as follows:

 

1.                                      Designation
of Exclusive Distributor

 

1.1                                 Company
designates Distributor as its exclusive Distributor of Products to Restaurants
in the geographic territory identified in Exhibit 1.26 (“Territory”) and
Company shall not designate or allow another distributor within the Territory
or authorize or permit any other distributor of Products to solicit or accept
orders from Restaurants located within the Territory.

 

1.2                                 Subject
to Distributor’s normal credit policies and standard rules and regulations
established by Distributor, a copy of which is attached as Exhibit 1.2,
Distributor shall accept orders to purchase Products, from any Restaurant in
the Territory.

 

1.3                                 Company
shall cause each Restaurant in the Territory to order from Distributor not less
than one hundred percent (100%) of all Products required in the operation of
the Restaurant, which the Distributor maintains in inventory.

 

2.                                      Service
Obligations of Distributor

 

2.1                                 Products
covered by this Agreement are listed in Exhibit 2.1.

 

2.2                                 Account
Review

 

†Marked portions
of the exhibit have been omitted based upon a request for confidential
treatment. The omitted material has been filed with the Securities and Exchange
Commission.

 

 

 

2.2.1                        Account
Executive.  Distributor will assign
an Account Executive to service Company’s accounts.  The Account Executive will maintain contact with Company’s
designated representatives on an as needed basis, but no less than monthly, to
review service requirements, new products, marketing concepts and other
matters.

 

2.2.2                        Business
Review.  Distributor shall conduct
quarterly reviews with Company for the first year of the Agreement and
semi-annually thereafter.  At such time,
the Product list, Territory, additional Restaurants and other executive
business issues will be reviewed.

 

2.3                                 Delivery
Parameters

 

2.3.1                        Three
Deliveries Per Week.  Each
Restaurant will be serviced by Distributor with three deliveries per week in
accordance with the current routing schedule. 
To the extent possible, Distributor shall assign one driver, provided,
however, that Distributor reserves the right to reassign drivers, substitute
drivers or make such other changes as it deems necessary in the best interest
of its business and the Company.

 

2

 

2.3.2                        Delivery
Windows.  Key drop schedules will be
developed for the Restaurants.  Delivery
windows are 225 hours with a black-out period from 11:15 a.m. to 1:45 p.m.
seven (7) days per week.

 

2.3.3                        Delivery
Schedule Changes.  Distributor may
re-route within the first 180 days and quarterly thereafter.

 

2.3.4                        Looks,
Keys and Alarms.  Lock, key and
alarm changes will be communicated and key provided via overnight delivery at
Company’s expense to Distributor at least forty-eight (48) hours prior to time
of dispatch as provided in the current routing schedule.

 

2.4                                 Performance
Standards

 

2.4.1                        Delivery
Order Fill Rate.  An Aggregate
Delivery Order Fill mate of 99.70% shall be deemed as acceptable.  An Aggregate Delivery Order Fill Rate of
less than 99.70% shall be deemed unacceptable. 
Aggregate Deliver Order Fill Rate shall be defined as a measure of the
completeness of orders delivered to all Restaurants as a percentage of the
orders that were placed for those deliveries. 
Cases delivered will exclude mispicks,

 

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damaged cases, out of code cases, shorted items,
overlooked and returned items.

 

2.4.2                        On-Time
Delivery Rate.  An On-Time aggregate
percentage of 90% on key drop deliveries and 70% on attended deliveries shall
be deemed as acceptable.  On Time
Delivery Rate shall be defined as the delivery process beginning at one hour
after restaurant closes to 6:30 a.m. for key drop deliveries and + one-hour
/minus one-half-hour for attended deliveries from the time set for the expected
delivery as a percentage of the total number of deliveries made by the
Distributor.

 

2.4.3                        If the
Company at any time determines that Distributor does not perform in accordance
with the standards set forth herein, Company must notify Distributor of said
non-performance.  Said notice shall be
in written form and contain the specific nonperformance issue with proof
thereof regarding Distributor’s nonperformance.  Distributor shall have ninety (90) days from receipt of said
notice to remedy the non-performance issue.

 

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3.                                      Inventory
and Order Placement

 

3.1                                 Electronic
Order Entry.  Orders will be
remitted electronically.  Orders will be
placed via Distributor’s online order entry system.  All orders will be transmitted 24 flours prior to scheduled
departure.

 

3.1.1                        Fax and
phone-in orders will be taken for the [*]. 
Thereafter, the fee will be $[*] per case for phone and fax orders.

 

3.1.2                        Distributor
will offer $[*] upon execution of this agreement for the purchase of computer
equipment.  The $[*] will be issued as a
credit against Company’s accounts receivable.

 

3.1.3                        Special
orders.  A fee of $[*] or the actual
expense to market the special delivery, whichever is greater, will be added to
the invoice.  Actual cost is defined as
administrative and warehouse costs plus $[*] per mile for all out of route
miles.  The fee will be effective once a
pattern of special ordering is established. 
If, a special order is the result of a Distributor error, the costs
associated with such special order will be the responsibility of Distributor.

 

5

 

3.2                                 Returned
Product.  For purchases that are
returned for credit that are determined to be the result of a Restaurant’s
excessive ordering or other ordering errors, a restocking fee equal to [*]
percent of the total dollar value of the returned product will be assessed.

 

3.3                                 Shipment
of Products Not Approved by Company. 
Any products not approved by Company’s designated representative cannot
be sold to the individual Restaurants by Distributor.

 

3.4                                 Inventory.  Distributor will inventory and deliver
Company’s items as requested utilizing a four-week lead time on new items and
an eight-week lead time on deleted items. 
If any Product requested by Company results in greater than four weeks
on hand Inventory a definitive action plan will be provided to Distributor by
Company’s designated representative. 
The written plan will detail the actions that will be taken to lower the
level to a maximum of four weeks supply within twenty-one days of
notification.  The action plan will
consist of the following options: 1) Force-ship of inventory to restaurants as
directed by Company; 2) Donating inventory to an entity at Company’s discretion;
or 3) Destroying and disposing of inventory at Company’s discretion.  For inventory that remains on-hand thirty
days after notification, Distributor will charge Company a storage fee of two
percent (2%) per month.  Distributor
shall follow all written directions

 

6

 

from Company’s
designated representative with respect to the distribution and sale of Company
Requested Inventory, as hereinafter defined on Schedule 3.5.  Items requested by Company which Distributor
would not otherwise purchase, warehouse and deliver shall be governed by the
terms and conditions of the Customer Requested Inventory procedures attached as
Exhibit 3.5.

 

3.5                                 Damages,
Shortages and Errors.  Any damage,
shortage, or error shall be noted on the invoice and signed by Restaurant’s
receiving personnel.  Credit for
damages, shorts, or errors will be noted by Distributor’s delivery personnel
and will be final.  Notice of shortages
on key-drop deliveries need to be made by Noon on the same day as
delivery.  All reasonable efforts will
be expended in determining the root cause of the damage, shortage, or error.

 

3.6                                 If
Distributor is out-of-stock with respect to any Product, any affected
Restaurant shall be notified regarding out-of-stocks and the expected period of
duration of the out-of-stock prior to making the next scheduled deliveries.

 

3.7                                 Should
a substitution be necessary and approved by Company, Distributor will ship a
comparable product at a sell price calculated using the same pricing
methodology as on the original product.

 

7

 

3.8                                 In
the event of a shortage of Product, as determined in a written notice to
Distributor by Company’s designated representative, Distributor shall allocate
sales of the Product in short supply among the Restaurants based upon the
written instructions from Company’s designated representative.

 

4.                                      Company’s
Obligations

 

4.1                                 Company
agrees to review Distributor’s current vendor base for future product needs or
product changes where possible and mutually agreed upon by both parties.

 

4.2                                 Restaurants
shall identify authorized representatives responsible for developing and
releasing orders to Distributor.

 

4.3                                 Company
will provide Distributor with written evidence of existence of agreements with
product manufacturers in which the manufacturers have agreed on prices they
will charge Distributor for products to be resold to Company.  Company must notify Distributor in writing
of the existence of any additional agreements of this sort.  Distributor will not be responsible for the
failure to purchase under such additional agreements in the absence of written
notice from Company of the existence of such agreements.

 

8

 

4.4                                 Company
shall provide Distributor list of suppliers approved by Company to provide
Products to the Company’s Restaurants (“Approved supplier”).  A list of Approved Suppliers is attached
hereto as Exhibit 4.4.

 

5.                                      Price

 

5.1                                 Distributor
shall charge and Company agrees to pay an amount equal to the Cost plus
appropriate pricing adjustments as outlined on Exhibit 5 (“Pricing”).  As used herein, Cost shall mean the F.O.B.
invoiced amount from the supplier, manufacturer, vendor or packer plus freight,
plus any Vendor charges or fees appearing on the invoices (calculated at a per
unit rate).

 

5.2                                 Any
off-invoice allowances granted to Distributor by an Approved Supplier shall be
reflected in the Pricing.  Any cash
discounts shall be the property of the Distributor.  Discontinued discounts from vendors will result in an adjustment
to the pricing methodology on applicable products.  (Discount loss equals increase in pricing).

 

5.3                                 “Full
Line” Distributor in Geographic Territory/Delivery Terms.  Company acknowledges that Distributor is the
exclusive distributor to Company’s Restaurants.  Should Company add Restaurants outside the Territory or eliminate

 

9

 

Restaurants within
the Territory, or establish additional restaurant concepts either inside or
outside of the Territory, Company and Distributor shall meet its advance of any
proposed change to address any material impact, positive or negative, and shall
negotiate, in good faith, an appropriate adjustment to the pricing methodology,
as warranted.  Failure to agree to an
appropriate adjustment shall subject the parties to the Alternative Dispute
Resolution Procedures as defined below.

 

5.4                                 Merchandising,
Marketing Allowances.  Company
acknowledges that Distributor performs value-added services for suppliers of
Products, beyond procurement activities typically provided, including regional
and national marketing, freight management, consolidated warehousing
distribution, quality assurance and performance-based product marketing.  Distributor may recover the costs of providing
these services and/or be compensated for these services directly from the
suppliers (“MMA”).  Such compensation,
regardless of how paid or recovered, is not related to Company’s purchase of
the Products and therefore will not reduce the cost of Products to the Company
and such compensation shall be retained by Distributor.  Distributor is not required to disclose such
compensation to Company nor shall such compensation be available during any
audit rights provided herein. 
Distributor acknowledges its primary responsibility is to

 

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Company and such
services with suppliers shall not diminish its commitment to the Performance
Standards.

 

5.5                                 Sales-Distributor
and customer will comply with all applicable sales tax laws.

 

6.                                      Withdrawals
and Recalls

 

6.1                                 In
the event it is deemed necessary by either Company, in its discretion, or any
of the Approved Suppliers, to withdraw or recall from Distributor and/or from
the Restaurants any quantity of any Products (a) as a result of failure of such
Products to satisfy the Company’s specifications as agreed upon by Company and
the Approved Suppliers (b) for any other reason bearing on quality and/or
safety of such Products, or (c) to prevent, minimize or otherwise protect
against an actual or perceived threat to Company’s brand, Distributor shall
comply diligently with all Product withdrawal/recall procedures in accordance
with “Exhibit 6.1” “Product Withdrawals/ Recall”.

 

6.2                                 Distributor
shall not be required to bear the costs associated with the withdrawal or
recall of any Product unless such withdrawal or recall is the result of the
negligence or intentional acts of Distributor. 
Company shall cause the Approved Supplier(s) in question to reimburse
Distributor for such costs.

 

11

 

7.                                      Confidentiality

 

7.1                                 Confidential
Information means all information communicated by Company to Distributor or by
Distributor to Company which is considered by Company or Distributor to be confidential,
including, but not limited to: the terms of this Agreement; all information as
to quantity, cost and prices for Products; methods of operation; business
acquisitions and or expansion plans, all information relating to marketing, new
products, sales volume and data regarding the operations of Company or
Distributor, the Restaurants; and other information identified or reasonably
identifiable as confidential or proprietary. 
Confidential Information also includes information in any manner related
to Distributor’s compliance or failure to comply with or meet the Performance
Standards.

 

Distributor
and Company acknowledge that each needs to protect the other by maintaining the
confidentiality of Confidential Information that may be disclosed by Company
and Distributor.  Accordingly, each
party shall keep such Confidential Information and any materials containing
Confidential Information confidential and shall maintain them in the strictest
of confidence both during the initial Term and any Renewal Term and for a
period of three (3) years thereafter. 
Such Confidential Information shall only be disclosed within either
party’s

 

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organization
to such persons who have a need to know and shall not be disclosed to any third
party without the express written consent of the other party.

 

Each party
agrees and acknowledges that the other shall be subject to irreparable harm if
this provision is breached and money damages alone will not provide an adequate
remedy for such breach.  Accordingly,
the non-breaching party shall be entitled to an injunction along with
reasonable attorneys’ fees, costs and expenses associated with enforcing this
provision.

 

7.2                                 The
confidentiality obligations of this §7 shall not apply to information which
Distributor or Company is compelled to disclose by judicial or administrative
process or by other mandatory requirements of law; provided, however, that the
disclosing party shall notify the other party of the required disclosure prior
to such disclosure.

 

8.                                      Indemnification.  Company and Distributor shall each defend,
indemnity and hold harmless the other party including, its officers, directors,
employees, agents, parents, subsidiaries, affiliates and members (collectively
“Indemnitees”), of, from and against any and all claims, demands, actions,
cause of action, losses, liabilities, damages, costs and expenses, including,
without limitation, reasonable attorney’s fees and costs and expenses (all of
the foregoing collectively referred to as “Damages”), caused by one party

 

13

 

to the other and based upon or arising out of (i) any breach of this
Agreement by it; (ii) any negligent act or omission of it in connection with
provision of Distribution Services which results in any property damage or
personal injury, including, but not limited to, illness or death; and (iii) any
negligent act or omission of it in connection with the purchase, receipt,
storage, shipment; delivery, resale or consumption of any Product, provided,
however, that Distributor or Company shall not be liable for Damages to an
Indemnitee to the extent such Damages result from the negligence; recklessness
or misconduct of such Indemnitee; NOR, EXCEPT AS OTHERWISE PROVIDED, SHALL
DISTRIBUTOR OR COMPANY, UNDER ANY CIRCUMSTANCES BE LIABLE TO ANY INDEMNITEE FOR
ANY CONSEQUENTIAL OR INDIRECT DAMAGES, INCLUDING WITHOUT LIMITATION, ANY CLAIM
FOR LOST PROFITS OR ANTICIPATED PROFITS.

 

9.                                      Insurance. 
Company and Distributor shall maintain comprehensive liability insurance
coverage during the entire term of this Agreement, with minimum coverage
amounts of $1,000,000 per occurrence and $10,000,000 aggregate, including
product liability coverage for damage, injury and/or death to persons and for
damage and/or injury to property, and each shall provide to the other upon
request written evidence of such coverage.

 

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10.                               Term
and Commencement

 

10.1                           This
Agreement shall become effective as of the Effective Date and shall expire five
(5) years from the Effective Date (“Initial Term), unless otherwise terminated
pursuant to the terms of this Agreement.

 

10.2                           Unless
either party notifies the other at least 180 days but no more than 270 days
prior to the end of the Initial Term or Renewal Term, the Agreement will
automatically extend for additional five (5) year periods (“Renewal Term”).

 

11.                               Cancellation,
Termination, Events of Default. 
A party may terminate this agreement upon the following Events of
Default:

 

(a)           If the other party falls or refuses
to comply with any of its material obligations under this Agreement after
having been given written notice of the breach of any provision and having
felled to cure such breach within the applicable time limit specified in the
relevant section herein or, if no time period is attributable to the cure,
sixty (60) days, or

 

(b)           The other party becomes bankrupt,
insolvent or otherwise unable to pay its obligations as they become due.

 

15

 

Sections 7, Confidentiality and 12.6 Dispute Resolution Procedures
shall survive the End of this Agreement.

 

12.                               Miscellaneous
Provisions

 

12.1                           Entire
Agreement.  This Agreement,
including any Exhibits, amendments or addendums, supersedes all prior
negotiations, discussions, representations, understandings and agreements
between the parties with respect to the matters contained herein, and contains
the only agreement between the parties hereto with respect to the transactions contemplated
by this Agreement.

 

12.2                           Amendments,
Modifications and Waiver.  This
Agreement may not be waived, modified or amended except by a written instrument
executed by authorized representatives of both parties.  A waiver on one occasion shall not be a
waiver of the same or any other breach on any other occasion.  No course of dealing or performance by any
party, and no failure, omission, delay or forbearance by any party, in whole or
in part, in exercising any right, power, benefit or remedy shall constitute a
waiver of such right, power, benefit or remedy.

 

12.3                           Cumulative
Remedies.  No remedy conferred upon
either party is intended to be exclusive of any other remedy, and each and
every such remedy shall be in

 

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addition to,
and not in limitation of or substitution for, every remedy available at law or
in equity or by statute or otherwise.

 

12.4                           Headings.  The headings in this Agreement are for
convenience of reference and are not a part of this Agreement and shall not
affect the meaning or construction of any of its provisions.

 

12.5                           Governing
Law.  This Agreement shall become
valid when executed and accepted by Company. 
The parties agree that it shall be deemed made and entered into in the
State of New York and shall be governed and construed in accordance with the
law of the State of New York without giving effect to any conflict of law rule
or principle that might require the application of the law of another
jurisdiction.  Any suit filed in pertaining
to or arising out of the Agreement shall be filed in the courts of Broome
County, New York.

 

12.6                           Alternative
Dispute Resolution.  In the event of
any dispute between the parties relating to this Agreement, the parties agree
that the following dispute resolution procedures shall be followed:  “Dispute” shall mean any alleged material
breach of any representation, warranty or obligation therein, or a disagreement
regarding the interpretation, performance or nonperformance of any provision
thereof, or the validity, scope and enforceability of these Dispute Resolution
Procedures, or any

 

17

 

dispute regarding
any damages arising from the termination of the Agreement: provided that, any
attempt by either party to obtain or enforce equitable remedies, including but
not limited to preliminary or permanent injunctions, temporary restraining
order or specific performance shall not be deemed a Dispute hereunder.  Any party may give written notice to the
other party of the existence of a dispute (a “Dispute Notice”).

 

Step one of
the Alternate Dispute Resolution requires a senior executive of each party, not
involved in the Dispute, to negotiate over a period of at least ten (10) days
after a Dispute Notice is given.  The
senior executives will continue to negotiate past the ten (10), day period for
as long as both senior executives agree that progress towards a resolution is
being made.

 

Step Two of
the Alternate Dispute Resolution requires the parties to submit to mediation
upon the request of either party to the Center for Public Resources to provide
a member of the CPR Panel of Neutrals to act as mediator to work with the
parties to resolve their differences. 
The mediator appointed shall be qualified by experience to deal with
issues arising in contracts similar to the Agreement and may be rejected by a
party only for bias.  The mediator shall
meet with the parties within twenty (20) days of his or her appointment to help
the parties resolve the Dispute. 
Efforts to reach a settlement will continue until (a) a written
settlement

 

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is reached,
(b) the mediator concludes and informs the parties in writing that further
efforts would not be useful, or (c) the parties agree in writing that an
impasse has been reached.  The costs of
the mediation, including fees and expenses, shall be borne equally by the
parties.

 

Step Three of
the Alternate Dispute Resolution requires the parties to agree to binding
arbitration conducted in accordance with the Center for Public Resources Rules
for Non-Administered Arbitration of Business Disputes, by three arbitrators, of
whom each party shall appoint one and the third to be selected by the other
two.  The arbitration shall be governed
by the United States Arbitration Act, 9 U.S.C. §§ 1-16, and judgment upon the
award rendered by the arbitrator(s) shall be binding upon the parties and may
be entered by any court having jurisdiction thereof.  The place of arbitration shall be Broome County, New York.  The arbitrator(s) are not empowered to award
damages in excess of those damages authorized by the Agreement.  All costs of arbitration including the fees
of the arbitrator(s) shall be borne equally by the parties.

 

12.7                           Severability.  The provisions of this Agreement are
severable and this Agreement shall be interpreted and enforced as if all
completely invalid or unenforceable provisions were not contained in this
Agreement, and partially valid and

 

19

 

enforceable
provisions shall be enforced to the extent that they are valid and enforceable.

 

12.8                           Successors
and Assigns.  This Agreement shall
be binding upon, and shall inure to the benefit of the parties hereto and their
respective heirs, executors, legal representatives, successors and permitted
assigns; provided, however; that Company or Distributor may not assign,
delegate, transfer, convey or subcontract all or any portion of its rights,
duties, and obligations under this Agreement without the prior written consent
of the other party, which consent may be given or withheld for any reason or no
reason.  This Agreement is not intended
to confer on third parties, other than permitted assigns, the right to enforce
any provisions of the Agreement.

 

12.9                           Contribution.  There is no allowance for Contribution in
the Pricing proposal.  Neither Company
nor Restaurants will solicit Distributor for any such contributions (i.e. golf
tournaments, company picnics, charitable events).

 

12.10                     Notices
and Authorized Representatives of the Company.  All notices, requests, demands, tenders and other communications
required under this Agreement shall be in writing and shall be deemed given (a)
if delivered, mailed (certified or registered mall, postage prepaid) or sent by
overnight courier to the other party at

 

20

 

its address set
forth below, or (b) If transmitted by facsimile to the facsimile number of the
other party if set forth below, or (c) if transmitted by email to the e-mall
address of the other party if set forth below. 
Any party may change its mailing address, facsimile number, or e-mall
address by giving notice to the other party in the manner provided herein.

 

Notices to
Company should be addressed as follows:

 

	
  Address:

  	
   

  
	
   

  	
   

  
	
  Attention:

  	
   

  
	
   

  	
   

  
	
  Telephone #:

  	
   

  
	
   

  	
   

  
	
  Facsimile #:

  	
   

  
	
   

  	
   

  
	
  E-mall
  Address:

  	
   

  

 

Notices to
Distributor should be addressed as follows:

 

21

 

Address:                                                                                                    Maines
Paper & Food Service, Inc.

PO Box 450

101 Broome Corporate Parkway

Conklin, NY.  13748

 

Attention:                                                                                               Patrick
Murphy

Vice President, National Accounts

Telephone #:                                                                                (607)
779-1212

Facsimile #:                                                                                        (607)
779-1695

E-mall Address:                                                                  Patrick.Murphy@Maines.net

 

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IN WITNESS
WHEREOF, Company and Distributor have executed this Agreement as of the
Effective Date.

 

 

	
  WITNESS:

  	
   

  	
  DavCo
  Restaurants, Inc.

  
	
   

  	
   

  	
  Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph F. Cunnane, III

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Joseph
  F. Cunnane, III

  
	
   

  	
   

  	
  Print name

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ David J. Norman

  

 

23

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WITNESS:

  
	
   

  	
  MAINES PAPER & FOOD
  SERVICE, INC.

  (Distributor)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Mellon

  
	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Christopher Mellon

  
	
   

  	
   

  	
  Print name

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  

 

24

 

EXHIBITS

 

(These are
numbered using the section number where they have first been referred to in the
Agreement)

 

1.2           Credit Terms and Conditions

 

1.26         Territory

 

2.1           Products Covered by this Agreement

 

3.5           Customer Requested Inventory

 

4.4           Approved Suppliers

 

5.             Pricing

 

6.1           Product Withdrawals/Recalls

 

 

Exhibit 1.2

Credit Terms and Conditions

Each legal
entity within Company which is obligated to remit payment for services rendered
by Distributor will be required to complete a credit application for credit
approval prior to the first delivery. 
Unless otherwise agreed in writing, a personal guarantee is required on each
account.  In addition, Distributor
requires consolidated audited financial statements from Company on an annual
basis for credit review.  If audited
financial statements are not available, Company will provide copies of its
consolidated tax returns annually.

Company agrees
to notify Distributor if any franchise Restaurant (if applicable) is past due
on any of its franchise payment requirements.

Distributor
reserves the right to reduce terms; including requiring COD and cash deposits
on account, if there is any financial decline in individual Restaurants,
especially franchised Restaurants. 
Financial decline is defined as payment terms under this agreement going
beyond   *    without the prior written consent of Distributor.  Company agrees to prohibit such franchisee
from moving its foodservice requirements to another distributor without first
paying Distributor in full.

Interest on any past due amounts will accrue       *           

There is no allowance for bad debt in the pricing proposal; accordingly,
payment terms require strict compliance.

All credit
decisions will be reviewed as needed.

Payment terms
are        *           from date of invoice subject to the following discount
schedule:

	
  Payment Terms

  	
   

  	
  Fee Per
  Case

  	
   

  
	
  *

  	
   

  	
  *

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

Payment Method.  Payment will be made by ACH transfer.  Credit terms are based upon credit
worthiness and a completed credit application. 
Payment discounts to be taken off invoice.  No unauthorized deductions may be taken off invoice.

Any discounts
are net of premiums, promotional items, split cases, contract items, syrups,
and any items where the price is state mandated or regulated.

 

 

 

 

 

EXHIBIT 1.26

 

TERRITORY

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  1

  	
   

  	
  01 WALDORF

  	
   

  	
  2040 CRAIN HIGHWAY

  	
   

  	
  WALDORF, MD 20601

  
	
  2

  	
   

  	
  02 ALEXANDRIA

  	
   

  	
  6329 RICHMOND HIGHWAY

  	
   

  	
  ALEXANDRIA, VA 22306

  
	
  3

  	
   

  	
  03 MILLERSVILLE

  	
   

  	
  8203 MD RT 3 (VETERANS HWY)

  	
   

  	
  MILLERSVILLE, MD 21108

  
	
  4

  	
   

  	
  04 COCKEYSVILLE

  	
   

  	
  9817-23 YORK ROAD

  	
   

  	
  COCKEYSVILLE, MD 21030

  
	
  5

  	
   

  	
  07 EDGEWOOD

  	
   

  	
  1950 PULASKI HIGHWAY

  	
   

  	
  EDGEWOOD, MD 21009

  
	
  6

  	
   

  	
  08 OXON HILL

  	
   

  	
  6122 OXON HILL ROAD

  	
   

  	
  OXON HILL, MD 20745

  

 

27

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  7

  	
   

  	
  09 PENN MAR

  	
   

  	
  3440 DONNELL DRIVE

  	
   

  	
  FORESTVILLE, MD 20747

  
	
  8

  	
   

  	
  11 HARTFORD & JOPPA

  	
   

  	
  3001 EAST JOPPA ROAD

  	
   

  	
  BALTIMORE, MD 21201

  
	
  9

  	
   

  	
  12 CLINTON

  	
   

  	
  8907 WOODYARD ROAD

  	
   

  	
  CLINTON, MD 20735

  
	
  10

  	
   

  	
  13 CRAIN HIGHWAY

  	
   

  	
  6910 RITCHIE HIGHWAY

  	
   

  	
  GLEN BURNIE, MD 21061

  
	
  11

  	
   

  	
  14 REISTERSTOWN

  	
   

  	
  10109 REISTERSTOWN ROAD

  	
   

  	
  OWINGS MILLS, MD 21117

  
	
  12

  	
   

  	
  15 BELTSVILLE

  	
   

  	
  10634 BALTIMORE BLVD

  	
   

  	
  BELTSVILLE, MD 20705

  
	
  13

  	
   

  	
  16 JUMPERS HOLE

  	
   

  	
  8146 RITCHIE HIGHWAY

  	
   

  	
  PASADENA, MD 21122

  
	
  14

  	
   

  	
  17 WOODBRIDGE

  	
   

  	
  14117 JEFF DAVIS HWY

  	
   

  	
  WOODBRIDGE, VA 22191

  

 

28

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street Address

  	
   

  	
  City,
  State

  
	
  15

  	
   

  	
  18 FREDERICK

  	
   

  	
  1201 WEST PATRICK STREET

  	
   

  	
  FREDERICK, MD 21701

  
	
  16

  	
   

  	
  20 LIBERTY ROAD

  	
   

  	
  8610 LIBERTY ROAD

  	
   

  	
  RANDALLSTOWN, MD 21133

  
	
  17

  	
   

  	
  21 LANDOVER

  	
   

  	
  8211 LANDOVER ROAD

  	
   

  	
  LANDOVER, MD 20785

  
	
  18

  	
   

  	
  22 LAPLATA

  	
   

  	
  6293 CRAIN HIGHWAY

  	
   

  	
  LAPLATA, MD 20646

  
	
  19

  	
   

  	
  23 MARTIN BOULEVARD

  	
   

  	
  119 BEACON ROAD

  	
   

  	
  BALTIMORE, MD 21220

  
	
  20

  	
   

  	
  24 WABASH

  	
   

  	
  4410 WEST NORTHERN PKY

  	
   

  	
  BALTIMORE, MD 21215

  
	
  21

  	
   

  	
  25 NORTH POINT

  	
   

  	
  4000 NORTH POINT BOULEVARD

  	
   

  	
  BALTIMORE, MD 21222

  
	
  22

  	
   

  	
  26 DORSEY ROAD

  	
   

  	
  7399 B&A BOULEVARD

  	
   

  	
  GLEN BURNIE, MD 21061

  

 

29

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  23

  	
   

  	
  27 SILVER HILL

  	
   

  	
  5425 SILVERHILL ROAD

  	
   

  	
  SUITLAND, MD 20746

  
	
  24

  	
   

  	
  28 PATAPSCO

  	
   

  	
  605 E. PATAPSCO AVENUE

  	
   

  	
  BALTIMORE, MD 21225

  
	
  25

  	
   

  	
  29 WEST STREET

  	
   

  	
  1949 WEST STREET

  	
   

  	
  ANNAPOLIS, MD 21401

  
	
  26

  	
   

  	
  30 HAGERSTOWN

  	
   

  	
  350 DUAL HIGHWAY

  	
   

  	
  HAGERSTOWN, MD 21746

  
	
  27

  	
   

  	
  31 RIVIERA BEACH

  	
   

  	
  8457 FT SMALLWOOD ROAD

  	
   

  	
  PASADENA, MD 21122

  
	
  28

  	
   

  	
  34 BAYBRIDGE

  	
   

  	
  1454 WHITEHALL ROAD

  	
   

  	
  ANNAPOLIS, MD 21401

  
	
  29

  	
   

  	
  35 KING STREET

  	
   

  	
  5050 CHESTERFIELD ROAD

  	
   

  	
  ARLINGTON, VA 22206

  
	
  30

  	
   

  	
  36 MERRITT BOULEVARD

  	
   

  	
  1320 MERRITT BOULEVARD

  	
   

  	
  BALTIMORE, MD 21222

  

 

30

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  31

  	
   

  	
  37 GREENBELT

  	
   

  	
  7513 GREENBELT ROAD

  	
   

  	
  GREENBELT, MD 20770

  
	
  32

  	
   

  	
  39 TAKOMA PARK

  	
   

  	
  6823 NEW HAMPSHIRE AVE

  	
   

  	
  TAKOMA PARK, MD 20912

  
	
  33

  	
   

  	
  40 ECHO HILLS

  	
   

  	
  7391 LEE HIGHWAY

  	
   

  	
  FALLS CHURCH, VA 22042

  
	
  34

  	
   

  	
  41 VAN DORN

  	
   

  	
  229 S VAN DORN STREET

  	
   

  	
  ALEXANDRIA, VA 22314

  
	
  35

  	
   

  	
  42 WESTSIDE

  	
   

  	
  2339 FREDERICK AVENUE

  	
   

  	
  BALTIMORE, MD 21223

  
	
  36

  	
   

  	
  43 MANASSAS I

  	
   

  	
  8989 CENTREVILLE ROAD

  	
   

  	
  MANASSAS, VA 22110

  
	
  37

  	
   

  	
  44 DERWOOD

  	
   

  	
  15807 FREDERICK ROAD

  	
   

  	
  ROCKVILLE, MD 20850

  
	
  38

  	
   

  	
  45 TYSON’S CORNER

  	
   

  	
  8301 LEESBURG PIKE

  	
   

  	
  VIENNA, VA 22182

  

 

31

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  39

  	
   

  	
  47 MANASSAS II

  	
   

  	
  8010 SUDLEY ROAD

  	
   

  	
  MANASSAS, VA 22042

  
	
  40

  	
   

  	
  48 WOODLAWN

  	
   

  	
  8700 RICHMOND HIGHWAY

  	
   

  	
  ALEXANDRIA, VA 22314

  
	
  41

  	
   

  	
  49 LEXINGTON PARK

  	
   

  	
  21589 GREAT MILLS ROAD

  	
   

  	
  LEXINGTON PARK, MD 20653

  
	
  42

  	
   

  	
  50 BELAIR

  	
   

  	
  336 BALTIMORE NATIONAL PIKE

  	
   

  	
  BELAIR, MD 21014

  
	
  43

  	
   

  	
  52 COLUMBIA

  	
   

  	
  6355 DOBBIN ROAD

  	
   

  	
  COLUMBIA, MD 21044

  
	
  44

  	
   

  	
  54 OCEAN CITY

  	
   

  	
  12303 COASTAL HIGHWAY

  	
   

  	
  OCEAN CITY, MD 21842

  
	
  45

  	
   

  	
  55 TRIANGLE

  	
   

  	
  18601 JEFF DAVIS HWY

  	
   

  	
  TRIANGLE, VA 22172

  
	
  46

  	
   

  	
  56 BRIGGS CHANEY

  	
   

  	
  13804 OUTLET DRIVE

  	
   

  	
  SILVER SPRING, MD 20904

  

 

32

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  47

  	
   

  	
  59 SALISBURY

  	
   

  	
  1101 SALISBURY BOULEVARD

  	
   

  	
  SALISBURY, MD 21801

  
	
  48

  	
   

  	
  60 JERMANTOWN

  	
   

  	
  4000 JERMANTOWN ROAD

  	
   

  	
  FAIRFAX, VA 22015

  
	
  49

  	
   

  	
  61 GEORGIA AVENUE

  	
   

  	
  3900 GEORGIA AVENUE NW

  	
   

  	
  WASHINGTON, DC 20011

  
	
  50

  	
   

  	
  62 BURKE

  	
   

  	
  6056 BURKE COMMONS DR

  	
   

  	
  BURKE, VA 22015

  
	
  51

  	
   

  	
  64 COLUMBIA PIKE

  	
   

  	
  3431 COLUMBIA PIKE

  	
   

  	
  ARLINGTON, VA 22204

  
	
  52

  	
   

  	
  65 BELTWAY PLAZA

  	
   

  	
  6242 GREENBELT ROAD

  	
   

  	
  GREENBELT, MD 20770

  
	
  53

  	
   

  	
  66 ANNANDALE

  	
   

  	
  7042 LITTLE RIVER TPK

  	
   

  	
  ANNANDALE, VA 22003

  
	
  54

  	
   

  	
  68 NURSERY ROAD

  	
   

  	
  714 NURSERY ROAD

  	
   

  	
  LINTHICUM, MD 21090

  

 

33

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  55

  	
   

  	
  69 EASTON

  	
   

  	
  8275 OCEAN GATEWAY

  	
   

  	
  EASTON, MD 21601

  
	
  56

  	
   

  	
  70 COLUMBIA 108

  	
   

  	
  9150 ROUTE 108

  	
   

  	
  COLUMBIA, MD 21045

  
	
  57

  	
   

  	
  71 NEW YORK AVENUE

  	
   

  	
  100 NEW YORK AVENUE

  	
   

  	
  WASHINGTON, DC 20002

  
	
  58

  	
   

  	
  72 RESTON

  	
   

  	
  1701 BRACKNELL DRIVE

  	
   

  	
  RESTON, VA 22091

  
	
  59

  	
   

  	
  73 CROFTON

  	
   

  	
  1064 N. BOUND ROUTE 3

  	
   

  	
  GAMBRILLS, MD 21054

  
	
  60

  	
   

  	
  74 BUCKEYSTOWN

  	
   

  	
  5719 BUCKEYSTOWN PIKE

  	
   

  	
  FREDERICK, MD 21701

  
	
  61

  	
   

  	
  75 MONTGOMERY VILLAGE

  	
   

  	
  18350 CONTOUR ROAD

  	
   

  	
  GAITHERSBURG, MD 20877

  
	
  62

  	
   

  	
  76 LEE HIGHWAY

  	
   

  	
  5066 LEE HIGHWAY

  	
   

  	
  ARLINGTON, VA 22205

  
	
  63

  	
   

  	
  77 OCEAN CITY II

  	
   

  	
  3101 COASTAL HIGHWAY

  	
   

  	
  OCEAN CITY, MD 21842

  

 

34

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  64

  	
   

  	
  79 MINNESOTA & DEAN

  	
   

  	
  4250 NANNIE HELEN BUR. AVE

  	
   

  	
  WASHINGTON, DC 20019

  
	
  65

  	
   

  	
  80 FT. WASHINGTON

  	
   

  	
  11815 LIVINGSTON ROAD

  	
   

  	
  FT. WASHINGTON, MD 20744

  
	
  66

  	
   

  	
  81 DUKE & QUAKER

  	
   

  	
  3300 DUKE STREET

  	
   

  	
  ALEXANDRIA, VA 22314

  
	
  67

  	
   

  	
  82 LAUREL LAKES

  	
   

  	
  14050 BALTIMORE BOULEVARD

  	
   

  	
  LAUREL, MD 20707

  
	
  68

  	
   

  	
  83 KENILWORTH

  	
   

  	
  6210 KENILWORTH AVENUE

  	
   

  	
  RIVERDALE, MD 20737

  
	
  69

  	
   

  	
  84 N. WASHINGTON

  	
   

  	
  825 N. WASHINGTON STREET

  	
   

  	
  ALEXANDRIA, VA 22314

  
	
  70

  	
   

  	
  85 BELAIR & SILVER SPRING

  	
   

  	
  8700 BELAIR ROAD

  	
   

  	
  BALTIMORE, MD 21236

  
	
  71

  	
   

  	
  86 OCCOQUAN

  	
   

  	
  1470 OLD BRIDGE ROAD

  	
   

  	
  WOODBRIDGE, VA 22193

  

 

35

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  72

  	
   

  	
  87 HARTFORD & BROADWAY

  	
   

  	
  2045 HARTFORD ROAD

  	
   

  	
  BALTIMORE, MD 21218

  
	
  73

  	
   

  	
  88 COURTHOUSE

  	
   

  	
  2038 WILSON BOULEVARD

  	
   

  	
  ARLINGTON, VA 22201

  
	
  74

  	
   

  	
  90 WATKINS

  	
   

  	
  8 WATKINS PARK DRIVE

  	
   

  	
  KETTERING, MD 20772

  
	
  75

  	
   

  	
  91 CAMBRIDGE

  	
   

  	
  211 SUNBURST HIGHWAY

  	
   

  	
  CAMBRIDGE, MD 21613

  
	
  76

  	
   

  	
  92 COUNTRYSIDE

  	
   

  	
  3 PIDGEON HILL DRIVE

  	
   

  	
  STERLING, VA 22170

  
	
  77

  	
   

  	
  93 RIGGS & SARGENT

  	
   

  	
  6425 A SARGENT ROAD

  	
   

  	
  HYATTSVILLE, MD 20781

  
	
  78

  	
   

  	
  94 CHANTILLY

  	
   

  	
  13902 LEE JACK MEM HWY

  	
   

  	
  CHANTILLY, VA 22021

  
	
  79

  	
   

  	
  95 GERMANTOWN

  	
   

  	
  12988 MIDDLEBROOK ROAD

  	
   

  	
  GERMANTOWN, MD 20875

  

 

36

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  80

  	
   

  	
  96 GOVANS

  	
   

  	
  5615-21 YORK ROAD

  	
   

  	
  BALTIMORE, MD 21201

  
	
  81

  	
   

  	
  97 GARRISONVILLE

  	
   

  	
  145 GARRISONVILLE ROAD

  	
   

  	
  STAFFORD, VA 22554

  
	
  82

  	
   

  	
  98 ABERDEEN II

  	
   

  	
  987 BEARDS HILL ROAD

  	
   

  	
  ABERDEEN, MD 21001

  
	
  83

  	
   

  	
  99 SECURITY BOULEVARD

  	
   

  	
  1660 WHITEHEAD COURT

  	
   

  	
  BALTIMORE, MD 21207

  
	
  84

  	
   

  	
  100 SOUTH CAPITAL &
         

  	
   

  	
  231 STREET, SE

  	
   

  	
  WASHINGTON, DC 20003

  
	
  85

  	
   

  	
  101 FOX CHAPEL

  	
   

  	
  19775 OLD FREDERICK ROAD

  	
   

  	
  GERMANTOWN, MD 20874

  
	
  86

  	
   

  	
  102 WHITE MARLIN

  	
   

  	
  12641 OCEAN GATEWAY

  	
   

  	
  OCEAN CITY, MD 21842

  
	
  87

  	
   

  	
  103 DARENSTOWN

  	
   

  	
  121114 DARNESTOWN RD

  	
   

  	
  GAITHERSBURG, MD 20878

  

 

37

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  88

  	
   

  	
  104 LEESBURG

  	
   

  	
  404 E MARKET PLAZA

  	
   

  	
  LEESBURG, VA 22075

  
	
  89

  	
   

  	
  105 DRANESVILLE

  	
   

  	
  46900 COMMUNITY PLAZA

  	
   

  	
  STERLING, VA 22075

  
	
  90

  	
   

  	
  106 GOLDEN RING

  	
   

  	
  8699 PHILADELPHIA ROAD

  	
   

  	
  BALTIMORE, MD 21237

  
	
  91

  	
   

  	
  107 LOCHRAVEN & JOPPA

  	
   

  	
  1608 EAST JOPPA ROAD

  	
   

  	
  TOWSON, MD 21204

  
	
  92

  	
   

  	
  108 WESTMINSTER

  	
   

  	
  395 NORTH CENTER STREET

  	
   

  	
  WESTMINSTER, MD 21157

  
	
  93

  	
   

  	
  109 ASPEN HILL

  	
   

  	
  14012 CONNECTICUT AVE

  	
   

  	
  SILVER SPRING, MD 20904

  
	
  94

  	
   

  	
  110 ROCKVILLE

  	
   

  	
  808 ROCKVILLE PIKE

  	
   

  	
  ROCKVILLE, MD 20855

  

 

38

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  95

  	
   

  	
  111 VALLEY PARK

  	
   

  	
  1570 WESEL BOULEVARD

  	
   

  	
  HAGERSTOWN, MD 21746

  
	
  96

  	
   

  	
  112 GAINESVILLE

  	
   

  	
  7450 GAINSVILLE VLG SQ

  	
   

  	
  GAINSVILLE, VA 20155

  
	
  97

  	
   

  	
  113 PRINCE FREDERICK

  	
   

  	
  170 SOLOMONS ISLAND RD

  	
   

  	
  PRINCE FREDERICK, MD 20678

  
	
  98

  	
   

  	
  114 LANHAM

  	
   

  	
  9401 ANNANAPOLIS ROAD

  	
   

  	
  LANHAM, MD 20706

  
	
  99

  	
   

  	
  115 CHANTILLY II

  	
   

  	
  14445 BROOKFIELD TWR DR

  	
   

  	
  CHANTILLY, VA 22021

  
	
  100

  	
   

  	
  116 POTOMAC MILLS

  	
   

  	
  14493 GIDEON DRIVE

  	
   

  	
  WOODBRIDGE, VA 22192

  
	
  101

  	
   

  	
  117 HERNDON

  	
   

  	
  2160 CENTREVILLE ROAD

  	
   

  	
  FAIRFAX, VA 22070

  
	
  102

  	
   

