Document:

EX-4.2

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

BY AND BETWEEN

WESCO INTERNATIONAL, INC.,

AS ISSUER

WESCO DISTRIBUTION, INC.,

AS GUARANTOR

AND

LEHMAN BROTHERS INC.,

GOLDMAN, SACHS & CO.,