  	
  118 SALISBURY II

  	
   

  	
  2710 N. SALISBURY BLVD

  	
   

  	
  SALISBURY, MD 21801

  

 

39

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  103

  	
   

  	
  119 CATONSVILLE

  	
   

  	
  6600 BALTIMORE NATIONAL PIKE

  	
   

  	
  CATONSVILLE, MD 21228

  
	
  104

  	
   

  	
  120 TOWN CREEK

  	
   

  	
  45460 MIRAMAR WAY

  	
   

  	
  CALIFORNIA, MD 20619

  
	
  105

  	
   

  	
  121 FAIRLAKES

  	
   

  	
  13030 FAIRLAKES PKWY

  	
   

  	
  FAIRFAX, VA 22033

  
	
  106

  	
   

  	
  122 WALDORF SOUTH

  	
   

  	
  3005 CRAIN HIGHWAY

  	
   

  	
  WALDORF, MD 20601

  
	
  107

  	
   

  	
  123 ELDERSBURG

  	
   

  	
  6400 RIDGE ROAD

  	
   

  	
  ELDERSBURG, MD 21784

  
	
  108

  	
   

  	
  124 THURMONT

  	
   

  	
  303 TIPPIN DRIVE

  	
   

  	
  THURMONT, MD 21788

  
	
  109

  	
   

  	
  125 TAPPAHANNOCK

  	
   

  	
  1433 TAPPAHANNOCK BLVD

  	
   

  	
  TAPPAHANNOCK, VA 22560

  
	
  110

  	
   

  	
  126 SHARPSBURG

  	
   

  	
  10502 SHARPSBURG PIKE

  	
   

  	
  HAGERSTOWN, MD 21740

  

 

40

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City, State

  
	
  111

  	
   

  	
  128 CALVERTON

  	
   

  	
  11741 BELTSVILLE DRIVE

  	
   

  	
  CALVERTON, MD 20705

  
	
  112

  	
   

  	
  129 FALMOUTH

  	
   

  	
  588 WARRENTON ROAD

  	
   

  	
  FALMOUTH, VA 22405

  
	
  113

  	
   

  	
  130 JOPPATOWNE

  	
   

  	
  1060 JOPPA FARM ROAD

  	
   

  	
  JOPPATOWNE, MD 21085

  
	
  114

  	
   

  	
  131 LAUREL/198

  	
   

  	
  3563 RUSSETT GREEN EAST

  	
   

  	
  LAUREL, MD 20724

  
	
  115

  	
   

  	
  132 WHITE MARSH

  	
   

  	
  8241 PERRY HALL BOULEVARD

  	
   

  	
  BALTIMORE, MD 21237

  
	
  116

  	
   

  	
  133 FLOWER HILL

  	
   

  	
  18425 WOODFIELD ROAD

  	
   

  	
  GAITHERSBURG, MD 20879

  
	
  117

  	
   

  	
  134 EDGEWATER

  	
   

  	
  100 EAST CENTRAL AVENUE

  	
   

  	
  EDGEWATER, MD 21037

  
	
  118

  	
   

  	
  135 HAMPSTEAD

  	
   

  	
  4224 NORTH WOODS TRAIL

  	
   

  	
  HAMSTEAD, MD 21074

  

 

41

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  119

  	
   

  	
  136 ELKTON

  	
   

  	
  101 PULASKI HIGHWAY

  	
   

  	
  ELKTON, MD 21921

  
	
  120

  	
   

  	
  137 K STREET

  	
   

  	
  1725 K STREET, NW

  	
   

  	
  WASHINGTON, DC 20005

  
	
  121

  	
   

  	
  138 VIENNA

  	
   

  	
  411 EAST MAPLE AVENUE

  	
   

  	
  VIENNA, VA 22180

  
	
  122

  	
   

  	
  139 PRINCE WILLIAM

  	
   

  	
  2410 PRINCE WILLIAM PKWY

  	
   

  	
  WOODBRIDGE, VA 22192

  
	
  123

  	
   

  	
  140 7 CORNERS

  	
   

  	
  6349 SEVEN CORNERS

  	
   

  	
  FALLS CHURCH, VA 22015

  
	
  124

  	
   

  	
  141 CASCADES

  	
   

  	
  46350 POTOMAC RUN PLAZA

  	
   

  	
  STERLING, VA 20164

  
	
  125

  	
   

  	
  142 BRANCH AVENUE

  	
   

  	
  3636 BRANCH AVENUE

  	
   

  	
  TEMPLE HILLS, MD 20784

  
	
  126

  	
   

  	
  143 MLK

  	
   

  	
  901 MCCULLOH STREET

  	
   

  	
  BALTIMORE, MD 21212

  

 

42

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  127

  	
   

  	
  144 HUNT VALLEY

  	
   

  	
  11320 YORK ROAD

  	
   

  	
  HUNT VALLEY, MD 21030

  
	
  128

  	
   

  	
  145 CAMP SPRINGS

  	
   

  	
  6335 ALLENTOWN

  	
   

  	
  CAMP SPRINGS, MD 20748

  
	
  129

  	
   

  	
  146 BOWIE

  	
   

  	
  16400 HARBOUR WAY

  	
   

  	
  BOWIE, MD 20716

  
	
  130

  	
   

  	
  147 MERRIFIELD

  	
   

  	
  3040 GATEHOUSE PLAZA

  	
   

  	
  MERRIFIELD, VA 22042

  
	
  131

  	
   

  	
  148 FAIRFAX CITY

  	
   

  	
  9688 MAIN STREET

  	
   

  	
  FAIRFAX CITY, VA 22031

  
	
  132

  	
   

  	
  149 MOUNTAIN ROAD

  	
   

  	
  8098 EDWIN RAYNOR BLVD

  	
   

  	
  PASADENA, MD 21122

  
	
  133

  	
   

  	
  150 WASHINGTON

  	
   

  	
  3620 WASHINGTON BLVD

  	
   

  	
  BALTIMORE, MD 21227

  
	
  134

  	
   

  	
  151 ELKRIDGE

  	
   

  	
  7311 WASHINGTON BLVD

  	
   

  	
  ELKRIDGE, MD 21227

  

 

43

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  135

  	
   

  	
  152 NEW CARROLLTON

  	
   

  	
  8308 ANNAPOLIS ROAD

  	
   

  	
  NEW CARROLLTON, MD 20784

  
	
  136

  	
   

  	
  153 BWI

  	
   

  	
  1589 WEST NURSERY ROAD

  	
   

  	
  LINTHICUM, MD 21090

  
	
  137

  	
   

  	
  154 SAVAGE

  	
   

  	
  8850 GORMAN ROAD

  	
   

  	
  LAUREL, MD 20723

  
	
  138

  	
   

  	
  155 KENT ISLAND

  	
   

  	
  120 CHESTER STATION ROAD

  	
   

  	
  CHESTER, MD 21619

  
	
  139

  	
   

  	
  156 NORTHEAST

  	
   

  	
  2522 W. PULASKI HIGHWAY

  	
   

  	
  NORTH EAST, MD 21901

  
	
  140

  	
   

  	
  157 FRANKLIN BOULEVARD

  	
   

  	
  11818 REISTERSTOWN ROAD

  	
   

  	
  REISTERSTOWN, MD 21136

  
	
  141

  	
   

  	
  158 UPPER MARLBORO

  	
   

  	
  15408 CHRYSLER DRIVE

  	
   

  	
  UPPER MARLBORO, MD 20772

  
	
  142

  	
   

  	
  159 CHARLOTTE HALL

  	
   

  	
  30273 TRIANGLE DRIVE

  	
   

  	
  CHARLOTTE HALL, MD 20622

  

 

44

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  143

  	
   

  	
  160 SALISBURY III

  	
   

  	
  403 PUNKIN COURT

  	
   

  	
  SALISBURY, MD 21804

  
	
  144

  	
   

  	
  161 SEVERNA PARK

  	
   

  	
  498 RITCHIE HIGHWAY

  	
   

  	
  SEVERNA PARK, MD 21146

  
	
  145

  	
   

  	
  162 MIDDLESEX

  	
   

  	
  1344 EASTERN BOULEVARD

  	
   

  	
  BALTIMORE, MD 21221

  
	
  146

  	
   

  	
  163 CENTRAL AVENUE

  	
   

  	
  8715 CENTRAL AVENUE

  	
   

  	
  CAPITAL HEIGHTS, MD 20743

  
	
  147

  	
   

  	
  164 CLARKSVILLE

  	
   

  	
  5801 CLARKSVILLE SQUARE DR

  	
   

  	
  CLARKSVILLE, MD 21029

  
	
  148

  	
   

  	
  165 ANNANDALE II

  	
   

  	
  7530 LITTLE RIVER TURNPIKE

  	
   

  	
  ANNANDALE, VA 22003

  
	
  149

  	
   

  	
  166 HIGHLAND

  	
   

  	
  6411 EASTERN AVENUE

  	
   

  	
  BALTIMORE, MD 21224

  
	
  150

  	
   

  	
  167 PARKRIDGE

  	
   

  	
  10700 BULLOCH DRIVE

  	
   

  	
  MANASSAS, VA 20109

  

 

45

 

	
   

  	
   

  	
  Store
  Number and Name

  	
   

  	
  Street
  Address

  	
   

  	
  City,
  State

  
	
  151

  	
   

  	
  168 HAGERSTOWN

  	
   

  	
  17786 GARLAND GROH BLVD

  	
   

  	
  HAGERSTOWN, MD 21740

  
	
  152

  	
   

  	
  169 LEONARDTOWN

  	
   

  	
  40804 MERCHANT LANE

  	
   

  	
  LEONARDTOWN, MD 20650

  
	
  153

  	
   

  	
  170 ROLLING ROAD

  	
   

  	
  2351 ROLLING ROAD

  	
   

  	
  BALTIMORE, MD 21224

  
	
  154

  	
   

  	
  172 ARUNDEL MILLS

  	
   

  	
  7057 ARUNDEL MILLS BLVD

  	
   

  	
  HANOVER, MD 21076

  
	
  155

  	
   

  	
  173 NICHOLSON LANE

  	
   

  	
  5001 NICHOLSON LANE

  	
   

  	
  ROCKVILLE, MD 20850

  
	
  156

  	
   

  	
  174 DALE CITY

  	
   

  	
  4461 CHESHIRE STATION WAY

  	
   

  	
  DALE CITY, VA 22193

  

 

Due to reopen 9/1/02 - 10/1/02

 

46

 

EXHIBIT 2.1

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  1

  	
   

  	
  42847

  	
   

  	
  Spongebob toy

  	
   

  	
  Elk

  	
   

  	
  250

  	
   

  	
  Formula Pricing

  
	
  2

  	
   

  	
  42848

  	
   

  	
  Toy 2

  	
   

  	
  Elk

  	
   

  	
  250

  	
   

  	
  Formula Pricing

  
	
  3

  	
   

  	
  42849

  	
   

  	
  Toy 3

  	
   

  	
  Elk

  	
   

  	
  250

  	
   

  	
  Formula Pricing

  
	
  4

  	
   

  	
  42850

  	
   

  	
  Toy 4

  	
   

  	
  Elk

  	
   

  	
  250

  	
   

  	
  Formula Pricing

  
	
  5

  	
   

  	
  10164

  	
   

  	
  Diet Coke

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  6

  	
   

  	
  10165

  	
   

  	
  Sprite

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  7

  	
   

  	
  10203

  	
   

  	
  Coke Classic

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  8

  	
   

  	
  16705

  	
   

  	
  Mr. Pibb Extra

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  9

  	
   

  	
  14780

  	
   

  	
  MM Lemonade

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  10

  	
   

  	
  16896

  	
   

  	
  Hi-C Fruit Punch

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  11

  	
   

  	
  13279

  	
   

  	
  Barqs Root Beer

  	
   

  	
  Coke

  	
   

  	
  5 gal

  	
   

  	
  National Contract

  
	
  12

  	
   

  	
  18314

  	
   

  	
  MM Grape

  	
   

  	
  Coke

  	
   

  	
  2.5 gal

  	
   

  	
  National Contract

  
	
  13

  	
   

  	
  3004

  	
   

  	
  Ice Melt

  	
   

  	
  Cargill

  	
   

  	
  25 lb

  	
   

  	
  yes

  
	
  14

  	
   

  	
  21041

  	
   

  	
  Towel, White

  	
   

  	
  Atl Mills

  	
   

  	
  150 count

  	
   

  	
  yes

  
	
  15

  	
   

  	
  20209

  	
   

  	
  Tea Urn Bags

  	
   

  	
  Rapak

  	
   

  	
  100 count

  	
   

  	
  yes

  
	
  16

  	
   

  	
  20363

  	
   

  	
  Bakery
  Tissue

  	
   

  	
  Papercorn

  	
   

  	
  10 M count

  	
   

  	
  yes

  
	
  17

  	
   

  	
  20893

  	
   

  	
  Grill Towel,
  Red

  	
   

  	
  Asbury

  	
   

  	
  4 / 100
  count

  	
   

  	
  yes

  
	
  18

  	
   

  	
  21295

  	
   

  	
  Brasso

  	
   

  	
  Norchem

  	
   

  	
  12 / 6 oz.

  	
   

  	
  yes

  
	
  19

  	
   

  	
  21355

  	
   

  	
  Glove Vinyl
  Small

  	
   

  	
  Ansell

  	
   

  	
  10 / 100
  count

  	
   

  	
  yes

  
	
  20

  	
   

  	
  21356

  	
   

  	
  Glove Vinyl
  Medium

  	
   

  	
  Ansell

  	
   

  	
  10 / 100
  count

  	
   

  	
  yes

  
	
  21

  	
   

  	
  21357

  	
   

  	
  Glove Vinyl
  Large

  	
   

  	
  Ansell

  	
   

  	
  10 / 100
  count

  	
   

  	
  yes

  
	
  22

  	
   

  	
  21657

  	
   

  	
  Thermal
  Paper

  	
   

  	
  NCR

  	
   

  	
  72 count

  	
   

  	
  yes

  
	
  23

  	
   

  	
  21676

  	
   

  	
  Gloves, Poly
  Lg

  	
   

  	
  Ansell

  	
   

  	
  4 / 500
  count

  	
   

  	
  yes

  

 

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  24

  	
   

  	
  21924

  	
   

  	
  Alcohol Prep
  Pad

  	
   

  	
  Nice-Pac

  	
   

  	
  10 / 200
  count

  	
   

  	
  yes

  
	
  25

  	
   

  	
  23232

  	
   

  	
  Tissue
  Toilet Jr. (O)

  	
   

  	
  Kimberly

  	
   

  	
  12 roll

  	
   

  	
  yes

  
	
  26

  	
   

  	
  23818

  	
   

  	
  Name Tags -
  Silver

  	
   

  	
  Elk

  	
   

  	
  25 each

  	
   

  	
  yes

  
	
  27

  	
   

  	
  23824

  	
   

  	
  Register
  Cassette - NCR

  	
   

  	
  NCR

  	
   

  	
  4 each

  	
   

  	
  yes

  
	
  28

  	
   

  	
  23825

  	
   

  	
  Detail Tape
  177D

  	
   

  	
  NCR

  	
   

  	
  10 / 12
  count

  	
   

  	
  yes

  
	
  29

  	
   

  	
  23827

  	
   

  	
  Cassette
  Ribbon - Par

  	
   

  	
  NCR

  	
   

  	
  6 count

  	
   

  	
  yes

  
	
  30

  	
   

  	
  23863

  	
   

  	
  Scotch Brk
  Grdl Scrub

  	
   

  	
  3M

  	
   

  	
  3 / 4 count

  	
   

  	
  yes

  
	
  31

  	
   

  	
  23865

  	
   

  	
  Dish
  Detergent - WA

  	
   

  	
  Norchem

  	
   

  	
  5 gal

  	
   

  	
  yes

  

 

48

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  32

  	
   

  	
  23866

  	
   

  	
  Cleaner All
  purpose

  	
   

  	
  Norchem

  	
   

  	
  5 gal

  	
   

  	
  yes

  
	
  33

  	
   

  	
  23957

  	
   

  	
  Antibacterial
  Soap

  	
   

  	
  Norchem

  	
   

  	
  12 count

  	
   

  	
  yes

  
	
  34

  	
   

  	
  24205

  	
   

  	
  Towel Roll
  Brown

  	
   

  	
  Norchem

  	
   

  	
  12 each

  	
   

  	
  yes

  
	
  35

  	
   

  	
  66106

  	
   

  	
  Towelettes

  	
   

  	
  Royal Paper

  	
   

  	
  10 / 100
  count

  	
   

  	
  yes

  
	
  36

  	
   

  	
  24245

  	
   

  	
  Poly Apron

  	
   

  	
  Rofson
  Assoc.

  	
   

  	
  10 / 100
  count

  	
   

  	
  yes

  
	
  37

  	
   

  	
  24259

  	
   

  	
  Griddle
  Screen

  	
   

  	
  3M

  	
   

  	
  20 each

  	
   

  	
  yes

  
	
  38

  	
   

  	
  24338

  	
   

  	
  Toilet
  Tissue - Jumbo

  	
   

  	
  Norchem

  	
   

  	
  6 each

  	
   

  	
  yes

  
	
  39

  	
   

  	
  24373

  	
   

  	
  Sanitizer -
  Q Feet

  	
   

  	
  Norchem

  	
   

  	
  5 gal

  	
   

  	
  yes

  

 

49

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  40

  	
   

  	
  24374

  	
   

  	
  Window
  Cleaner

  	
   

  	
  Norchem

  	
   

  	
  5 gal

  	
   

  	
  yes

  
	
  41

  	
   

  	
  43225

  	
   

  	
  Filter/Chester
  Fryer

  	
   

  	
  Dallas Group

  	
   

  	
  30 count

  	
   

  	
  yes

  
	
  42

  	
   

  	
  24595

  	
   

  	
  Toilet
  Tissue

  	
   

  	
  MDS

  	
   

  	
  96 count

  	
   

  	
  yes

  
	
  43

  	
   

  	
  24847

  	
   

  	
  Scouring Pad

  	
   

  	
  3M

  	
   

  	
  60 count

  	
   

  	
  yes

  
	
  44

  	
   

  	
  24848

  	
   

  	
  Griddle
  Sorsen

  	
   

  	
  3M

  	
   

  	
  10 / 20

  	
   

  	
  yes

  
	
  45

  	
   

  	
  25769

  	
   

  	
  Film 15’ x
  2000’

  	
   

  	
  Anchor

  	
   

  	
  each

  	
   

  	
  yes

  
	
  46

  	
   

  	
  29766

  	
   

  	
  Filter Henny
  Penny New

  	
   

  	
  Dallas Group

  	
   

  	
  60 count

  	
   

  	
  yes

  
	
  47

  	
   

  	
  41651

  	
   

  	
  Sanitizer
  Frosty

  	
   

  	
  Purdy

  	
   

  	
  200 / 2 Z

  	
   

  	
  yes

  
	
  48

  	
   

  	
  42311

  	
   

  	
  Pan Spray
  coating

  	
   

  	
  Ventura
  Foods

  	
   

  	
  6 each

  	
   

  	
  yes

  

 

50

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  49

  	
   

  	
  42616

  	
   

  	
  Towel Blue

  	
   

  	
  Atlantic
  Mills

  	
   

  	
  150

  	
   

  	
  yes

  
	
  50

  	
   

  	
  42617

  	
   

  	
  Can liner 43
  x 48

  	
   

  	
  Tyco
  Plastics

  	
   

  	
  400

  	
   

  	
  yes

  
	
  51

  	
   

  	
  42856

  	
   

  	
  Degreaser HD

  	
   

  	
  Norchem

  	
   

  	
  4 / 1 gal

  	
   

  	
  yes

  
	
  52

  	
   

  	
  42614

  	
   

  	
  Tray liner salads

  	
   

  	
  Schwartz Paper

  	
   

  	
  2500

  	
   

  	
   

  
	
  53

  	
   

  	
  1252

  	
   

  	
  Sausage
  Patty

  	
   

  	
  Jones Dairy

  	
   

  	
  10 lb

  	
   

  	
   

  
	
  54

  	
   

  	
  1312

  	
   

  	
  Bic-8 Piece

  	
   

  	
  Perdue

  	
   

  	
  38.5 lb

  	
   

  	
   

  
	
  55

  	
   

  	
  4199

  	
   

  	
  Frosty

  	
   

  	
  Cloverland

  	
   

  	
  2/2.5 gal

  	
   

  	
   

  
	
  56

  	
   

  	
  4200

  	
   

  	
  Mead - Jr

  	
   

  	
  Moyer

  	
   

  	
  4 / 10 lb

  	
   

  	
   

  
	
  57

  	
   

  	
  4205

  	
   

  	
  Chill
  Vegetables

  	
   

  	
  Hanover

  	
   

  	
  16/2.3 lb

  	
   

  	
   

  

 

51

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  58

  	
   

  	
  4206

  	
   

  	
  Broccoli/Frozen

  	
   

  	
  Hanover

  	
   

  	
  12/2.5 lb

  	
   

  	
   

  
	
  59

  	
   

  	
  4207

  	
   

  	
  Milk UHT 2%

  	
   

  	
  Morningstar

  	
   

  	
  24/8 oz

  	
   

  	
   

  
	
  60

  	
   

  	
  4218

  	
   

  	
  CHZ 126
  count

  	
   

  	
  Schreiber

  	
   

  	
  8 / 5 lb

  	
   

  	
   

  
	
  61

  	
   

  	
  4219

  	
   

  	
  CHZ 184
  count

  	
   

  	
  Schreiber

  	
   

  	
  8 / 5 lb

  	
   

  	
   

  
	
  62

  	
   

  	
  4220

  	
   

  	
  CHZ
  Pot/Chilli - Shred

  	
   

  	
  Shreiber

  	
   

  	
  4 / 5 lb

  	
   

  	
   

  
	
  63

  	
   

  	
  4229

  	
   

  	
  Meat / 4 oz

  	
   

  	
  Moyer

  	
   

  	
  40 lb

  	
   

  	
   

  
	
  64

  	
   

  	
  4252

  	
   

  	
  Margarine/Liq

  	
   

  	
  Lipton Food

  	
   

  	
  2 / 17.5 lb

  	
   

  	
   

  
	
  65

  	
   

  	
  4325

  	
   

  	
  Creamers/Half
  & Half

  	
   

  	
  Morningstar

  	
   

  	
  480 count

  	
   

  	
   

  
	
  66

  	
   

  	
  4648

  	
   

  	
  Sour Cream
  PC’s

  	
   

  	
  Darifare

  	
   

  	
  300 count

  	
   

  	
   

  
	
  67

  	
   

  	
  4706

  	
   

  	
  English
  Muffins

  	
   

  	
  CPC Food

  	
   

  	
  72 count

  	
   

  	
   

  
	
  68

  	
   

  	
  4769

  	
   

  	
  Honey
  Mustard Sauce

  	
   

  	
  International

  	
   

  	
  4 / 48 oz

  	
   

  	
   

  

 

52

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  69

  	
   

  	
  4982

  	
   

  	
  Danish
  Assorted

  	
   

  	
  Sara Lee

  	
   

  	
  24 count

  	
   

  	
   

  
	
  70

  	
   

  	
  5523

  	
   

  	
  Country
  Crock

  	
   

  	
  Lipton Food

  	
   

  	
  432 / 14 gm

  	
   

  	
   

  
	
  71

  	
   

  	
  5570

  	
   

  	
  Pancake
  Batter/Frozen

  	
   

  	
  Van de Kemps

  	
   

  	
  12 count

  	
   

  	
   

  
	
  72

  	
   

  	
  6494

  	
   

  	
  French Fries

  	
   

  	
  Cavendish

  	
   

  	
  6 / 6 lb

  	
   

  	
   

  
	
  73

  	
   

  	
  6554

  	
   

  	
  Buttermilk
  Biscuits

  	
   

  	
  Liqui-dri
  Bakery

  	
   

  	
  6 / 20 count

  	
   

  	
   

  
	
  74

  	
   

  	
  6766

  	
   

  	
  Biscuit So.
  Style

  	
   

  	
  Pillsbury

  	
   

  	
  216 count

  	
   

  	
   

  
	
  75

  	
   

  	
  7112

  	
   

  	
  Eggs/Ext.
  Life

  	
   

  	
  Michael
  Foods

  	
   

  	
  15 / 2 lb

  	
   

  	
   

  
	
  76

  	
   

  	
  7123

  	
   

  	
  Orange Juice

  	
   

  	
  Ardmore

  	
   

  	
  48 count

  	
   

  	
   

  
	
  77

  	
   

  	
  7125

  	
   

  	
  Apple Juice

  	
   

  	
  Ardmore

  	
   

  	
  48 count

  	
   

  	
   

  
	
  78

  	
   

  	
  7864

  	
   

  	
  Orange Juice

  	
   

  	
  Minute Maid

  	
   

  	
  40 / 10 oz

  	
   

  	
   

  

 

53

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  79

  	
   

  	
  10422

  	
   

  	
  Sanka -
  Individual

  	
   

  	
  General
  Foods

  	
   

  	
  5 / 100
  count

  	
   

  	
   

  
	
  80

  	
   

  	
  10915

  	
   

  	
  Mandarin
  Oranges

  	
   

  	
  Mitsui Foods

  	
   

  	
  6/10

  	
   

  	
   

  
	
  81

  	
   

  	
  11172

  	
   

  	
  Tea Bags, Individual

  	
   

  	
  Tetley

  	
   

  	
  100 count

  	
   

  	
   

  
	
  82

  	
   

  	
  11322

  	
   

  	
  Chili
  Seasoning PC’s

  	
   

  	
  PPI

  	
   

  	
  500 count

  	
   

  	
   

  
	
  83

  	
   

  	
  11326

  	
   

  	
  Salt PC’s

  	
   

  	
  Diamond

  	
   

  	
  6000 count

  	
   

  	
   

  
	
  84

  	
   

  	
  11327

  	
   

  	
  Pepper PC’s

  	
   

  	
  Diamond

  	
   

  	
  6000 count

  	
   

  	
   

  
	
  85

  	
   

  	
  11331

  	
   

  	
  Chives

  	
   

  	
  Hanover

  	
   

  	
  6 / 1 oz

  	
   

  	
   

  
	
  86

  	
   

  	
  11334

  	
   

  	
  Kidney
  Beans, Dr

  	
   

  	
  Hanover

  	
   

  	
  12 / #5

  	
   

  	
   

  
	
  87

  	
   

  	
  11343

  	
   

  	
  Kidney
  Beans, Lt

  	
   

  	
  Hanover

  	
   

  	
  6 / #10

  	
   

  	
   

  
	
  88

  	
   

  	
  11346

  	
   

  	
  Ketchup,
  PC’s

  	
   

  	
  Heinz

  	
   

  	
  1500 count

  	
   

  	
   

  
	
  89

  	
   

  	
  11347

  	
   

  	
  Chili Base

  	
   

  	
  Hunt-Wesson

  	
   

  	
  6 / #10

  	
   

  	
   

  

 

54

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  90

  	
   

  	
  11350

  	
   

  	
  Chili
  Seasoning - Pkts

  	
   

  	
  McCormick

  	
   

  	
  30 / 1.5 oz

  	
   

  	
   

  
	
  91

  	
   

  	
  11462

  	
   

  	
  Coffee Pkts

  	
   

  	
  S&D

  	
   

  	
  128 / 2 oz

  	
   

  	
   

  
	
  92

  	
   

  	
  11664

  	
   

  	
  Cheese Sauce
  Dry

  	
   

  	
  TUF

  	
   

  	
  24 / 15.5 oz

  	
   

  	
   

  
	
  93

  	
   

  	
  11812

  	
   

  	
  Hot Sauce, 7
  gm

  	
   

  	
  Heinz

  	
   

  	
  200 count

  	
   

  	
   

  
	
  94

  	
   

  	
  11823

  	
   

  	
  Ketchup,
  Volpack

  	
   

  	
  Heinz

  	
   

  	
  1 / 3 gal

  	
   

  	
   

  
	
  95

  	
   

  	
  12014

  	
   

  	
  Sauce,
  Sweet/Sour

  	
   

  	
  Portion
  P&c

  	
   

  	
  120 / 1 oz

  	
   

  	
   

  
	
  96

  	
   

  	
  12044

  	
   

  	
  Tea Bag Iced
  - priv. Estate

  	
   

  	
  Tetley

  	
   

  	
  96 / 1 oz

  	
   

  	
   

  
	
  97

  	
   

  	
  12402

  	
   

  	
  Sauce, BBQ

  	
   

  	
  Portion Pac

  	
   

  	
  120 / 1 oz

  	
   

  	
   

  
	
  98

  	
   

  	
  12403

  	
   

  	
  Sauce, Honey
  Mustard

  	
   

  	
  Portion Pac

  	
   

  	
  120 / 1 oz

  	
   

  	
   

  
	
  99

  	
   

  	
  31772

  	
   

  	
  Sugar PC’s

  	
   

  	
  Diamond

  	
   

  	
  2000 count

  	
   

  	
   

  
	
  100

  	
   

  	
  12816

  	
   

  	
  Jelly
  Assorted PC’s

  	
   

  	
  Smucker

  	
   

  	
  200 count

  	
   

  	
   

  

 

55

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  101

  	
   

  	
  13341

  	
   

  	
  Salt Shaker
  Disposable

  	
   

  	
  Diamond Cry

  	
   

  	
  48 each

  	
   

  	
   

  
	
  102

  	
   

  	
  13346

  	
   

  	
  Pepper
  Shaker Disposable

  	
   

  	
  Diamond Cry

  	
   

  	
  48 each

  	
   

  	
   

  
	
  103

  	
   

  	
  13592

  	
   

  	
  Betterwash-No
  msg

  	
   

  	
  McCormick

  	
   

  	
  20 / 1.5 lb

  	
   

  	
   

  
	
  104

  	
   

  	
  13733

  	
   

  	
  Lemon Juice
  PC’s

  	
   

  	
  Portion Pac

  	
   

  	
  200 count

  	
   

  	
   

  
	
  105

  	
   

  	
  14113

  	
   

  	
  Sweet-n-Low

  	
   

  	
  Sugar Foods

  	
   

  	
  2 / 1250
  count

  	
   

  	
   

  
	
  106

  	
   

  	
  14638

  	
   

  	
  Tea Bags -
  Iced

  	
   

  	
  Lipton Food

  	
   

  	
  96 / 1 oz

  	
   

  	
   

  
	
  107

  	
   

  	
  14647

  	
   

  	
  Breading -
  nsw

  	
   

  	
  McCormick

  	
   

  	
  5 / 10 lb
  bags

  	
   

  	
   

  
	
  108

  	
   

  	
  16222

  	
   

  	
  Hot
  Chocolate

  	
   

  	
  Nestle

  	
   

  	
  6 / 50 count

  	
   

  	
   

  
	
  109

  	
   

  	
  17619

  	
   

  	
  Saltines

  	
   

  	
  Kellogg

  	
   

  	
  500 count

  	
   

  	
   

  
	
  110

  	
   

  	
  18194

  	
   

  	
  Pickles

  	
   

  	
  Degraffeneci

  	
   

  	
  6 count
  pouch

  	
   

  	
   

  

 

56

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  111

  	
   

  	
  18865

  	
   

  	
  Candy, Milky
  Way

  	
   

  	
  M&M Mars

  	
   

  	
  24 / 13 oz

  	
   

  	
   

  
	
  112

  	
   

  	
  18908

  	
   

  	
  Corn Oil
  Liquid

  	
   

  	
  Cargil

  	
   

  	
  32 lb

  	
   

  	
   

  
	
  113

  	
   

  	
  20194

  	
   

  	
  Gr. Biggie
  FF Carton

  	
   

  	
  Dopaco

  	
   

  	
  10 / 50
  count

  	
   

  	
   

  
	
  114

  	
   

  	
  20220

  	
   

  	
  4 cup
  carrier

  	
   

  	
  Tenneco

  	
   

  	
  300 count

  	
   

  	
   

  
	
  115

  	
   

  	
  20481

  	
   

  	
  Filter
  Shortening 10” ACS 1 / 50 count

  	
   

  	
  Tenneco

  	
   

  	
  300 count

  	
   

  	
   

  
	
  116

  	
   

  	
  20675

  	
   

  	
  Bag #5 BIC

  	
   

  	
  Duro

  	
   

  	
  4 / 500
  count

  	
   

  	
   

  
	
  116

  	
   

  	
  20676

  	
   

  	
  Bag #8 BIC

  	
   

  	
  Duro

  	
   

  	
  4 / 500
  count

  	
   

  	
   

  
	
  117

  	
   

  	
  21363

  	
   

  	
  Bag, 12# Chicken

  	
   

  	
  Duro

  	
   

  	
  2 / 500
  count

  	
   

  	
   

  
	
  118

  	
   

  	
  21555

  	
   

  	
  Filters - 12
  cup

  	
   

  	
  Rockline
  Indus

  	
   

  	
  1000 count

  	
   

  	
   

  
	
  119

  	
   

  	
  21810

  	
   

  	
  Pancake
  Syrup

  	
   

  	
  Hunt-Wesson

  	
   

  	
  100 count

  	
   

  	
   

  
	
  120

  	
   

  	
  22062

  	
   

  	
  Souffle Cup
  - 2 oz

  	
   

  	
  Prairie

  	
   

  	
  2500 count

  	
   

  	
   

  

 

57

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  121

  	
   

  	
  22066

  	
   

  	
  Souffle Lid
  - 2 oz

  	
   

  	
  Prairie

  	
   

  	
  2500 count

  	
   

  	
   

  
	
  122

  	
   

  	
  22099

  	
   

  	
  Rapi - Kool
  Bag

  	
   

  	
  Duro

  	
   

  	
  500 count

  	
   

  	
   

  
	
  123

  	
   

  	
  23416

  	
   

  	
  Stirrere,
  Plastic

  	
   

  	
  Jet

  	
   

  	
  10 / 1 M

  	
   

  	
   

  
	
  124

  	
   

  	
  23804

  	
   

  	
  Trayliner
  Chicken

  	
   

  	
  Amidon

  	
   

  	
  5000 count

  	
   

  	
   

  
	
  125

  	
   

  	
  23808

  	
   

  	
  Hot cup 12
  oz foam

  	
   

  	
  Dart

  	
   

  	
  20 / 25
  count

  	
   

  	
   

  
	
  126

  	
   

  	
  23809

  	
   

  	
  Hot cup 12
  oz lid

  	
   

  	
  Dart

  	
   

  	
  10 / 100
  count

  	
   

  	
   

  
	
  127

  	
   

  	
  23810

  	
   

  	
  Hamburger
  Salt

  	
   

  	
  Cargill Salt

  	
   

  	
  12 each

  	
   

  	
   

  
	
  128

  	
   

  	
  23814

  	
   

  	
  Bag -
  shopping

  	
   

  	
  Duro

  	
   

  	
  250 count

  	
   

  	
   

  
	
  129

  	
   

  	
  23817

  	
   

  	
  NHRA

  	
   

  	
  Elk

  	
   

  	
  250 count

  	
   

  	
   

  
	
  130

  	
   

  	
  23832

  	
   

  	
  Platter -
  Black SM

  	
   

  	
  Tenneco

  	
   

  	
  4 / 125
  count

  	
   

  	
   

  
	
  131

  	
   

  	
  23833

  	
   

  	
  Platter Lid
  - Sm

  	
   

  	
  Tenneco

  	
   

  	
  2 / 250
  count

  	
   

  	
   

  

 

58

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  132

  	
   

  	
  23834

  	
   

  	
  FF Carton Sm

  	
   

  	
  Dopaco

  	
   

  	
  16 / 125
  count

  	
   

  	
   

  
	
  133

  	
   

  	
  23859

  	
   

  	
  Potato
  Casserole

  	
   

  	
  Sweetheart

  	
   

  	
  8 / 125
  count

  	
   

  	
   

  
	
  134

  	
   

  	
  24345

  	
   

  	
  Souffle Cup
  3⁄4 oz

  	
   

  	
  Sweetheart

  	
   

  	
  20 / 250
  count

  	
   

  	
   

  
	
  135

  	
   

  	
  24353

  	
   

  	
  Chicken Boat
  - 3 lb

  	
   

  	
  Temple IN

  	
   

  	
  2 / 250
  count

  	
   

  	
   

  
	
  136

  	
   

  	
  24486

  	
   

  	
  Freezer Bags

  	
   

  	
  Com-pac

  	
   

  	
  250 count

  	
   

  	
   

  
	
  137

  	
   

  	
  24608

  	
   

  	
  Hot to Go
  Bag

  	
   

  	
  Duro

  	
   

  	
  250 count

  	
   

  	
   

  
	
  138

  	
   

  	
  24813

  	
   

  	
  Salt Deicer
  Glacier Mall

  	
   

  	
  Cargill Salt

  	
   

  	
  50 lb

  	
   

  	
   

  
	
  139

  	
   

  	
  24900

  	
   

  	
  Wax Wrap
  Sand

  	
   

  	
  Wolf

  	
   

  	
  5000 count

  	
   

  	
   

  
	
  140

  	
   

  	
  25565

  	
   

  	
  Potato
  Casserole Lid

  	
   

  	
  Sweetheart

  	
   

  	
  6 / 105
  count

  	
   

  	
   

  
	
  141

  	
   

  	
  25617

  	
   

  	
  Fr. Fry
  Carton - Biggie

  	
   

  	
  Dopaco

  	
   

  	
  20 / 75
  count

  	
   

  	
   

  

 

59

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  142

  	
   

  	
  27140

  	
   

  	
  Lid Oval
  Black

  	
   

  	
  Tenneco

  	
   

  	
  250 count

  	
   

  	
   

  
	
  143

  	
   

  	
  27141

  	
   

  	
  Platter
  Black

  	
   

  	
  Tenneco

  	
   

  	
  500 count

  	
   

  	
   

  
	
  144

  	
   

  	
  29846

  	
   

  	
  Cold cup, 6
  oz

  	
   

  	
  International
  Paper

  	
   

  	
  20 / 75
  count

  	
   

  	
   

  
	
  145

  	
   

  	
  29847

  	
   

  	
  Cold cup, 12
  oz

  	
   

  	
  International
  Paper

  	
   

  	
  15 / 100
  count

  	
   

  	
   

  
	
  146

  	
   

  	
  29848

  	
   

  	
  Cold cup, 16
  oz

  	
   

  	
  International
  Paper

  	
   

  	
  20 / 55
  count

  	
   

  	
   

  
	
  147

  	
   

  	
  29849

  	
   

  	
  Cold cup, 20
  oz

  	
   

  	
  International
  Paper

  	
   

  	
  24 / 40 count

  	
   

  	
   

  
	
  148

  	
   

  	
  28950

  	
   

  	
  Cold cup, 32
  oz

  	
   

  	
  International
  Paper

  	
   

  	
  12 / 40
  count

  	
   

  	
   

  
	
  149

  	
   

  	
  28951

  	
   

  	
  Cold cup
  lid, 6 oz

  	
   

  	
  International
  Paper

  	
   

  	
  12 / 125
  count

  	
   

  	
   

  

 

60

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  150

  	
   

  	
  29852

  	
   

  	
  Cold cup
  lid, 12 oz

  	
   

  	
  International
  Paper

  	
   

  	
  8 / 145
  count

  	
   

  	
   

  
	
  151

  	
   

  	
  29853

  	
   

  	
  Cold cup
  lid, 16-20 oz

  	
   

  	
  International
  Paper

  	
   

  	
  12 / 125
  count

  	
   

  	
   

  
	
  152

  	
   

  	
  29854

  	
   

  	
  Cold cup
  lid, 32 oz

  	
   

  	
  International
  Paper

  	
   

  	
  9 / 120
  count

  	
   

  	
   

  
	
  153

  	
   

  	
  29855

  	
   

  	
  Chili
  Container, 12 oz

  	
   

  	
  International
  Paper

  	
   

  	
  20 / 25
  count

  	
   

  	
   

  
	
  154

  	
   

  	
  29856

  	
   

  	
  Chili
  Container, 16 oz

  	
   

  	
  International
  Paper

  	
   

  	
  10 / 25
  count

  	
   

  	
   

  
	
  155

  	
   

  	
  29857

  	
   

  	
  Chili
  Container Lid 12 oz

  	
   

  	
  International
  Paper

  	
   

  	
  10 / 75
  count

  	
   

  	
   

  
	
  156

  	
   

  	
  29858

  	
   

  	
  Chili
  Container Lid 16 oz

  	
   

  	
  International
  Paper

  	
   

  	
  10 / 60
  count

  	
   

  	
   

  

 

61

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  157

  	
   

  	
  29865

  	
   

  	
  Spoon
  wrapped

  	
   

  	
  Jet

  	
   

  	
  1000 count

  	
   

  	
   

  
	
  158

  	
   

  	
  29866

  	
   

  	
  Knife
  wrapped

  	
   

  	
  Jet

  	
   

  	
  1000 count

  	
   

  	
   

  
	
  159

  	
   

  	
  29880

  	
   

  	
  Fork wrapped

  	
   

  	
  Jet

  	
   

  	
  1000 count

  	
   

  	
   

  
	
  160

  	
   

  	
  29881

  	
   

  	
  Straw

  	
   

  	
  Jet

  	
   

  	
  16 / 500
  count

  	
   

  	
   

  
	
  161

  	
   

  	
  29949

  	
   

  	
  Croutons
  Seasoned

  	
   

  	
  Acosta

  	
   

  	
  25 oz

  	
   

  	
   

  
	
  162

  	
   

  	
  30259

  	
   

  	
  Tomatoes -
  bulk

  	
   

  	
  Maryland
  Fresh

  	
   

  	
  25 lb

  	
   

  	
   

  
	
  163

  	
   

  	
  30266

  	
   

  	
  Lettuce
  Iceberg

  	
   

  	
  Sunridge
  Farm

  	
   

  	
  24 head

  	
   

  	
   

  
	
  164

  	
   

  	
  30270

  	
   

  	
  Lettuce
  Romaine

  	
   

  	
  Sunridge Farm

  	
   

  	
  24 head

  	
   

  	
   

  

 

62

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  165

  	
   

  	
  30276

  	
   

  	
  Cucumbers

  	
   

  	
  Pacific
  Collar

  	
   

  	
  24 count

  	
   

  	
   

  
	
  166

  	
   

  	
  30322

  	
   

  	
  Potatoes -
  80 ct

  	
   

  	
  Agrf-Fresh

  	
   

  	
  50 lb

  	
   

  	
   

  
	
  167

  	
   

  	
  30679

  	
   

  	
  Red sliced
  onions

  	
   

  	
  Hearn Kirk

  	
   

  	
  5 / 1 #

  	
   

  	
   

  
	
  168

  	
   

  	
  31004

  	
   

  	
  Sliced
  onions

  	
   

  	
  Hearn Kirk

  	
   

  	
  2 / 5 lb

  	
   

  	
   

  
	
  169

  	
   

  	
  31609

  	
   

  	
  Carton FF
  Med

  	
   

  	
  Dopaco

  	
   

  	
  1 M

  	
   

  	
   

  
	
  170

  	
   

  	
  31837

  	
   

  	
  Chicken
  diced Wendy’s

  	
   

  	
  Gold Kist

  	
   

  	
  4 / 4 #

  	
   

  	
   

  
	
  171

  	
   

  	
  31972

  	
   

  	
  Cup cold 20
  oz late night

  	
   

  	
  International
  Paper

  	
   

  	
  24 / 40

  	
   

  	
   

  
	
  172

  	
   

  	
  32058

  	
   

  	
  Carrots
  match stick

  	
   

  	
  Grimmway
  Farms

  	
   

  	
  2 / 5 lb

  	
   

  	
   

  
	
  173

  	
   

  	
  40771

  	
   

  	
  Cup cold 32
  oz late night

  	
   

  	
  International
  Paper

  	
   

  	
  12 / 40

  	
   

  	
   

  

 

63

 

	
   

  	
   

  	
  Code #

  	
   

  	
  Item
  Description

  	
   

  	
  Item Brand

  	
   

  	
  Case Pack

  	
   

  	
  Ancillary
  Items

  
	
  174

  	
   

  	
  40772

  	
   

  	
  Bacon
  precooked 1800 ct

  	
   

  	
  Sugardale

  	
   

  	
  6 / 300
  count

  	
   

  	
   

  

 

64

 

EXHIBIT 3.5

 

Customer Requested
Inventory Procedures

 

Throughout the
Term of this Agreement the parties understand that Company will implement
pursuant to its marketing plan, or otherwise, certain limited time offers
(“LTO”) that may involve food Products and/or premiums and/or other promotional
items.  Distributor shall utilize its
best efforts to support any such LTO’s. 
By definition, an LTO is a promotional offer that is made available for
a limited period of time (the “LTO Period”). 
Company in its discretion shall set all LTO Periods for promotions;
Distributor will work with the Company to mutually agree upon method of
distribution for LTO’s.  Company and
Distributor understand and acknowledge that following the expiration of LTO
Periods certain promotional inventory associated with the LTO in question may
remain unsold (“Excess Inventory”). 
Therefore, at the close of each calendar week during any LTO Period,
Distributor shall provide Company with Distributor’s projections with respect
to potential Excess Inventory.  If
following the end of the LTO Period and any Extensions (as defined below) there
is Excess Inventory that can no longer be sold by Designating Restaurants, then
Distributor and Company shall meet to discuss an appropriate resolution with
respect to the cost of the Excess Inventory and payment with respect thereto.

 

In any event,
the Company is committed to disposing of the respective Excess Inventory within
thirty (30) days of the conclusion of the promotional period for the LTO.  Disposition will be completed via: 1)
Force-shipping the Excess Inventory to Restaurants at the Company’s discretion;
2) Donating the Excess Inventory to an entity at the Company’s discretion; or
3) Destroying and disposing of the Excess Inventory at Company’s discretion.

 

 

EXHIBIT 4.4

 

Approved Suppliers

 

 

EXHIBIT 5

 

PRICING

 

[*]

 

 

EXHIBIT 6.1

 

PRODUCT
WITHDRAWALS/RECALLS

 

1.                                         Distributor
can be notified of a product withdrawal/recall by either Company or the
supplier.  The Distributor will
coordinate the withdrawal of product from Restaurants.

 

When a withdrawal order is issued, the product or material will be
identified by the:

 

a.                                         Product/material
name

b.                                        Processor and
brand

c.                                         Production
code or date

 

2.                                         Upon
receipt of the withdrawal notice, on Company or vendor letterhead, the
Distributor will:

 

a.                                         Call a meeting
of the recall/withdrawal team members.

b.                                        Immediately
segregate and mark, with appropriate warning or instructions, all involved
distributor stock to assure that none shall be delivered to Restaurants.

c.                                         Assign a new
item number to the Product that has been segregated.

d.                                        Immediately
alert personnel to segregate and marls all involved en-route stock.

e.                                         Notify Company
of the:

i.                                            Number of
cases Distributor has in its possession, and

ii.                                         Number of
cases sold to Restaurants or shipped to other parties approved to receive or
purchase the affected item.

f.                                           If the
withdrawal involved Restaurant stock, the Distributor shall:

i.                                            Generate a
query indicating all Restaurant locations that have received the
recalled/withdrawn product.

ii.                                         Immediately
begin notifying all Restaurants to which the involved product has been shipped,
giving all pertinent information.

iii.                                      Keep a list of
Restaurants called, time called, and person receiving information.

iv.                                     Promptly pick up
stock involved and keep records of amount returned.

v.                                        Replace stock
promptly to minimize impact on restaurant operations.

g.                                        When all
necessary return or withdrawal actions have been completed, the Distributor
shall:

i.                                            Notify
Company In writing and by telephone, verifying what actions have been taken or
not taken.

ii.                                         Give Company
data on the amount of product/material recovered, as well as the total amount
originally received and held in storage.

h.                                        If the returned
or withdrawn product/material was Company labeled, the distributor shall
request disposition from Company.  If
the product/material is identified by some other brand name, disposition
instructions shall be obtained from the processor.

i.                                            in order to
facilitate returns or withdrawals, distributor shall maintain a current list
of:

i.                                            Restaurants
serviced and locations.

 

 

ii.                                         Telephone
numbers of restaurants.

iii.                                      Names of managers
and assistant managers.

The list shall be revised and updated to keep
information current.

 

69QuickLinks
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Exhibit 4.1    
    

 
 

WALTER INDUSTRIES, INC.,
  
    as Issuer
  
    and
  
    THE BANK OF NEW YORK TRUST COMPANY, N.A.,
  
    as Trustee    
    

INDENTURE  

Dated
as of April 20, 2004 

3.75% Convertible Senior Subordinated Notes due 2024  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	PAGE

	ARTICLE 1

DEFINITIONS
	

Section 1.01.	
 	

Definitions	
 	

1
	Section 1.02.	 	Other Definitions.	 	11
	
ARTICLE 2

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
	

Section 2.01.	
 	

Designation Amount and Issue of Notes	
 	

12
	Section 2.02.	 	Form of Notes	 	12
	Section 2.03.	 	Date and Denomination of Notes; Payments of Interest	 	13
	Section 2.04.	 	Execution of Notes	 	14
	Section 2.05.	 	Exchange and Registration of Transfer of Notes; Restrictions on Transfer	 	14
	Section 2.06.	 	Mutilated, Destroyed, Lost or Stolen Notes	 	19
	Section 2.07.	 	Temporary Notes	 	20
	Section 2.08.	 	Cancellation of Notes	 	20
	Section 2.09.	 	CUSIP Numbers	 	21
	
ARTICLE 3

REDEMPTION AND REPURCHASE OF NOTES
	

Section 3.01.	
 	

Company's Right to Redeem	
 	

21
	Section 3.02.	 	Notice of Optional Redemption; Selection of Notes	 	21
	Section 3.03.	 	Payment of Notes Called for Redemption by the Company	 	22
	Section 3.04.	 	Conversion Arrangement on Call for Redemption	 	23
	Section 3.05.	 	Repurchase of Notes by the Company at Option of Holders upon a Fundamental Change	 	23
	Section 3.06.	 	Repurchase of Notes by the Company at Option of Holders on Specified Dates	 	25
	Section 3.07.	 	Conditions and Procedures for Repurchase at Option of Holders	 	27
	Section 3.08.	 	Final Maturity Notice	 	29
	
ARTICLE 4

CONTINGENT INTEREST
	

Section 4.01.	
 	

Contingent Interest	
 	

29
	Section 4.02.	 	Payment of Contingent Interest	 	30
	Section 4.03.	 	Contingent Interest Notification	 	30
	
ARTICLE 5

PARTICULAR COVENANTS OF THE COMPANY
	

Section 5.01.	
 	

Payment of Principal and Interest	
 	

30
	Section 5.02.	 	Maintenance of Office or Agency	 	30
	Section 5.03.	 	Appointments to Fill Vacancies in Trustee's Office	 	31
	Section 5.04.	 	Provisions as to Paying Agent	 	31
	Section 5.05.	 	Existence	 	31
	Section 5.06.	 	Rule 144A Information Requirement	 	32
	Section 5.07.	 	Stay, Extension and Usury Laws	 	32
	Section 5.08.	 	Compliance Certificate	 	32
	Section 5.09.	 	Additional Interest Notice	 	32
	Section 5.10.	 	Tax Treatment	 	33
	Section 5.11.	 	Limitation on Senior Subordinated Indebtedness	 	33
	 	 	 	 	 

 

	
ARTICLE 6

NOTEHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	

Section 6.01.	
 	

Noteholders' Lists	
 	

33
	Section 6.02.	 	Preservation and Disclosure of Lists	 	33
	Section 6.03.	 	Reports by Trustee	 	34
	Section 6.04.	 	Reports by Company	 	34
	
ARTICLE 7

REMEDIES OF THE TRUSTEE AND NOTEHOLDERS ON AN EVENT OF DEFAULT
	Section 7.01.	 	Events of Default	 	34
	Section 7.02.	 	Payments of Notes on Default; Suit Therefor	 	36
	Section 7.03.	 	Application of Monies Collected by Trustee	 	37
	Section 7.04.	 	Proceedings by Noteholder	 	38
	Section 7.05.	 	Proceedings by Trustee	 	39
	Section 7.06.	 	Remedies Cumulative and Continuing	 	39
	Section 7.07.	 	Direction of Proceedings and Waiver of Defaults by Majority of Noteholders	 	39
	Section 7.08.	 	Notice of Defaults by the Trustee	 	40
	Section 7.09.	 	Undertaking to Pay Costs	 	40
	Section 7.10.	 	Creditor Rights	 	40
	
ARTICLE 8

THE TRUSTEE
	

Section 8.01.	
 	

Duties and Responsibilities of Trustee	
 	

40
	Section 8.02.	 	Reliance on Documents, Opinions, Etc.	 	42
	Section 8.03.	 	No Responsibility for Recitals, Etc.	 	42
	Section 8.04.	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes	 	43
	Section 8.05.	 	Monies to Be Held in Trust	 	43
	Section 8.06.	 	Compensation and Expenses of Trustee	 	43
	Section 8.07.	 	Officers' Certificate as Evidence	 	43
	Section 8.08.	 	Conflicting Interests of Trustee	 	44
	Section 8.09.	 	Eligibility of Trustee	 	44
	Section 8.10.	 	Resignation or Removal of Trustee	 	44
	Section 8.11.	 	Acceptance by Successor Trustee	 	45
	Section 8.12.	 	Succession by Merger	 	45
	Section 8.13.	 	Preferential Collection of Claims	 	46
	
ARTICLE 9

THE NOTEHOLDERS
	

Section 9.01.	
 	

Action by Noteholders	
 	

46
	Section 9.02.	 	Proof of Execution by Noteholders	 	46
	Section 9.03.	 	Who Are Deemed Absolute Owners	 	46
	Section 9.04.	 	Company-owned Notes Disregarded	 	46
	Section 9.05.	 	Revocation of Consents, Future Holders Bound	 	47
	 	 	 	 	 

ii

 

	
ARTICLE 10

MEETINGS OF NOTEHOLDERS
	

Section 10.01.	
 	

Purpose of Meetings	
 	

47
	Section 10.02.	 	Call of Meetings by Trustee	 	47
	Section 10.03.	 	Call of Meetings by Company or Noteholders	 	47
	Section 10.04.	 	Qualifications for Voting	 	48
	Section 10.05.	 	Regulations	 	48
	Section 10.06.	 	Voting	 	48
	Section 10.07.	 	No Delay of Rights by Meeting	 	49
	
ARTICLE 11

SUPPLEMENTAL INDENTURES
	

Section 11.01.	
 	

Supplemental Indentures Without Consent of Noteholders	
 	

49
	Section 11.02.	 	Supplemental Indenture with Consent of Noteholders	 	51
	Section 11.03.	 	Effect of Supplemental Indenture	 	51
	Section 11.04.	 	Notation on Notes	 	52
	Section 11.05.	 	Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee	 	52
	
ARTICLE 12

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	

Section 12.01.	
 	

Company May Consolidate on Certain Terms	
 	

52
	Section 12.02.	 	Successor to Be Substituted	 	53
	
ARTICLE 13

SATISFACTION AND DISCHARGE OF INDENTURE
	

Section 13.01.	
 	

Discharge of Indenture	
 	

54
	Section 13.02.	 	Paying Agent to Repay Monies Held	 	54
	Section 13.03.	 	Return of Unclaimed Monies	 	54
	
ARTICLE 14

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	

Section 14.01.	
 	

Indenture and Notes Solely Corporate Obligations	
 	

54
	
ARTICLE 15

CONVERSION OF NOTES
	

Section 15.01.	
 	

Right to Convert	
 	

55
	Section 15.02.	 	Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends; Settlement of Cash or Common Stock Upon Conversion	 	57
	Section 15.03.	 	Cash Payments in Lieu of Fractional Shares	 	60
	Section 15.04.	 	Conversion Rate	 	60
	Section 15.05.	 	Adjustment of Conversion Rate	 	60
	Section 15.06.	 	Effect of Reclassification, Consolidation, Merger or Sale	 	65
	Section 15.07.	 	Taxes on Shares Issued	 	66
	Section 15.08.	 	Reservation of Shares, Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common Stock	 	66
	Section 15.09.	 	Responsibility of Trustee	 	67
	Section 15.10.	 	Notice to Holders Prior to Certain Actions	 	67
	Section 15.11.	 	Stockholder Rights Plans	 	68
	 	 	 	 	 

iii

 

	
ARTICLE 16

SUBORDINATION
	

Section 16.01.	
 	

Agreement to Subordinate	
 	

68
	Section 16.02.	 	Liquidation, Dissolution, Bankruptcy	 	68
	Section 16.03.	 	Default on Senior Indebtedness	 	68
	Section 16.04.	 	Acceleration of Payment of Notes	 	69
	Section 16.05.	 	When Distribution Must Be Paid Over	 	69
	Section 16.06.	 	Subrogation	 	70
	Section 16.07.	 	Relative Rights	 	70
	Section 16.08.	 	Subordination May Not Be Impaired by Company	 	70
	Section 16.09.	 	Rights of Trustee and Paying Agent	 	70
	Section 16.10.	 	Distribution or Notice to Representative	 	70
	Section 16.11.	 	Article 16 Not to Prevent Events of Default or Limit Right to Accelerate	 	70
	Section 16.12.	 	Trust Monies Not Subordinated	 	70
	Section 16.13.	 	Trustee Entitled to Rely	 	71
	Section 16.14.	 	Trustee to Effectuate Subordination	 	71
	Section 16.15.	 	Trustee Not Fiduciary for Holders of Senior Indebtedness	 	71
	Section 16.16.	 	Reliance by Noteholders of Senior Indebtedness on Subordination Provisions	 	71
	
ARTICLE 17

SUBSIDIARY GUARANTEES
	

Section 17.01.	
 	

Subsidiary Guarantors	
 	

71
	
ARTICLE 18

MISCELLANEOUS PROVISIONS
	

Section 18.01.	
 	

Provisions Binding on Company's Successors	
 	

72
	Section 18.02.	 	Official Acts by Successor Corporation	 	72
	Section 18.03.	 	Addresses for Notices, Etc	 	72
	Section 18.04.	 	Governing Law; Waiver of Jury Trial	 	73
	Section 18.05.	 	Evidence of Compliance with Conditions Precedent, Certificates to Trustee	 	73
	Section 18.06.	 	Legal Holidays	 	73
	Section 18.07.	 	Company Responsible for Making Calculations	 	73
	Section 18.08.	 	Trust Indenture Act	 	74
	Section 18.09.	 	No Security Interest Created	 	74
	Section 18.10.	 	Benefits of Indenture	 	74
	Section 18.11.	 	Table of Contents, Headings, Etc.	 	74
	Section 18.12.	 	Authenticating Agent	 	74
	Section 18.13.	 	Execution in Counterparts	 	75
	Section 18.14.	 	Severability	 	75
	Section 18.15.	 	Force Majeure	 	75
	

Exhibit A:	
 	

Form of Note	
 	

A-1
	Exhibit B:	 	Form of Supplemental Indenture for a Subsidiary Guarantor	 	B-1

iv

 
 

INDENTURE    
    

        INDENTURE dated as of April 20, 2004, between Walter Industries, Inc., a Delaware corporation (hereinafter called the  "Company"),
 and The Bank of New York Trust Company, N.A., a national banking association, as trustee hereunder (hereinafter called the  "Trustee"). 

 
 

WITNESSETH:    
    

        WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its 3.75% Convertible Senior Subordinated Notes due 2024 (hereinafter
called the "Notes") in an aggregate principal amount not to exceed $150,000,000, or up to $175,000,000 if the Initial Purchasers' option to purchase
additional notes is exercised, and, to provide the terms and conditions upon which the Notes are to be authenticated, issued and delivered, the Company has duly authorized the execution and delivery
of this Indenture; and 

        WHEREAS,
the Notes, the certificate of authentication to be borne by the Notes, a form of assignment, a form of fundamental change repurchase election, a form of Company repurchase
election and a form of conversion notice to be borne by the Notes are to be substantially in the forms hereinafter provided for; and 

        WHEREAS,
all acts and things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Trustee or a duly authorized authenticating agent, as in
this Indenture provided, the valid and legally binding obligations of the Company, and to constitute this Indenture a valid agreement according to its terms, have been done and performed, and the
execution of this Indenture and the issue hereunder of the Notes have in all respects been duly authorized; 

        NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

        That
in order to declare the terms and conditions upon which the Notes are, and are to be, authenticated, issued and delivered, and in consideration of the premises and of the purchase
and acceptance of the Notes by the holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective holders from time to time of the Notes
(except as otherwise provided below), as follows: 

 
 

ARTICLE 1
  Definitions    
    

        Section 1.01.    Definitions.    The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this
Section 1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or which are by reference therein defined in the Securities Act (except as herein otherwise
expressly provided or unless the context otherwise requires) shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the
execution of this Indenture. The words "herein", "hereof",  "hereunder" and words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other Subdivision. The terms
defined in this Article include the plural as well as the singular. 

        "Additional Interest" has the meaning specified for "Additional Interest" in Section 3(a) of the Registration Rights Agreement. 

        "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, "control", when used with respect to any specified Person means the
power to direct or cause the direction of 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 Five-Day Trading Period" means, with respect to any Interest Period as to which Contingent Interest may be
payable, the five Trading Days ending on the third trading day immediately preceding the first day of such Interest Period. 

        "Bank Indebtedness" means any and all amounts payable under or in respect of the Credit Agreement and any refinancing indebtedness
(including, without limitation, any renewals, replacements, refundings, restatements, substitutions or any other refinancings of any kind) with respect thereto that may be incurred from time to time
(whether before or after termination of the Credit Agreement) (including increasing the amount available for borrowing thereunder and including refinancings with the same or different lenders or
agents), as amended, modified or supplemented from time to time, including principal, premium, if any, interest (including interest accruing on or after 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), fees, charges, expenses, reimbursement obligations, guarantees and
all other amounts payable thereunder or in respect thereof. 

        "Bid Solicitation Agent" means such Person (other than any Affiliate of the Company) as the Company may designate as Bid Solicitation
Agent from time to time, and shall initially mean the Trustee. 

        "Board of Directors" means the Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder. 

        "Business Day" means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to close in The City of New York. 

        "capital stock" of any Person means any and all shares (including ordinary shares of American Depositary Shares), interests,
participations or other equivalents however designated of corporate stock or other equity participations, including partnership interests, whether general or limited, of such Person and, except as
used in the definition of Fundamental Change, any rights (other than debt securities convertible or exchangeable into an equity interest), warrants or options to acquire an equity interest in such
Person. 

        "cash" means U.S. legal tender. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Commission" means the Securities and Exchange Commission, as from time to time constituted under the Exchange Act, or, if at any time
after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time. 

        "Common Stock" means any stock of any class of the Company which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding up of the Company and which is not subject to redemption by the Company. Subject to the provisions of Section 15.06,
however, shares issuable on conversion of Notes shall include only shares of the class designated as common stock of the Company at the date of this Indenture (namely, the Common Stock, par value
$0.01) or shares of any class or classes resulting from any reclassification or reclassifications thereof and which have no preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company and which are not subject to redemption by the Company; provided that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion shall be substantially in the proportion which the total number of shares of such class resulting from all such
reclassifications bears to the total number of shares of all such classes resulting from all such reclassifications. 

2

 

        "Company" means the corporation named as the "Company" in the first paragraph of this
Indenture, and, subject to the provisions of Article 12 and Section 15.06, shall include its successors and assigns. 

        "Conversion Agent" means the Trustee or such other office or agency designated by the Company where Notes may be presented for conversion. 

        "Conversion Price" as of any day means $1,000 divided by the Conversion Rate as of such date and rounded to the nearest cent. The
Conversion Price shall initially be $17.85 per share of Common Stock. 

        "Corporate Trust Office" or other similar term, means the designated office of the Trustee at which at any particular time its corporate
trust business as it relates to this Indenture shall be administered, which office is, at the date as of which this Indenture is dated, located at The Bank of New York Trust Company, N.A., 10161
Centurion Parkway, Jacksonville, Florida, 32256, Attention: Corporate Trust Administration. 

        "Credit Agreement" means the Credit Agreement, dated as of April 17, 2003, as amended through the date hereof, among the Company
and the parties named therein for whom Bank of America, N.A. is acting as administrative agent, as further amended, restated, supplemented, waived, replaced, whether or not upon termination, and
whether with the original lenders or otherwise, refinanced, restructured or otherwise modified from time to time. 

        "Credit Facilities" means one or more debt or commercial paper facilities with banks or other institutional lenders, including the Credit
Agreement, providing for revolving credit loans, term loans,
receivables or inventory financing or letters of credit, or any debt securities or other form of debt financing, in each case together with any amendment, supplement, extension, renewal, replacement
or refinancing thereof. 

        "Current Market Price" per share of Common Stock means, with respect to any date of determination, the average of the Last Reported Sale
Price for the 10 consecutive Trading Days from and including the Ex-Dividend Date with respect to the issuance or distribution requiring such computation. If another issuance or
distribution to which Section 15.05 applies occurs during the period applicable for calculating "Current Market Price" pursuant to this
definition, "Current Market Price" shall be calculated for such period in a manner determined by the Board of Directors to reflect the impact of such
issuance, distribution, subdivision or combination on the Last Reported Sale Price of the Common Stock during such period. 

        "Custodian" means The Bank of New York Trust Company, N.A., as custodian with respect to the Notes in global form, or any successor entity
thereto. 

        "Default" means any event that is, or after notice or passage of time, or both, would be, an Event of Default. 

        "Depositary" means, the clearing agency registered under the Exchange Act that is designated to act as the Depositary for the Global
Notes. The Depository Trust Company shall be the initial Depositary, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and
thereafter, "Depositary" shall mean or include such successor. 

        "Designated Senior Indebtedness" of the Company means (a) the Bank Indebtedness and (b) any other Senior Indebtedness of the
Company that, at the date of determination, has an aggregate principal amount outstanding of, or under which, at the date of determination, the holders thereof are committed to lend up to, at least
$25,000,000 and is specifically designated by the Company in the instrument evidencing or governing such Senior Indebtedness as "Designated Senior
Indebtedness" for purposes of this Indenture. "Designated Senior Indebtedness" of a Subsidiary Guarantor has a correlative
meaning. 

3

 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as in effect
from time to time. 

        "Ex-Dividend Date" means, with respect to any distribution on shares of Common Stock, the first date on which the shares of
Common Stock trade regular way on the principal securities market on which the shares of Common Stock are then traded without the right to receive such distribution. 

        "Fundamental Change" means the occurrence of any of the following: 

          (i)  a
"person" or "group" within the meaning of Section 13(d) of the Exchange Act other than the Company, its subsidiaries or the Company's or its subsidiaries'
employee benefit plans, files a Schedule TO, Schedule 13D or any other schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect
ultimate "beneficial owner," as defined in Rule 13d-3 under the Exchange Act, of more than 50% of the total voting power of all shares of the Company's capital stock that are
entitled to vote generally in the election of directors; 

         (ii)  during
any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of the Company (together with any new
directors whose election by such Board of Directors of the Company or whose nomination for election by the stockholders of the Company was approved by a vote of a majority of the directors of the
Company then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason (other than death)
to constitute a majority of the Board of Directors of the Company then in office; 

        (iii)  the
approval of a plan relating to the liquidation or dissolution of the Company by the stockholders of the Company; or 

        (iv)  the
consummation of any share exchange, consolidation or merger of the Company or any sale, lease or other transfer in one transaction or a series of transactions of
all or substantially all of the consolidated assets of the Company and its subsidiaries, taken as a whole, to any person other than the Company or one or more of its subsidiaries, pursuant to which
the Common Stock will be converted into cash, securities or other property; provided, however, that a transaction where the holders of the Company's voting capital stock immediately prior to such
transaction have directly or indirectly more than 50% of the total voting power of all shares of capital stock of the continuing or surviving corporation or transferee entitled to vote generally in
the election of directors immediately after such event shall not be a Fundamental Change. 

        A
Fundamental Change will not be deemed to have occurred in respect of any of the foregoing, however, if either: 

          (i)  the
Last Reported Sale Price of the Common Stock for any five Trading Days within the 10 consecutive Trading Days ending immediately before the later of the event
otherwise constituting the
Fundamental Change or the public announcement thereof, equals or exceeds 105% of the Conversion Price of the Notes immediately before the event otherwise constituting the Fundamental Change or the
public announcement thereof; or 

         (ii)  at
least 90% of the consideration, excluding cash payments for fractional shares, in the transaction or transactions otherwise constituting the Fundamental Change
consists of shares of capital stock traded on a national securities exchange or quoted on the Nasdaq National Market or which will be so traded or quoted when issued or exchanged in connection with an
event otherwise constituting the Fundamental Change (these securities being referred to as "publicly traded securities") and as a result of this transaction or transactions the Notes become
convertible into such publicly traded securities. 

4

 

        "Guarantee" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other
obligation of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person (a) 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 agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (b) 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,  however, 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. The term "Guarantor" shall mean any Person Guaranteeing
any obligation. 

        "Hedging Obligations" means obligations of the Company under (1) interest rate swap agreements, interest rate cap agreements and
interest rate collar agreements, and (2) other agreements or arrangements designed to protect the Company against fluctuations in interest rates or currency exchange rates. 

        "Incur" means issue, assume, Guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or capital stock 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 Person at the time it becomes a Subsidiary. The term "Incurrence" when used as a noun shall have a correlative
meaning. The accretion of principal of a non-interest bearing or other discount security shall not be deemed the Incurrence of Indebtedness. 

        "Indebtedness" means, with respect to any Person on any date of determination, without duplication, the principal or face amount of
(i) all obligations for borrowed money, (ii) all obligations evidenced by notes, bonds or other similar instruments, (iii) all obligations in respect of letters of credit or
bankers
acceptances or similar instruments (or reimbursement obligations with respect thereto), (iv) all obligations to pay the deferred purchase price of property or services, (v) all
obligations as lessee which are capitalized in accordance with generally accepted accounting principles, and (vi) all Indebtedness of others guaranteed by such Person or any of its Subsidiaries
or for which such Person or any of its Subsidiaries is legally responsible or liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others). 

        "Indenture" means this instrument as originally executed or, if amended or supplemented as herein provided, as so amended or supplemented. 

        "Initial Purchasers" means each of Banc of America Securities LLC, Morgan Stanley & Co. Incorporated, SunTrust Capital
Markets, Inc., BNP Paribas Securities Corp. and Credit Lyonnais Securities (USA) Inc. (each, an "Initial Purchaser"). 

        "Interest" means, when used with reference to the Notes, any interest payable under the terms of the Notes, including Contingent Interest,
if any, and, unless otherwise indicated, Additional Interest, if any, payable under the terms of the Registration Rights Agreement. 

        "Interest Payment Date" means May 1 and November 1 of each year, commencing November 1, 2004. 

        "Interest Period" means (i) with respect to the first interest period, the period from the first Original Issuance Date of the
Notes to and including October 31, 2004 and (ii) thereafter, any six-month period from May 1 to and including October 31 and from November 1 to and
including April 30, commencing on or after November 1, 2004 and ending before the Stated Maturity, except that with respect to the first period for which Contingent Interest is payable,
such period shall be from May 1, 2011 to and including November 1, 2011. 

5

 

        "Last Reported Sale Price" of the Common Stock on any date means the closing sale price per share (or if no closing sale price is
reported, the average of the bid and asked prices or, if more than one in either case, the average of the average bid and the average asked prices) on that date as reported in composite transactions
for the principal U.S. securities exchange on which the Common Stock is traded or, if the Common Stock is not listed on a U.S. national or regional securities exchange, as reported by the Nasdaq
National Market. If the Common Stock is not listed for trading on a U.S. national or regional securities exchange and not reported by the Nasdaq National Market on the relevant date, the "Last
Reported Sale Price" will be the last quoted bid price for the Common Stock in the over-the-counter market on the relevant date as reported by the National Quotation Bureau
Incorporated or similar organization. If the Common Stock is not so quoted, the
"Last Reported Sale Price" will be the average of the mid-point of the last bid and asked prices for the Common Stock on the relevant date quoted by each of at least three nationally
recognized independent investment banking firms selected by the Company for this purpose. 

        "Note" or "Notes" means any Note or Notes, as the case may be, authenticated and delivered
under this Indenture, including any Global Note. 

        "Noteholder" or "holder" as applied to any Note, or other similar terms (but excluding the
term "beneficial holder"), means any Person in whose name at the time a particular Note is registered on the Note Registrar's books. 

        "Officer" means the Chairman of the Board, the Chief Executive Officer, the Chief Operating Officer, the President, the Chief Financial
Officer, any Vice President (whether or not designated by a number or numbers or word or words added before or after the title "Vice President"), the Treasurer, the Secretary or Assistant Secretary of
the Company 

        "Officers' Certificate", when used with respect to the Company, means a certificate signed by any two Officers; provided that the
Officers' Certificate delivered on the date hereof pursuant to Section 18.05 may be signed by any one Officer. 

        "Opinion of Counsel" means an opinion in writing signed by legal counsel, who may be an employee of or counsel to the Company, or other
counsel reasonably acceptable to the Trustee. 

        "Original Issue Date" means April 20, 2004. 

        "outstanding", when used with reference to Notes and subject to the provisions of Section 9.04, means, as of any particular time,
all Notes authenticated and delivered by the Trustee under this Indenture, except: 

	(a)
	Notes
theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

	(b)
	Notes,
or portions thereof, (i) for the redemption, repayment or repurchase of which monies in the necessary amount shall have been deposited in trust with the Trustee or with
any Paying Agent (other than the Company) or (ii) which shall have been otherwise discharged in accordance with Article 13;

	(c)
	Notes
paid pursuant to Section 2.06 or Notes in lieu of which, or in substitution for which, other Notes shall have been authenticated and delivered pursuant to the terms of
Section 2.06; and

	(d)
	Notes
converted into Common Stock pursuant to Article 15 and Notes deemed not outstanding pursuant to Article 3; 

        provided, however, that in determining whether the holders of the requisite principal amount of Outstanding Notes are present at a meeting
of holders of Notes for quorum purposes or have consented to or voted in favor of any request, demand, authorization, direction, notice, consent, waiver, amendment or modification hereunder, Notes
held for the account of the Company, any of its 

6

 

subsidiaries
or any of its affiliates shall be disregarded and deemed not to be Outstanding, except that in determining whether the Trustee shall be protected in making such a determination or relying
upon any such quorum, consent or vote, only Notes which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. 

        "Paying Agent" means the Trustee or such other office or agency designated by the Company where Notes may be presented for payment. 

        "Person" means a corporation, an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock
company, a trust, an unincorporated organization or a government or an agency or a political subdivision thereof. 

        "Portal Market" means the Private Offerings Resales and Trading through Automated Linkages Market operated by the National Association of
Securities Dealers, Inc. or any successor thereto. 

        "Predecessor Note" of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such
particular Note, and, for the purposes of this definition, any Note authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the lost, destroyed or stolen Note that it replaces. 

        "Registration Rights Agreement" means the Registration Rights Agreement dated as of April 20, 2004, between the Company and the
Initial Purchasers, as amended from time to time in accordance with its terms. 

        "Regular Record Date" means, with respect to each Interest Payment Date, the close of business on the April 15 or October 15
next preceding such Interest Payment Date (whether or not a Business Day). 

        "Representative" means the trustee, agent or representative (if any) for an issue of Senior Indebtedness. 

        "Repurchase Date" means the Fundamental Change Repurchase Date or the Company Repurchase Date, as applicable. 

        "Repurchase Election" means the Fundamental Change Repurchase Election or the Company Repurchase Election, as applicable. 

7

  

        "Repurchase Price" means the Fundamental Change Repurchase Price or the Company Repurchase Price, as applicable. 

        "Responsible Officer" means, when used with respect to the Trustee, any officer within the corporate trust department 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 such
person's knowledge of any familiarity with the particular. 

        "Rule 144A" means Rule 144A as promulgated under the Securities Act. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from
time to time. 

        "Senior Indebtedness" of the Company means the principal of, premium (if any) and any accrued and unpaid interest on (including interest
accruing on or after the filing of any petition in bankruptcy or for reorganization of the Company, regardless of whether or not a claim for post-filing interest is allowed in such
proceedings) and fees and other amounts (including expenses, reimbursement obligations under letters of credit and indemnities) owing in respect of, Bank Indebtedness, all Hedging Obligations with
respect to Bank Indebtedness, and all other Indebtedness of the Company, whether outstanding on the date of this Indenture or thereafter Incurred, unless in the instrument creating or evidencing the
same or pursuant to which the same is outstanding it is provided that such obligations are not superior in right of payment to the Notes; provided,  however,
 that Senior Indebtedness of the Company shall not include (a) any obligation of the Company to any Subsidiary of the Company,
(b) any liability for Federal, state, local or other taxes owed or owing by the Company, (c) any accounts payable or other liability to trade creditors arising in the ordinary course of
business (including Guarantees thereof or instruments evidencing such liabilities) and any amounts owed for compensation to employees, (d) any Indebtedness or obligation of the Company, and any
accrued and unpaid interest in respect thereof that by its terms is subordinate or junior in any respect to any other Indebtedness or obligation of the Company, including any Senior Subordinated
Indebtedness and any Subordinated Indebtedness of the Company or (e) any obligations with respect to any capital stock. "Senior Indebtedness" of
a Subsidiary Guarantor has a correlative meaning. 

        "Senior Subordinated Indebtedness" of the Company means the Notes and any other Indebtedness of the Company that specifically provides
that such Indebtedness is to rank pari passu with the Notes in right of payment and is not subordinated by its terms in right of payment to any
Indebtedness or other
obligation of the Company which is not Senior Indebtedness. "Senior Subordinated Indebtedness" of a Subsidiary Guarantor has a correlative meaning. 

        "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 Commission. 

        "Spin-off Market Price" per share of Common Stock of the Company or the capital stock of, or similar equity interests in, a
Subsidiary or other business unit of the Company on any day means the average of the daily Last Reported Sale Price for the 10 consecutive Trading Days commencing on and including the fifth Trading
Day after the Ex-Dividend Date with respect to the issuance or distribution requiring such computation. 

        "Stated Maturity" means May 1, 2024. 

        "Stock Record Date" means, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock
have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise). 

8

 

        "Subsidiary Guarantee" means each Guarantee of the obligations with respect to the Notes issued by a Subsidiary of the Company pursuant to
the terms of this Indenture. 

        "Subsidiary Guarantor" means each Subsidiary of the Company that has issued a Subsidiary Guarantee. 

        "Subordinated Indebtedness" means any Indebtedness of the Company (whether outstanding on the date of this Indenture or thereafter
Incurred) that is subordinate or junior in right of payment to the Notes pursuant to a written agreement. "Subordinated Indebtedness" of a Subsidiary
Guarantor has a correlative meaning. 

        "Subsidiary" means, with respect to any Person, (i) any corporation, association or other business entity of which more than 50% of
the total voting power of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other subsidiaries of that Person (or a combination thereof) and (ii) any partnership
(a) the sole general partner or managing general partner of which is such Person or a subsidiary of such Person or (b) the only general partners of which are such Person or of one or
more subsidiaries of such Person (or any combination thereof). 

        "Trading Day" means a day during which trading in securities generally occurs on the New York Stock Exchange or, if the Common Stock is
not then listed on the New York Stock Exchange, on the principal other national or regional securities exchange on which the Common Stock are then listed or, if the Common Stock are not listed on a
national or regional securities exchange, on the Nasdaq National Market or, if the Common Stock is not quoted on the Nasdaq National Market, on the principal other market on which the Common Stock are
then traded (provided that no day on which trading of the Common Stock is suspended on such exchange or other trading market will count as a Trading Day). 

        "Trading Price" of a Note means (a) for purposes of Section 4.01 hereof, as of any date of determination, the average of the
secondary market bid quotations per $1,000 principal amount of Notes obtained by the Bid Solicitation Agent for $5,000,000 aggregate principal amount of Notes at approximately 3:30 p.m., New
York City time, on such determination date from three nationally recognized securities dealers (none of which shall be an Affiliate of the Company) selected by the Company; provided, however, if
(i) at least three such bids are not obtained by the Bid Solicitation Agent or (ii) in the Company's reasonable judgment, the bid quotations are not indicative of the secondary market
value of the Notes as of such determination date, then the Trading Price per $1,000 principal amount of the Notes for such determination date shall equal (1) the Conversion Rate in effect as of
such determination date multiplied by (2) the average Last Reported Sale Price of the Common Stock for the five Trading Days ending on such determination date, appropriately adjusted to take
into account the occurrence, during the period commencing on the first of such Trading Days during such five Trading Day period and ending on such determination date, of any event described in
Section 15.05 or Section 15.06 and (b) for purposes of Section 15.01 hereof, as of any date of determination, the average of the secondary market bid quotations per $1,000
principal amount of Notes obtained by the Bid Solicitation Agent for $5,000,000 aggregate principal amount of Notes at approximately 3:30 p.m., New York City time, on such determination date
from three nationally recognized securities dealers (none of which shall be an Affiliate of the Company) selected by the Company; provided, however, if (i) at least three such bids are not
obtained by the Bid Solicitation Agent, but two such bids are obtained, then the average of the two bids shall be used, (ii) only one such bid can be reasonably obtained by the Bid Solicitation
Agent, then that one bid shall be used, and (iii) the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 aggregate principal amount of Notes, then the Trading Price
per $1,000 principal amount of the Notes for such determination date shall be deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. The
Bid Solicitation Agent shall solicit bids from 

9

 

securities
dealers that the Company believes to be willing to bid for Notes. Except in the case of (b)(iii) above, the Trading Price shall be determined by the Company, using the bids obtained
by the Bid Solicitation Agent. 

        "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as it was in force at the date of this Indenture, except as
provided in Sections 11.03 and 15.06; provided that if the Trust Indenture Act of 1939 is amended after the date hereof, the term "Trust Indenture Act"
shall mean, to the extent required by such amendment, the Trust Indenture Act of 1939 as so amended. 

        "Trustee" means The Bank of New York Trust Company, N.A. and its successors and any corporation resulting from or surviving any
consolidation or merger to which it or its successors may be a party and any successor trustee at the time serving as successor trustee hereunder. 

10

 

        Section 1.02.    Other Definitions.    

	Term
 
	 	Defined in Section

	"Additional Interest Notice"	 	5.09
	"Adjustment Event"	 	15.05(l)
	"Agent Members"	 	2.05(b)(v)
	"Blockage Notice"	 	16.03
	"Cash Amount"	 	15.02(h)(iii)
	"Cash Settlement Averaging Period"	 	15.02(g)(i)
	"Cash Settlement Notice Period"	 	15.02(g)(i)
	"Company Repurchase Date"	 	3.06(a)
	"Company Repurchase Price"	 	3.06(a)
	"Company Repurchase Election"	 	3.06(c)(i)
	"Company Repurchase Notice"	 	3.06(b)
	"Contingent Debt Regulations"	 	3.06(a)
	"Contingent Interest"	 	5.10
	"Contingent Interest"	 	4.01
	"Conversion Date"	 	15.02(c)
	"Conversion Notice"	 	15.02(a)
	"Conversion Obligation"	 	15.02(g)(i)
	"Conversion Rate"	 	15.04
	"Conversion Retraction Period"	 	15.02(g)(i)
	"Defaulted Interest"	 	2.03
	"Determination Date"	 	15.05(l)
	"Dividend Threshold Amount"	 	15.05(e)
	"Event of Default"	 	7.01
	"Expiration Time"	 	15.05(f)
	"Final Maturity Notice"	 	3.09
	"Final Notice Date"	 	3.08
	"Fundamental Change Offer"	 	3.05(b)
	"Fundamental Change Repurchase Date"	 	3.05(a)
	"Fundamental Change Repurchase Election"	 	3.05(c)(i)
	"Fundamental Change Repurchase Price"	 	3.05(a)
	"Global Note"	 	2.02
	"Moody's"	 	15.01(a)(v)
	"non-electing share"	 	15.06
	"Note Register"	 	2.05(a)
	"Note Registrar"	 	2.05(a)
	"Payment Blockage Period"	 	16.03
	"pay the Notes"	 	16.03
	"Purchased Shares"	 	15.05(f)(i)
	"Redemption Date"	 	3.02(a)
	"Redemption Notice"	 	3.02(a)
	"Redemption Price"	 	3.01
	"Restricted Securities"	 	2.05(c)
	"Special Record Date"	 	2.03(1)
	"S&P"	 	15.01(a)(v)
	"Subsidiary Guarantor Supplemental Indenture"	 	17.01
	"Successor Company"	 	12.01(a)(A)
	"Successor Guarantor"	 	12.01(b)
	"Triggering Distribution"	 	15.05(e)

11

 
 
 

ARTICLE 2
  Issue, Description, Execution, Registration And Exchange Of Notes    
    

        Section 2.01.    Designation Amount and Issue of Notes.    The Notes shall be designated as  "3.75% Convertible Senior Subordinated Notes due 2024". Notes not to exceed the aggregate principal amount of $150,000,000, or up to $175,000,000 if the
Initial Purchasers' option to purchase additional notes is exercised, (except pursuant to Sections 2.05, 2.06 and 15.02 hereof) upon the execution of this Indenture, or from time to time thereafter,
may be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall thereupon authenticate and deliver said Notes to or upon the written order of the Company, signed
by an Officer, without any further action by the Company hereunder. 

        Section 2.02.    Form of Notes.    The Notes and the Trustee's certificate of authentication to be borne by
such Notes shall be substantially in the form set forth in Exhibit A. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall constitute, and are hereby
expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and
to be bound thereby. 

        Any
of the Notes may have such letters, numbers or other marks of identification and such notations, legends, endorsements or changes as the officers executing the same may approve
(execution thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions of this Indenture, or as may be required by the Custodian, the Depositary or by the
National Association of Securities Dealers, Inc. in order for the Notes to be tradable on The Portal Market or as may be required for the Notes to be tradable on any other market developed for
trading of securities pursuant to Rule 144A or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
securities exchange or automated quotation system on which the Notes may be listed, or to conform to usage, or to indicate any special limitations or restrictions to which any particular Notes are
subject. 

        So
long as the Notes are eligible for book-entry settlement with the Depositary, or unless otherwise required by law, or otherwise contemplated by Section 2.05(a), all
of the Notes will be represented by one or more Notes in global form registered in the name of the Depositary or the
nominee of the Depositary (a "Global Note"). The transfer and exchange of beneficial interests in any such Global Note shall be effected through the
Depositary in accordance with this Indenture and the applicable procedures of the Depositary. Except as provided in Section 2.05(a), beneficial holders of a Global Note shall not be entitled to
have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered holders of such Global Note. 

        Any
Global Note shall represent such of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes from time
to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be increased or reduced to reflect redemptions, repurchases, conversions,
transfers or exchanges permitted hereby. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in such manner and upon instructions given by the holder of such Notes in accordance with this Indenture. Payment of principal of and
Interest on any Global Note shall be made to the holder of such Note; provided, however, that in respect of Notes submitted for conversion during a Registration Default (as defined in the Registration
Rights Agreement), payment for Additional Interest shall be made as specified in the Registration Rights Agreement. 

12

 

        Section 2.03.    Date and Denomination of Notes; Payments of Interest.    The Notes shall be issuable in
registered form without coupons in denominations of $1,000 principal amount and integral multiples thereof. Each Note shall be dated the date of its authentication and shall bear interest from the
date specified on the face of the form of Note attached as Exhibit A hereto. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve
30-day months. 

        The
Person in whose name any Note (or its Predecessor Note) is registered on the Note Register at the close of business on the Regular Record Date with respect to an Interest Payment
Date shall be entitled to receive the Interest payable on such Interest Payment Date, except that the Interest payable upon redemption or repurchase will be payable to the Person to whom principal is
payable pursuant to such redemption or repurchase (unless the Redemption Date or the Repurchase Date, as the case may be, is an Interest Payment Date, in which case the semi-annual payment
of interest becoming due on such date shall be payable to the holders of such Notes registered as such on the applicable Regular Record Date). Notwithstanding the foregoing, if any Note (or portion
thereof) is converted into Common Stock during the period after a Regular Record Date to, but excluding, the next succeeding Interest Payment Date and such Note (or portion thereof) has been called or
tendered for redemption on a Redemption Date which occurs during such period, the Company shall not be required to pay Interest on such Interest Payment Date in respect of any such Note (or portion
thereof), except as provided in Section 15.02. Interest shall be payable at the office of the Company maintained by the Company for such purposes in the Borough of Manhattan, City of New York,
which shall initially be an office or agency of the Trustee. The Company shall pay Interest (i) on any Notes in certificated form by check mailed to the address of the Person entitled thereto
as it appears in the Note Register (or upon written notice received from the registered holder thereof prior to the relevant
Regular Record Date, by wire transfer in immediately available funds, if such Person is entitled to Interest on Notes with an aggregate principal amount in excess of $10,000,000) or (ii) on any
Global Note by wire transfer of immediately available funds to the account of the Depositary or its nominee. 

        Any
Interest on any Note which is payable, but is not punctually paid or duly provided for, on any May 1 or November 1 (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Noteholder on the relevant Regular Record Date by virtue of his having been such Noteholder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below: 

        (1)   The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the
close of business on a "Special Record Date" for the payment of such Defaulted Interest, which shall be the date fixed in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed payment (which shall be not less than 25 days after
the receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at the same time the Company shall deposit with the Trustee an amount of money equal to the
aggregate amount to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or 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 Special Record Date for the payment
of such Defaulted Interest that shall be not more than 15 days and not less than ten days prior to the date of the proposed payment, and not less than ten days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each holder at his address as it appears in the Note Register, not less than ten
days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Notes (or their respective Predecessor Notes) are registered at the close of 

13

 

business
on such Special Record Date and shall no longer be payable pursuant to the following clause (2) of this Section 2.03. 

        (2)   The
Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange or automated
quotation system on which the Notes may be listed or designated for issuance, and upon such notice as may be required by such exchange or automated quotation system, 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. 

        Section 2.04.    Execution of Notes.    The Notes shall be signed in the name and on behalf of the Company by
the manual or facsimile signature of an Officer. Only such Notes as shall bear thereon a certificate of authentication substantially in the form set forth on the form of Note attached as
Exhibit A hereto, manually executed by the Trustee (or an authenticating agent appointed by the Trustee as provided by Section 18.12), shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon any Note executed by the Company shall be conclusive evidence that the Note so
authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. 

        In
case any Officer of the Company who shall have signed any of the Notes shall cease to be such Officer before the Notes so signed shall have been authenticated and delivered by the
Trustee, or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or disposed of as though the person who signed such Notes had not ceased to be such Officer of the
Company, and any Note may be signed on behalf of the Company by such persons as, at the actual date of the execution of such Note, shall be the proper Officers of the Company, although at the date of
the execution of this Indenture any such person was not such an Officer. 

        Section 2.05.    Exchange and Registration of Transfer of Notes; Restrictions on Transfer.    (a) The
Company shall cause to be kept at the Corporate Trust Office a register (the register maintained in such office and in any other office or agency of the Company designated pursuant to
Section 5.02 being herein sometimes collectively referred to as the "Note Register") in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. The Note Register shall be in written form or in any form capable of being converted into written form
within a reasonably prompt period of time. The Trustee is hereby appointed "Note Registrar" for the purpose of registering Notes and transfers of Notes
as herein provided. The Company may appoint one or more co-registrars in accordance with Section 5.02. 

        Upon
surrender for registration of transfer of any Note to the Note Registrar or any co-registrar, and satisfaction of the requirements for such transfer set forth in this
Section 2.05, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any authorized
denominations and of a like aggregate principal amount and bearing such restrictive legends as may be required by this Indenture. 

        Notes
may be exchanged for other Notes of any authorized denominations and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 5.02. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that
the Noteholder making the exchange is entitled to receive bearing registration numbers not contemporaneously outstanding. 

        All
Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 

14

 

        All
Notes presented or surrendered for registration of transfer or for exchange, redemption, repurchase or conversion shall (if so required by the Company or the Note Registrar) be duly
endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the Company, duly executed by the Noteholder thereof or his attorney duly authorized in writing. 

        No
service charge shall be made to any holder for any registration of, transfer or exchange of Notes, but the Company may require payment by the holder of a sum sufficient to cover any
tax, assessment or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes. 

        Neither
the Company nor the Trustee nor any Note Registrar shall be required to exchange or register a transfer of (a) any Notes for a period of 15 days next preceding any
selection of Notes to be redeemed, (b) any Notes or portions thereof called for redemption pursuant to Section 3.01 (c) any Notes or portions thereof surrendered for conversion
pursuant to Article 15, (d) any Notes or portions thereof tendered for repurchase (and not withdrawn) pursuant to Section 3.05 or (e) any Notes or portions thereof tendered
for repurchase (and not withdrawn) pursuant to Section 3.06. 

        (b)   The
following provisions shall apply only to Global Notes: 

          (i)  Each
Global Note authenticated under this Indenture shall be registered in the name of the Depositary or a nominee thereof and delivered to such Depositary or a nominee
thereof or Custodian therefor, and each such Global Note shall constitute a single Note for all purposes of this Indenture. 

         (ii)  Notwithstanding
any other provision in this Indenture, no Global Note may be exchanged in whole or in part for Notes registered, and no transfer of a Global Note in
whole or in part may be registered, in the name of any Person other than the Depositary or a nominee thereof unless (A) the Depositary (i) has notified the Company that it is unwilling
or unable to continue as Depositary for such Global Note or (ii) has ceased to be a clearing agency registered under the Exchange Act, and, in either case, a successor depositary has not been
appointed by the Company within ninety days, (B) an Event of Default has occurred and is continuing and the Trustee requests that any or all of the Notes be represented by registered Notes or
(C) the Company, in its sole discretion, notifies the Trustee in writing that it no longer wishes to have all the Notes represented by Global Notes. Any Global Note exchanged pursuant to
clause (A) or (B) above shall be so exchanged in whole and not in part and any
Global Note exchanged pursuant to clause (C) above may be exchanged in whole or from time to time in part as directed by the Company. Any Note issued in exchange for a Global Note or any
portion thereof shall be a Global Note; provided that any such Note so issued that is registered in the name of a Person other than the Depositary or a nominee thereof shall not be a Global Note. 

        (iii)  Securities
issued in exchange for a Global Note or any portion thereof pursuant to clause (ii) above shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate principal amount equal to that of such Global Note or portion thereof to be so exchanged, shall be registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear any legends required hereunder. Any Global Notes to be exchanged in whole shall be surrendered by the Depositary to the Trustee, as Note
Registrar. With regard to any Global Note to be exchanged in part, either such Global Note shall be so surrendered for exchange or, if the Trustee is acting as Custodian for the Depositary or its
nominee with respect to such Global Note, the principal amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the
records of the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and make available for 

15

 

delivery
the Note issuable on such exchange to or upon the written order of the Depositary or an authorized representative thereof. 

        (iv)  In
the event of the occurrence of any of the events specified in clause (ii) above, the Company will promptly make available to the Trustee a reasonable supply
of certificated Notes in definitive, fully registered form, without interest coupons. 

         (v)  Neither
any members of, or participants in, the Depositary ("Agent Members") nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with respect to any Global Note registered in the name of the Depositary or any nominee thereof, and the Depositary or such nominee, as the
case may be, may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner and holder of such Global Note for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished
by the Depositary or such nominee, as the case may be, or impair, as between the Depositary, its Agent Members and any other Person on whose behalf an Agent Member may act, the operation of customary
practices of such Persons governing the exercise of the rights of a beneficial holder of any Note. 

        (vi)  At
such time as all interests in a Global Note have been redeemed, repurchased, converted, canceled or exchanged for Notes in certificated form, such Global Note shall,
upon receipt thereof, be canceled by the Trustee in accordance with standing procedures and instructions existing between the Depositary and the Custodian. At any time prior to such cancellation, if
any interest in a Global Note is redeemed, repurchased, converted, canceled or exchanged for Notes in certificated form, the principal amount of such Global Note shall, in accordance with the standing
procedures and
instructions existing between the Depositary and the Custodian, be appropriately reduced, and an endorsement shall be made on such Global Note, by the Trustee or the Custodian, at the direction of the
Trustee, to reflect such reduction. 

        (c)   Every
Note that bears or is required under this Section 2.05(c) to bear the legend set forth in this Section 2.05(c) (together with any Common Stock issued
upon conversion of the Notes and required to bear the legend set forth in Section 2.05(d), collectively, the "Restricted Securities") shall be
subject to the restrictions on transfer set forth in this Section 2.05(c) (including those set forth in the legend below) unless such restrictions on transfer shall be waived by written consent
of the Company, and the holder of each such Restricted Security, by such holder's acceptance thereof, agrees to be bound by all such restrictions on transfer. As used in Section 2.05(c) and
2.05(d), the term "transfer" encompasses any sale, pledge, loan, transfer or other disposition whatsoever of any Restricted Security or any interest
therein. 

        Until
the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any certificate evidencing such
Note (and all securities issued in exchange therefor or substitution thereof, other than Common Stock, if any, issued upon conversion thereof, which shall bear the legend set forth in
Section 2.05(d), if applicable) shall bear a legend in substantially the following form, unless such Note has been sold pursuant to a registration statement that has been declared effective
under the Securities Act (and which continues to be effective at the time of such transfer) or pursuant to Rule 144 under the Securities Act or any similar provision then in force, or unless
otherwise agreed by the Company in writing, with written notice thereof to the Trustee: 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR 

16

 

PARTICIPATION
HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT ("RULE 144A")); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY COMMON
STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR
PROVISION), ONLY (A) TO WALTER INDUSTRIES, INC. (THE "ISSUER") OR A SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE 144A
TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER
IS BEING MADE IN RELIANCE ON RULE 144A, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION (IF AVAILABLE) OR (E) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE
(E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS
SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE. 

THE
COMPANY AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE NOTES EACH HOLDER AND EACH BENEFICIAL OWNER OF THE NOTES WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES (1) TO TREAT THE NOTES AS INDEBTEDNESS THAT IS SUBJECT TO TREASURY REGULATIONS SECTION 1.1275-4 (THE "CONTINGENT DEBT REGULATIONS") AND, FOR PURPOSES OF THE
CONTINGENT DEBT REGULATIONS, TO TREAT THE FAIR MARKET VALUE OF ANY STOCK BENEFICIALLY RECEIVED UPON ANY CONVERSION OF THE NOTES AS A CONTINGENT PAYMENT, (2) TO ACCRUE INTEREST WITH RESPECT TO
THE NOTES AS ORIGINAL ISSUE DISCOUNT ON A CONSTANT YIELD BASIS USING THE COMPARABLE YIELD OF 7.75% PER ANNUM COMPOUNDED SEMI-ANNUALLY AND (3) TO BE BOUND BY THE "COMPARABLE YIELD"
AND THE "PROJECTED PAYMENT SCHEDULE" WITHIN THE MEANING OF THE CONTINGENT DEBT REGULATIONS, AS DETERMINED BY THE
COMPANY. A HOLDER OR BENEFICIAL OWNER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE NOTES BY
SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE COMPANY AT THE FOLLOWING ADDRESS: WALTER INDUSTRIES, INC., 4211 W. BOY SCOUT BLVD., TAMPA, FLORIDA 33607, ATTENTION: CHIEF FINANCIAL
OFFICER. 

THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT DATED AS OF APRIL 20, 2004 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE
PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT. 

17

  

        Any Note (or security issued in exchange or substitution therefor) as to which such restrictions on transfer shall have expired in accordance with their terms or as to conditions for
removal of the foregoing legend have been satisfied may, upon surrender of such Note for exchange to the Note Registrar in accordance with the provisions of this Section 2.05, be exchanged for
a new Note or Notes, of like tenor and aggregate principal amount, which shall not bear the restrictive legend required by this Section 2.05(c). If the Restricted Security surrendered for
exchange is represented by a Global Note bearing the legend set forth in this Section 2.05(c), the principal amount of the legended Global Note shall be reduced by the appropriate principal
amount and the principal amount of a Global Note without the legend set forth in this Section 2.05(c) shall be increased by an equal principal amount. If a Global Note without the legend set
forth in this Section 2.05(c) is not then outstanding, the Company shall execute and the Trustee shall authenticate and deliver an unlegended Global Note to the Depositary. 

        (d)   Until
the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), any stock
certificate representing Common Stock issued upon conversion of any Note shall bear a legend in substantially the following form, unless such Common Stock has been sold pursuant to a registration
statement that has been declared effective under the Securities Act (and which continues to be effective at the time of such transfer) or pursuant to Rule 144 under the Securities Act or any
similar provision then in force, or such Common Stock has been issued upon conversion of Notes that have been transferred pursuant to a registration statement that has been declared effective under
the Securities Act or pursuant to Rule 144 under the Securities Act or any similar provision then in force, or unless otherwise agreed by the Company in writing with written notice thereof to
the transfer agent: 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A")); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,
PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO WALTER
INDUSTRIES, INC. (THE "ISSUER") OR A SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE
EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
(D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION (IF AVAILABLE) OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (E) TO REQUIRE THE DELIVERY OF AN
OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY 

18

 

TO
EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON
THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE. 

THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT DATED AS OF APRIL 20, 2004 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE
PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT. 

        Any
such Common Stock as to which such restrictions on transfer shall have expired in accordance with their terms or as to which the conditions for removal of the foregoing legend set
forth therein have been satisfied may, upon surrender of the certificates representing such shares of Common Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like number of shares of Common Stock, which shall not bear the restrictive legend required by this Section 2.05(d). 

        (e)   Any
Note or Common Stock issued upon the conversion of a Note that, prior to the expiration of the holding period applicable to sales thereof under Rule 144(k)
under the Securities Act (or any successor provision), is purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such Affiliate unless registered under the
Securities Act or resold pursuant to an exemption from the registration requirements of the Securities Act in a transaction which results in such Notes or Common Stock, as the case may be, no longer
being "restricted securities" (as defined under Rule 144). 

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

        The
Trustee shall have no responsibility for any actions taken or not taken by the Depositary. 

        Section 2.06.    Mutilated, Destroyed, Lost or Stolen Notes.    In case any Note shall become mutilated or be
destroyed, lost or stolen, the Company in its discretion may execute, and upon its written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate and make available
for delivery, a new Note, of like tenor and principal amount, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Note, or in lieu of and in substitution
for the Note so destroyed, lost or stolen. In every case, the applicant for a substituted Note shall furnish to the Company, to the Trustee and, if applicable, to such authenticating agent such
security or indemnity as may be required by them to save each of them harmless for any loss, liability, cost or expense caused by or connected with such substitution, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company, to the Trustee and, if applicable, to such authenticating agent evidence to their satisfaction of the destruction, loss or
theft of such Note and of the ownership thereof. 

        Following
receipt by the Trustee or such authenticating agent, as the case may be, of satisfactory security or indemnity and evidence, as described in the preceding paragraph, the
Trustee or such authenticating agent may authenticate any such substituted Note and make available for delivery such Note. Upon the issuance of any substituted Note, the Company may require the
payment by the holder of a sum sufficient to cover any tax, assessment or other governmental charge that may be imposed in relation thereto and any other expenses connected therewith. In case any Note
which has matured or is 

19

 

about
to mature or has been called for redemption or has been tendered for repurchase upon a Fundamental Change (and not withdrawn) or has been surrendered for repurchase on a Repurchase Date (and not
withdrawn) or is to be converted into Common Stock shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Note, pay or authorize the payment of or
convert or authorize the conversion of the same (without surrender thereof except in the case of a mutilated Note), as the case may be, if the applicant for such payment or conversion shall furnish to
the Company, to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may be required by them to save each of them harmless from any loss, liability, cost or
expense caused by or in connection with such substitution, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company, the Trustee and, if applicable, any Paying
Agent or Conversion Agent evidence to their satisfaction of the destruction, loss or theft of such Note and of the ownership thereof. 

        Every
substitute Note issued pursuant to the provisions of this Section 2.06 by virtue of the fact that any Note is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any time, and shall be entitled to all the benefits of (but shall be subject to all the
limitations set forth in) this Indenture equally and proportionately with any and all other Notes duly issued hereunder. To the extent permitted by law, all Notes shall be held and owned upon the
express condition that the foregoing provisions are exclusive with respect to the replacement or payment or conversion or redemption or repurchase of mutilated, destroyed, lost or stolen Notes and
shall preclude any and all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment or conversion or
redemption or repurchase of negotiable instruments or other securities without their surrender. 

        Section 2.07.    Temporary Notes.    Pending the preparation of Notes in certificated form, the Company may
execute and the Trustee or any authenticating agent appointed by the Trustee shall, upon the written request of the Company, authenticate and deliver temporary Notes (printed or lithographed).
Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of the Notes in certificated form, but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company. Every such temporary Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent upon
the same conditions and in substantially the same manner, and with the same effect, as the Notes in certificated form. Without unreasonable delay, the Company will execute and deliver to the Trustee
or such authenticating agent Notes in certificated form and thereupon any or all temporary Notes may be surrendered in exchange therefor, at each office or agency maintained by the Company pursuant to
Section 5.02 and the Trustee or such authenticating agent shall authenticate and make available for delivery in exchange for such temporary Notes an equal aggregate principal amount of Notes in
certificated form. Such exchange shall be made by the Company at its own expense and without any charge therefor. Until so exchanged, the temporary Notes shall in all respects be entitled to the same
benefits and subject to the same limitations under this Indenture as Notes in certificated form authenticated and delivered hereunder. 

        Section 2.08.    Cancellation of Notes.    Subject to Sections 3.05(d) and 3.06(d), all Notes surrendered for
the purpose of payment, redemption, repurchase, conversion, exchange or registration of transfer shall, if surrendered to the Company or any Paying Agent or any Note Registrar or any Conversion Agent,
be surrendered to the Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled by it, and no Notes shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Indenture. The Trustee shall dispose of such canceled Notes in accordance with its customary procedures. If the Company shall acquire any of the Notes, such
acquisition shall not operate as a redemption, repurchase or satisfaction of the 

20

 

indebtedness
represented by such Notes unless and until the same are delivered to the Trustee for cancellation. 

        Section 2.09.    CUSIP Numbers.    The Company in issuing the Notes may use "CUSIP" numbers (if then generally
in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to Noteholders; provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes,
and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the "CUSIP" numbers. 

 
 

ARTICLE 3
  Redemption And Repurchase Of Notes    
    

        Section 3.01.    Company's Right to Redeem.    Prior to May 6, 2011, the Notes will not be redeemable at
the Company's option. At any time on or after May 6, 2011 and prior to Stated Maturity, the Company, at its option, may redeem the Notes in accordance with the provisions of
Section 3.02, Section 3.03 and Section 3.04 on the Redemption Date for cash, in whole or in part, at a redemption price (expressed as a percentage of the principal amount of the
Notes to be redeemed) (the "Redemption Price") set forth below, together, in each case, with any accrued and unpaid Interest on the Notes redeemed to,
but excluding, the Redemption Date: 

	Year
 
	 	Percentages
	 
	On May 6, 2011 through May 1, 2012	 	101.125	%
	On May 1, 2012 through May 1, 2013	 	100.750	%
	On May 1, 2013 through May 1, 2014	 	100.375	%
	On May 1, 2014 and thereafter	 	100.000	%

        Section 3.02.    Notice of Optional Redemption; Selection of Notes    

        (a)   In
case the Company shall desire to exercise the right to redeem all or, as the case may be, any part of the Notes pursuant to Section 3.01, it shall fix a date
for redemption (the "Redemption Date") and it or, at its written request received by the Trustee not fewer than 45 days prior (or such shorter
period of time as may be acceptable to the Trustee) to the Redemption Date, the Trustee in the name of and at the expense of the Company, shall mail or cause to be mailed a notice of such redemption
(a "Redemption Notice") not fewer than 30 nor more than 60 days prior to the Redemption Date to each holder of Notes so to be redeemed as a whole
or in part at its last address as the same appears on the Note Register; provided that if the Company shall give such notice, it shall also give written notice of the Redemption Date to the Trustee.
Such mailing shall be by first class mail. The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice.
In any case, failure to give such notice by mail or any defect in the notice to the holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings
for the redemption of any other Note. Concurrently with the mailing of any such Redemption Notice, the Company shall issue a press release announcing such redemption, the form and content of which
press release shall be determined by the Company in its sole discretion. The failure to issue any such press release or any defect therein shall not affect the validity of the Redemption Notice or any
of the proceedings for the redemption of any Note called for redemption. 

        (b)   Each
such Redemption Notice shall specify the aggregate principal amount of Notes to be redeemed, the CUSIP number or numbers of the Notes being redeemed, the Redemption
Date (which shall be a Business Day), the Redemption Price at which Notes are to be redeemed, the place or places 

21

 

of
payment, that payment will be made upon presentation and surrender of such Notes, that Interest accrued to, but excluding, the Redemption Date will be paid as specified in said notice, and that on
and after said date Interest thereon or on the portion thereof to be redeemed will cease to accrue. Such notice shall also state the current Conversion Rate and the date on which the right to convert
such Notes or portions thereof into Common Stock will expire (which date shall not be later than the close of business on the second Business Day prior to the Redemption Date). If fewer than all the
Notes are to be redeemed, the Redemption Notice shall identify the Notes to be redeemed (including CUSIP numbers, if any), in each case determined in accordance with the procedure set forth in
clause (d) hereof. In case any Note is to be redeemed in part only, the Redemption Notice shall state the portion of the principal amount thereof to be redeemed and shall state that, on and
after the Redemption Date, upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion thereof will be issued by the Company and authenticated by the Trustee
(or an authenticating agent appointed by the Trustee). 

        (c)   On
or prior to the Redemption Date specified in the Redemption Notice given as provided in this Section 3.02, the Company will deposit with the Trustee or with
one or more Paying Agents (or, if the Company is acting as its own Paying Agent, set aside, segregate and hold in trust as provided in Section 5.04 an amount of money in immediately available
funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so called for redemption (other than those theretofore surrendered for conversion into Common Stock) at the
appropriate Redemption Price; provided that if such payment is made on the Redemption Date it must be received by the Trustee or Paying Agent, as the case may be, by 11:00 a.m., New York City
time, on such date. The Company shall be entitled to retain any interest, yield or gain on amounts deposited with the Trustee or any Paying Agent pursuant to this Section 3.02(c) in excess of
amounts required hereunder to pay the Redemption Price and any accrued interest to, but excluding, the Redemption Date. Subject to the last sentence of Section 8.05, if any Note called for
redemption is converted pursuant hereto prior to such Redemption Date, any money deposited with the Trustee or any Paying Agent or so segregated and held in trust for the redemption of such Note shall
be paid to the Company upon its written request, or, if then held by the Company, shall be discharged from such trust. Whenever any Notes are to be redeemed, the Company will give the Trustee written
notice in the form of an Officers' Certificate not fewer than 45 days (or such shorter period of time as may be acceptable to the Trustee) prior to the Redemption Date as to the aggregate
principal amount of Notes to be redeemed. 

        (d)   If
less than all of the outstanding Notes are to be redeemed, the Trustee shall select the Notes or portions thereof of the Global Note or the Notes in certificated form
to be redeemed (in principal amounts of $1,000 or multiples thereof) by lot, on a pro rata basis or by another method the Trustee deems fair and appropriate. If any Note selected for partial
redemption is submitted for conversion in part after such selection, the portion of such Note submitted for conversion shall be deemed (so far as may be possible) to be from the portion first selected
for redemption. The Notes (or portions thereof) so selected shall be deemed duly selected for redemption for all purposes hereof, notwithstanding that any such Note is submitted for conversion in part
before the mailing of the Redemption Notice. 

        Upon
any redemption of less than all of the outstanding Notes, the Company and the Trustee may (but need not), solely for purposes of determining the pro rata allocation among such Notes
as are unconverted and outstanding at the time of redemption, treat as outstanding any Notes surrendered for conversion during the period of 15 days next preceding the mailing of a Redemption
Notice and may (but need not) treat as outstanding any Note authenticated and delivered during such period in exchange for the unconverted portion of any Note converted in part during such period. 

        Section 3.03.    Payment of Notes Called for Redemption by the Company.    If notice of redemption has been
given as provided in Section 3.02, the Notes or portion of Notes with respect to which such notice has been given shall, unless converted into Common Stock pursuant to the terms hereof, become
due and payable on the Redemption Date and at the place or places stated in such notice at the 

22

 

applicable
Redemption Price, and on and after the Redemption Date (unless the Company shall default in the payment of such Notes at the Redemption Price) Interest on the Notes or portion of Notes so
called for redemption shall cease to accrue and, after the close of business on the second Business Day immediately preceding the Redemption Date (unless the Company shall default in the payment of
such Notes at the Redemption Price) such Notes shall cease to be convertible into Common Stock and, except as provided in Section 8.05, to be entitled to any benefit or security under this
Indenture, and the holders thereof shall have no right in respect of such Notes except the right to receive the Redemption Price thereof. On presentation and surrender of such Notes at a place of
payment in said notice specified, the said Notes or the specified portions thereof shall be paid and redeemed by the Company at the applicable Redemption Price; provided that if the applicable
Redemption Date is an Interest Payment Date, the Interest payable on such Interest Payment Date shall be paid on such Interest Payment Date to the holders of record of such Notes on the applicable
record date instead of the holders surrendering such Notes for redemption on such date. 

        Upon
presentation of any Note redeemed in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of
the Company, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented. 

        Notwithstanding
the foregoing, the Trustee shall not redeem any Notes or mail any Redemption Notice during the continuance of a default in payment of Interest on the Notes. If any Note
called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid or duly provided for, continue to bear interest at the rate borne by the Note,
compounded semi-annually, and such Note shall remain convertible into Common Stock until the principal and Interest shall have been paid or duly provided for. 

        Section 3.04.    Conversion Arrangement on Call for Redemption.    In connection with any redemption of Notes,
the Company may arrange for the purchase and conversion of any Notes by an agreement with
one or more investment banks or other purchasers to purchase such Notes by paying to the Trustee in trust for the Noteholders, on or before the Redemption Date, an amount not less than the applicable
Redemption Price of such Notes. Notwithstanding anything to the contrary contained in this Article 3, the obligation of the Company to pay the Redemption Price of such Notes shall be deemed to
be satisfied and discharged to the extent such amount is so paid by such purchasers. If such an agreement is entered into, a copy of which will be filed with the Trustee prior to the Redemption Date,
any Notes not duly surrendered for conversion by the holders thereof may, at the option of the Company, be deemed, to the fullest extent permitted by law, acquired by such purchasers from such holders
and (notwithstanding anything to the contrary contained in Article 15) surrendered by such purchasers for conversion, all as of immediately prior to the close of business on the Redemption Date
(and the right to convert any such Notes shall be extended through such time), subject to payment of the above amount as aforesaid. At the written direction of the Company, the Trustee shall hold and
dispose of any such amount paid to it in the same manner as it would monies deposited with it by the Company for the redemption of Notes. Without the Trustee's prior written consent, no arrangement
between the Company and such purchasers for the purchase and conversion of any Notes shall increase or otherwise affect any of the powers, duties, responsibilities, obligations, liabilities or
immunities of the Trustee as set forth in this Indenture. 

        Section 3.05.    Repurchase of Notes by the Company at Option of Holders upon a Fundamental Change.    

        (a)   Subject
to Section 3.07(f), if a Fundamental Change shall occur at any time prior to Stated Maturity, each holder shall have the right, at such holder's option,
to require the Company to repurchase in cash all of such holder's Notes, or any portion thereof that is a multiple of $1,000 principal amount, on the date specified in Fundamental Change Offer, which
date shall be no more 

23

 

than
30 days after the date of the Fundamental Change Offer (subject to extension to comply with applicable law) (the "Fundamental Change Repurchase
Date"). The Company shall repurchase such Notes at a price (the "Fundamental Change Repurchase Price") equal to 100% of the
principal amount thereof plus any accrued and unpaid Interest to, but excluding, the Fundamental Change Repurchase Date; provided that if such Fundamental Change Repurchase Date falls on an Interest
Payment Date, then the Interest payable on such Interest Payment Date shall be paid to the holders of record of the Notes on the applicable record date instead of the holders surrendering the Notes
for repurchase on such date. 

        (b)   On
or before the 15th day after the occurrence of a Fundamental Change, the Company, or at its written request the Trustee in the name of and at the expense of the
Company (which request must be received by the Trustee at least five Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree to a
shorter period), shall mail or cause to be mailed, by first class mail, to all holders of record on such date a notice (the "Fundamental Change Offer")
of the occurrence of such Fundamental Change and of the repurchase right at the option of the holders arising as a result thereof to each holder of Notes at its last address as the same appears on the
Note Register; provided that if the Company shall give such notice, it shall also give written notice of the Fundamental Change to the Trustee and the Paying Agent at such time as it is mailed to
Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice. Each Fundamental Change Offer
shall state: 

        (i)    the
events causing the Fundamental Change and the date of the Fundamental Change; 

        (ii)   the
Fundamental Change Repurchase Date; 

        (iii)  the
last date on which a holder may exercise the repurchase right; 

        (iv)  the
Fundamental Change Repurchase Price, excluding any accrued and unpaid Interest, the applicable Conversion Rate at the time of such notice (and any applicable
adjustments to the Conversion Rate) and, to the extent known at the time of such notice, the amount of Interest that will be payable with respect to the Notes on the Fundamental Change Repurchase
Date; 

        (v)   the
name and address of the Paying Agent and the Conversion Agent; 

        (vi)  briefly,
the conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion; 

        (vii) that
Notes as to which a Fundamental Change Repurchase Election has been given by the holder may be converted only if the election has been withdrawn by the holder in
accordance with the terms of this Indenture; provided that the Notes are otherwise convertible in accordance with Section 15.01; 

        (viii) a
description of the procedures which a Noteholder must follow to exercise such repurchase right or to withdraw any surrendered Notes; 

        (ix)  that
the holder shall have the right to withdraw any Notes surrendered prior to the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date (or any such later time as may be required by applicable law); and 

        (x)   the
CUSIP number or numbers of the Notes (subject to Section 2.09 and if then generally in use). 

        No
failure of the Company to give the foregoing notices and no defect therein shall limit the Noteholders' repurchase rights or affect the validity of the proceedings for the repurchase
of the Notes pursuant to this Section 3.05. 

24

 

        (c)   Notes
shall be repurchased pursuant to this Section 3.05 at the option of the holder upon: 

        (i)    delivery
to the Trustee (or other Paying Agent appointed by the Company) by a holder of a duly completed notice (a "Fundamental Change Repurchase
Election") in the form set forth on the reverse of the Note at any time prior to the close of business on the Business Day immediately preceding the Fundamental Change
Repurchase Date stating: 

        (A)  if
certificated, the certificate numbers of the Notes which the holder shall deliver to be repurchased; 

        (B)  if
not certificated, such information as is required by the Depositary's procedures; 

        (C)  the
portion of the principal amount of the Notes that the holder shall deliver to be repurchased, which portion must be $1,000 or an integral multiple thereof, and 

        (D)  that
such Notes shall be repurchased as of the Fundamental Change Repurchase Date pursuant to the terms and conditions specified in the Notes and in the Indenture. 

        (ii)   physical
delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent appointed by the Company) simultaneously with or at any time
after delivery of the Fundamental Change Repurchase Election (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other Paying Agent appointed by the Company) in
the Borough of
Manhattan, such delivery or transfer being a condition to receipt by the holder of the Fundamental Change Repurchase Price therefor; provided that such Fundamental Change Repurchase Price shall be so
paid pursuant to this Section 3.05 only if the Notes so delivered or transferred to the Trustee (or other Paying Agent appointed by the Company) shall conform in all respects to the description
thereof in the related Fundamental Change Repurchase Election. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Note for repurchase shall be determined
by the Company, whose determination shall be final and binding absent manifest error. 

        (d)   The
Company may arrange for a third party to purchase any Notes for which it receives a valid Fundamental Change Repurchase Election that is not withdrawn, in the
manner, at the times and otherwise in compliance with the requirements set forth in this Section 3.05. If a third party purchases any Notes under these circumstances, then Interest will
continue to accrue on such Notes and such Notes shall continue to be outstanding after the Fundamental Change Repurchase Date. If the Holder who has delivered a Fundamental Change Repurchase Election
fails to deliver the Notes to the third party on or before the Fundamental Change Repurchase Date, then the third party that intended to repurchase the Notes will be released from its obligations to
do so and the Holder who delivered such Fundamental Change Repurchase Election but failed to deliver the Notes will have no further rights hereunder or under the Notes to require repurchase by the
Company or by the third party with respect to that Fundamental Change Repurchase Election. 

        Section 3.06.    Repurchase of Notes by the Company at Option of Holders on Specified Dates.    

        (a)   Subject
to Section 3.07(f), on each of May 1, 2014, and May 1, 2019 (each, a "Company Repurchase
Date"), each holder shall have the right, at such holder's option, to require the Company to repurchase in cash all of such holder's Notes, or any portion thereof that is a
multiple of $1,000 principal amount. The Company shall repurchase such Notes at a price (the "Company Repurchase Price") equal to 100% of the principal
amount thereof plus any accrued and unpaid Interest to, but excluding, the Company Repurchase Date; provided that if such Company Repurchase Date falls on an Interest Payment Date, then the Interest
payable on such Interest Payment Date shall be paid to the holders of record of the Notes on the applicable record date instead of the holders surrendering the Notes for repurchase on such date. 

25

 

        (b)   On
or before the 20th Business Day prior to each Company Repurchase Date, the Company, or at its written request the Trustee in the name of and at the expense of the
Company (which request must be received by the Trustee at least five Business Days prior to the date the Trustee is requested to give notice as described below, unless the Trustee shall agree to a
shorter period), shall mail or cause to be mailed, by first class mail, to all holders of record on such date a notice (the "Company Repurchase Notice")
to each holder of Notes at its last address as the same appears on the Note Register; provided that if the Company shall give such notice, it shall also give written notice to the Trustee and the
Paying Agent at such time as it is mailed to Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder
receives such notice. Each Company Repurchase Notice shall state: 

        (i)    the
Company Repurchase Price (excluding any accrued and unpaid Interest), the applicable Conversion Rate at the time of such notice (and any applicable adjustments to
the Conversion Rate) and, to the extent known at the time of such notice, the amount of Interest that will be payable with respect to the Notes on the Company Repurchase Date; 

        (ii)   the
last date on which a holder may exercise the repurchase right; 

        (iii)  the
Company Repurchase Date; 

        (iv)  the
name and address of the Paying Agent and the Conversion Agent; 

        (v)   briefly,
the conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion; 

        (vi)  that
Notes as to which a Company Repurchase Election has been given by the holder may be converted only if the election has been withdrawn by the holder in accordance
with the terms of this Indenture; provided that the Notes are otherwise convertible in accordance with Section 15.01; 

        (vii) a
description of the procedure which a Noteholder must follow to exercise such repurchase right or to withdraw any surrendered Notes; 

        (viii) that
the holder shall have the right to withdraw any Notes surrendered prior to the close of business on the Business Day immediately preceding the Company Repurchase
Date (or any such later time as may be required by applicable law); and 

        (ix)  the
CUSIP number or numbers of the Notes (subject to Section 2.09 and if then generally in use). 

        No
failure of the Company to give the foregoing notices and no defect therein shall limit the Noteholders' repurchase rights or affect the validity of the proceedings for the repurchase
of the Notes pursuant to this Section 3.06. Such notice will also be provided to beneficial holders of Notes to the extent required by applicable law. 

        (c)   Notes
shall be repurchased pursuant to this Section 3.06 at the option of the holder upon: 

        (i)    delivery
to the Trustee (or other Paying Agent appointed by the Company) by a holder of a duly completed notice (a "Company Repurchase
Election") in the form set forth on the reverse of the Note at any time from the opening of business on the 20th Business Day immediately preceding the Company Repurchase Date
until the close of business on the Business Day immediately preceding the Company Repurchase Date stating: 

        (A)  if
certificated, the certificate numbers of the Notes which the holder shall deliver to be repurchased; 

        (B)  if
not certificated, such information as is required by the Depositary's procedures; 

26

 

        (C)  the
portion of the principal amount of the Notes that the holder shall deliver to be repurchased, which portion must be $1,000 or an integral multiple thereof; and 

        (D)  that
such Notes shall be repurchased as of the Company Repurchase Date pursuant to the terms and conditions specified in the Notes and in the Indenture; and 

        (ii)   physical
delivery or book-entry transfer of the Notes to the Trustee (or other Paying Agent appointed by the Company) simultaneously with or at any time
after delivery of the Company Repurchase Election (together with all necessary endorsements) at the Corporate Trust Office of the Trustee (or other Paying Agent appointed by the Company) in the
Borough of Manhattan, such delivery or transfer being a condition to receipt by the holder of the Company Repurchase Price therefor; provided that such Company Repurchase Price shall be so paid
pursuant to this Section 3.06 only if the Notes so delivered or transferred to the Trustee (or other Paying Agent appointed by the Company) shall conform in all respects to the description
thereof in the related Company Repurchase
Election. All questions as to the validity, eligibility (including time of receipt) and acceptance of any Note for repurchase shall be determined by the Company, whose determination shall be final and
binding absent manifest error. 

        (d)   The
Company may arrange for a third party to purchase any Notes for which it receives a valid Company Repurchase Election that is not withdrawn, in the manner, at the
times and otherwise in compliance with the requirements set forth in this Section 3.06. If a third party purchases any Notes under these circumstances, then Interest will continue to accrue on
those Notes and those Notes shall continue to be outstanding after the Company Repurchase Date. If the Holder who has delivered a Company Repurchase Election fails to deliver the Notes to the third
party on or before the Company Repurchase Date, then the third party that intended to repurchase the Notes will be released from its obligations to do so and the Holder who delivered such Company
Repurchase Election but failed to deliver the Notes will have no further rights hereunder or under the Notes to require repurchase by the Company or by the third party with respect to that Company
Repurchase Election. 

        Section 3.07.    Conditions and Procedures for Repurchase at Option of Holders.    

        (a)   The
Company shall repurchase in cash from the holder thereof, pursuant to Section 3.05 or Section 3.06, a portion of a Note, if the principal amount of
such portion is $1,000 or a whole multiple of $1,000. Provisions of this Indenture that apply to the repurchase of all of a Note also apply to the repurchase of such portion of such Note. Upon
presentation of any Note repurchased in part only, the Company shall execute and the Trustee shall authenticate and make available for delivery to the holder thereof, at the expense of the Company, a
new Note or Notes, of any authorized denomination, in aggregate principal amount equal to the portion of the Notes presented not repurchased. 

        (b)   On
or prior to a Repurchase Date, the Company will deposit with the Trustee or with one or more Paying Agents (or, if the Company is acting as its own Paying Agent, set
aside, segregate and hold in trust as provided in Section 5.04) an amount of cash sufficient to repurchase on the Repurchase Date all the Notes or portions thereof to be repurchased on such
date at the Repurchase Price; provided that if such deposit is made on the Repurchase Date it must be received by the Trustee or Paying Agent, as the case may be, by 11:00 a.m., New York City
time, on such date. 

        If
the Trustee or other Paying Agent appointed by the Company, or the Company or an Affiliate of the Company, if it or such Affiliate is acting as the Paying Agent, holds cash sufficient
to pay the aggregate Repurchase Price of all the Notes or portions thereof that are to be repurchased as of the Repurchase Date, on the Business Day following the Repurchase Date, subject to
Section 3.05(d) and Section 3.06(d), (i) such Notes will cease to be outstanding, (ii) Interest on such Notes will cease to accrue and (iii) all other rights of the
holders of such Notes will terminate, whether or not book-entry transfer of the Notes has been made or the Notes have been delivered to the Trustee or Paying Agent, other than the right to
receive the Repurchase Price upon delivery of the Notes. 

27

  

        (c)   Upon receipt by the Trustee (or other Paying Agent appointed by the Company) of a Repurchase Election, the holder of the Note in respect of which such Repurchase
Election was given shall (unless such notice is validly withdrawn) thereafter be entitled to receive solely the Repurchase Price with respect to such Note. Such Repurchase Price shall be paid to such
holder, subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by the Company), promptly (but in no event more than five Business Days) following the later of
(x) the Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in Section 3.05(c) or Section 3.06(c), as applicable) and (y) the time
of delivery of such Note to the Trustee (or other Paying Agent appointed by the Company) by the holder thereof in the manner required by Section 3.05(c) or Section 3.06(c), as
applicable. Notes in respect of which a Repurchase Election has been given by the holder thereof may not be converted pursuant to Article 15 hereof on or after the date of the delivery of such
Repurchase Election unless such notice has first been validly withdrawn. 

        (d)   Notwithstanding
anything herein to the contrary, any holder delivering to the office of the Trustee (or other Paying Agent appointed by the Company) a Repurchase
Election shall have the right to withdraw such election at any time prior to the close of business on the Business Day immediately preceding the Repurchase Date (or any such later time as may be
required by applicable law) by delivery of a written notice of withdrawal to the Trustee (or other Paying Agent appointed by the Company) specifying: 

	(i)
	the
principal amount of the Note with respect to which such notice of withdrawal is being submitted,

	(ii)
	the
certificate number, if any, of the Note in respect of which such notice of withdrawal is being submitted, or the appropriate Depositary information if the Note in
respect of which such notice of withdrawal is being submitted is represented by a Global Note, and

	(iii)
	the
principal amount, if any, of such Note which remains subject to the original Repurchase Election and which has been or will be delivered for repurchase by the
Company. 

        The
Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company of the receipt by it of any Repurchase Election or written notice of withdrawal thereof. 

        (e)   The
Company will comply with the provisions of Rule 13e-4 and any other tender offer rules under the Exchange Act to the extent then applicable in
connection with the repurchase rights of the holders of Notes in the event of a Fundamental Change or on any Company Repurchase Date. If then required by applicable law, the Company will file a
Schedule TO or any other schedule required in connection with such repurchase. 

        (f)    There
shall be no repurchase of any Notes pursuant to Section 3.05 or Section 3.06 if there has occurred at any time prior to, and is continuing on, the
Repurchase Date an Event of Default (other than an Event of Default that is cured by the payment of the Repurchase Price with respect to such Notes). The Paying Agent will promptly return to the
respective holders thereof any Notes (x) with respect to which a Repurchase Election has been withdrawn in compliance with this Indenture, or (y) held by it during the continuance of an
Event of Default (other than a default in the payment of the Repurchase Price with respect to such Notes) in which case, upon such return, the Repurchase Election with respect thereto shall be deemed
to have been withdrawn. 

        (g)   The
Trustee (or other Paying Agent appointed by the Company) shall return to the Company, upon its written request therefor, any cash that remains unclaimed as provided
in Section 13.03, together with interest, if any, thereon, held by them for the payment of the Repurchase Price; provided that to the extent that the aggregate amount of cash deposited by the
Company pursuant to Section 3.08(b) exceeds the aggregate Repurchase Price of the Notes or portions thereof which the Company is obligated to purchase as of the Repurchase Date then, unless
otherwise agreed in writing 

28

 

with
the Company, promptly after the Business Day following the Repurchase Date, the Trustee shall return any such excess to the Company together with interest, if any, thereon. 

        (h)   In
the case of a reclassification, change, consolidation, merger, combination, sale or conveyance to which Section 15.06 applies, in which the Common Stock of the
Company is changed or exchanged as a result into the right to receive stock, securities or other property or assets (including cash), which includes shares of Common Stock of the Company or shares of
common stock of another Person that are, or upon issuance will be, traded on a United States national securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute at the time such change or exchange becomes effective in excess of 50% of the aggregate fair
market value of such stock, securities or other property or assets (including cash) (as determined by the Company, which determination shall be conclusive and binding), then the Person formed by such
consolidation or resulting from such merger or which acquires such assets, as the case may be, shall execute and deliver to the Trustee a supplemental indenture (accompanied by an Opinion of Counsel
that such supplemental indenture complies with the Trust Indenture Act as in force at the date of execution of such supplemental indenture) modifying the provisions of this Indenture relating to the
right of holders of the Notes to cause the Company to repurchase the Notes following a Fundamental Change and the provisions of this Indenture relating to the Company's option to deliver shares of
Common Stock in payment of the Repurchase Price, including without limitation the applicable provisions of this Article 3 and the definitions of Common Stock and Fundamental Change, as
appropriate, as determined in good faith by the Company (which determination shall be conclusive and binding), to make such provisions apply to such other Person if different from the Company and the
common stock issued by such Person (in lieu of the Company and the Common Stock of the Company). 

        Section 3.08.    Final Maturity Notice.    On the date that is 20 days prior to the Stated Maturity of
the Notes (the "Final Notice Date"), the Company, or at its written request the Trustee in the name of and at the expense of the Company (which request
must received at least five Business Days prior to the Final Notice Date (unless the Trustee shall agree to a shorter notice period) shall mail or cause to be mailed, by first class mail, to all
holders of record on such Final Notice Date a notice (the "Final Maturity Notice") of the final maturity of the Notes to each holder of the Notes at its
last address as the same appears on the Note Register, provided that if the Company shall give such notice, it shall also give written notice of the final maturity of the Notes to the Trustee at the
same time it is mailed to Noteholders. Such notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder receives such notice.
Such notice shall state: 

	(i)
	the
final maturity date of the Notes;

	(ii)
	the
CUSIP number or numbers of the Notes (subject to Section 2.09 and if then generally in use);

	(iii)
	briefly,
the conversion rights of the Notes and whether, at the time of such notice, the Notes are eligible for conversion; and

	(iv)
	if
the Notes are eligible for conversion and the Company determines to satisfy all or any portion of the Conversion Obligation with respect to conversions after the
Final Notice Date in cash, the dollar amount of the conversion to be satisfied in cash (which must be expressed as 100% of the Conversion Obligation or as a fixed dollar amount). 

 
 

ARTICLE 4
  Contingent Interest    
    

        Section 4.01.    Contingent Interest.    Additional interest ("Contingent
Interest") will accrue on each Note beginning with the period commencing on May 1, 2011 and ending on November 1, 2011, and for 

29

 

each
of the six-month interest periods thereafter commencing on November 1, 2011, if the average Trading Price of the Notes during the Applicable Five-Day Trading Period
with respect to such Interest Period equals 120% or more of the principal amount of the Notes. If Contingent Interest accrues during an Interest Period pursuant to the preceding sentence, the amount
of Contingent Interest payable with respect to such Interest Period per $1,000 principal amount of Notes shall equal an annual rate of 0.40% of the average Trading Price during the Applicable
Five-Day Trading Period with respect to such Interest Period. 

        The
Trustee's sole responsibility pursuant to this Section 4.01 shall be to obtain the Trading Price of the Notes for each Trading Day during the Applicable Five-Day
Trading Period and to provide such information to the Company, to the extent that the Trustee is then the Bid Solicitation Agent. The Company shall determine whether holders are entitled to receive
Contingent Interest, and if so, provide notice pursuant to Section 4.03. Notwithstanding any term contained in this Indenture or any other document to the contrary, the Trustee shall have no
responsibilities, duties or obligations for or with respect to (i) determining whether the Company must pay Contingent Interest or (ii) determining the amount of Contingent Interest, if
any, payable by the Company. 

        Section 4.02.    Payment of Contingent Interest.    Contingent Interest due under this Article 4 shall
be treated for all purposes of this Indenture like any other interest accruing on the Notes. 

        Section 4.03.    Contingent Interest Notification.    No later than the first Business Day of an Interest
Period for which Contingent Interest will be payable, the Company will disseminate a press release stating that
Contingent Interest will be paid on the Notes and identifying the Interest Period or publish the information on its Web site or through such other public medium as it may choose to use at that time. 

 
 

ARTICLE 5
  Particular Covenants Of The Company    
    

        Section 5.01.    Payment of Principal and Interest.    The Company covenants and agrees that it will duly and
punctually pay or cause to be paid the principal of (including any Redemption Price or Repurchase Price pursuant to Article 3) and Interest on each of the Notes at the places, at the respective
times and in the manner provided herein and in the Notes. 

        Section 5.02.    Maintenance of Office or Agency.    The Company will maintain an office or agency in the
Borough of Manhattan, The City of New York, where the Notes may be surrendered for registration of transfer or exchange or for presentation for payment or for conversion, redemption or repurchase and
where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The designated office of The Bank of New York Trust Company, N.A. shall initially be such
office or agency for all of the aforesaid purposes. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency not designated
or appointed by the Trustee. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office. 

        The
Company may also from time to time designate co-registrars and one or more offices or agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations. The Company will give prompt written notice of any such designation or rescission and of any change in the location of any such other
office or agency. 

        The
Company hereby initially designates the Trustee as Paying Agent, Note Registrar, Custodian and Conversion Agent, and each of the Corporate Trust Office and the office of agency of
the Trustee in the Borough of Manhattan shall be considered as one such office or agency of the Company for each of the aforesaid purposes. 

30

 

        So
long as the Trustee is the Note Registrar, the Trustee agrees to mail, or cause to be mailed, the notices set forth in Section 8.10(a) and the third paragraph of
Section 8.11. If co-registrars have been appointed in accordance with this Section, the Trustee shall mail such notices only to the Company and the holders of Notes it can identify
from its records. 

        Section 5.03.    Appointments to Fill Vacancies in Trustee's Office.    The Company, whenever necessary to
avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 8.10, a Trustee, so that there shall at all times be a Trustee hereunder. 

        Section 5.04.    Provisions as to Paying Agent.    (a) If the Company shall appoint a Paying Agent
other than the Trustee, or if the Trustee shall appoint such a Paying Agent, the Company will cause such Paying Agent to execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section 5.04: 

        (1)   that
it will hold all sums held by it as such agent for the payment of the principal of or Interest on the Notes (whether such sums have been paid to it by the Company
or by any other obligor on the Notes) in trust for the benefit of the holders of the Notes; 

        (2)   that
it will give the Trustee notice of any failure by the Company (or by any other obligor on the Notes) to make any payment of the principal of or Interest on the
Notes when the same shall be due and payable; and 

        (3)   that
at any time during the continuance of an Event of Default, upon request of the Trustee, it will forthwith pay to the Trustee all sums so held in trust. 

        The
Company shall, on or before each due date of the principal of or Interest on the Notes, deposit with the Paying Agent a sum (in funds which are immediately available on the due date
for such payment) sufficient to pay such principal or Interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of any failure to take such action; provided
that if such deposit is made on the due date, such deposit shall be received by the Paying Agent by 11:00 a.m., New York City time, on such date. 

        (b)   If
the Company shall act as its own Paying Agent, it will, on or before each due date of the principal of or Interest on the Notes, set aside, segregate and hold in
trust for the benefit of the holders of the Notes a sum sufficient to pay such principal or Interest so becoming due and will promptly notify the Trustee of any failure to take such action and of any
failure by the Company (or any other obligor under the Notes) to make any payment of the principal of or Interest on the Notes when the same shall become due and payable. 

        (c)   Anything
in this Section 5.04 to the contrary notwithstanding, the Company may, at any time, for the purpose of obtaining a satisfaction and discharge of this
Indenture, or for any other reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any Paying Agent hereunder as required by this Section 5.04, such sums to be
held by the Trustee upon the trusts herein contained and upon such payment by the Company or any Paying Agent to the Trustee, the Company or such Paying Agent shall be released from all further
liability with respect to such sums. 

        (d)   Anything
in this Section 5.04 to the contrary notwithstanding, the agreement to hold sums in trust as provided in this Section 5.04 is subject to Sections
13.02 and 13.03. 

        The
Trustee shall not be responsible for the actions of any other Paying Agents (including the Company if acting as its own Paying Agent) and shall have no control of any funds held by
such other Paying Agents. 

        Section 5.05.    Existence.    Subject to Article 12, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence and rights (charter and statutory); provided that the Company shall not be required to preserve any such right if the Company 

31

 

shall
determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the
Noteholders. 

        Section 5.06.    Rule 144A Information Requirement.    Within the period prior to the expiration of the
holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor provision), the Company covenants and agrees that it shall, during any period in which it
is not subject to Section 13 or 15(d) under the Exchange Act, make available to any holder or beneficial holder of Notes or any Common Stock issued upon conversion thereof which continue to be
Restricted Securities in connection with any sale thereof and any prospective purchaser of Notes or such Common Stock designated by such holder or beneficial holder, the information required pursuant
to Rule 144A(d)(4) under the Securities Act upon the request of any holder or beneficial holder of the Notes or such Common Stock. Upon the request of any holder or any beneficial holder of the
Notes or such Common Stock, the Company will deliver to such holder a written statement as to whether it has complied with such requirements. 

        Section 5.07.    Stay, Extension and Usury Laws.    The Company covenants (to the extent that it may lawfully
do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or
forgive the Company from paying all or any portion of the principal of or Interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not,
by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been
enacted. 

        Section 5.08.    Compliance Certificate.    The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company (which fiscal year of the Company is presently the twelve calendar months ending December 31), a certificate signed by either the principal
executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not to the best knowledge of the signer thereof the Company is in default in the
performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company
shall be in default, specifying all such defaults and the nature and the status thereof of which the signer may have knowledge. 

        The
Company will deliver to the Trustee, promptly upon becoming aware of (i) any default in the performance or observance of any covenant, agreement or condition contained in this
Indenture, or (ii) any Event of Default, an Officers' Certificate specifying with particularity such default or Event of Default and further stating what action the Company has taken, is taking
or proposes to take with respect thereto. 

        Any
notice required to be given under this Section 5.08 shall be delivered to a Responsible Officer of the Trustee at its Corporate Trust Office. 

        Section 5.09.    Additional Interest Notice.    In the event that the Company is required to pay Additional
Interest to holders of Notes pursuant to the Registration Rights Agreement, the Company will provide written notice ("Additional Interest Notice") to
the Trustee of its obligation to pay Additional Interest no later than five Business days prior to the proposed payment date for the Additional Interest, and the Additional Interest Notice shall set
forth the amount of Additional Interest to be paid by the Company on such payment date. The Trustee shall not at any time be under any duty or responsibility to any holder of Notes to determine the
Additional Interest, or with respect to the 

32

 

nature,
extent or calculation of the amount of Additional Interest when made, or with respect to the method employed in such calculation of the Additional Interest. 

        Section 5.10.    Tax Treatment.    The Company agrees, and by acceptance of a beneficial ownership interest in
the Notes each Holder and each beneficial owner of the Notes will be deemed to have agreed, for United States federal income tax purposes (1) to treat the Notes as indebtedness that is subject
to Treasury regulations section 1.1275-4 (the "Contingent Debt Regulations") and, for purposes of the Contingent Debt Regulations, to
treat the fair market value of any stock beneficially
received upon any conversion of the Notes as a contingent payment, (2) to accrue interest with respect to the Notes as original issue discount on a constant yield basis using the comparable
yield of 7.75% per annum compounded semi-annually and (3) to be bound by the "comparable yield" and the "projected payment schedule" within the meaning of the Contingent Debt
Regulations, as determined by the Company. A Holder or beneficial owner may obtain the issue price, amount of original issue discount, issue date, yield to maturity, comparable yield and projected
payment schedule for the Notes by submitting a written request for such information to the Company at the following address: Walter Industries, Inc., 4211 W. Boy Scout Blvd., Tampa, Florida
33607, Attention: Treasurer. 

        Section 5.11.    Limitation on Senior Subordinated Indebtedness.    The Company will not Incur any Indebtedness
that is subordinate in right of payment to any Senior Indebtedness of the Company unless such Indebtedness is pari passu with, or subordinated in right of payment to, the Notes. To the extent that are
any Subsidiary Guarantors of the Notes, as provided for in Section 17 hereof, the Company will not permit or cause any Subsidiary Guarantor to, and no Subsidiary Guarantor will, Incur any
Indebtedness that is subordinate in right of payment to any Senior Indebtedness of such Subsidiary Guarantor unless the Guarantee of such Subsidiary Guarantor ranks equally or subordinate in right of
payment to that Subsidiary Guarantor's Guarantee of the Notes to the same extent. 

 
 

ARTICLE 6
  Noteholders' Lists And Reports By The Company And The Trustee    
    

        Section 6.01.    Noteholders' Lists.    The Company covenants and agrees that it will furnish or cause to be
furnished to the Trustee, semiannually, not more than 15 days after each May 1 and November 1 in each year beginning with November 1, 2004, and at such other times as the
Trustee may request in writing, within 30 days after receipt by the Company of any such request (or such lesser time as the Trustee may reasonably request in order to enable it to timely
provide any notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require of the names and addresses of the holders of Notes as of a date not more than
15 days (or such other date as the Trustee may reasonably request in order to so provide any such notices) prior to the time such information is furnished, except that no such list need be
furnished by the Company to the Trustee so long as the Trustee is acting as the sole Note Registrar. 

        Section 6.02.    Preservation and Disclosure of Lists.    (a) The Trustee shall preserve, in as current
a form as is reasonably practicable, all information as to the names and addresses of the holders of Notes contained in the most recent list furnished to it as provided in Section 6.01 or
maintained by the Trustee in its capacity as Note Registrar or co-registrar in respect of the Notes, if so acting. The Trustee may destroy any list furnished to it as provided in
Section 6.01 upon receipt of a new list so furnished. 

33

  

        (b)   The rights of Noteholders to communicate with other holders of Notes with respect to their rights under this Indenture or under the Notes, and the corresponding rights
and duties of the Trustee, shall be as provided by the Trust Indenture Act. 

        (c)   Every
Noteholder, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them
shall be held accountable by reason of any disclosure of information as to names and addresses of holders of Notes made pursuant to the Trust Indenture Act. 

        Section 6.03.    Reports by Trustee.    (a) Within 60 days after March 15 of each year
commencing with the year 2005, the Trustee shall transmit to holders of Notes such reports dated as of March 15 of the year in which such reports are made concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. In the event that no events have occurred under the applicable
sections of the Trust Indenture Act, the Trustee shall be under no duty or obligation to provide such reports. 

        (b)   A
copy of such report shall, at the time of such transmission to holders of Notes, be filed by the Trustee with each stock exchange and automated quotation system upon
which the Notes are listed and with the Company. The Company will promptly notify the Trustee in writing when the Notes are listed on any stock exchange or automated quotation system or delisted
therefrom. 

        Section 6.04.    Reports by Company.    The Company shall file with the Trustee (and the Commission if at any
time after the Indenture becomes qualified under the Trust Indenture Act), and transmit to holders of Notes, such information, documents and other reports and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to such Act, whether or not the Notes are governed by such Act; provided that any such information,
documents or reports required to be filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the Trustee within 15 days after the same is so
required to be filed with the Commission. 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 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 an Officers' Certificate). 

 
 

ARTICLE 7
  Remedies Of The Trustee And Noteholders On An Event Of Default    
    

        Section 7.01.    Events of Default.    In case one or more of the following events (each, an
"Event of Default") (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) shall have occurred and be continuing: 

        (a)   default
in the payment of the principal of any of the Notes as and when the same shall become due and payable either at maturity or in connection with any redemption or
repurchase, in each case pursuant to Article 3, by acceleration or otherwise, whether or not such payment shall be prohibited by Article 16; or 

        (b)   default
in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, whether or not such payment shall be
prohibited by Article 16, and continuance of such default for a period of 30 days; or 

        (c)   failure
to provide notice of the occurrence of a Fundamental Change on a timely basis as required by Section 3.05; or 

34

 

        (d)   default
in the Company's obligation to convert the Notes into Common Stock, cash or a combination of Common Stock and cash, as applicable, upon the exercise of a
holder's rights pursuant to Article 15; or 

        (e)   failure
on the part of the Company duly to observe or perform any other of the covenants or agreements on the part of the Company in the Notes or in this Indenture
(other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section 7.01 specifically dealt with) continued for a period of 60 days after the
date on which written notice of such failure, requiring the Company to remedy the same, shall have been given to the Company by the Trustee, or to the Company and a Responsible Officer of the Trustee
by the holders of at least 25% in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04; or 

        (f)    default
by the Company or any of its Significant Subsidiaries in the payment of the principal or interest on any mortgage, agreement or other instrument under which
there may be outstanding, or by which there may be secured or evidenced, any of the indebtedness of the Company or any of its Significant Subsidiaries for money borrowed in excess of $20,000,000 in
the aggregate, whether such indebtedness now exists or shall hereafter be created, resulting in such indebtedness becoming or being declared due and payable, and such acceleration shall not have been
rescinded or annulled within 30 days after the date on which written notice of such acceleration has been received by the Company or such Significant Subsidiary; or 

        (g)   final
unsatisfied judgments with amounts not covered by insurance aggregating in excess of $15,000,000 rendered against the Company or any of its Significant
Subsidiaries and not stayed, bonded or discharged within 60 days of such judgment; 

        (h)   the
Company or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the
Company or such Significant Subsidiary, as applicable, or the Company's or such Significant Subsidiary's debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of the Company or such Significant Subsidiary or any substantial part of the property of the Company or
such Significant Subsidiary, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against the
Company or such Significant Subsidiary, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due; or 

        (i)    an
involuntary case or other proceeding shall be commenced against the Company or any Significant Subsidiary seeking liquidation, reorganization or other relief with
respect to the Company or such Significant Subsidiary, or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official of the Company or such Significant Subsidiary or any substantial part of the property of the Company or such Significant Subsidiary, and such
involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 consecutive days; 

        (j)    during
any period which there are subsidiary guarantees of the Notes as provided for in Article 17 hereof, any subsidiary guarantee of a subsidiary guarantor
holding more than 5% of the Company's consolidated assets or generating more than 5% of the Company's consolidated sales or net income as of and for the twelve months ended on the end of the most
recent fiscal quarter for which financial statements are publicly available ceases to be in full force and effect (except as contemplated by the terms thereof) or any such subsidiary guarantor or
Person acting by or on behalf of any such subsidiary guarantor denies or disaffirms such subsidiary guarantor's obligations under this Indenture or any subsidiary guarantee; 

35

 

then,
and in each and every such case (other than an Event of Default specified in Section 7.01(h) or 7.01(i)), unless the principal of all of the Notes shall have already become due and
payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding hereunder determined in accordance with Section 9.04, by notice in
writing to the Company (and to the Trustee if given by Noteholders), may declare the principal of all the Notes and the Interest accrued thereon to be due and payable immediately, and upon any such
declaration the same shall become and shall be immediately due and payable, anything in this Indenture or in the Notes contained to the contrary notwithstanding. If an Event of Default specified in
Section 7.01(h) or 7.01(i) occurs, the principal of all the Notes and the Interest accrued thereon shall be immediately and automatically due and payable without necessity of further
action. This provision, however, is subject to the conditions that if, at any time after the principal of the Notes shall have been so declared due and payable, and before any judgment or decree for
the payment of the monies due shall have been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of
Interest upon all Notes and the principal of any and all Notes which shall have become due otherwise than by acceleration (with interest on overdue installments of Interest (to the extent that payment
of such interest is enforceable under applicable law) and on such principal at the rate borne by the Notes, to the date of such payment or deposit) and amounts due to the Trustee pursuant to
Section 8.06, and if any and all defaults under this Indenture, other than the nonpayment of principal of and accrued Interest on Notes which shall have become due by acceleration, shall have
been cured or waived pursuant to Section 7.07, then and in every such case the holders of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the
Company and to the Trustee, may waive all defaults or Events of Default and rescind and annul such declaration and its consequences; but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent default or Event of Default, or shall impair any right consequent thereon. The Company shall notify in writing a Responsible Officer of the Trustee, promptly upon becoming
aware thereof, of any Event of Default. 

        In
case the Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, the holders of Notes, and the Trustee shall be restored respectively
to their several positions and rights hereunder, and all rights, remedies and powers of the Company, the holders of Notes, and the Trustee shall continue as though no such proceeding had been taken. 

        Section 7.02.    Payments of Notes on Default; Suit Therefor.    The Company covenants that (a) in case
default shall be made in the payment of any installment of Interest upon any of the Notes as and when the same shall become due and payable, and such default shall have continued for a period of
30 days, or (b) in case default shall be made in the payment of the principal of any of the Notes as and when the same shall have become due and payable, whether at maturity of the Notes
or in connection with any redemption, repurchase, acceleration, declaration or otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the
Notes, the whole amount that then shall have become due and payable on all such Notes for principal or Interest, as the case may be, with interest upon the overdue principal and (to the extent that
payment of such interest is enforceable under applicable law) upon the overdue installments of Interest at the rate borne by the Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other amounts due the Trustee under
Section 8.06. Until such demand by the Trustee, the Company
may pay the principal of and Interest on the Notes to the registered holders, whether or not the Notes are overdue. 

        In
case the Company shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to
institute any 

36

 

actions
or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any other obligor on the Notes and collect in the manner provided by law out of the property of the Company or any other obligor on the Notes wherever
situated the monies adjudged or decreed to be payable. 

        In
case there shall be pending proceedings for the bankruptcy or for the reorganization of the Company or any other obligor on the Notes under Title 11 of the United States Code, or any
other applicable law, or in case a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the
Company or such other obligor, the property of the Company or such other obligor, or in the case of any other judicial proceedings relative to the Company or such other obligor upon the Notes, or to
the creditors or property of the Company or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 7.02, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole amount of principal and Interest owing and unpaid in respect of the Notes, and, in case of any judicial proceedings, to file
such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Noteholders allowed in such judicial proceedings relative to
the Company or any other obligor on the Notes, its or their creditors, or its or their property, and to collect and receive any monies or other property payable or deliverable on any such claims, and
to distribute the same after the deduction of any amounts due the Trustee under Section 8.06, and to take any other action with respect to such claims, including participating as a member of
any official committee of creditors, as it reasonably deems necessary or advisable, and, unless prohibited by law or applicable regulations, and any receiver, assignee or trustee in bankruptcy or
reorganization, liquidator, custodian or similar official is hereby authorized by each of the Noteholders to make such payments to the Trustee, and, in the event that the Trustee shall consent to the
making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for reasonable compensation, expenses, advances and disbursements, including counsel fees and expenses
incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses, advances and disbursements out of the estate in any such proceedings shall be
denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, monies, securities and other property which the holders of the
Notes may be entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. 

        All
rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any
trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the holders of the
Notes. 

        In
any proceedings brought by the Trustee (and in any proceedings involving the interpretation of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall
be held to represent all the holders of the Notes, and it shall not be necessary to make any holders of the Notes parties to any such proceedings. 

        Section 7.03.    Application of Monies Collected by Trustee.    Any monies collected by the Trustee pursuant to
this Article 7 shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of the several Notes, and stamping
thereon the payment, if only partially paid, and upon surrender thereof, if fully paid: 

37

 

        FIRST:
To the payment of all amounts due the Trustee under Section 8.06; 

        SECOND:
To holders of Senior Indebtedness of the Company to the extent required by Article 16 and, if applicable, to holders of Senior Indebtedness of the Subsidiary Guarantors to
the extent required by the Subsidiary Guarantor Supplemental Indenture; 

        THIRD:
In case the principal of the outstanding Notes shall not have become due and be unpaid, to the payment of Interest on the Notes in default in the order of the maturity of the
installments of such Interest, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of Interest at the rate borne by the Notes, such
payments to be made ratably to the Persons entitled thereto; 

        FOURTH:
In case the principal of the outstanding Notes shall have become due, by declaration or otherwise, and be unpaid, to the payment of the whole amount then owing and unpaid upon
the Notes for principal and Interest, with interest on the overdue principal and (to the extent that such interest has been collected by the Trustee) upon overdue installments of Interest at the rate
borne by the Notes, and in case such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and Interest without
preference or priority of principal over Interest, or of Interest over principal, or of any installment of Interest over any other installment of Interest, or of any Note over any other Note, ratably
to the aggregate of such principal and any accrued and unpaid Interest; and 

        FIFTH:
To the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto. 

        Section 7.04.    Proceedings by Noteholder.    No holder of any Note shall have any right by virtue of or by
reference to any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture, or for the appointment of a receiver,
trustee, liquidator, custodian or other similar official, or for any other remedy hereunder, unless such holder previously shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof, as hereinbefore provided, and unless also the holders of not less than 25% in aggregate principal amount of the Notes then outstanding shall have made written request upon the
Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such security or indemnity as it may reasonably require against the
costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have neglected or refused
to institute any such action, suit or proceeding and no direction inconsistent with such written request shall have been given to the Trustee pursuant to Section 7.07; it being understood and
intended, and being expressly covenanted by the taker and holder of every Note with every other taker and holder and the Trustee, that no one or more holders of Notes shall have any right in any
manner whatever by virtue of or by reference to any provision of this Indenture to affect, disturb or prejudice the rights of any other holder of Notes, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Notes (except as
otherwise provided herein) (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders). For
the protection and enforcement of this Section 7.04, each and every Noteholder and the Trustee shall be entitled to such relief as can be given either at law or in equity. 

        Notwithstanding
any other provision of this Indenture and any provision of any Note, the right of any holder of any Note to receive payment of the principal of (including any Redemption
Price or Repurchase Price pursuant to Article 3) and any accrued Interest on such Note on or after the respective due dates expressed in such Note, or to institute suit for the enforcement of
any such 

38

 

payment
on or after such respective dates against the Company, shall not be impaired or affected without the consent of such holder. 

        Anything
in this Indenture or the Notes to the contrary notwithstanding, the holder of any Note, without the consent of either the Trustee or the holder of any other Note, in its own
behalf and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to enforce, its rights of conversion as provided herein. 

        Section 7.05.    Proceedings by Trustee.    In case of an Event of Default, the Trustee may, in its discretion,
proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either by suit in equity
or by action at law or by proceeding in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. 

        Section 7.06.    Remedies Cumulative and Continuing.    Except as provided in Section 2.06, all powers
and remedies given by this Article 7 to the Trustee or to the Noteholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the holders of the Notes, by judicial proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this
Indenture, and no delay or omission of the Trustee or of any holder of any of the Notes to exercise any right or power accruing upon any default or Event of Default occurring and continuing as
aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or any acquiescence therein, and, subject to the provisions of Section 7.04, every power
and remedy given by this Article 7 or by law to the Trustee or to the Noteholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the
Noteholders. 

        Section 7.07.    Direction of Proceedings and Waiver of Defaults by Majority of Noteholders.    The holders of
a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04 shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee; provided that (a) such direction shall not be in conflict with any rule of law
or with this Indenture, (b) the Trustee may take any other action which is not inconsistent with such direction and (c) the Trustee may decline to take any action that would benefit some
Noteholders to the detriment of other Noteholders. The holders of a majority in aggregate principal amount of the Notes at the time outstanding determined in accordance with Section 9.04 may,
on behalf of the holders of all of the Notes, waive any past default or Event of Default hereunder and its consequences except (i) a default in the payment of Interest on, or the principal of,
the Notes, (ii) a failure by the Company to convert any Notes into Common Stock, cash or a combination of cash and Common Stock, (iii) a default in the payment of the Redemption Price
pursuant to Section 3.03, (iv) a default in the payment of the Fundamental Change Repurchase Price pursuant to Section 3.05 or Company Repurchase Price pursuant to
Section 3.06 or (v) a default in respect of a covenant or provisions hereof which under Article 11 cannot be modified or amended without the consent of the holders of each or all
Notes then outstanding or affected thereby. Upon any such waiver, the Company, the Trustee and the holders of the Notes shall be restored to their former positions and rights hereunder; but no such
waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. Whenever any default or Event of Default hereunder shall have been waived as
permitted by this Section 7.07, said default or Event of Default shall for all purposes of the Notes and this Indenture be deemed to have been cured and to be not continuing; but no such waiver
shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon. 

39

 

        Section 7.08.    Notice of Defaults by the Trustee.    The Trustee shall, within 90 days after a
Responsible Officer of the Trustee has knowledge of the occurrence of a default, mail to all Noteholders, as the names and addresses of such holders appear upon the Note Register, notice of all
defaults known to a Responsible Officer, unless such defaults shall have been cured or waived before the giving of such notice; provided that except in the case of default in the payment of the
principal of or Interest on any of the Notes, the Trustee shall be protected in withholding such notice if and so long as a trust committee of directors and/or Responsible Officers of the Trustee in
good faith determines that the withholding of such notice is in the interests of the Noteholders. For the purpose of this Section 7.08, the term
"default" means any event that is, or after notice or lapse of time or both would become, an Event of Default. 

        Section 7.09.    Undertaking to Pay Costs.    All parties to this Indenture agree, and each holder of any Note
by its acceptance thereof shall be deemed to have agreed, that any court may, in its discretion, require, 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, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; provided that the provisions of this Section 7.09 (to the extent permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by
any Noteholder, or group of Noteholders, holding in the aggregate more than ten percent in principal amount of the Notes at the time outstanding determined in accordance with Section 9.04, or
to any suit instituted by any Noteholder for the enforcement of the payment of the principal of or Interest on any Note on or after the due date expressed in such Note or to any suit for the
enforcement of the right to convert any Note in accordance with the provisions of Article 15. 

        Section 7.10.    Creditor Rights.    The Company's obligations hereunder are not intended to provide creditor
rights in bankruptcy for amounts in excess of the principal amount of the Notes plus accrued and unpaid Interest on the Notes. 

 
 

ARTICLE 8
  The Trustee    
    

        Section 8.01.    Duties and Responsibilities of Trustee.    The Trustee, prior to the occurrence of an Event of
Default and after the curing of all Events of Default that may have occurred, 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. In case an Event of Default has occurred (which has not been cured or waived), the Trustee shall exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his
own affairs. 

        No
provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct,
except that: 

        (a)   prior
to the occurrence of an Event of Default and after the curing or waiving of all Events of Default which may have occurred: 

        (i)    the
duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture and the Trust Indenture Act, and the Trustee shall not
be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture and the
Trust Indenture Act against the Trustee; and 

40

 

        (ii)   in
the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same 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); 

        (b)   the
Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Officers of the Trustee, unless the Trustee was negligent in
ascertaining the pertinent facts; 

        (c)   the
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the holders of
not less than a majority in principal amount of the Notes at the time outstanding determined as provided in Section 9.04 relating to the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; 

        (d)   the
Trustee shall not be liable in respect of any payment (as to the correctness of amount, entitlement to receive or any other matters relating to payment) or notice
effected by the Company or any Paying Agent or any records maintained by any co-registrar with respect to the Notes; and 

        (e)   if
any party fails to deliver a notice relating to an event the fact of which, pursuant to this Indenture, requires notice to be sent to the Trustee, the Trustee may
conclusively rely on its failure to receive such notice as reason to act as if no such event occurred. 

        The
Trustee shall not be deemed to have knowledge or notice of any default (as defined in Section 7.08) or Event of Default hereunder unless a Responsible Officer of the Trustee
shall have received at the Corporate Trust Office written notice of such default or Event of Default from the Company or the holders of at least 10% in aggregate principal amount of the Notes and such
notice refers to such default or Event of Default, the Notes and the Indenture. 

        None
of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of
its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. 

41

  

        Whether or not therein provided, 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 8.01. 

        Section 8.02.    Reliance on Documents, Opinions, Etc.    Except as otherwise provided in Section 8.01: 

        (a)   the
Trustee may conclusively rely and shall be protected in acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, bond, note, note, coupon or other paper or document (whether in its original or facsimile form) believed by it in good faith to be genuine and to have been signed or presented by the proper
party or parties; 

        (b)   any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officers' Certificate (unless other evidence in respect
thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the Secretary or an Assistant Secretary of the
Company; 

        (c)   the
Trustee may consult with counsel of its own selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken or omitted by it hereunder in good faith and in accordance with such advice or Opinion of Counsel; 

        (d)   the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the
Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities which may be incurred therein or thereby; 

        (e)   the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, note or other paper or document, but the Trustee may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; 

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

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

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

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

        Section 8.03.    No Responsibility for Recitals, Etc.    The recitals contained herein and in the Notes (except
in the Trustee's certificate of authentication) shall be taken as the statements of the Company, 

42

 

and
the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes. The Trustee shall
not be accountable for the use or application by the Company of any Notes or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the provisions of this Indenture. 

        Section 8.04.    Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes.    The Trustee, any
Paying Agent, any Conversion Agent or Note Registrar, in its individual or any other capacity, may become the owner or pledgee of Notes with the same rights it would have if it were not Trustee,
Paying Agent, Conversion Agent or Note Registrar. 

        Section 8.05.    Monies to Be Held in Trust.    Subject to the provisions of Section 13.03, all monies
received by the Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as may be agreed in writing from
time to time by the Company and the Trustee. 

        Section 8.06.    Compensation and Expenses of Trustee.    The Company covenants and agrees to pay to the
Trustee from time to time, and the Trustee shall be entitled to, such compensation for all services rendered by it hereunder in any capacity (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) as mutually agreed to from time to time in writing between the Company and the Trustee, and the Company will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances reasonably incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable
compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such expense, disbursement or advance as may arise from its negligence,
willful misconduct, recklessness or bad faith. The Company also covenants to indemnify the Trustee and any predecessor Trustee (or any officer, director or employee of the Trustee), in any capacity
under this Indenture and its agents and any authenticating agent for, and to hold them harmless against, any and all loss, liability, damage, claim or expense including taxes (other than taxes based
on the income of the Trustee) incurred without negligence, willful misconduct, recklessness or bad faith on the part of the Trustee or such officers, directors, employees and agent or authenticating
agent, as the case may be, and arising out of or in connection with the acceptance or administration of this trust or in any other capacity hereunder, including the costs and expenses of defending
themselves against any claim (whether asserted by the Company, any holder or any other Person) of liability in connection with the exercise or performance of any of its powers or duties hereunder. The
obligations of the Company under this Section 8.06 to compensate or indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a lien
prior to that of the Notes upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Notes. The obligations of the
Company under this Section shall survive the satisfaction and discharge of this Indenture. 

        When
the Trustee and its agents and any authenticating agent incur expenses or render services after an Event of Default specified in Section 7.01(h) or
Section 7.01(i) with respect to the Company occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any bankruptcy,
insolvency or similar laws. 

        Section 8.07.    Officers' Certificate as Evidence.    Except as otherwise provided in Section 8.01,
whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith or willful misconduct on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the Trustee. 

43

 

        Section 8.08.    Conflicting Interests of Trustee.    If the Trustee has or shall acquire a conflicting
interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the
Trust Indenture Act and this Indenture. 

        Section 8.09.    Eligibility of Trustee.    There shall at all times be a Trustee hereunder which shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 (or if such Person is a member of a bank holding company
system, its bank holding company shall have a combined capital and surplus of at least $50,000,000). If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of any supervising or examining authority, then for the purposes of this Section the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 8.09, it shall resign
immediately in the manner and with the effect hereinafter specified in this Article. 

        Section 8.10.    Resignation or Removal of Trustee.    

        (a)   The
Trustee may at any time resign by giving written notice of such resignation to the Company and to the holders of Notes. Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which instrument shall be delivered to the
resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment 60 days after the mailing of such notice of
resignation to the Noteholders, the resigning Trustee may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor trustee, or, if any Noteholder
who has been a bona fide holder of a Note or Notes for at least six months may, subject to the provisions of Section 7.09, on behalf of himself and all others similarly situated, petition any
such court for the appointment of a successor trustee. Such court may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee. 

        (b)   In
case at any time any of the following shall occur: 

        (i)    the
Trustee shall fail to comply with Section 8.08 after written request therefor by the Company or by any Noteholder who has been a bona fide holder of a Note or
Notes for at least six months; or 

        (ii)   the
Trustee shall cease to be eligible in accordance with the provisions of Section 8.09 and shall fail to resign after written request therefor by the Company
or by any such Noteholder; or 

        (iii)  the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then,
in any such case, the Company may remove the Trustee and appoint a successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, subject to the provisions of Section 7.09, any Noteholder who has been a bona fide holder of a
Note or Notes for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a
successor trustee; provided that if no successor Trustee shall have been appointed and have accepted appointment 60 days after either the Company or the Noteholders has removed the Trustee, or
the Trustee resigns, the Trustee so removed may petition, at the expense of the Company, any court of competent jurisdiction for an appointment of a successor trustee. Such court may thereupon, after
such 

44

 

notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. 

        (c)   Any
resignation or removal of the Trustee and appointment of a successor trustee pursuant to any of the provisions of this Section 8.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section 8.11. 

        Section 8.11.    Acceptance by Successor Trustee.    Any successor trustee appointed as provided in
Section 8.10 shall execute, acknowledge and deliver to the Company and to its predecessor trustee an instrument accepting such appointment hereunder, and thereupon the resignation or removal of
the predecessor trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, duties and obligations of its
predecessor hereunder, with like effect as if originally named as trustee herein; but, nevertheless, on the written request of the Company or of the successor trustee, the trustee ceasing to act
shall, upon payment of any amount then due it pursuant to the provisions of Section 8.06, execute and deliver an instrument transferring to such successor trustee all the rights and powers of
the trustee so ceasing to act. Upon request of any such successor trustee, the Company shall execute any and all instruments in writing for more fully and certainly vesting in and confirming to such
successor trustee all such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien upon all property and funds held or collected by such trustee as such, except for funds held
in trust for the benefit of holders of particular Notes, to secure any amounts then due it pursuant to the provisions of Section 8.06. 

        No
successor trustee shall accept appointment as provided in this Section 8.11 unless, at the time of such acceptance, such successor trustee shall be qualified under the
provisions of Section 8.08 and be eligible under the provisions of Section 8.09. 

        Upon
acceptance of appointment by a successor trustee as provided in this Section 8.11, the Company (or the former trustee, at the written direction of the Company) shall mail or
cause to be mailed notice of the succession of such trustee hereunder to the holders of Notes at their addresses as they shall appear on the Note Register. If the Company fails to mail such notice
within ten days after acceptance
of appointment by the successor trustee, the successor trustee shall cause such notice to be mailed at the expense of the Company. 

        Section 8.12.    Succession by Merger.    Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to all or substantially all of the
corporate trust business of the Trustee (including any trust created by this Indenture), shall be the successor to the Trustee hereunder without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided that in the case of any Person succeeding to all or substantially all of the corporate trust business of the Trustee, such Person shall be qualified
under the provisions of Section 8.08 and eligible under the provisions of Section 8.09. 

        In
case at the time such successor to the Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor trustee or authenticating agent appointed by such predecessor trustee, and deliver such Notes so authenticated;
and in case at that time any of the Notes shall not have been authenticated, any successor to the Trustee or any authenticating agent appointed by such successor trustee may authenticate such Notes in
the name of the successor trustee; and in all such cases such certificates shall have the full force that is provided in the Notes or in this Indenture; provided that the right to adopt the
certificate of authentication of any predecessor Trustee or authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or
consolidation. 

45

 

        Section 8.13.    Preferential Collection of Claims.    If and when the Trustee shall be or become a creditor of
the Company (or any other obligor upon the Notes), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Company (or any such
other obligor). 

 
 

ARTICLE 9
  The Noteholders    
    

        Section 9.01.    Action by Noteholders.    Whenever in this Indenture it is provided that the holders of a
specified percentage in aggregate principal amount of the Notes may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action, the holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any number of instruments of similar tenor executed by Noteholders in person or by agent, proxy appointed in writing,
or, in the case of Global Notes, pursuant to the omnibus proxy of the Depositary, or (b) by the record of the holders of Notes voting in favor thereof at any meeting of Noteholders duly called
and held in accordance with the provisions of Article 10, or (c) by a combination of such instrument or instruments and any such record of such a meeting of Noteholders. Whenever the
Company or the Trustee solicits the taking of any action by the holders of the Notes, the Company or the Trustee may fix in advance of such solicitation, a date as the record date for determining
holders entitled to take such action. The record date shall he not more than 15 days prior to the date of commencement of the solicitation of such action. 

        Section 9.02.    Proof of Execution by Noteholders.    Subject to the provisions of Section 8.01, 8.02
and 10.05, proof of the execution of any instrument by a Noteholder or its agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations as may be prescribed by
the Trustee or in such manner as shall be satisfactory to the Trustee. The holding of Notes shall be proved by the registry of such Notes or by a certificate of the Note Registrar. 

        The
record of any Noteholders' meeting shall be proved in the manner provided in Section 10.06. 

        Section 9.03.    Who Are Deemed Absolute Owners.    The Company, the Trustee, any Paying Agent, any Conversion
Agent and any Note Registrar may deem the Person in whose name such Note shall be registered upon the Note Register to be, and may treat it as, the absolute owner of such Note (whether or not such
Note shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Company or any Note Registrar) for the purpose of receiving payment of or
on account of the principal of and Interest on such Note, for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor any Paying Agent nor any Conversion Agent
nor any Note Registrar shall be affected by any notice to the contrary. All such payments so made to any holder for the time being, or upon his order, shall be valid, and, to the extent of the sum or
sums so paid, effectual to satisfy and discharge the liability for monies payable upon any such Note. 

        Section 9.04.    Company-owned Notes Disregarded.    In determining whether the holders of the requisite
aggregate principal amount of Notes have concurred in any direction, consent, waiver or other action under this Indenture, Notes which are owned by the Company or any other obligor on the Notes or any
Affiliate of the Company or any other obligor on the Notes shall be disregarded and deemed not to be outstanding for the purpose of any such determination; provided that for the purposes of
determining whether the Trustee shall be protected in relying on any such direction, consent, waiver or other action, only Notes which a Responsible Officer actually knows are so owned shall be so
disregarded. Notes so owned which have been pledged in good faith may be regarded as outstanding for the purposes of this Section 9.04 if the pledgee shall establish to the satisfaction of the
Trustee the pledgee's right to vote such Notes and that the pledgee is not the Company, any other obligor on the 

46

 

Notes
or any Affiliate of the Company or any such other obligor. In the case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the
Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers' Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by
or for the account of any of the above described Persons, and, subject to Section 8.01, the Trustee shall be entitled to accept such Officers' Certificate as conclusive evidence of the facts
therein set forth and of the fact that all Notes listed therein are outstanding for the purpose of any such determination. 

        Section 9.05.    Revocation of Consents, Future Holders Bound.    At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 9.01, of the taking of any action by the holders of the percentage in aggregate principal amount of the Notes specified in this Indenture in
connection with such action, any holder of a Note which is shown by the evidence to be included in the Notes the holders of which have consented to such action may, by filing written notice with the
Trustee at its Corporate Trust Office and upon proof of holding as provided in Section 9.02, revoke such action so far as concerns such Note. Except as aforesaid, any such action taken by the
holder of any Note shall be conclusive and binding upon such holder and upon all future holders and owners of such Note and of any Notes issued in exchange or substitution therefor, irrespective of
whether any notation in regard thereto is made upon such Note or any Note issued in exchange or substitution therefor. 

 
 

ARTICLE 10
  Meetings Of Noteholders    
    

        Section 10.01.    Purpose of Meetings.    A meeting of Noteholders may be called at any time and from time to
time pursuant to the provisions of this Article 10 for any of the following purposes: 

        (1)   to
give any notice to the Company or to the Trustee or to give any directions to the Trustee permitted under this Indenture, or to consent to the waiving of any default
or Event of Default hereunder and its consequences, or to take any other action authorized to be taken by Noteholders pursuant to any of the provisions of Article 7; 

        (2)   to
consent to the execution of an indenture or indentures supplemental hereto pursuant to the provisions of Section 11.02, although such consents may be given
without a meeting of Noteholders; or 

        (3)   to
take any other action authorized to be taken by or on behalf of the holders of any specified aggregate principal amount of the Notes under any other provision of this
Indenture or under applicable law. 

        Section 10.02.    Call of Meetings by Trustee.    The Trustee may at any time call a meeting of Noteholders to
take any action specified in Section 10.01, to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth the time and the
place of such meeting and in general terms the action proposed to be taken at such meeting and the establishment of any record date pursuant to Section 9.01, shall be mailed to holders of Notes
at their addresses as they shall appear on the Note Register. Such notice shall also be mailed to the Company. Such notices shall be mailed not less than 20 nor more than 90 days prior to the
date fixed for the meeting. 

        Any
meeting of Noteholders shall be valid without notice if the holders of all Notes then outstanding are present in person or by proxy or if notice is waived before or after the meeting
by the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly authorized representatives or have, before or after the meeting, waived notice. 

        Section 10.03.    Call of Meetings by Company or Noteholders.    In case at any time the Company, pursuant to a
resolution of its Board of Directors, or the holders of at least 10% in aggregate principal amount of the Notes then outstanding, shall have requested the Trustee to call a meeting of 

47

 

Noteholders,
by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed the notice of such meeting within
20 days after receipt of such request, then the Company or such Noteholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in
Section 10.01, by mailing notice thereof as provided in Section 10.02. 

        Section 10.04.    Qualifications for Voting.    To be entitled to vote at any meeting of Noteholders a person
shall (a) be a holder of one or more Notes on the record date pertaining to such meeting or (b) be a person appointed by an instrument in writing as proxy by a holder of one or more
Notes on the record
date pertaining to such meeting. The only persons who shall be entitled to be present or to speak at any meeting of Noteholders shall be the persons entitled to vote at such meeting and their counsel
and any representatives of the Trustee and its counsel and any representatives of the Company and its counsel. 

        Section 10.05.    Regulations.    Notwithstanding any other provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in regard to the appointment and
duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall
think fit. 

        The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Noteholders as provided in
Section 10.03, in which case the Company or the Noteholders calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote pf the holders of a majority in principal amount of the Notes represented at the meeting and entitled to vote at the meeting. 

        Subject
to the provisions of Section 9.04, at any meeting each Noteholder or proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or
represented by him; provided that no vote shall be cast or counted at any meeting in respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be not outstanding.
The chairman of the meeting shall have no right to vote other than by virtue of Notes held by him or instruments in writing as aforesaid duly designating him as the proxy to vote on behalf of other
Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of Section 10.02 or 10.03 may be adjourned from time to time by the holders of a majority of the aggregate
principal amount of Notes represented at the meeting, whether or not constituting a quorum, and the meeting may be held as so adjourned without further notice. 

        Section 10.06.    Voting.    The vote upon any resolution submitted to any meeting of Noteholders shall be by
written ballot on which shall be subscribed the signatures of the holders of Notes or of their representatives by proxy and the outstanding principal amount of the Notes held or represented by them.
The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary
of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record in duplicate of the proceedings of each meeting of Noteholders shall be prepared by the secretary
of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of
the facts setting forth a copy of the notice of the meeting and showing that said notice was mailed as provided in Section 10.02. The record shall show the principal amount of the Notes voting
in favor of or against any resolution. The record shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one of the duplicates shall be delivered to
the Company and the other to 

48

 

the
Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. 

        Any
record so signed and verified shall be conclusive evidence of the matters therein stated. 

        Section 10.07.    No Delay of Rights by Meeting.    Nothing contained in this Article 10 shall be deemed
or construed to authorize or permit, by reason of any call of a meeting of Noteholders or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the
exercise of any right or rights conferred upon or reserved to the Trustee or to the Noteholders under any of the provisions of this Indenture or of the Notes. 

 
 

ARTICLE 11
  Supplemental Indentures    
    

        Section 11.01.    Supplemental Indentures Without Consent of Noteholders.    The Company, when authorized by
the resolutions of the Board of Directors, and the Trustee may, from time to time, and at any time enter into an indenture or indentures supplemental hereto for one or more of the following purposes: 

        (a)   to
add Guarantees with respect to the Notes or to secure the Notes; 

        (b)   make
provision with respect to the conversion rights of the holders of Notes pursuant to the requirements of Section 15.06 or the repurchase obligations of the
Company pursuant to the requirements of Section 3.08(h); 

        (c)   to
convey, transfer, assign, mortgage or pledge to the Trustee as security for the Notes, any property or assets or to add guarantees with respect to the Notes; 

        (d)   to
evidence the succession of another Person to the Company, or successive successions, and the assumption by the successor Person of the covenants, agreements and
obligations of the Company pursuant to Article 12; 

        (e)   to
surrender any of the Company's rights or powers under the Indenture (including, without limitation, its right to pay any part of the Repurchase Price of the Notes
with Common Stock as provided for in this Indenture occurring on a date after the date of such amendment); 

        (f)    to
add to the covenants of the Company such further covenants, restrictions or conditions for the benefit of the holders of Notes, and to make the occurrence, or the
occurrence and continuance, of a default in any such additional covenants, restrictions or conditions a default or an Event of Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; provided that in respect of any such additional covenant, restriction or condition, such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default; 

        (g)   to
cure any ambiguity or to correct or supplement any provision contained herein or in the Notes or in any supplemental indenture that may be defective or inconsistent
with any other provisions contained herein or in any supplemental indenture, or to make such other provision in regard to matters or questions arising under this Indenture that shall not materially
adversely affect the interests of the holders of the Notes; 

        (h)   to
modify, eliminate or add to the provisions of this Indenture or the Notes to such extent as shall be necessary to effect the qualifications of this Indenture under
the Trust Indenture Act, or under any similar federal statute hereafter enacted; 

49

 

        (i)    to
provide for the issuance under this Indenture of Notes in coupon form (including Notes registrable as to principal only) and to provide for exchangeability of such
Notes with the Notes issued hereunder in fully registered form and to make all appropriate changes for such purpose; 

        (j)    to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes; 

        (k)   to
make any change in Article 16 or, to the extent there are Subsidiary Guarantors, to the provisions of the Subsidiary Guarantor Supplemental Indenture that deal
with subordination, that would limit or terminate the benefits available to any holder of Senior Indebtedness of the Company or, if applicable, a Subsidiary Guarantor (or Representatives thereof)
under Article 16 or the relevant section of the Subsidiary Guarantor Supplemental Indenture, as applicable; 

        (l)    increase
the Conversion Rate; and 

        (m)  to
make other changes to the Indenture or forms or terms of the Notes, provided no such change individually or in the aggregate with all other such changes has or will
have a material adverse effect on the interests of the Noteholders. 

        Upon
the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of
any supplemental indenture, the Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, to make any further appropriate agreements and stipulations
that may be therein contained and to accept the conveyance, transfer and assignment of any property thereunder, but the Trustee shall not be obligated to, but may in its discretion, enter into any
supplemental indenture that affects the Trustee's own rights, duties or immunities under this Indenture or otherwise. 

50

  

        Any supplemental indenture authorized by the provisions of this Section 11.01 may be executed by the Company and the Trustee without the consent of the holders of any of the Notes
at the time outstanding, notwithstanding any of the provisions of Section 11.02. 

        Notwithstanding
any other provision of the Indenture or the Notes, the Registration Rights Agreement and the obligation to pay Additional Interest thereunder may be amended, modified or
waived in accordance with the provisions of the Registration Rights Agreement. 

        Section 11.02.    Supplemental Indenture with Consent of Noteholders.    With the consent (evidenced as
provided in Article 9) of the holders of at least a majority in aggregate principal amount of the Notes at the time outstanding, the Company, when authorized by the resolutions of the Board of
Directors, and the Trustee may, from time to time and at any time, enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or the Notes or any supplemental indenture or of modifying in any manner the rights of the holders of the Notes; provided that no such supplemental
indenture shall (i) reduce the principal amount of or change the Stated Maturity of any Note, (ii) reduce the rate or extend the time of payment of Interest on any Note,
(iii) reduce any amount payable on redemption or repurchase of any Note (including upon the occurrence of a Fundamental Change) or change the time at which or the circumstances under which the
Notes may or shall be redeemed or repurchased, (iv) impair the right of any Noteholder to institute suit for the payment on any Note, (v) make the principal or Interest of any Note
payable in any coin or currency other than that provided in the Notes, (vi) impair the right to convert the Notes into Common Stock subject to the terms set forth herein, (vii) reduce
the number of shares of Common Stock or other property receivable upon conversion other than as contemplated in this Indenture, (viii) modify any of the provisions of this Section 11.02
or Section 7.07, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the holder of each Note
so affected, (ix) change any obligation of the Company to maintain an office or agency in the places and for the purposes set forth in Section 5.02, (x) make any change in
Article 16 (or, to the extent there are Subsidiary Guarantors, to the provisions of the Subsidiary Guarantor Supplemental Indenture that deal with subordination) that adversely affects the
rights of any Noteholder under Article 16, (xi) to the extent there are any subsidiary guarantees of the Notes as provided for in Section 17 hereof, modify the subsidiary
guarantees in any manner adverse to the Noteholders or (xii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, without
the consent of the holders of all Notes then outstanding. 

        Upon
the written request of the Company, accompanied by a copy of the resolutions of the Board of Directors certified by its Secretary or Assistant Secretary authorizing the execution of
any such supplemental indenture, and upon the filing with the Trustee of evidence of the consent of Noteholders as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 

        It
shall not be necessary for the consent of the Noteholders under this Section 11.02 to approve the particular form of any proposed supplemental indenture, but it shall be
sufficient if such consent shall approve the substance thereof. 

        Section 11.03.    Effect of Supplemental Indenture.    Any supplemental indenture executed pursuant to the
provisions of this Article 11 shall comply with the Trust Indenture Act, as then in effect, provided that this Section 11.03 shall not require such supplemental indenture or the Trustee
to be qualified under the Trust Indenture Act prior to any time such qualification is in fact required under the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust
Indenture Act, nor shall it constitute any admission or acknowledgment by any party to such supplemental indenture that any such qualification is required prior to any time such qualification is in
fact required 

51

 

under
the terms of the Trust Indenture Act or the Indenture has been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture pursuant to the provisions of
Article 11, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitation of rights, obligations, duties and immunities under
this Indenture of the Trustee, the Company and the holders of Notes shall thereafter be determined, exercised and enforced hereunder, subject in all respects to such modifications and amendments and
all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 

        Section 11.04.    Notation on Notes.    Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to the provisions of this Article 11 may bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any modification of this Indenture contained in any such
supplemental indenture may, at the Company's expense, be prepared and executed by the Company, authenticated by the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to
Section 18.12) and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then outstanding. Notwithstanding the presence or absence of any notation on any Notes, all
outstanding Notes shall be fully subject to the terms of the Indenture as modified by any supplemental indenture and shall be deemed to be amended and modified to the extent that any such supplemental
indenture effects changes to the terms of the Notes. 

        Section 11.05.    Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee.    Prior to
entering into any supplemental indenture, the Trustee shall be provided with an Officers' Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant
hereto complies with the requirements of this Article 11 and is otherwise authorized or permitted by this Indenture. 

 
 

ARTICLE 12
  Consolidation, Merger, Sale, Conveyance And Lease    
    

        Section 12.01.    Company May Consolidate on Certain Terms.    (a) Subject to the provisions of
Section 12.02, the Company shall not consolidate or merge with or into any other Person or Persons (whether or not affiliated with the Company), nor shall the Company or its successor or
successors be a party or parties to successive consolidations or mergers, nor shall the Company sell, convey, transfer or lease the property and assets of the Company substantially as an entirety, to
any other Person (whether or not affiliated with the Company), unless: 

        (A)  the
resulting, surviving or transferee Person (the "Successor Company") shall be a corporation organized and existing
under the laws of the United States of America, any State thereof or the District of Columbia and the Successor Company (if not the Company) shall expressly assume, by a supplemental indenture hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, all the obligations of the Company under the Notes and this Indenture; 

        (B)  immediately
after giving effect to such transaction (and treating any Indebtedness which becomes an obligation of the Successor Company as a result of such transaction
as having been Incurred by the Successor Company at the time of such transaction), no Default shall have occurred and be continuing; and 

        (C)  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. 

        The
Successor Company shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture, but the predecessor Company in the case of a
lease of all 

52

 

or
substantially all its assets shall not be released from the obligation to pay the principal of and interest on the Notes. 

        (b)   To
the extent applicable, the Company shall not permit any Subsidiary Guarantor to consolidate with or merge with or into, or convey, transfer or lease all or
substantially all of its assets to any Person unless: (i) the resulting, surviving or transferee Person (the "Successor Guarantor") will be a
corporation organized and existing under the laws of the United States of America, any State thereof or the District of Columbia, and such Person (if not such Subsidiary Guarantor) shall expressly
assume, by a Subsidiary Guarantor 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 which becomes an obligation of the Successor Guarantor or another Subsidiary Guarantor as a result of
such transaction as having been Incurred by such Person or such Subsidiary Guarantor at the time of such transaction), no Default shall have occurred and be continuing; and (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. 

        The
Successor Guarantor will succeed to, and be substituted for, and may exercise every right and power of, such Subsidiary Guarantor under this Indenture and the Subsidiary Guarantor
Supplemental Indenture to which such Subsidiary Guarantor is a party, but the predecessor Subsidiary Guarantor in the case of a lease of all or substantially all its assets will not be released from
its obligations under this Indenture and the Subsidiary Guarantor Supplemental Indenture. 

        Notwithstanding
the foregoing, any Subsidiary Guarantor may consolidate with, merge into or transfer all or part of its properties and assets to the Company or any Subsidiary Guarantor. 

        Section 12.02.    Successor to Be Substituted.    In case of any such consolidation, merger, sale, conveyance,
transfer or lease and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and punctual
payment of the principal of and Interest on all of the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Company, such
successor Person shall succeed to and be substituted for the Company, with the same effect as if it had been named herein as the party of this first part. Such successor Person thereupon may cause to
be signed, and may issue either in its own name or in the name of Walter Industries, Inc. any or all of the Notes, issuable hereunder that theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor Person instead of the Company and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver, or cause to be authenticated and delivered, any Notes that previously shall have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Notes that such successor Person thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the Notes so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Notes had been issued at the date of the
execution hereof. In the event of any such consolidation, merger, sale, conveyance, transfer or lease, the Person named as the "Company" in the first
paragraph of this Indenture or any successor that shall thereafter have become such in the manner prescribed in this Article 12 may be dissolved, wound up and liquidated at any time thereafter
and such Person shall be released from its liabilities as obligor and maker of the Notes and from its obligations under this Indenture. 

        In
case of any such consolidation, merger, sale, conveyance, transfer or lease, such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be
issued as may be appropriate. 

53

 

 
 

ARTICLE 13
  Satisfaction And Discharge Of Indenture    
    

        Section 13.01.    Discharge of Indenture.    When (a) the Company shall deliver to the Trustee for
cancellation all Notes theretofore authenticated (other than any Notes that have been destroyed, lost or stolen and in lieu of or in substitution for which other Notes shall have been authenticated
and delivered) and not theretofore canceled, or (b) all the Notes not theretofore canceled or delivered to the Trustee for cancellation shall have become due and payable and the Company shall
deposit with the Trustee, in trust, funds sufficient to pay all amounts due and owing on Notes (other than any Notes that shall have been mutilated, destroyed, lost or stolen and in lieu of or in
substitution for which other Notes shall have been authenticated and delivered) or shares of Common Stock in the case of Notes converted, not theretofore canceled or delivered to the Trustee for
cancellation, accompanied by a verification report, as to the sufficiency of the deposited cash and shares of Common Stock, from an independent certified accountant or other financial professional
satisfactory to the Trustee, and if in either case the Company shall also pay or cause to be paid all other sums payable hereunder by the Company, then this Indenture shall cease to be of further
effect (except as to (i) remaining rights of registration of transfer, substitution and exchange and conversion of Notes, (ii) rights hereunder of Noteholders to receive payments of
principal of and Interest on the Notes and the other rights, duties and obligations of Noteholders, as beneficiaries hereof with respect to the amounts, if any, so deposited with the Trustee and
(iii) the rights, obligations and immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied by an Officers' Certificate and an Opinion of Counsel as
required by Section 18.05 and at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture; the Company, however, hereby
agrees to reimburse the Trustee for any costs or expenses thereafter reasonably and properly incurred by the Trustee and to compensate the Trustee for any services thereafter reasonably and properly
rendered by the Trustee in connection with this Indenture or the Notes. The Trustee shall hold in trust money or Common Stock deposited with it pursuant to this Article 13. It shall apply the
deposited money and Common Stock through the Paying Agent and in accordance with this Indenture to the payment of principal of and Interest on the Notes. Money and Common Stock so held in trust are
not subject to Article 16. 

        Section 13.02.    Paying Agent to Repay Monies Held.    Upon the satisfaction and discharge of this Indenture,
all monies then held by any Paying Agent of the Notes (other than the Trustee) shall, upon written request of the Company, be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall
be released from all further liability with respect to such monies. 

        Section 13.03.    Return of Unclaimed Monies.    Subject to the requirements of applicable law, any monies or
shares of Common Stock deposited with or paid to the Trustee for payment of the principal of or Interest on Notes or satisfaction of the Company's Conversion Obligations and not applied but remaining
unclaimed by the holders of Notes for two years after the date upon which the principal of or Interest on such Notes, as the case may be, shall have become due and payable, or such shares of Common
Stock shall have been deliverable, shall be repaid or returned to the Company by the Trustee on demand and all liability of the Trustee shall thereupon cease with respect to such monies or shares of
Common Stock; and the holder of any of the Notes shall thereafter look only to the Company for any payment that such holder may be entitled to collect unless an applicable abandoned property law
designates another Person. 

 
 

ARTICLE 14
  Immunity Of Incorporators, Stockholders, Officers And Directors    
    

        Section 14.01.    Indenture and Notes Solely Corporate Obligations.    No recourse for the payment of the
principal of or Interest on any Note, or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in this
Indenture or in any supplemental indenture or in any Note, or because of the creation of any 

54

 

indebtedness
represented thereby, shall be had against any incorporator, stockholder, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and
the issue of the Notes. 

 
 

ARTICLE 15
  Conversion Of Notes    
    

        Section 15.01.    Right to Convert.    (a) Subject to and upon compliance with the provisions of this
Indenture, prior to the close of business on the Stated Maturity, the holder of any Note shall have the right, at such holder's option, to convert the principal amount of the Note, or any portion of
such principal
amount which is a multiple of $1,000, into fully paid and non-assessable shares of Common Stock (as such shares shall then be constituted) at the Conversion Rate in effect at such time, by
surrender of the Note so to be converted in whole or in part, together with any required funds, under the circumstances described in this Section 15.01 and in the manner provided in
Section 15.02. The Company may elect to deliver, in lieu of shares of Common Stock, cash or a combination of cash and shares of its Common Stock. The Notes shall be convertible only during the
following periods upon the occurrence of one of the following events: 

        (i)    during
any fiscal quarter of the Company after the quarter ended June 30, 2004 (and only during such fiscal quarter) if the Last Reported Sale Price for the
Common Stock for at least 20 Trading Days during the period of 30 consecutive Trading Days ending on the last Trading Day of the previous fiscal quarter equals or exceeds 130% of the Conversion Price
on such last Trading Day; 

        (ii)   during
the five Business Day period immediately after any five consecutive Trading Day period in which the Trading Price per $1,000 principal amount of the Notes for
each day of such five Business Day measurement period was less than 98% of the product of the Last Reported Sale Price of the Common Stock on the applicable date and the Conversion Rate; provided,
however, that the Notes shall not be convertible pursuant to this Section 15.01(a)(ii) after May 1, 2019 if on any Trading Day during such measurement period the Last Reported
Sale Price of the Common Stock was between 100% and 130% of the then current Conversion Price of the Notes. 

        (iii)  in
the event that the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the second Business Day immediately preceding
the Redemption Date; provided that only those Notes that are called for redemption may be converted following such an event; 

        (iv)  as
provided in Section (b) of this Section 15.01; or 

        (v)   during
any period in which (1) the credit rating assigned to the Notes by either Standard & Poor's Ratings Services
("S&P") or Moody's Investors Service, Inc. ("Moody's") is three or more rating subcategories
below B+ by S&P or B1 by Moody's, or (2) the notes are no longer rated by at least one of, or are suspended by both S&P and Moody's. 

        The
Company or its designated agent shall determine on a daily basis during the time period specified in Section 15.01(a)(i) whether the Notes shall be convertible as a
result of the occurrence of an event specified in clause (i) above and, if the Notes shall be so convertible, the Company shall promptly deliver to the Trustee (or other Conversion Agent
appointed by the Company) written notice thereof. Whenever the Notes shall become convertible pursuant to this Section 15.01, the Company or, at the Company's request, the Trustee in the name
and at the expense of the Company, shall notify the holders of the event triggering such convertibility in the manner provided in Section 18.03, and the Company shall also publicly announce
such information by publication on the Company's Web site or through such other public medium as it may choose to use at such time. Any notice so given shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice. 

55

 

        The
Trustee (or other Conversion Agent appointed by the Company) shall have no obligation to determine the Trading Price for purposes of Section 15.01(a)(ii) unless the
Company has requested in writing such a determination; and the Company shall have no obligation to make such request unless a holder provides it with reasonable evidence that the Trading Price per
$1,000 principal amount of Notes is less than 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. Such evidence shall be in writing and delivered by the
holder to the Treasurer of the Company by fax or certified or express mail to the address or fax number specified in Section 18.03 hereof. Such request shall state that the holder has a
reasonable belief that the Trading Price per $1,000 principal amount of Notes is less than 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate (which request
shall also include the evidence with respect thereto) and shall state that the holder is requesting that the Company request the Trustee (or other Conversion Agent appointed by the Company) to
determine whether or not the Notes are convertible into Common Stock pursuant to Section 15.01(a)(ii) of this Indenture. If such notice and evidence is provided, the Company shall
instruct the Trustee (or other Conversion Agent) in writing to determine the Trading Price of the Notes beginning on the next Trading Day and on each successive Trading Day until, and only until, the
Trading Price per $1,000 principal amount of Notes is greater than or equal to 98% of the product of the Last Reported Sale Price of the Common Stock and the Conversion Rate. 

        The
Trustee shall be entitled at its sole discretion to consult with the Company and to request the assistance of the Company in connection with the Trustee's duties and obligations
pursuant to Section 15.01(a) hereof, and the Company agrees, if requested by the Trustee, to cooperate with, and provide assistance to, the Trustee in carrying out its duties under this
Section 15.01; provided, however, that nothing herein shall be construed to relieve the Trustee
of its duties pursuant to Section 15.01(a) hereof. 

        (b)   In
addition, if: 

        (i)    (A)
the Company distributes to all holders of its Common Stock rights or warrants entitling them (for a period expiring within 45 days of the date of the
distribution) to subscribe for or purchase shares
of Common Stock at a price per share less than the Last Reported Sale Price on the Trading Day immediately preceding the declaration date of the distribution, or (B) the Company distributes to
all holders of Common Stock assets (including cash), debt securities or rights to purchase securities of the Company, which distribution has a per share value as determined by the Company's Board of
Directors and set forth in a Board Resolution exceeding 5% of the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the declaration date for such distribution,
then, in either case, the Notes may be surrendered for conversion at any time on and after the date that the Company gives notice to the holders of such distribution, which shall be not less than 20
Business Days prior to the Ex-Dividend Date for such distribution, until the earlier of the close of business on the Business Day immediately preceding, but not including, the
Ex-Dividend Date or the date the Company publicly announces that such distribution will not take place; provided that no holder of a Note will have the ability to convert and no adjustment
to the Conversion Price will be made if the holder will otherwise participate in such distribution without conversion; or 

        (ii)   the
Company consolidates with or merges with or into another Person or is a party to a binding share exchange or conveys, transfers, sells, leases or otherwise disposes
of all or substantially all of its properties and assets in each case pursuant to which the Common Stock is converted into stock, other securities or other property or assets (including cash), then
the Notes may be surrendered for conversion at any time from and after the date 15 days prior to the anticipated effective date of the transaction and ending on and including the date
15 days after the anticipated effective date of the transaction. 

The
Board of Directors shall determine the anticipated effective date of the transaction, and such determination shall be conclusive and binding on the holders and shall be publicly announced by the 

56

 

Company
by publication on its Web site or through such other public medium as it may choose to use at that time not later than two Business Days prior to such 15th day. 

        (c)   A
Note in respect of which a holder is electing to exercise its option to require repurchase upon a Fundamental Change pursuant to Section 3.05 or repurchase
pursuant to Section 3.06 may be converted only if such holder withdraws its election in accordance with Section 3.08(d). A holder of Notes is not entitled to any rights of a holder of
Common Stock until such holder has converted his Notes to Common Stock, and only to the extent such Notes are deemed to have been converted to Common Stock under this Article 15. 

        Section 15.02.    Exercise of Conversion Privilege; Issuance of Common Stock on Conversion; No Adjustment for Interest or Dividends; Settlement
of Cash or Common Stock Upon Conversion.    (a) In order to exercise the conversion privilege with respect to any Note in certificated form, the Company must
receive at the office or agency of the Company maintained for that purpose or, at the option of such holder, the Corporate Trust Office, such Note with the original or facsimile of the form entitled
"Form of Conversion Notice" on the reverse thereof (the "Conversion Notice"), duly completed and manually signed, together with such Notes duly endorsed
for transfer, accompanied by the funds, if any, required
by Section 15.02(d). Such notice shall also state the name or names (with address or addresses) in which the certificate or certificates for shares of Common Stock which shall be issuable on
such conversion shall be issued, and shall be accompanied by the amount of any transfer or similar taxes which are payable in connection with such conversion, if required pursuant to
Section 15.07. The Conversion Agent shall provide copies of the Form of Conversion Notice to holders of Notes upon request. 

        In
order to exercise the conversion privilege with respect to any interest in a Global Note, the beneficial holder must complete, or cause to be completed, the appropriate instruction
form for conversion pursuant to the Depositary's book-entry conversion program, deliver, or cause to be delivered, by book-entry delivery an interest in such Global Note,
furnish appropriate endorsements and transfer documents if required by the Company or the Trustee or Conversion Agent, and pay the funds, if any, required by this Section 15.02 and any transfer
taxes or similar taxes which are payable in connection with such conversion if required pursuant to Section 15.07. 

        (b)   As
promptly as practicable after satisfaction of the requirements for conversion set forth above, subject to compliance with any restrictions on transfer if shares
issuable on conversion are to be issued in a name other than that of the Noteholder (as if such transfer were a transfer of the Note or Notes (or portion thereof) so converted), the Company shall
issue and shall deliver to such Noteholder at the office or agency maintained by the Company for such purpose pursuant to Section 5.02, any certificate or certificates for the number of full
shares of Common Stock issuable upon the conversion of such Note or portion thereof as determined by the Company in accordance with the provisions of this Article 15 and/or a check or cash in
respect of (i) the portion, if any, of the Conversion Obligation that the Company has elected to satisfy in cash, calculated by the Company as provided in paragraph (g) below and
(ii) any fractional interest in respect of a share of Common Stock arising upon such conversion, calculated by the Company as provided in Section 15.03. In case any Note of a
denomination greater than $1,000 shall be surrendered for partial conversion, and subject to Section 2.03, the Company shall execute and the Trustee shall authenticate and deliver to the holder
of the Note so surrendered, without charge to him, a new Note or Notes in authorized denominations in an aggregate principal amount equal to the unconverted portion of the surrendered Note. 

        (c)   Each
conversion shall be deemed to have been effected as to any such Note (or portion thereof) on the date on which the requirements set forth above in this
Section 15.02 have been satisfied as to such Note (or portion thereof) (such date, the "Conversion Date"), and the Person in whose name any
certificate or certificates for shares of Common Stock shall be issuable upon such conversion shall be deemed to have become on said date the holder of record of the shares represented thereby;
provided that any such surrender on any date when the stock transfer books of the Company shall be closed shall constitute the Person in whose name the certificates are to be issued as the record
holder 

57

 

thereof
for all purposes on the next succeeding day on which such stock transfer books are open, but such conversion shall be at the Conversion Rate in effect on the date upon which such Note shall be
surrendered. 

        (d)   Except
as provided in clause 15.02(e) below, upon the conversion of a Note, that portion of the accrued but unpaid Interest (excluding Additional Interest if, at
the time of such conversion, there exists a Registration Default as defined in the Registration Rights Agreement) with respect to the converted Note shall not be cancelled, extinguished or forfeited,
but rather shall be deemed to be paid in full to the holder thereof through delivery of the Common Stock (or, to the extent the Company has elected to satisfy all or a portion of its conversion
obligation with cash, such cash and the Common Stock), together with the cash payment, if any, in lieu of fractional shares, in exchange for the Note being converted pursuant to the provisions hereof;
and the fair market value of such shares of Common Stock (together with any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for and
in satisfaction of the Company's obligation to pay the principal amount of the converted Note and the accrued but unpaid Interest (excluding Additional Interest if, at the time of such conversion,
there exists a Registration Default as defined in the Registration Rights Agreement), and the balance, if any, of such fair market value of such Common Stock (and any such cash payment) shall be
treated as issued in exchange for and in satisfaction of the right to convert the Note being converted pursuant to the provisions hereof. 

        (e)   Notwithstanding
the preceding clause, if a Note or portion thereof is surrendered for conversion during the period from the close of business on any Regular Record Date
to the close of business on the Business Day immediately preceding the following Interest Payment Date, the Holder of such Note at the close of business on such Regular Record Date shall receive the
Interest payable on the corresponding Interest Payment Date notwithstanding the conversion. Such a Note, upon surrender for conversion, shall be accompanied by payment, in immediately available funds
or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable on such Interest Payment Date on the principal amount being converted; provided that no such payment need
be made (1) if the Company has specified a Redemption Date or a Fundamental Change Repurchase Date that is after a Regular Record Date and prior to the next Interest Payment Date or
(2) to the extent of any overdue Interest, if any overdue Interest exists at the time of conversion with respect to such Note. Except as provided above in this Section 15.02, no payment
or other adjustment shall be made for Interest accrued on any Note converted or for dividends on any shares issued upon the conversion of such Note as provided in this Article 15. 

        (f)    Upon
the conversion of an interest in a Global Note, the Trustee (or other Conversion Agent appointed by the Company), or the Custodian at the direction of the Trustee
(or other Conversion Agent appointed by the Company), shall make a notation on such Global Note as to the reduction in the principal amount represented thereby. The Company shall notify the Trustee in
writing of any conversions of Notes effected through any Conversion Agent other than the Trustee. 

        (g)   In
the event that the Company receives a Conversion Notice on or prior to (1) the date on which the Company gives a Redemption Notice or (2) the Final
Notice Date, the following procedures shall apply: 

        (i)    If
the Company elects to satisfy all or any portion of its obligation to convert the notes (the "Conversion
Obligation") in cash, the Company shall notify holders through the Trustee of the dollar amount to be satisfied in cash (which
must be expressed either as 100% of the Conversion Obligation or as a fixed dollar amount) at any time on or before the date that is two Business Days following the Conversion Date (the
"Cash Settlement Notice Period"). If the Company timely elects to pay cash for any portion the Common Stock otherwise issuable to holders upon
conversion, holders may retract the Conversion Notice at any time during the two Business Days following the final day of the Cash Settlement Notice Period (the "Conversion
Retraction Period"). No such retraction can be made (and a Conversion Notice shall be irrevocable) if the Company does not elect to deliver cash in lieu of Common Stock (other
than 

58

 

cash
in lieu of fractional shares). Upon the expiration of a Conversion Retraction Period, a Conversion Notice shall be irrevocable. If the Company elects to satisfy all or any portion of the
Conversion Obligation in cash, and the applicable Conversion Notice has not been retracted, then settlement (in cash or in cash and Common Stock) will occur on the Business Day following the final day
of the 20 day Trading Period beginning on the day after the final day of the Conversion Retraction Period (the "Cash Settlement Averaging
Period"). 

        (ii)   If
the Company does not elect to satisfy any part of the Conversion Obligation in cash (other than cash in lieu of any fractional shares), delivery of the Common Stock
into which the Notes are converted (and cash in lieu of any fractional shares) shall occur through the Conversion Agent as described above as soon as practicable on or after the Conversion Date. 

        (h)   Settlement
amounts will be computed as follows: 

        (i)    If
the Company elects to satisfy the entire Conversion Obligation in Common Stock, it shall deliver to holders that have delivered the Conversion Notice giving rise to
the Conversion Obligation a number of shares of Common Stock equal to (i) the aggregate principal amount of Notes to be converted divided by 1,000, multiplied by (ii) the Conversion
Rate. In addition, the Company shall pay cash for any fractional shares of Common Stock based on the Last Reported Sale Price of the Common Stock on the Trading Day immediately preceding the
Conversion Date. 

        (ii)   If
the Company elects to satisfy the entire Conversion Obligation in cash, it shall deliver to holders that have delivered the Conversion Notice giving rise to the
Conversion Obligation cash in an amount equal to the product of: 

        (A)  a
number equal to (i) the aggregate principal amount of Notes to be converted divided by 1,000, multiplied by (ii) the Conversion Rate; and 

        (B)  the
average Last Reported Sale Price of the Common Stock during the Cash Settlement Averaging Period. 

        (iii)  If
the Company elects to satisfy a fixed portion (other than 100%) of the Conversion Obligation in cash, it will deliver to holders the specified cash amount (the
"Cash Amount") and a number of Common Stock equal to the greater of (i) zero and (ii) the excess, if any, of the number of Common Stock
calculated as if the Company elected to satisfy the entire Conversion Obligation in shares over the number of shares equal to the sum of the quotient, for each day of the Cash Settlement Averaging
Period, of (x) 5% of the Cash Amount, divided by (y) the Last Reported Sale Price of the Common Stock. In addition, the Company shall pay cash for all fractional Common Stock based on
the average Last Reported Sale Price of the Common Stock during the Cash Settlement Averaging Period. 

        (i)    The
Company must determine whether or not it will satisfy all or a portion of the Conversion Obligation in cash at the time it issues a Redemption Notice or a Final
Maturity Notice and such notices will state the amount of the Conversion Obligation to be settled in cash, shares of Common Stock or a combination of cash and shares of Common Stock. In the event that
the Company receives a Conversion Notice after the date a Redemption Notice or the Final Maturity Notice has been issued, settlement amounts will be computed and settlement dates will be determined in
the same manner as set forth in clauses (g) and (h) of this Section 15.02 except that the Cash Settlement Averaging Period shall be the 20 Trading Day period beginning on the
Trading Day after the Conversion Date. If a Conversion Notice is received from holders of Notes after the date that a Redemption Notice or the Final Maturity Notice has been issued, such holders may
not retract their Conversion Notice. Settlement (in cash and/or Common Stock) will occur on the Business Day following the final day of such Cash Settlement Averaging Period. Notwithstanding anything
to the contrary contained herein, the Company may at any time permanently elect to satisfy its Conversion Obligation in shares of its Common Stock, cash or a specified combination of cash and shares
of Common Stock. 

        (j)    If
the shares of Common Stock, cash or combination of shares of Common Stock and cash paid by the Company to a holder upon conversion of the Notes pursuant to this
Article 15 are not 

59

 

sufficient
to allow the Company to comply with the United States federal withholding tax obligations imposed by the Code with respect to accrued and unpaid interest on the Notes payable to the
beneficial owner of such Notes, the Company may, to the extent required by applicable law, recoup or set-off such liability against any amounts owed to such Holder, including, but not
limited to, the shares of Common Stock to be issued upon conversion to such beneficial owner or any actual cash dividends or distributions subsequently made with respect to such shares of Common Stock
to such beneficial owner. 

        Section 15.03.    Cash Payments in Lieu of Fractional Shares.    No fractional shares of Common Stock or scrip
certificates representing fractional shares shall be issued upon conversion of Notes. If more than one Note shall be surrendered for conversion at one time by the same holder, the number of full
shares
that shall be issuable upon conversion shall be computed on the basis of the aggregate principal amount of the Notes (or specified portions thereof to the extent permitted hereby) so surrendered. If
any fractional share of stock would be issuable upon the conversion of any Note or Notes, the Company shall make an adjustment and payment therefor in cash to the holder of Notes at the Last Reported
Sale Price on the last Trading Day immediately preceding the day on which the Notes (or specified portions thereof) are deemed to have been converted. 

        Section 15.04.    Conversion Rate.    Each $1,000 principal amount of the Notes shall be convertible into the
number of shares of Common Stock specified in the form of Note (herein called the "Conversion Rate") attached as Exhibit A hereto (initially
56.0303 shares), subject to adjustment as provided in this Article 15. 

        Section 15.05.    Adjustment of Conversion Rate.    The Conversion Rate shall be adjusted from time to time by
the Company as follows: 

        (a)   In
case the Company shall pay a dividend or make a distribution to all holders of the outstanding Common Stock in shares of Common Stock, the Conversion Rate, as in
effect at the opening of business on the day following the date fixed for the determination of stockholders entitled to receive such dividend or other distribution, shall be increased by dividing such
Conversion Rate by a fraction, 

        (i)    the
numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination, and 

        (ii)   the
denominator of which shall be the sum of such number of shares and the total number of shares constituting such dividend or other distribution, 

such
increase to become effective immediately after the opening of business on the Business Day following the date fixed for such determination. If any dividend or distribution of the type described
in this Section 15.05(a) is declared but not so paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate that would then be in effect if such dividend or distribution
had not been declared. 

60

  

        (b)   In case the Company shall (other than pursuant to a dividend reinvestment plan or share purchase plan) issue rights, options or warrants to all holders of its Common
Stock entitling them, for a period expiring within 60 days after the date of issuance of such rights, options or warrants, to subscribe for or purchase shares of Common Stock at a price per
share less than the Current Market Price per share of the Common Stock on the date of issuance of such rights, options or warrants, the Conversion Rate in effect at the opening of business on the day
following the date fixed for such determination shall be increased by dividing such Conversion Rate by a fraction, 

        (i)    the
numerator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of
shares of Common Stock which the aggregate offering price of the total number of shares of Common Stock so offered for subscription or purchase would purchase at such Current Market Price, and 

        (ii)   the
denominator of which shall be the number of shares of Common Stock outstanding at the close of business on the date fixed for such determination plus the number of
shares of Common Stock so offered for subscription or purchase at such below Current Market Price, 

such
adjustment shall be successively made whenever any such rights, options or warrants are issued and shall become effective immediately after the opening of business on the Business Day following
the date fixed for such determination. To the extent that shares of Common Stock are not delivered after the expiration of such rights or warrants, the Conversion Rate shall be readjusted to the
Conversion Rate that would then be in effect had the adjustments made upon the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of Common
Stock actually delivered. If such rights, options or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such date fixed
for the determination of stockholders entitled to receive such rights, options or warrants had not been fixed. 

        In
determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of Common Stock at less than such Current Market Price, and in determining
the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on
exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors. 

        (c)   In
case outstanding shares of Common Stock shall be subdivided or split into a greater number of shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such subdivision or split becomes effective shall be proportionately increased, and, conversely, in case outstanding shares of Common Stock shall be
combined into a smaller number of shares of Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such combination becomes effective shall be
proportionately reduced, such increase or reduction, as the case may be, to become effective immediately after the opening of business on the day following the day upon which such subdivision, split
or combination becomes effective. 

        (d)   In
case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock evidences of its indebtedness, shares of capital stock, securities or
other property (but excluding any cash distributions referred to in Section 15.05(e), rights, options or warrants referred to in Section 15.05(b) and any dividend or distribution
referred to in Section 15.05(a)), the Conversion Rate shall be adjusted by dividing the Conversion Rate in effect immediately prior to the close of business on the date fixed for the
determination of stockholders entitled to receive such distribution by a fraction, 

        (i)    the
numerator of which shall be the Current Market Price per share of the Common Stock on the date fixed for such determination, and 

61

 

        (ii)   the
denominator of which shall be such Current Market Price per share of the Common Stock plus the then fair market value per share (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board Resolution) on the date fixed for such determination of the evidences of indebtedness, shares of capital stock, securities,
or other property so to be distributed, 

such
adjustment shall become effective immediately prior to the opening of business on the Business Day following the date fixed for the determination of stockholders entitled to receive such
distribution; provided, however, that in the event that the Company makes a distribution to all holders
of its Common Stock consisting of capital stock of, or similar equity interest in, a subsidiary or other business unit of the Company, the Conversion Rate shall be adjusted by dividing the Conversion
Rate in effect immediately prior to the close of business on the date fixed for the determination of stockholders entitled to receive such distribution by a fraction of which the numerator shall be
the Spin-off Market Price per share of the Common Stock on the date fixed for such determination less the Spin-off Market Price per share or similar equity interest of the
subsidiary or other business unit of the Company on such date and the denominator shall be the Spin-off Market Price per share of the Common Stock, such adjustment to become effective 10
Trading Days after the effective date of such distribution of capital stock of, or similar equity interest in, a subsidiary or other business unit of the Company. In any case in which this
Section 15.05(d) is applicable, Sections 15.05(a), (b) and (e) shall not be applicable. If such dividend or
distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be in effect if such dividend or distribution had not been declared. 

        (e)   In
case the Company shall, by dividend or otherwise, make a distribution (the "Triggering Distribution") to all holders
of its Common Stock payable exclusively in cash, and such cash distribution, together with all other cash distributions paid during the fiscal quarter in which such cash distribution is paid, exceeds
$0.03 per share of Common Stock (the "Dividend Threshold Amount"), the Conversion Rate shall be adjusted by multiplying the Conversion Rate in effect
immediately prior to the close of business on the date fixed for the determination of the stockholders entitled to receive such distribution by a fraction, 

        (i)    the
numerator of which shall be the Current Market Price per share of the Common Stock on the date fixed for such determination minus the Dividend Threshold Amount, and 

        (ii)   the
denominator of which shall be such Current Market Price per share of the Common Stock on the date fixed for such determination minus the aggregate amount of cash
per share of the Common Stock so distributed, 

such
adjustment shall become effective immediately prior to the opening of business on the Business Day following the date fixed for the determination of stockholders entitled to receive such
distribution. 

        The
Dividend Threshold Amount is subject to adjustment whenever an adjustment is made to the Conversion Rate pursuant to clauses (a) and (c) above, which adjustment shall
be the inverse of the adjustment made to the Conversion Rate pursuant to such clause. 

        If
any distribution of the type described in this Section 15.05(e) is declared but not so paid, the Conversion Rate shall again be adjusted to the Conversion Rate that would then
be in effect if such distribution had not been declared. 

        (f)    In
case a tender or exchange offer made by the Company or any subsidiary of the Company for all or any portion of the Common Stock shall expire and such tender or
exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a resolution of the Board of Directors) that as of the last time (the "Expiration
Time") tenders or exchanges may be made pursuant to such tender or 

62

 

exchange
offer (as it may be amended) exceeds the Last Reported Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, the Conversion Rate shall be increased so
that the same shall equal the rate determined by multiplying the Conversion Rate in effect immediately prior to the Expiration Time by a fraction: 

        (i)    the
numerator of which shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable to stockholders based on the
acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so
accepted up to any such maximum, being referred to as the "Purchased Shares") and (y) the product of the number of shares of Common Stock
outstanding (less any Purchased Shares) at the Expiration Time and the Last Reported Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, and 

        (ii)   the
denominator of which shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time multiplied by the
Last Reported Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time, 

such
adjustment to become effective immediately prior to the opening of business on the day following the expiration time. If the Company is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such tender or exchange offer had not been made. 

        (g)   The
reclassification of Common Stock into securities other than Common Stock (other than any reclassification upon an event to which Section 15.06 applies) shall
be deemed to involve (a) a distribution of such securities other than Common Stock to all holders of Common Stock (and the effective date of such reclassification shall be deemed to be "the
date fixed for the determination of stockholders entitled to receive such distribution" and the "date fixed for such determination" within the meaning of Section 15.05(d)), and (b) a
subdivision, split or combination, as the case may be, of the number of shares of Common Stock outstanding immediately prior to such reclassification into the number of shares of Common Stock
outstanding immediately thereafter (and the effective date of such reclassification shall be deemed to be "the day upon which such subdivision or split becomes effective" or "the day upon which such
combination becomes effective," as the case may be, and "the day upon which such subdivision, split or combination becomes effective" within the meaning of Section 15.05(c)). 

        (h)   Notwithstanding
the foregoing provisions of Section 15.05, no adjustment shall be made thereunder, nor shall an adjustment be made to the ability of a Holder of a
Note to convert, for any distribution described therein if the Holder will otherwise participate in the distribution without conversion of such Holder's Notes. 

        To
the extent permitted by applicable law, the Company from time to time may increase the Conversion Rate by any amount for any period of time if the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Rate is increased pursuant to the preceding sentence,
the Company shall mail to holders of record of the Notes a notice of the increase prior to the date the increased Conversion Rate takes effect, and such notice shall state the increased Conversion
Rate and the period during which it will be in effect. 

63

 

        (i)    No
adjustment to the Conversion Rate need be made: 

        (i)    upon
the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on securities of
the Company and the investment of additional optional amounts in shares of Common Stock under any plan; 

        (ii)   upon
the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit
plan or program of or assumed by the Company or any of its Subsidiaries; 

        (iii)  upon
the issuance of any shares of Common Stock pursuant to any option, warrant, right, or exercisable, exchangeable or convertible security not described in
(ii) above and outstanding as of the date the Notes were first issued; 

        (iv)  for
a change in the par value of the Common Stock; or 

        (v)   for
accrued and unpaid interest, including Contingent Interest and Additional Interest, if any. 

No
adjustment to the Conversion Rate or the ability of a Holder of a Note to convert will be made if the Holder will otherwise participate in the distribution without conversion. To the extent the
Notes become convertible into cash, assets or property (other than capital stock of the Company or securities to which Section 15.06 applies), no adjustment shall be made thereafter as to the
cash, assets or property. Interest shall not accrue on such cash, assets or property. 

        (j)    No
adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least 1.0% in such rate; provided that any
adjustments that by reason of this Section 15.05(j) are not required to be made shall be carried forward and taken into account in any subsequent adjustment or in connection with any conversion
of the Notes following a Redemption Notice or at Stated Maturity, as applicable. All calculations under this Article 15 shall be made by the Company and shall be made to the nearest cent or to
the nearest one-ten thousandth (1/10,000) of a share, as the case may be. 

        (k)   Whenever
the Conversion Rate is adjusted as herein provided, the Company shall promptly file with the Trustee and any Conversion Agent other than the Trustee an
Officers' Certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring such adjustment. Unless and until a Responsible Officer of the
Trustee shall have received such Officers' Certificate, the Trustee shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last Conversion Rate of which
it has knowledge is still in effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion
Rate and the date on which each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate to the holder of each Note at his last address appearing on the Note
Register provided for in Section 2.05 of this Indenture, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of any such
adjustment. 

        (l)    In
any case in which this Section 15.05 provides that an adjustment shall become effective immediately after (1) a record date or Stock Record Date for an
event, (2) the date fixed for the determination of stockholders entitled to receive a dividend or distribution pursuant to Section 15.05(a), (3) a date fixed for the determination
of stockholders entitled to receive rights or warrants pursuant to Section 15.05(b) or (4) the Expiration Time for any tender or exchange offer pursuant to Section 15.05(f), (each
a "Determination Date"), the Company may elect to defer until the occurrence of the applicable Adjustment Event (as hereinafter defined)
(x) issuing to the holder of any Note converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or other securities
issuable upon such conversion by reason of 

64

 

the
adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to such holder any amount
in cash in lieu of any fraction pursuant to Section 15.03. For purposes of this Section 15.05(l), the term "Adjustment Event" shall mean: 

        (i)    in
any case referred to in clause (1) hereof, the occurrence of such event, 

        (ii)   in
any case referred to in clause (2) hereof, the date any such dividend or distribution is paid or made, 

        (iii)  in
any case referred to in clause (3) hereof, the date of expiration of such rights or warrants, and 

        (iv)  in
any case referred to in clause (4) hereof, the date a sale or exchange of Common Stock pursuant to such tender or exchange offer is consummated and becomes
irrevocable. 

        (m)  For
purposes of this Section 15.05, the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will not pay any dividend or make any distribution on shares of Common
Stock held in the treasury of the Company. 

        (n)   If
the Conversion Rate is adjusted pursuant to this Section 15.05, to the extent such adjustment results in a constructive dividend to a holder of the Notes under
Section 305 of the Code and any contemporaneous payments by the Company to such holder are not sufficient to allow the Company to comply with United States federal withholding tax obligations
imposed by the Code with respect to such constructive dividend, the Company may, to the extent required by applicable law, recoup or set-off such liability against any amounts owed to such
holder, including, but not limited to, any payments made with respect to the Notes to such beneficial owners or any actual cash dividends or distributions subsequently made with respect to such shares
of Common Stock issued upon conversion to such Holder. 

        Section 15.06.    Effect of Reclassification, Consolidation, Merger or Sale.    If any of the following events
occur, namely (i) any reclassification or change of the outstanding shares of Common Stock (other than a subdivision or combination to which Section 15.05(c) applies), (ii) any
consolidation or merger of the Company with another Person, or any binding share exchange, as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other
property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii) any conveyance, transfer, sale, lease or other disposition of all or substantially all of the
properties and assets of the Company to any other Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash)
with respect to or in exchange for such Common Stock, then the Conversion Rate shall not be adjusted but the Company or the successor or purchasing Person, as the case may be, shall execute with the
Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force at the date of execution of such supplemental indenture) providing that each Note shall be convertible
into the kind and amount of shares of stock, other securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or
conveyance by a holder of a number of shares of Common Stock issuable upon conversion of such Notes (assuming, for such purposes, a sufficient number of authorized shares of Common Stock are available
to convert all such Notes) immediately prior to such reclassification, change, consolidation, merger, combination, sale or conveyance assuming such holder of Common Stock did not exercise his rights
of election, if any, as to the kind or amount of stock, other securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination,
sale or conveyance (provided that, if the kind or amount of stock, other securities or other property or assets (including cash) 

65

 

receivable
upon such reclassification, change, consolidation, merger, combination, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall
not have been exercised ("non-electing share"), then for the purposes of this Section 15.06 the kind and amount of stock, other
securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance for each non-electing share
shall be deemed to be the kind and amount so receivable per share by a plurality of the non-electing shares). Such supplemental indenture shall provide for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this Article 15. 

        The
Company shall cause notice of the execution of such supplemental indenture to be mailed to each holder of Notes, at its address appearing on the Note Register provided for in
Section 2.05 of this Indenture, within 20 days after execution thereof. Failure to deliver such notice shall not affect the legality or validity of such supplemental indenture. 

        The
above provisions of this Section shall similarly apply to successive reclassifications, changes, consolidations, mergers, combinations, sales and conveyances. 

        If
this Section 15.06 applies to any event or occurrence, Section 15.05 shall not apply. 

        Section 15.07.    Taxes on Shares Issued.    The issue of stock certificates on conversions of Notes shall be
made without charge to the converting Noteholder for any documentary, stamp or similar issue or transfer tax in respect of the issue thereof. The Company shall not, however, be required to pay any
such tax which may be payable in respect of any transfer involved in the issue or delivery of stock in any name other than that of the holder of any Note converted, and the Company shall not be
required to issue or deliver any such stock certificate unless and until the Person or Persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid. 

        Section 15.08.    Reservation of Shares, Shares to Be Fully Paid; Compliance with Governmental Requirements; Listing of Common
Stock.    The Company shall provide, free from preemptive rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of Common
Stock to provide for the conversion of the Notes from time to time as such Notes are presented for conversion. 

        Before
taking any action which would cause an adjustment increasing the Conversion Rate to an amount that would cause the Conversion Price to be reduced below the then par value, if any,
of the shares of Common Stock issuable upon conversion of the Notes, the Company will take all corporate action which may, in the opinion of its counsel, be necessary in order that the Company may
validly and legally issue shares of such Common Stock at such adjusted Conversion Rate. 

        The
Company covenants that all shares of Common Stock that may be issued upon conversion of Notes will upon issue be fully paid and non-assessable by the Company and free
from all taxes, liens and charges with respect to the issue thereof. 

        The
Company covenants that, if any shares of Common Stock to be provided for the purpose of conversion of Notes hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion, the Company will in good faith and as expeditiously as possible, to the extent then permitted by the
rules and interpretations of the Commission (or any successor thereto), endeavor to secure such registration or approval, as the case may be. 

        The
Company further covenants that, if at any time the Common Stock shall be listed on the New York Stock Exchange or any other national securities exchange or automated quotation
system, the Company will, if permitted by the rules of such exchange or automated quotation system, list and keep listed, so long as the Common Stock shall be so listed on such exchange or automated
quotation system, all Common Stock issuable upon conversion of the Note; provided that if the rules of such 

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exchange
or automated quotation system permit the Company to defer the listing of such Common Stock until the first conversion of the Notes into Common Stock in accordance with the provisions of this
Indenture, the Company covenants to list such Common Stock issuable upon conversion of the Notes in accordance with the requirements of such exchange or automated quotation system at such time. 

        Section 15.09.    Responsibility of Trustee.    The Trustee and any other Conversion Agent shall not at any
time be under any duty or responsibility to any holder of Notes to determine the Conversion Rate or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect to
the nature or extent or calculation of any such adjustment when made, or with respect to the method employed, or herein or in any supplemental indenture provided to be employed, in making the same.
The Trustee and any other Conversion Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which
may at any time be issued or delivered upon the conversion of any Note; and the Trustee and any other Conversion Agent make no representations with respect thereto. Neither the Trustee nor any
Conversion Agent shall be responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock or stock certificates or other securities or property or cash upon the
surrender of any Note for the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the Company contained in this Article 15. Without limiting the
generality of the foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of any provisions contained in any supplemental indenture
entered into pursuant to Section 15.06 relating either to the kind or amount of shares of stock or securities or property (including cash) receivable by Noteholders upon the conversion of their
Notes after any event referred to in such Section 15.06 or to any adjustment to be made with respect thereto, but, subject to the provisions of Section 8.01, may accept as conclusive
evidence of the correctness of any such provisions, and shall be protected in relying upon, the Officers' Certificate (which the Company shall be obligated to file with the Trustee prior to the
execution of any such supplemental indenture) with respect thereto. 

        Section 15.10.    Notice to Holders Prior to Certain Actions.    In case: 

        (a)   the
Company shall declare a dividend (or any other distribution) on its Common Stock that would require an adjustment in the Conversion Rate pursuant to
Section 15.05; or 

        (b)   the
Company shall authorize the granting to the holders of all or substantially all of its Common Stock of rights, options or warrants to subscribe for or purchase any
share of any class or any other rights, options or warrants; or 

        (c)   of
any reclassification or reorganization of the Common Stock of the Company (other than a subdivision or combination of its outstanding Common Stock, or a change in par
value, or from par value to no par value, or from no par value to par value), or of any consolidation or merger to which the Company is a party and for which approval of any stockholders of the
Company is required, or of the sale or transfer of all or substantially all of the assets of the Company; or 

        (d)   of
the voluntary or involuntary dissolution, liquidation or winding up of the Company; 

the
Company shall cause to be filed with the Trustee and to be mailed to each holder of Notes at his address appearing on the Note Register provided for in Section 2.05 of this Indenture, as
promptly as possible but in any event at least ten days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of
such dividend, distribution or rights or warrants, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution or
rights are to be determined, or (y) the date on which such reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding up is expected to become effective or
occur, and the date as of which it is expected that holders of Common 

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Stock
of record shall be entitled to exchange their Common Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation or winding up. 

        Section 15.11.    Stockholder Rights Plans.    If the rights provided for in any future rights plan adopted by
the Company have separated from the shares of Common Stock in accordance with the provisions of the applicable stockholder rights agreement so that the holders of the Notes would not be entitled to
receive any rights in respect of Common Stock issuable upon conversion of the Notes, the conversion rate will be adjusted as if the Company distributed to all holders of Common Stock shares of the
Company's capital stock, evidences of indebtedness or assets (including securities but excluding rights or warrants to purchase Common Stock issued to all holders of Common Stock, Common Stock issued
as a dividend or distribution on Common Stock and cash distributions), subject to readjustment in the event of the expiration, termination or redemption of the rights. In lieu of any such adjustment,
the Company may amend such applicable stockholder rights agreement to provide that upon conversion of the Notes the Holders will receive, in addition to the Common Stock issuable upon such conversion,
the rights which would have attached to such Common Stock if the rights had not become separated from the Common Stock under such applicable stockholder rights agreement. 

 
 

ARTICLE 16
  Subordination    
    

        Section 16.01.    Agreement to Subordinate.    The Company agrees, and each Noteholder by accepting a Note
agrees, that the Indebtedness evidenced by the Notes is subordinated in right of payment, to the extent and in the manner provided in this Article 16, to the prior payment in full of all Senior
Indebtedness of the Company and that the subordination is for the benefit of and enforceable by the holders of such Senior Indebtedness. The Notes shall in all respects rank  pari passu with all other
Senior Subordinated Indebtedness of the Company and only Indebtedness of the Company that is Senior Indebtedness of the
Company shall rank senior to the Notes in accordance with the provisions set forth herein. For purposes of this Article 16, the Indebtedness evidenced by the Notes shall be deemed to include
any Additional Interest. All provisions of this Article 16 shall be subject to Section 16.12. 

        Section 16.02.    Liquidation, Dissolution, Bankruptcy.    Upon any payment or distribution of the assets of
the Company to creditors upon a total or partial liquidation or a total or partial dissolution of the Company or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property: 

        (1)   holders
of Senior Indebtedness of the Company shall be entitled to receive payment in full in cash of such Senior Indebtedness before Noteholders shall be entitled to
receive any payment of principal of or interest (including Contingent Interest) on the Notes; and 

        (2)   until
the Senior Indebtedness of the Company is paid in full in cash, any payment or distribution to which Noteholders would be entitled but for this Article 16
shall be made to holders of such Senior Indebtedness as their interests may appear, except that Noteholders may receive any debt securities that are subordinated to such Senior Indebtedness to at
least the same extent as the Notes. 

        Section 16.03.    Default on Senior Indebtedness.    The Company may not pay the principal of, premium (if any)
or Interest on the Notes or make any deposit pursuant to Article 13 and may not otherwise purchase, repurchase, redeem or otherwise acquire or retire for value any Notes (collectively,
"pay the Notes") if (a) any Designated Senior Indebtedness of the Company is not paid when due or (b) any other default on such Designated
Senior Indebtedness occurs and the maturity of such 

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Designated
Senior Indebtedness is accelerated in accordance with its terms unless, in either case, (i) the default has been cured or waived and any such acceleration has been rescinded or
(ii) such Designated Senior Indebtedness has been paid in full in cash; provided, however, that the Company may pay the Notes without regard to the foregoing if the Company and the Trustee
receive written notice approving such payment from the Representative of the Designated Senior Indebtedness with respect to which either of the events set forth in clause (a) or (b) of
this sentence has occurred and is continuing. During the continuance of any default (other than a default described in clause (a) or (b) of the preceding sentence) with respect to any
Designated Senior Indebtedness of the Company pursuant to which the maturity thereof may be accelerated immediately without further notice (except such notice as may be required to effect such
acceleration) or the expiration of any applicable grace periods, the Company may not pay the Notes for a period (a "Payment Blockage Period") commencing
upon the receipt by the Trustee (with a copy to the Company) of written notice (a "Blockage Notice") of such default from the Representative of such
Designated Senior Indebtedness specifying an election to effect a Payment Blockage Period and ending 179 days thereafter or earlier if such Payment Blockage Period is terminated: (a) by
written notice to the Trustee and the Company from the Person or Persons who gave such Blockage Notice, (b) by repayment in full of such Designated Senior Indebtedness or (c) because the
default giving rise to such Blockage Notice is no longer continuing. Notwithstanding the provisions described in the immediately preceding sentence (but subject to the provisions contained in the
first sentence of this Section and the next sentence), unless the holders of such Designated Senior Indebtedness or the Representative of such holders shall have accelerated the maturity of such
Designated Senior Indebtedness or a payment default with respect to Designated Senior Indebtedness has occurred and is continuing, the Company may resume payments on the Notes after the end of such
Payment Blockage Period, including any missed payments. Not more than one Blockage Notice may be given in any consecutive 360-day period, irrespective of the number of defaults with
respect to Designated Senior Indebtedness during such period; provided, however, that if any Blockage
Notice within such 360-day period is given by or on behalf of any holders of Designated Senior Indebtedness other than the Bank Indebtedness, the Representative of the Bank Indebtedness
may give another Blockage Notice within such period; provided further, however, that in no event may the
total number of days during which any Payment Blockage Period or Periods is in effect exceed 179 days in the aggregate during any 360 consecutive day period. For purposes of this Section, no
default or event of default that existed or was continuing on the date of the commencement of any Payment Blockage Period with respect to the Designated Senior Indebtedness initiating such Payment
Blockage Period shall be, or be made, the basis of the commencement of a subsequent Payment Blockage Period by the Representative of such Designated Senior Indebtedness, whether or not within a period
of 360 consecutive days, unless such default or event of default shall have been cured or waived for a period of not less than 90 consecutive days. 

        Section 16.04.    Acceleration of Payment of Notes.    If payment of the Notes is accelerated because of an
Event of Default, the Company or the Trustee (provided, that the Trustee shall have received written notice from the Company, on which notice the Trustee shall be entitled to conclusively rely) shall
promptly notify the holders of the Designated Senior Indebtedness of the Company (or their Representative) of the acceleration. If any Designated Senior Indebtedness of the Company is
outstanding, the Company may not pay the Notes until five Business Days after such holders or the Representative of such Designated Senior Indebtedness receive notice of such acceleration and,
thereafter, may pay the Notes only if this Article 16 otherwise permits payment at that time. 

        Section 16.05.    When Distribution Must Be Paid Over.    If a distribution is made to the Trustee or to the
Noteholders that because of this Article 16 should not have been made to them, the Trustee or the Noteholders who receive the distribution shall hold it in trust for holders of Senior
Indebtedness of the Company and pay it over to them as their interests may appear. 

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        Section 16.06.    Subrogation.    After all Senior Indebtedness of the Company is paid in full and until the
Notes are paid in full, Noteholders shall be subrogated to the rights of holders of such Senior Indebtedness to receive distributions applicable to Senior Indebtedness. A distribution made under this
Article 16 to holders of such Senior Indebtedness which otherwise would have been made to Noteholders is not, as between the Company and Noteholders, a payment by the Company on such Senior
Indebtedness. 

        Section 16.07.    Relative Rights.    This Article 16 defines the relative rights of Noteholders and
holders of Senior Indebtedness of the Company. Nothing in this Indenture shall: 

        (1)   impair,
as between the Company and Noteholders, the obligation of the Company, which is absolute and unconditional, to pay principal of and Interest on the Notes in
accordance with their terms; or 

        (2)   prevent
the Trustee or any Noteholder from exercising its available remedies upon a Default, subject to the rights of holders of Senior Indebtedness of the Company to
receive distributions otherwise payable to Noteholders. 

        Section 16.08.    Subordination May Not Be Impaired by Company.    No right of any holder of Senior
Indebtedness of the Company to enforce the subordination of the Indebtedness evidenced by the Notes shall be impaired by any act or failure to act by the Company, the Trustee or any Noteholders or by
its or their failure to comply with this Indenture. 

        Section 16.09.    Rights of Trustee and Paying Agent.    Notwithstanding Section 16.03, the Trustee or
Paying Agent may continue to make payments on the Notes and shall not be charged with knowledge of the existence of facts that would prohibit the making of any such payments unless, not less than two
Business Days prior to the date of such payment, a Trust Officer of the Trustee receives written notice
that payments may not be made under this Article 16. The Company, the Note Registrar, the Paying Agent, a Representative or a holder of Senior Indebtedness of the Company may give the notice;  provided,
however, that, if an issue of Senior Indebtedness of the Company has a Representative, only the Representative may give the notice. 

        The
Trustee in its individual or any other capacity may hold Senior Indebtedness of the Company with the same rights it would have if it were not Trustee. The Note Registrar and the
Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set forth in this Article 16 with respect to any Senior Indebtedness of the Company which may at
any time be held by it, to the same extent as any other holder of such Senior Indebtedness; and nothing in Article 8 shall deprive the Trustee of any of its rights as such holder. Nothing in
this Article 16 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 8.07 or any other Section of this Indenture. 

        Section 16.10.    Distribution or Notice to Representative.    Whenever a distribution is to be made or a
notice given to holders of Senior Indebtedness of the Company, the distribution may be made and the notice given to their Representative (if any). 

        Section 16.11.    Article 16 Not to Prevent Events of Default or Limit Right to Accelerate.    The
failure to make a payment pursuant to the Notes by reason of any provision in this Article 16 shall not be construed as preventing the occurrence of a Default. Nothing in this Article 16
shall have any effect on the right of the Noteholders or the Trustee to accelerate the maturity of the Notes. 

        Section 16.12.    Trust Monies Not Subordinated.    Notwithstanding anything contained herein to the contrary,
payments from money held in trust under Article 13 by the Trustee for the payment of principal of and Interest on the Notes shall not be subordinated to the prior payment of any Senior
Indebtedness of the Company or subject to the restrictions set forth in this Article 16, and none of the 

70

 

Noteholders
shall be obligated to pay over any such amount to the Company or any holder of Senior Indebtedness of the Company or any other creditor of the Company. 

        Section 16.13.    Trustee Entitled to Rely.    Upon any payment or distribution pursuant to this
Article 16, the Trustee and the Noteholders shall be entitled to conclusively rely (a) upon any order or decree of a court of competent jurisdiction in which any proceedings of the
nature referred to in Section 16.02 are pending, (b) upon a certificate of the liquidating trustee or agent or other Person making such payment or distribution to the Trustee or to the
Noteholders or (c) upon the Representatives for the holders of Senior Indebtedness of the Company for the purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of such Senior Indebtedness and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article 16. In the event that the Trustee determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior
Indebtedness of the Company to participate in any payment or distribution pursuant to this Article 16, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of
the Trustee as to the amount of such Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts pertinent to
the rights of such Person under this Article 16, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such
Person to receive such payment. The provisions of Sections 8.01 and 8.02 shall be applicable to all actions or omissions of actions by the Trustee pursuant to this Article 16. 

        Section 16.14.    Trustee to Effectuate Subordination.    Each Noteholder by accepting a Note authorizes and
directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between the Noteholders and the holders of Senior Indebtedness
of the Company as provided in this Article 16 and appoints the Trustee as attorney-in-fact for any and all such purposes. 

        Section 16.15.    Trustee Not Fiduciary for Holders of Senior Indebtedness.    The Trustee shall not be deemed
to owe any fiduciary duty to the holders of Senior Indebtedness of the Company and shall not be liable to any such holders if it shall mistakenly pay over or distribute to Noteholders or the Company
or any other Person, money or assets to which any holders of Senior Indebtedness of the Company shall be entitled by virtue of this Article 16 or otherwise. 

        Section 16.16.    Reliance by Noteholders of Senior Indebtedness on Subordination Provisions.    Each
Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to each holder of any Senior
Indebtedness of the Company, whether such Senior Indebtedness was created or acquired before or after the issuance of the Notes, to acquire and continue to hold, or to continue to hold, such Senior
Indebtedness and such holder of such Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold,
such Senior Indebtedness. 

 
 

ARTICLE 17
  Subsidiary Guarantees    
    

        Section 17.01.    Subsidiary Guarantors.    The Company covenants and agrees that if at any time subsequent to
the issuance of the Notes any of the Company's Subsidiaries guarantee payment of any of the Company's unsecured Senior Subordinated Indebtedness or unsecured Subordinated Indebtedness, the Company
shall cause each such Subsidiary (including any Subsidiary that had previously been a Subsidiary Guarantor and was subsequently released from its Subsidiary Guarantee) to execute a supplemental
indenture substantially in the form of Exhibit B hereto (the "Subsidiary  

71

 

 Guarantor Supplemental Indenture") and any other documentation requested by the Trustee satisfactory in form to the Trustee, pursuant to which such Subsidiary shall become a
Subsidiary Guarantor and shall deliver a full and unconditional Subsidiary Guarantee of the Notes on the same basis as the Guarantee of such other unsecured Indebtedness of the Company; provided,
however, that if such Indebtedness is Subordinated Indebtedness, the Subsidiary Guarantee will be senior to Guarantee of such Subordinated Indebtedness. 

        In
the event (a) that a Subsidiary Guarantor is released or discharged from the Guarantee that, pursuant to the provisions of the immediately preceding paragraph, resulted in the
creation of the Subsidiary Guarantee (except a discharge or release by or as a result of payment under such other Guarantee), or (b) of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the capital stock of a Subsidiary Guarantor to any Person that is not an Affiliate of the Company, then such Subsidiary Guarantor will be automatically and
unconditionally released from all of its obligations under this Indenture and the Subsidiary Guarantor Supplemental Indenture, and the Subsidiary Guarantee of such Subsidiary Guarantor shall terminate
and be of no further force or effect. If a Subsidiary Guarantee terminates pursuant to the provisions of this Article 17, the Company shall deliver to the Trustee an Officers' Certificate
certifying to that effect as of the date of such Officers' Certificate. 

 
 

ARTICLE 18
  Miscellaneous Provisions    
    

        Section 18.01.    Provisions Binding on Company's Successors.    All the covenants, stipulations, promises and
agreements by the Company contained in this Indenture shall bind its successors and assigns whether so expressed or not. 

        Section 18.02.    Official Acts by Successor Corporation.    Any act or proceeding by any provision of this
Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the like board, committee
or officer of any Person that shall at the time be the lawful sole successor of the Company. 

        Section 18.03.    Addresses for Notices, Etc.    Any notice or demand which by any provision of this Indenture
is required or permitted to be given or served by the Trustee or by the holders of Notes on the Company shall be deemed to have been sufficiently given or made, for all purposes, if given or served by
being deposited postage prepaid by registered or certified mail in a post office letter box or sent by telecopier transmission addressed as follows: to Walter Industries, Inc., 4211 W. Boy
Scout Blvd., Tampa, Florida, Telecopier No.: (813) 871-4420, Attention: Chief Financial Officer. Any notice, direction, request or demand hereunder to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or served by being deposited, postage prepaid, by registered or certified mail in a post office letter box or sent by
telecopier transmission addressed to the Corporate Trust Office, The Bank of New York Trust Company, N.A., 10161 Centurion Parkway, Jacksonville Florida, 32256, (904) 645-1921,
Attention: Corporate Trust Administration. 

        The
Trustee, by notice to the Company, may designate additional or different addresses for subsequent notices or communications. 

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        Any notice or communication mailed to a Noteholder shall be mailed to him by first class mail, postage prepaid, at his address as it appears on the Note Register and shall be
sufficiently given to him if so mailed within the time prescribed. 

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

        Section 18.04.    Governing Law; Waiver of Jury Trial.    This Indenture and each Note shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of the State of New York (including Section 5-1401 of the
New York General Obligations Law or any successor to such statute). 

        EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

        Section 18.05.    Evidence of Compliance with Conditions Precedent, Certificates to Trustee.    Upon any
application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, and an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with. 

        Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant provided for in this Indenture shall
include: (1) a statement that the person making such certificate or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statement or opinion contained in such certificate or opinion is based; (3) a statement that, in the opinion of such person, 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 (4) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied with. 

        Section 18.06.    Legal Holidays.    In any case in which the date of maturity of Interest on or principal of
the Notes or the Redemption Date of any Note or any Repurchase Date with respect to any Note will not be a Business Day, then payment of such Interest on or principal of the Notes need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the Redemption Date or the Repurchase Date, as the case may be, and
no interest shall accrue for the period from and after such date. 

        Section 18.07.    Company Responsible for Making Calculations.    Except as specified in Section 4.01
and in relation to Section 15.01(a)(ii), the Company will be responsible for making all calculations required under the Notes. These calculations include, but are not limited to, determination
of the Current Market Price, Last Reported Sale Price and Spin-off Market Price, the amount of accrued Interest (including any Contingent Interest) payable on the Notes and the Conversion
Rate and Conversion Price for the Notes. The Company will make these calculations in good faith and, absent manifest error, these calculations will be final and binding on the Noteholders. Promptly
after the calculation thereof, the Company will provide to each of the Trustee and the Conversion Agent an Officers' Certificate setting forth a schedule of its calculations, and each of the Trustee
and the Conversion Agent is entitled to conclusively rely upon the accuracy of such calculations without independent verification. The Trustee will forward the Company's calculations to any Holder
upon the written request of such Holder. 

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        Section 18.08.    Trust Indenture Act.    This Indenture is hereby made subject to, and shall be governed by,
the provisions of the Trust Indenture Act required to be part of and to govern indentures qualified under the Trust Indenture Act; provided that unless otherwise required by law, notwithstanding the
foregoing, this Indenture and the Notes issued hereunder shall not be subject to the provisions of subsections (a)(1), (a)(2), and (a)(3) of Section 314 of the Trust Indenture Act as now in
effect or as hereafter amended or modified; provided further that this Section 16.08 shall not require this Indenture or the Trustee to be qualified under the Trust Indenture Act prior to the
time such qualification is in fact required under the terms of the Trust Indenture Act, nor shall it constitute any admission or acknowledgment by any party to the Indenture that any such
qualification is required prior to the time such qualification is in fact required under the terms of the Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another
provision hereof which is required to be included in an indenture qualified under the Trust Indenture Act, such required provision shall control. 

        Section 18.09.    No Security Interest Created.    Except as provided in Section 8.06, nothing in this
Indenture or in the Notes, expressed or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in
effect, in any jurisdiction in which property of the Company or its subsidiaries is located. 

        Section 18.10.    Benefits of Indenture.    Nothing in this Indenture or in the Notes, express or implied,
shall give to any Person, other than the parties hereto, any Paying Agent, any authenticating agent, any Note
Registrar and their successors hereunder and the holders of Notes any benefit or any legal or equitable right, remedy or claim under this Indenture. 

        Section 18.11.    Table of Contents, Headings, Etc.    The table of contents and the titles and headings of the
Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof. 

        Section 18.12.    Authenticating Agent.    The Trustee may appoint an authenticating agent that shall be
authorized to act on its behalf, and subject to its direction, in the authentication and delivery of Notes in connection with the original issuance thereof and transfers and exchanges of Notes
hereunder, including under Sections 2.04, 2.05, 2.06, 2.07, 3.02 and 3.08, as fully to all intents and purposes as though the authenticating agent had been expressly authorized by this Indenture and
those Sections to authenticate and deliver Notes. For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating agent shall be deemed to be authentication and
delivery of such Notes "by the Trustee" and a certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be deemed to satisfy any requirement hereunder or in the
Notes for the Trustee's certificate of authentication. Such authenticating agent shall at all times be a Person eligible to serve as trustee hereunder pursuant to Section 8.09. 

        Any
corporation into which any authenticating agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, consolidation or
conversion to which any authenticating agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of any authenticating agent, shall be the
successor of the authenticating agent hereunder, if such successor corporation is otherwise eligible under this Section 16.12, without the execution or filing of any paper or any further act on
the part of the parties hereto or the authenticating agent or such successor corporation. 

        Any
authenticating agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time terminate the agency of any
authenticating agent by giving written notice of termination to such authenticating agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any
time any authenticating agent shall cease to be eligible under this Section, the Trustee shall either promptly appoint a successor authenticating agent or itself assume the duties and obligations of
the former 

74

 

authenticating
agent under this Indenture and, upon such appointment of a successor authenticating agent, if made, shall give written notice of such appointment of a successor authenticating agent to
the Company and shall mail notice of such appointment of a successor authenticating agent to all holders of Notes as the names and addresses of such holders appear on the Note Register. 

        The
Company agrees to pay to the authenticating agent from time to time such reasonable compensation for its services as shall be agreed upon in writing between the Company and the
authenticating agent. 

        The
provisions of Sections 8.02, 8.03, 8.04 and 9.03 and this Section 18.12 shall be applicable to any authenticating agent. 

        Section 18.13.    Execution in Counterparts.    This Indenture may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 

        Section 18.14.    Severability.    In case any provision in this Indenture or in the Notes shall be invalid,
illegal or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

        Section 18.15.    Force Majeure.    In no event shall the Trustee be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including, without limitation acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities services; it being understood that the Trustee shall use best
efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

        The
Bank of New York Trust Company, N.A. hereby accepts the trusts in this Indenture declared and provided, upon the terms and conditions herein above set forth. 

75

 
        [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

76

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed. 

	 	 	WALTER INDUSTRIES, INC.
	

 	
 	

By:	
 	

/s/ MILES DEARDEN III
 Name: Miles Dearden, III

Title: Vice President and Treasurer
	

 	
 	

THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee
	

 	
 	

By:	
 	

/s/ WILLIAM CARDOZO
 Name: William Cardozo

Title: Vice President

77

  

 
 

EXHIBIT A    
    

 
 

[Form of note]    
    

[Include
only for Global Notes: 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
"DEPOSITARY", WHICH TERM INCLUDES ANY SUCCESSOR DEPOSITARY FOR THE CERTIFICATES) TO WALTER INDUSTRIES, INC. OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY
PAYMENT HEREIN IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.] 

[Include
only for Notes that are Restricted Securities: 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT
FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A")); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR
ANY COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES ACT (OR ANY
SUCCESSOR PROVISION), ONLY (A) TO WALTER INDUSTRIES, INC. (THE "ISSUER") OR A SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE
144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION (IF AVAILABLE) OR
(E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS 

A-1

 

LEGEND.
THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE.] 

THE
COMPANY AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE NOTES EACH HOLDER AND EACH BENEFICIAL OWNER OF THE NOTES WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME
TAX PURPOSES (1) TO TREAT THE NOTES AS INDEBTEDNESS THAT IS SUBJECT TO TREASURY REGULATIONS SECTION 1.1275-4 (THE "CONTINGENT DEBT REGULATIONS") AND, FOR PURPOSES OF THE
CONTINGENT DEBT REGULATIONS, TO TREAT THE FAIR MARKET VALUE OF ANY STOCK BENEFICIALLY RECEIVED UPON ANY CONVERSION OF THE NOTES AS A CONTINGENT PAYMENT, (2) TO ACCRUE INTEREST WITH RESPECT TO
THE NOTES AS ORIGINAL ISSUE DISCOUNT ON A CONSTANT YIELD BASIS USING THE COMPARABLE YIELD OF 7.75% PER ANNUM COMPOUNDED SEMI-ANNUALLY AND (3) TO BE BOUND BY THE "COMPARABLE YIELD"
AND THE "PROJECTED PAYMENT SCHEDULE" WITHIN THE MEANING OF THE CONTINGENT DEBT REGULATIONS, AS DETERMINED BY THE COMPANY. A HOLDER OR BENEFICIAL OWNER MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL
ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE FOR THE NOTES BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE COMPANY AT THE FOLLOWING
ADDRESS: WALTER INDUSTRIES, INC., 4211 W. BOY SCOUT BLVD., TAMPA, FLORIDA 33607, ATTENTION: CHIEF FINANCIAL OFFICER. 

THE
HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT DATED AS OF APRIL 20, 2004 AND, BY ITS ACCEPTANCE HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE
PROVISIONS OF SUCH REGISTRATION RIGHTS AGREEMENT.] 

A-2

 
 
 

WALTER INDUSTRIES, INC.
  
    3.75% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2024    
    

CUSIP:               

	No.         	 	$                  

        Walter Industries, Inc., a corporation duly organized and validly existing under the laws of the State of Delaware (herein called the
"Company", which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received hereby promises to
pay to                        or its registered assigns, [the principal sum
of            DOLLARS] [the principal sum set forth on Schedule I
hereto]1 on May 1, 2024 at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of
the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semiannually on May 1 and November 1 of
each year, commencing November 1, 2004, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 3.75%, from and including April 20, 2004 or
from the most recent Interest Payment Date to which interest has been paid or duly provided for. 

        Contingent
Interest, if any, will accrue for any applicable Interest Period and be payable to holders of this Note on the applicable Interest Payment Date to the person in whose name
this Note is registered on the corresponding record date, except as otherwise provided in the Indenture (as defined below). Except as otherwise provided in the Indenture, the interest payable on the
Note pursuant to the Indenture on any May 1 or November 1 will be paid to the Person entitled thereto as it appears in the Note Register at the close of business on the Regular Record
Date, which shall be the April 15 or October 15 (whether or not a Business Day) next preceding such May 1 or November 1, as provided in the Indenture; provided that any
such interest not punctually paid or duly provided for shall be payable as provided in the Indenture. The Company shall pay interest (i) on any Notes in certificated form by check mailed to the
address of the Person entitled thereto as it appears in the Note Register (or, upon written notice from the registered holder hereof, received prior to the relevant Regular Record Date, by wire
transfer in immediately available funds, if such Person is entitled to interest on Notes with an aggregate principal amount in excess of $10,000,000) or (ii) on any Global Note by wire transfer
of immediately available funds to the account of the Depositary or its nominee. 

        The
Company promises to pay interest on overdue principal and (to the extent that payment of such interest is enforceable under applicable law) Interest at the rate of 1.0% per annum
plus the rate borne by the Note, compounded semi-annually. 

        Reference
is made to the further provisions of this Note set forth on the reverse hereof, including, without limitation, provisions giving the holder of this Note the right to convert
this Note into Common Stock of the Company on the terms and subject to the limitations referred to on the reverse hereof and as more fully specified in the Indenture. Under the circumstances described
in the Indenture, the Company may fulfill all or part of its conversion obligation by delivering cash in lieu of Common Stock. Such further provisions of the Indenture shall for all purposes have the
same effect as though fully set forth at this place. 

        This
Note shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with and governed by the laws of the State
of New York (including Section 5-1401 of the New York General Obligations Law or any successor to such statute). 

        This
Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture. 

	1
	For
Global Notes only. 

A-3

 

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

	 	 	 	 	WALTER INDUSTRIES, INC.
	

 	
 	

 	
 	

By:	
 	

 
	 	 	 	 	 	 	

	

[Date of authentication]	
 	

 	
 	

 
	

TRUSTEE'S CERTIFICATE OF AUTHENTICATION	
 	

 	
 	

 
	

This is one of the Notes described in the within-named Indenture.	
 	

 	
 	

 
	

THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee	
 	

 	
 	

 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 	 	 
	 	 	                                        
 , or	 	 	 	 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 As Authenticating Agent

(if different from Trustee)	 	 	 	 
	

By:	
 	

 	
 	

 	
 	

 
	 	 	
 Authorized Signatory	 	 	 	 

A-4

  

 
 

FORM OF REVERSE OF NOTE
  WALTER INDUSTRIES, INC.
  3.75% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2024    
    

        This Note is one of a duly authorized issue of Notes of the Company, designated as its 3.75% Convertible Senior Subordinated Notes due 2024 (herein called the  "Notes"), limited in aggregate principal amount to $150,000,000, or up to $175,000,000 if the Initial Purchasers' option to purchase additional notes is
exercised, issued and to be issued under and pursuant to an Indenture dated as of April 20, 2004 (herein called the "Indenture"), between the
Company and The Bank of New York Trust Company, N.A., as trustee (herein called the "Trustee"), to which Indenture and all indentures supplemental
thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Notes. 

        In
case an Event of Default shall have occurred and be continuing, the principal of and any accrued Interest on all Notes may be declared by either the Trustee or the holders of not less
than 25% in aggregate principal amount of the Notes then outstanding, and upon said declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in
the Indenture. 

        The
Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of at least a majority in aggregate principal amount of the Notes at the time
outstanding, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or the Notes or of any supplemental indenture
or modifying in any manner the rights of the holders of the Notes; provided that no such supplemental indenture shall (i) reduce the principal amount of or change the Stated Maturity of any
Note, (ii) reduce the rate or extend the time of payment of Interest on this Note, (iii) reduce any amount payable on redemption or repurchase of this Note (including upon the occurrence
of a Fundamental Change) or change the time at which or the circumstances under which this Note may or shall be redeemed or repurchased, (iv) impair the right of any Noteholder to institute
suit for the payment on this Note, (v) make the principal or Interest of this Note payable in any coin or currency other than that provided in this Note, (vi) impair the right to convert
this Note into Common Stock subject to the terms set forth in the Indenture, (vii) reduce the number of shares of Common Stock or other property receivable upon conversion other than as
contemplated in the Indenture, (viii) modify any of the provisions of Section 11.02 or Section 7.07 of the Indenture, except to increase any such percentage or to provide that
certain other provisions of the Indenture cannot be modified or waived without the consent of the holder of each Note so affected, (ix) change any obligation of the Company to maintain an
office or agency in the places and for the purposes set forth in Section 5.02 of the Indenture, (x) make any change in Article 16 of the Indenture (or, to the extent there are
Subsidiary Guarantors, to the provisions of the Subsidiary Guarantor Supplemental Indenture that deal with subordination) that adversely affects the rights of any Noteholder under Article 16 of
the Indenture, (xi) to the extent there are any subsidiary guarantees of the Notes as provided for in Section 17 of the Indenture, modify the subsidiary guarantees in any manner adverse
to the Noteholders or (xii) reduce the aforesaid percentage of Notes, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all
Notes then outstanding. Subject to the provisions of the Indenture, the holders of a majority in aggregate principal amount of the Notes at the time outstanding may on behalf of the holders of all of
the Notes waive any past default or Event of Default under the Indenture and its consequences except (A) a default in the payment of Interest on or the principal of any of the Notes,
(B) a failure by the Company to convert any Notes into Common Stock of the Company, cash or a combination of cash and Common Stock of the Company, as applicable, (C) a default in the
payment of the Redemption Price pursuant to Article 3 of the Indenture, (D) a default in the payment of the Company Repurchase Price or Fundamental Change Repurchase Price pursuant 

A-5

 

to
Article 3 of the Indenture, or (E) a default in respect of a covenant or provisions of the Indenture which under Article 11 of the Indenture cannot be modified or amended
without the consent of the holders of each or all Notes then outstanding or affected thereby. Any such consent or waiver by the holder of this Note (unless revoked as provided in the Indenture) shall
be conclusive and binding upon such holder and upon all future holders and owners of this Note and any Notes which may be issued in exchange or substitution hereof, irrespective of whether or not any
notation thereof is made upon this Note or such other Notes. 

        No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and Interest on this Note at the place, at the respective times, at the rate and in the coin or currency herein prescribed. 

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

        The
Notes are issuable in fully registered form, without coupons, in denominations of $1,000 principal amount and any multiple of $1,000. At the office or agency of the Company referred
to on the face hereof, and in the manner and subject to the limitations provided in the Indenture, without payment of any service charge but with payment of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in connection with any registration or exchange of Notes, Notes may be exchanged for a like aggregate principal amount of Notes of any other
authorized denominations. 

        At
any time on or after May 6, 2011 and prior to maturity, the Notes may be redeemed at the option of the Company, in whole or in part, in cash upon mailing a notice of such
redemption not less than 30 days but not more than 60 days before the Redemption Date to the holders of Notes at their last registered addresses, all as provided in the Indenture, at a
Redemption Price set forth below, expressed as a percentage of the principal amount of the Notes to be redeemed together in each case with any accrued and unpaid Interest on the Notes redeemed to, but
excluding, the Redemption Date (provided that if the Redemption Date is a May 1 or November 1, then the Interest payable on such date shall be paid to the holder of record on the
preceding April 15 or October 15, respectively): 

	Year
 
	 	Percentages
	 
	On May 6, 2011 through May 1, 2012	 	101.125	%
	On May 1, 2012 through May 1, 2013	 	100.750	%
	On May 1, 2013 through May 1, 2014	 	100.375	%
	On May 1, 2014 and thereafter	 	100.000	%

        In
no event will any Note be redeemable at the option of the Company before May 6, 2011. 

        The
Notes are not subject to redemption through the operation of any sinking fund. 

        If
a Fundamental Change occurs at any time prior to maturity of the Notes, this Note will be redeemable in cash on a Fundamental Change Repurchase Date, specified by the Company, which
shall be no later than 30 days after notice thereof, at the option of the holder of this Note at a Fundamental Change Repurchase Price equal to 100% of the principal amount thereof, together
with any accrued Interest to, but excluding, the Fundamental Change Repurchase Date; provided that if such Fundamental Change Repurchase Date falls after a record date and on or prior to the
corresponding Interest Payment Date, the Interest payable on such Interest Payment Date shall be paid to the holder of record of this Note on the preceding April 15 or October 15,
respectively. The Notes will be redeemable in multiples of $1,000 principal amount. The Company shall mail to all holders of record of the Notes a notice of the occurrence of a Fundamental Change and
of the repurchase right arising as a result thereof on or before the 15th day after the occurrence of such Fundamental Change. For a Note to be so repurchased at the option of the holder, the Company
must receive at the office or agency of 

A-6

 

the
Company maintained for that purpose in accordance with the terms of the Indenture, such Note with the form entitled "Form of Fundamental Change Repurchase Election" on the reverse thereof duly
completed, together with such Note, duly endorsed for transfer, before the close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date. 

        Subject
to the terms and conditions of the Indenture, the Company shall become obligated to repurchase, at the option of the holder, all or any portion of the Notes held by such holder
on May 1, 2014 and May 1, 2019 in integral multiples of $1,000 at a Company Repurchase Price of 100% of the principal amount, plus any accrued and unpaid Interest on such Note to, but
excluding, the Company Repurchase Date. To exercise such right, a holder shall deliver to the Company such Note with the form entitled "Form of Company Repurchase Election" on the reverse thereof duly
completed, together with the Note, duly endorsed for transfer, at any time from the opening of business on the date that is 20 Business Days prior to such Company Repurchase Date until the close of
business on the Business Day immediately preceding the Company Repurchase Date, and shall deliver the Notes to the Trustee (or other Paying Agent appointed by the Company) as set forth in the
Indenture. 

        The
Fundamental Change Repurchase Price and the Company Repurchase Price shall be paid in cash. 

        Holders
have the right to withdraw any Repurchase Election by delivering to the Trustee (or other Paying Agent appointed by the Company) a written notice of withdrawal up to the close of
business on the Business Day immediately preceding the Repurchase Date, all as provided in the Indenture. 

        If
cash sufficient to pay the Repurchase Price with respect to all Notes or portions thereof to be repurchased as of any Repurchase Date is deposited with the Trustee (or other Paying
Agent appointed by the Company), then on the Business Day following such Repurchase Date, Interest will cease to accrue on such Notes (or portions thereof), and the holder thereof shall have no other
rights as such other than the right to receive the Repurchase Price upon surrender of such Note. 

        Subject
to the occurrence of certain events and in compliance with the provisions of the Indenture, prior to the Stated Maturity of the Notes, the holder hereof has the right, at its
option, to convert each $1,000 principal amount of the Notes into 56.0303 shares of the Company's Common Stock (a Conversion Price of $17.85 per share), as such shares shall be constituted at the date
of conversion and subject to adjustment from time to time as provided in the Indenture, upon surrender of this Note with the form entitled "Form of Conversion Notice" on the reverse hereof duly
completed, to the Company at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, or at the option of such holder, the Corporate Trust Office,
and, unless the shares issuable on conversion are to be issued in the same name as this Note, duly endorsed by, or accompanied by instruments of transfer in form satisfactory to the Company duly
executed by, the holder or by his duly authorized attorney. The Company will notify the holder thereof of any event triggering the right to convert the Notes as specified above in accordance with the
Indenture. 

        If
the Company (i) reclassifies or changes the Common Stock; (ii) is a party to a consolidation, merger, statutory share exchange or combination, (ii) reclassifies
the Common Stock, or (iii) sells or conveys all or substantially all of its properties or assets to any Person, the right to convert a Note into shares of Common Stock may be changed into a
right to convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 

        Except
as set forth in the immediately preceding paragraph, upon the conversion of this Note, that portion of the accrued but unpaid Interest (excluding Additional Interest if, at the
time of such conversion, there exists a Registration Default as defined in the Registration Rights Agreement) with respect to the converted Note shall not be cancelled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the holder thereof through delivery of the Common Stock (or, to the extent the Company has elected to satisfy all or a portion of its conversion obligation
with cash, such 

A-7

 

cash
and the Common Stock), together with the cash payment, if any, in lieu of fractional shares, in exchange for the Note being converted pursuant to the provisions of the Indenture; and the fair
market value of such shares of Common Stock (together with any such cash payment in lieu of fractional shares) shall be treated as issued, to the extent thereof, first in exchange for and in
satisfaction of the Company's obligation to pay the principal amount of the converted Note and the accrued but unpaid Interest (excluding Additional Interest if, at the time of such conversion, there
exists a Registration Default as defined in the Registration Rights Agreement), and the balance, if any, of such fair market value of such Common Stock (and any such cash payment) shall be treated as
issued in exchange for and in satisfaction of the right to convert the Note being converted pursuant to the provisions of this Indenture. 

        Notwithstanding
the prior paragraph, if this Note (or portion hereof) is surrendered for conversion during the period from the close of business on any Regular Record Date to the close
of business on the Business Day immediately preceding the following Interest Payment Date, the Holder hereof at the close of business on such Regular Record Date shall receive the Interest payable on
the corresponding Interest Payment Date notwithstanding the conversion. Under such circumstances, this Note, upon surrender for conversion, shall be accompanied by payment, in immediately available
funds or other funds acceptable to the Company, of an amount equal to the Interest otherwise payable on such Interest Payment Date on the principal amount being converted; provided that no such
payment need be made (1) if the Company has specified a Redemption Date or a Fundamental Change Repurchase Date that is after a Regular Record Date and prior to the next Interest Payment Date
or (2) to the extent of any overdue Interest, if any overdue Interest exists at the time of conversion with respect to such Note. Except as provided above, no payment or other adjustment shall
be made for Interest accrued on any Note converted or for dividends on any shares issued upon the conversion of such Note. 

        No
fractional shares will be issued upon any conversion, but an adjustment and payment in cash will be made, as provided in the Indenture, in respect of any fraction of a share which
would otherwise be issuable upon the surrender of any Note or Notes for conversion. 

        A
Note in respect of which a holder is exercising its right to require repurchase upon a Fundamental Change or repurchase on a Repurchase Date may be converted only if such holder
withdraws its election to exercise such right in accordance with the terms of the Indenture. 

        Any
Notes called for redemption, unless surrendered for conversion by the holders thereof on or before the close of business on the second Business Day immediately preceding the
Redemption Date, may be deemed to be redeemed from the holders of such Notes for an amount equal to the applicable Redemption Price, together with any accrued but unpaid Interest to, but excluding,
the Redemption Date, by one or more investment banks or other purchasers who may agree with the Company (i) to purchase such Notes from the holders thereof and convert them into shares of the
Company's Common Stock and (ii) to make payment for such Notes as aforesaid to the Trustee in trust for the holders. 

        To
the extent provided in the Indenture, the Notes are subordinated to Senior Indebtedness, as defined in the Indenture, and pari passu
with any and all other Senior Subordinated Indebtedness, as defined in the Indenture, of the Company. To the extent provided in the Indenture, Senior Indebtedness must be paid before the Notes may be
paid. The Company agrees, and each Noteholder by accepting a Note agrees, to the subordination provisions contained in the Indenture and authorizes the Trustee to give it effect and appoints the
Trustee as attorney-in-fact for such purpose. 

        Upon
due presentment for registration of transfer of this Note at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, a new
Note or Notes of authorized denominations for an equal aggregate principal amount will be issued to the transferee in exchange thereof, subject to the limitations provided in the Indenture, without
charge except for any tax, assessment or other governmental charge imposed in connection therewith. 

A-8

 

        The
Company, the Trustee, any authenticating agent, any Paying Agent, any Conversion Agent and any Note Registrar may deem and treat the registered holder hereof as the absolute owner of
this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon made by anyone other than the Company or any Note Registrar) for the purpose
of receiving payment hereof, or on account hereof, for the conversion hereof and for all other purposes, and neither the Company nor the Trustee nor any other authenticating agent nor any Paying Agent
nor other Conversion Agent nor any Note Registrar shall be affected by any notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent of the sum or
sums paid, satisfy and discharge liability for monies payable on this Note. 

        No
recourse for the payment of the principal of or Interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation,
covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, employee, agent, officer or director or subsidiary, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by acceptance
hereof and as part of the consideration for the issue hereof, expressly waived and released. 

        The
Company agrees, and by acceptance of a beneficial ownership interest in the Notes each Holder and each beneficial owner of the Notes will be deemed to have agreed, for United States
federal income tax purposes (1) to treat the Notes as indebtedness that is subject to Treasury regulations section 1.1275-4 and, for purposes of the Contingent Debt
Regulations, to treat the fair market value of any stock beneficially received upon any conversion of the Notes as a contingent payment, (2) to accrue interest with respect to the Notes as
original issue discount on a constant yield basis using the comparable yield of 7.75% per annum compounded semi-annually and (3) to be bound by the "comparable yield" and the
"projected payment schedule" within the meaning of the Contingent Debt Regulations, as determined by the Company. A Holder or beneficial owner may obtain the issue price, amount of original issue
discount, issue date, yield to maturity, comparable yield and projected payment schedule for the Notes by submitting a written request for such information to the Company at the following address:
Walter Industries, Inc., 4211 W. Boy Scout Blvd., Tampa, Florida 33607, Attention: Treasurer. 

        Terms
used in this Note and defined in the Indenture are used herein as therein defined. 

A-9

 
 
 

ABBREVIATIONS    
    

        The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full according to
applicable laws or regulations. 

	TEN COM —	 	as tenants in common	UNIF GIFT MIN ACT-         Custodian        
	TEN ENT —	 	as tenant by the entireties	(Cust)        (Minor)
	JT TEN —	 	as joint tenants with right of survivorship

and not as tenants in common	under Uniform Gifts to Minors Act
	

 	
 	

 	

                        (State)

Additional
abbreviations may also be used though not in the above list. 

A-10

 
 
 

FORM OF
  CONVERSION NOTICE    
    

	TO:
	WALTER
INDUSTRIES, INC.

THE BANK OF NEW YORK TRUST COMPANY, N.A. 

        The
undersigned registered owner of this Note hereby irrevocably exercises the option to convert this Note, or the portion thereof (which is $1,000 or a multiple thereof) below
designated, into shares of Common Stock of Walter Industries, Inc. in accordance with the terms of the Indenture referred to in this Note, and directs that the shares issuable and deliverable
upon such conversion, together with any check in payment for fractional shares and any Notes representing any unconverted principal amount hereof, be issued and delivered to the registered holder
hereof unless a different name has been indicated below. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. If shares or any portion of this
Note not converted are to be issued in the name of a person other than the undersigned, the undersigned will provide the appropriate information below and pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of Interest, if any, accompanies this Note. The undersigned acknowledges the Company's right to deliver, in lieu of shares of
Common Stock, cash or a combination of cash and shares of its Common Stock. 

	Dated:	 	 	 	 
	 	 	
	 	 
	

 	
 	

 	
 	

 Signature(s)

A-11

 

	 	 	 	 	Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Note Registrar, which requirements include membership or participation
in the Security Transfer Agent Medallion Program ("STAMP") or such other "signature guarantee program" as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
	

 	
 	

 	
 	

 Signature Guarantee

        Fill in the registration of shares of Common Stock if to be issued, and Notes if to be delivered, other than to and in the name of the registered holder: 

	
 (Name)	 	 	 	 
	

 (Street Address)	
 	

 	
 	

 
	

 (City, State and Zip Code)	
 	

 	
 	

 
	

 Please print name and address	
 	

 	
 	

 
	

Principal amount to be converted (if less than all):	
 	

 	
 	

 
	$
	 	 	 	 
	

Social Security or Other Taxpayer Identification Number:	
 	

 	
 	

 
	

	
 	

 	
 	

 

A-12

 
 
 

FORM OF
  FUNDAMENTAL CHANGE REPURCHASE ELECTION    
    

	TO:
	WALTER
INDUSTRIES, INC.

THE BANK OF NEW YORK TRUST COMPANY, N.A. 

        The
undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from Walter Industries, Inc. (the  "Company") as to the occurrence of a Fundamental Change with respect
to the Company and requests and instructs the Company to repurchase the entire
principal amount of this Note, or the portion thereof (which is $1,000 or a multiple thereof) below designated, in accordance with the terms of the Indenture referred to in this Note at the price of
100% of such entire principal amount or portion thereof, together with any accrued Interest to, but excluding, the Fundamental Change Repurchase Date, to the registered holder hereof. Capitalized
terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. 

	Dated:	 	 	 	 
	 	 	
	 	 
	 	 	 	 	

	

 	
 	

 	
 	

 Signature(s)

A-13

 

NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or
any change whatever. 

Note
Certificate Number (if applicable): 

Principal
amount to be repurchased (if less than all): 

Social
Security or Other Taxpayer Identification Number: 

A-14

 
 
 

FORM OF
  COMPANY REPURCHASE ELECTION    
    

	TO:
	WALTER
INDUSTRIES, INC.

THE BANK OF NEW YORK TRUST COMPANY, N.A. 

        The
undersigned registered owner of this Note hereby irrevocably acknowledges receipt of a notice from Walter Industries, Inc. (the  "Company") regarding the right of holders to elect to require the
Company to repurchase the Notes and requests and instructs the Company to repay the
entire principal amount of this Note, or the portion thereof (which is $1,000 or an integral multiple thereof) below designated, in accordance with the terms of the Indenture and at the price
specified in the Indenture, to the registered holder hereof. Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the Indenture. The Notes shall be
repurchased by the Company as of the Company Repurchase Date pursuant to the terms and conditions specified in the Indenture. 

	Dated:	 	 	 	 
	 	 	
	 	 
	 	 	 	 	

	

 	
 	

 	
 	

 Signature(s)

A-15

 

NOTICE: The above signatures of the holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or
any change whatever. 

Note
Certificate Number (if applicable): 

Principal
amount to be repurchased (if less than all): 

Social
Security or Other Taxpayer Identification Number: 

A-16

 
 
 

ASSIGNMENT    
    

        For value received                        hereby sell(s) assign(s)
and transfer(s) unto                        (Please insert social security or other Taxpayer Identification
Number of assignee) the within Note, and hereby irrevocably constitutes and appoints attorney to transfer said Note on the books of the Company, with full power of substitution in the premises. 

        In
connection with any transfer of the Note prior to the expiration of the holding period applicable to sales thereof under Rule 144(k) under the Securities Act (or any successor
provision) (other than any transfer pursuant to a registration statement that has been declared effective under the Securities Act), the undersigned confirms that such Note is being transferred: 

To
Walter Industries, Inc. or a subsidiary thereof; or 

To
a "qualified institutional buyer" in compliance with Rule 144A under the Securities Act of 1933, as amended; or 

Pursuant
to and in compliance with Rule 144 under the Securities Act of 1933, as amended; or 

Pursuant
to a Registration Statement which has been declared effective under the Securities Act of 1933, as amended, and which continues to be effective at the time of transfer; 

and
unless the Note has been transferred to Walter Industries, Inc. or a subsidiary thereof, the undersigned confirms that such Note is not being transferred to an "affiliate" of the Company as
defined in Rule 144 under the Securities Act of 1933, as amended. 

        Unless one of the boxes is checked, the Company and the Trustee may require the delivery of an opinion of counsel, certification and/or other information
satisfactory to each of them prior to the registration of any Notes evidenced by this certificate in the name of any person other than the registered holder thereof. 

	Dated:	 	 	 	 
	 	 	
	 	 
	 	 	 	 	

	

 	
 	

 	
 	

 Signature(s)

A-17

 

	 	 	 	 	Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Note Registrar, which requirements include membership or participation
in the Security Transfer Agent Medallion Program ("STAMP") or such other "signature guarantee program" as may be determined by the Note Registrar in
addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
	

 	
 	

 	
 	

 Signature Guarantee

NOTICE: The signature on the Conversion Notice, the Fundamental Change Repurchase Election, the Company Repurchase Election or the Assignment must correspond with the name as
written upon the face of the Note in every particular without alteration or enlargement or any change whatever. 

A-18

  

 
 

Schedule I    
    

 
 

[Include Schedule I only for a Global Note]
  
    WALTER INDUSTRIES, INC.
  
    3.75% Convertible Senior Subordinated Note due 2024    

No.
                         

	Date
	 	Principal Amount
	 	Notation Explaining

Principal Amount

Recorded
	 	Authorized Signature of

trustee or Custodian

	

	

	

	

	

	

	

	

	

	

	

	

	

	

A-19

 
 

EXHIBIT B    
    

 
 

EXHIBIT B
  FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY SUBSIDIARY GUARANTORS    
    

        SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as
of                        , among Walter
Industries, Inc. (or its permitted successor) (the "Company"), a corporation organized under the laws of Delaware, The Bank of New York Trust
Company, N.A., as trustee under the Indenture referred to below (the "Trustee")
and                        (the "Subsidiary Guarantor"), a subsidiary of the
Company. 

W
I T N E S S E T H 

        WHEREAS,
the Company has heretofore executed and delivered to the Trustee an indenture (the "Indenture"), dated as of April 20,
2004 providing for the issuance of 3.75% Convertible Senior Subordinated Notes due 2024 (the "Notes"); 

        WHEREAS,
the Indenture provides that under certain circumstances the Subsidiary Guarantor shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Subsidiary Guarantor shall unconditionally guarantee all of the Company's obligations under the Notes and the Indenture on the terms and conditions set forth herein (the  "Subsidiary Guarantee"); and

        WHEREAS,
pursuant to Article 11 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 

        NOW
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Subsidiary Guarantor, the Company and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

        1.     CAPITALIZED
TERMS.    Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 

        2.     AGREEMENT
TO GUARANTEE.    (a) The Subsidiary Guarantor hereby agrees to irrevocably and unconditionally Guarantee, jointly and severally with all other
Subsidiary Guarantors (if any), as a primary obligor and not merely as a surety, to each Noteholder and to the Trustee and its successors and assigns (i) the full and punctual payment when due,
whether at Stated Maturity, by acceleration, by redemption, repurchase or otherwise, of all obligations of the Company under the Indenture (including obligations to the Trustee) and the Notes, whether
for payment of principal of, Interest on, in respect of the Notes and all other monetary obligations of the Company under the Indenture and the Notes and (ii) the full and punctual performance
within applicable grace periods of all other payment obligations of the Company whether for fees, expenses, indemnification or otherwise under the Indenture and the Notes (all the foregoing being
hereinafter collectively called the "Guaranteed Obligations"). The Subsidiary Guarantor further agrees that the Guaranteed Obligations may be extended
or renewed, in whole or in part, without notice or further assent from the Subsidiary Guarantor, and that the Subsidiary Guarantor shall remain bound under this Supplemental Indenture notwithstanding
any extension or renewal of any Guaranteed Obligation. 

        (b)   The
Subsidiary Guarantor hereby waives presentation to, demand of payment from and protest to the Company of any of the Guaranteed Obligations and also waives notice of
protest for nonpayment. The Subsidiary Guarantor waives notice of any default under the Notes or the Guaranteed Obligations. The obligations of the Subsidiary Guarantor hereunder shall not be affected
by (i) the failure of any Noteholder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Company or any other Person under this Supplemental Indenture,
the Indenture, the Notes or any other agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver, amendment or modification of any of the terms or
provisions of this Supplemental Indenture, the Indenture, the Notes or any other agreement; (iv) the release of any security held by any Noteholder or the Trustee for the Guaranteed Obligations
or any of them; (v) the 

 

failure
of any Noteholder or Trustee to exercise any right or remedy against any other guarantor of the Guaranteed Obligations; or (vi) any change in the ownership of such Subsidiary Guarantor. 

        (c)   The
Subsidiary Guarantor hereby waives any right to which it may be entitled to have its obligations hereunder divided among the Subsidiary Guarantors, such that the
Subsidiary Guarantor's obligations would be less than the full amount claimed. The Subsidiary Guarantor hereby waives any right to which it may be entitled to have the assets of the Company first be
used and depleted as payment of the Company's or the Subsidiary Guarantor's obligations hereunder or under the Indenture prior to any amounts being claimed from or paid by the Subsidiary Guarantor
hereunder or under the Indenture. The Subsidiary Guarantor hereby waives any right to which it may be entitled to require that the Company be sued prior to an action being initiated against the
Subsidiary Guarantor. 

        (d)   The
Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein constitutes a guarantee of payment, performance and compliance when due (and not a guarantee
of collection) and waives any right to require that any resort be had by any Noteholder or the Trustee to any security held for payment of the Guaranteed Obligations. 

        (e)   The
Subsidiary Guarantee of the Subsidiary Guarantor is, to the extent and in the manner set forth in Section 3 to this Supplemental Indenture, subordinated and
subject in right of payment to the prior payment in full of the principal of and premium, if any, and interest on all Senior Indebtedness of the Subsidiary Guarantor and is made subject to such
provisions of this Supplemental Indenture. 

        (f)    Except
as expressly set forth in Section 5 hereof, the obligations of the Subsidiary Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, 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 Guaranteed Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of
the Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of any Noteholder or the Trustee to assert any claim or demand or to enforce any remedy under
this Supplemental Indenture, the Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, wilful or otherwise, in the performance of
the obligations, or by 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 the Subsidiary Guarantor or would
otherwise operate as a discharge of the Subsidiary Guarantor as a matter of law or equity. 

        (g)   Except
as otherwise provided herein and in the Indenture, the Subsidiary Guarantor agrees that its Subsidiary Guarantee shall remain in full force and effect until
payment in full of all the Guaranteed Obligations. The Subsidiary Guarantor further agrees that its Subsidiary 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 Guaranteed Obligation is rescinded or must otherwise be restored by any Noteholder or the Trustee upon the bankruptcy or
reorganization of the Company or otherwise. 

        (h)   In
furtherance of the foregoing and not in limitation of any other right which any Noteholder or the Trustee has at law or in equity against the Subsidiary Guarantor by
virtue hereof, upon the failure of the Company to pay the principal of or Interest on any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed Obligation, the Subsidiary Guarantor hereby promises to and shall, upon receipt of written demand by the Trustee, forthwith
pay, or cause to be paid, in cash, to the Noteholders or the Trustee an amount equal to the sum of (i) the unpaid principal amount of such Guaranteed Obligations, (ii) any accrued and
unpaid Interest on such Guaranteed Obligations (but only to the extent not prohibited by law) and (iii) all other monetary obligations of the Company to the Noteholders and the Trustee. 

B-2

 

        (i)    The
Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Noteholders in respect of any Guaranteed Obligations
guaranteed hereby until payment in full of all Guaranteed Obligations and all obligations to which the Guaranteed Obligations are subordinated as provided in this Supplemental Indenture and the
Indenture. The Subsidiary Guarantor further agrees that, as between it, on the one hand, and the Noteholders and the Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations
guaranteed hereby may be accelerated as provided in Article 7 of the Indenture for the purposes of the Subsidiary Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such Guaranteed Obligations as provided in
Article 7 of the Indenture, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by the Subsidiary Guarantor for the purposes of this
Section 2. 

        (j)    The
Subsidiary Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys' fees and expenses) incurred by the Trustee or any Noteholder
in enforcing any rights under this Section 2. 

        (k)   Upon
request of the Trustee, the Subsidiary Guarantor 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 Supplemental Indenture. 

        3.     SUBORDINATION.    (a) The
Subsidiary Guarantor agrees that the obligations of a Subsidiary Guarantor hereunder are subordinated in right of payment, to
the extent and in the manner provided in this Section 3, to the prior payment in full of all Senior Indebtedness of the Subsidiary Guarantor and that the subordination is for the benefit of and
enforceable by the holders of such Senior Indebtedness of the Subsidiary Guarantor. The obligations hereunder with respect to the Subsidiary Guarantor shall in all respects rank  pari passu with all
other Senior Subordinated Indebtedness of the Subsidiary Guarantor and shall rank senior to all existing and future Subordinated
Indebtedness of the Subsidiary Guarantor; and only Indebtedness of the Subsidiary Guarantor that is Senior Indebtedness of the Subsidiary Guarantor shall rank senior to the obligations of the
Subsidiary Guarantor under its Subsidiary Guarantee in accordance with the provisions set forth herein. 

        (b)   Upon
any payment or distribution of the assets of the Subsidiary Guarantor to creditors upon a total or partial liquidation or a total or partial dissolution of the
Subsidiary Guarantor or in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating to the Subsidiary Guarantor or its property: 

        (1)   holders
of Senior Indebtedness of the Subsidiary Guarantor shall be entitled to receive payment in full in cash of such Senior Indebtedness before Noteholders shall be
entitled to receive any payment pursuant to any Guaranteed Obligations from the Subsidiary Guarantor; and 

        (2)   until
the Senior Indebtedness of the Subsidiary Guarantor is paid in full, any payment or distribution to which Noteholders would be entitled but for this
Section 3 shall be made to holders of such Senior Indebtedness as their respective interests may appear, except that Noteholders may receive any debt securities that are subordinated to such
Senior Indebtedness to at least the same extent as the Subsidiary Guarantees. 

        (c)   The
Subsidiary Guarantor may not make any payment pursuant to any of the Guaranteed Obligations or purchase, repurchase, redeem or otherwise acquire or retire for value
any Notes (collectively, "pay its Guarantee") if (a) any Designated Senior Indebtedness of the Subsidiary Guarantor is not paid when due or
(b) any other default on Designated Senior Indebtedness of the Subsidiary Guarantor occurs and the maturity of such Designated Senior Indebtedness is accelerated in accordance with its terms
unless, in either case, (i) the default has been cured or waived and any such acceleration has been rescinded or (ii) such Designated Senior Indebtedness has been paid in
full;

B-3

 

 provided, however, that the Subsidiary Guarantor may pay its Guarantee without regard to the foregoing if the Subsidiary
Guarantor and the Trustee receive written notice approving such payment from the Representative of the holders of the Designated Senior Indebtedness with respect to which either of the events in
clause (a) or (b) of this sentence has occurred and is continuing. During the continuance of any default (other than a default described in clause (a) or (b) of the
preceding sentence) with respect to any Designated Senior Indebtedness of the Subsidiary Guarantor pursuant to which the maturity thereof may be accelerated immediately without further notice (except
such notice as may be required to effect such acceleration) or the expiration of any applicable grace periods, the Subsidiary Guarantor may not pay its Guarantee for a period (a  "Guarantee Payment Blockage
Period") commencing upon the receipt by the Trustee (with a copy to the Subsidiary Guarantor and the Company) of written
notice (a "Guarantee Blockage Notice") of such default from the Representative of the holders of the Designated Senior Indebtedness of the Subsidiary
Guarantor specifying an election to effect a Guarantee Payment Blockage Period and ending 179 days thereafter or earlier if such Guarantee Payment Blockage Period is terminated: (a) by
written notice to the Trustee (with a copy to the Subsidiary Guarantor and the Company) from the Person or Persons who gave such Guarantee Blockage Notice, (b) because such Designated Senior
Indebtedness has been repaid in full or (c) because the default giving rise to such Guarantee Blockage Notice is no longer continuing. Notwithstanding the provisions described in the
immediately preceding sentence (but subject to the provisions contained in the first sentence of this Section 3(c) and the next sentence), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders shall have accelerated the maturity of such Designated Senior Indebtedness or a payment default with respect to Designated Senior Indebtedness has
occurred and is continuing, the Subsidiary Guarantor may resume to paying its Subsidiary Guarantee after such Guarantee Payment Blockage Period, including any missed payments. Not more than one
Guarantee Blockage Notice may be given with respect to the Subsidiary Guarantor in any consecutive 360-day period, irrespective of the number of defaults with respect to Designated Senior
Indebtedness of such Subsidiary Guarantor during such period; provided, however, that if any Guarantee
Blockage Notice within such 360-day period is given by or on behalf of any holders of Designated Senior Indebtedness of the Subsidiary Guarantor other than the Bank Indebtedness, the
Representative of the Bank Indebtedness may give another Guarantee Blockage Notice within such period; provided further,  however, that in no event may the
total number of days during which any Guarantee Payment Blockage Period or Periods is in effect exceed 179 days
in the aggregate during any 360 consecutive day period. For purposes of this Section 3(c), no default or event of default that existed or was continuing on the date of the commencement of any
Guarantee Payment Blockage Period with respect to the Designated Senior Indebtedness initiating such Guarantee Payment Blockage Period shall be, or be made, the basis of the commencement of a
subsequent Guarantee Payment Blockage Period by the Representative of such Designated Senior Indebtedness, whether or not within a period of 360 consecutive days, unless such default or event of
default shall have been cured or waived for a period of not less than 90 consecutive days. 

        (d)   If
payment of the Notes is accelerated because of an Event of Default and a demand for payment is made on the Subsidiary Guarantor pursuant to Section 2 hereof,
the Trustee (provided that the Trustee shall have received written notice from the Company or the Subsidiary Guarantor, on which notice the Trustee
shall be entitled to conclusively rely) shall promptly notify the holders of the Designated Senior Indebtedness of the Subsidiary Guarantor (or the Representative of such holders) of such demand. If
any Designated Senior Indebtedness of the Subsidiary Guarantor is outstanding, the Subsidiary Guarantor may not pay its Guarantee until five Business Days after such holders or the Representative of
the holders of the Designated Senior Indebtedness of the Subsidiary Guarantor receive notice of such demand and, thereafter, may pay its Guarantee only if this Section 3 otherwise permits
payment at that time. 

        (e)   If
a payment or distribution is made to the Trustee or the Noteholders that because of this Section 3 should not have been made to them, the Trustee or the
Noteholders who receive the payment 

B-4

 

or
distribution shall hold such payment or distribution in trust for holders of the Senior Indebtedness of the Subsidiary Guarantor and pay it over to them as their respective interests may appear. 

        (f)    After
all Senior Indebtedness of the Subsidiary Guarantor is paid in full and until the Notes are paid in full in cash, Noteholders shall be subrogated to the rights of
holders of Senior Indebtedness of the Subsidiary Guarantor to receive distributions applicable to Designated Senior Indebtedness of the Subsidiary Guarantor. A distribution made under this
Section 3 to holders of Senior Indebtedness of the Subsidiary Guarantor which otherwise would have been made to Noteholders is not, as between the Subsidiary Guarantor and Noteholders, a
payment by the Subsidiary Guarantor on Senior Indebtedness of the Subsidiary Guarantor. 

        (g)   This
Section 3 defines the relative rights of Noteholders and holders of Senior Indebtedness of the Subsidiary Guarantor. Nothing in this Supplemental Indenture
shall: 

        (1)   impair,
as between the Subsidiary Guarantor and Noteholders, the obligation of the Subsidiary Guarantor which is absolute and unconditional, to make payments with
respect to the Guaranteed Obligations to the extent set forth in Section 2 hereof; or 

        (2)   prevent
the Trustee or any Noteholder from exercising its available remedies upon a default by the Subsidiary Guarantor under its obligations with respect to the
Guaranteed Obligations, subject to the rights of holders of Senior Indebtedness of the Subsidiary Guarantor to receive distributions otherwise payable to Noteholders. 

        (h)   No
right of any holder of Senior Indebtedness of the Subsidiary Guarantor to enforce the subordination of the obligations of the Subsidiary Guarantor hereunder shall be
impaired by any act or failure to act by the Subsidiary Guarantor, the Trustee or any Noteholder or by its or their failure to comply with this Indenture. 

        (i)    Notwithstanding
Section 3(c), the Trustee or the Paying Agent may continue to make payments on the Notes and shall not be charged with knowledge of the existence
of facts that would prohibit the making of any such payments unless, not less than two Business Days prior to the date of such payment, a Trust Officer of the Trustee receives written notice that
payments may not be made under this Section 3. The Subsidiary Guarantor, the Registrar, the Paying Agent, a Representative or a holder of Senior Indebtedness of the Subsidiary Guarantor may
give the notice; provided, however, that if an issue of Senior Indebtedness of the Subsidiary Guarantor
has a Representative, only the Representative may give the notice. 

        The
Trustee in its individual or any other capacity may hold Senior Indebtedness of the Subsidiary Guarantor with the same rights it would have if it were not Trustee. The Note Registrar
and the Paying Agent may do the same with like rights. The Trustee shall be entitled to all the rights set forth in this Section 3 with respect to any Senior Indebtedness of the Subsidiary
Guarantor which may at any time be held by it, to the same extent as any other holder of Senior Indebtedness of the Subsidiary Guarantor; and nothing in Article 8 of the Indenture shall deprive
the Trustee of any of its rights as such holder. Nothing in this Section 3 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 8.06 of the Indenture or any
other section of the Indenture. 

        (j)    Whenever
a distribution is to be made or a notice given to holders of Senior Indebtedness of the Subsidiary Guarantor, the distribution may be made and the notice given
to its Representative (if any). 

        (k)   The
failure of the Subsidiary Guarantor to make a payment on any of its obligations by reason of any provision in this Section 3 shall not be construed as
preventing the occurrence of a default by the Subsidiary Guarantor under such obligations. Nothing in this Section 3 shall have any effect on the right of the Noteholders or the Trustee to make
a demand for payment on the Subsidiary Guarantor pursuant to Section 2 hereof. 

B-5

 

        (l)    Upon
any payment or distribution pursuant to this Section 3, the Trustee and the Noteholders shall be entitled to conclusively rely (a) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the nature referred to in Section 3(b) are pending, (b) upon a certificate of the liquidating trustee or agent or
other Person making such payment or distribution to the Trustee or to the Noteholders or (c) upon the Representatives for the holders of Senior Indebtedness of the Subsidiary Guarantor for the
purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Senior Indebtedness of the Subsidiary Guarantor and other Indebtedness of the Subsidiary
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Section 3. In the event that the Trustee
determines, in good faith, that evidence is required with respect to the right of any Person as a holder of Senior Indebtedness of the Subsidiary Guarantor to participate in any payment or
distribution pursuant to this Article 18, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness of the
Subsidiary Guarantor held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and other facts pertinent to the rights of such Person under this
Section 3, and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment. The
provisions of Sections 8.01 and 8.02 of the Indenture shall be applicable to all actions or omissions of actions by the Trustee pursuant to this Section 3. 

        (m)  Each
Noteholder by accepting a Note authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Noteholders and the holders of Senior Indebtedness of the Subsidiary Guarantor as provided in this Section 3 and appoints the Trustee as
attorney-in-fact for any and all such purposes. 

        (n)   The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness of the Subsidiary Guarantor and shall not be liable to any such holders
if it shall mistakenly pay over or distribute to Noteholders or the Subsidiary Guarantor or any other Person, money or assets to which any holders of Senior Indebtedness of the Subsidiary Guarantor
shall be entitled by virtue of this Section 3 or otherwise. 

        (o)   Each
Noteholder by accepting a Note acknowledges and agrees that the foregoing subordination provisions are, and are intended to be, an inducement and a consideration to
each holder of any Senior Indebtedness of the Subsidiary Guarantor, whether such Senior Indebtedness was created or acquired before or after the issuance of the Notes, to acquire and continue to hold,
or to continue to hold, such Senior Indebtedness and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to
hold, or in continuing to hold, such Senior Indebtedness. 

        (p)   Notwithstanding
anything contained herein to the contrary, payments from money held in trust under Article 13 of the Indenture by the Trustee for the payment of
principal of, and Interest on, the Notes shall not be subordinated to the prior payment of any Senior Indebtedness of the Subsidiary Guarantor or subject to the restrictions set forth in this
Section 3, and none of the Noteholders shall be obligated to pay over any such amount to the Subsidiary Guarantor or any holder of Senior Indebtedness of the Subsidiary Guarantor or any other
creditor of the Subsidiary Guarantor. 

        4.     RELEASES.    The
Subsidiary Guarantor will be automatically and unconditionally released from all of its obligations under this Supplemental Indenture, and the
Subsidiary Guarantee of the Subsidiary Guarantor shall terminate and be of no further force or effect in the event: 

        (a)   that
the Subsidiary Guarantor is released from the Guarantee that, pursuant to the provisions of the Indenture, had resulted in the creation of the Subsidiary Guarantee
(except a discharge or release by or as a result of payment under such other Guarantee); or 

B-6

 

        (b)   of
a sale or other disposition, by way of merger, consolidation or otherwise, of all of the capital stock of the Subsidiary Guarantor to any Person that is not an
Affiliate of the Company, 

and
in each such case, prior to release and discharge or the Subsidiary Guarantee, the Company will have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that,
as required by the Indenture, all conditions precedent provided for herein and in the Indenture relating to such transactions have been complied with and that such release is authorized and permitted
hereunder. 

        5.     LIMITATION
ON LIABILITY.    Any term or provision of this Supplemental Indenture to the contrary notwithstanding, the maximum aggregate amount of the Guaranteed
Obligations guaranteed hereunder by the Subsidiary Guarantor shall not exceed the maximum amount that can be hereby guaranteed without rendering this Supplemental Indenture or the Indenture, as it
relates to the Subsidiary Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally. 

        6.     SUCCESSOR
AND ASSIGNS.    This Supplemental Indenture shall be binding upon the Subsidiary Guarantor and its successors and assigns and shall inure to the
benefit of the successors and assigns of the Trustee and the Noteholders and, in the event of any transfer or assignment of rights by any Noteholder or the Trustee, the rights and privileges conferred
upon that party in this Supplemental Indenture and in the Notes shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Supplemental
Indenture. 

        7.     NO
WAIVER.    Neither a failure nor a delay on the part of either the Trustee or the Noteholders in exercising any right, power or privilege under this
Supplemental Indenture or the Indenture shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege. The
rights, remedies and benefits of the Trustee and the Noteholders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this
Supplemental Indenture at law, in equity, by statute or otherwise. 

        8.     MODIFICATION.    No
modification, amendment or waiver of any provision of this Supplemental Indenture, nor the consent to any departure by the Subsidiary
Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given. No notice to or demand on the Subsidiary Guarantor in any case shall entitle the Subsidiary Guarantor to any other or further notice or demand in the same, similar or
other circumstances. 

        9.     NON-IMPAIRMENT.    The
failure to endorse a Subsidiary Guarantee on any Note shall not affect or impair the validity thereof. 

        10.   NEW
YORK LAW TO GOVERN.    This Supplemental Indenture shall be deemed to be a contract made under the laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of the State of New York (including Section 5-1401 of the New York General Obligations Law or any successor to such statute). 

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

        12.   EFFECT
OF HEADINGS.    The Section headings herein are for convenience only and shall not affect the construction hereof. 

        13.   THE
TRUSTEE.    The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture
or for or in respect of the recitals contained herein, all of which recitals are made solely by the Subsidiary Guarantor and the Company. 

B-7

 

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

	 	 	[name of Subsidiary Guarantor]
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:	 	 
	

 	
 	
Walter Industries, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:	 	 
	

 	
 	
The Bank of New York Trust Company, N.A.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:	 	 

B-8

QuickLinks

Exhibit 4.1

WALTER INDUSTRIES, INC., as Issuer and THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

TABLE OF CONTENTS

INDENTURE

WITNESSETH

ARTICLE 1 Definitions

ARTICLE 2 Issue, Description, Execution, Registration And Exchange Of Notes

ARTICLE 3 Redemption And Repurchase Of Notes

ARTICLE 4 Contingent Interest

ARTICLE 5 Particular Covenants Of The Company

ARTICLE 6 Noteholders' Lists And Reports By The Company And The Trustee

ARTICLE 7 Remedies Of The Trustee And Noteholders On An Event Of Default

ARTICLE 8 The Trustee

ARTICLE 9 The Noteholders

ARTICLE 10 Meetings Of Noteholders

ARTICLE 11 Supplemental Indentures

ARTICLE 12 Consolidation, Merger, Sale, Conveyance And Lease

ARTICLE 13 Satisfaction And Discharge Of Indenture

ARTICLE 14 Immunity Of Incorporators, Stockholders, Officers And Directors

ARTICLE 15 Conversion Of Notes

ARTICLE 16 Subordination

ARTICLE 17 Subsidiary Guarantees

ARTICLE 18 Miscellaneous Provisions

EXHIBIT A

[Form of note]

WALTER INDUSTRIES, INC. 3.75% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2024

FORM OF REVERSE OF NOTE WALTER INDUSTRIES, INC. 3.75% CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2024

ABBREVIATIONS

FORM OF CONVERSION NOTICE

FORM OF FUNDAMENTAL CHANGE REPURCHASE ELECTION

FORM OF COMPANY REPURCHASE ELECTION

ASSIGNMENT

Schedule I

[Include Schedule I only for a Global Note] WALTER INDUSTRIES, INC. 3.75% Convertible Senior Subordinated Note due 2024

EXHIBIT B

EXHIBIT B FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY SUBSIDIARY GUARANTORS

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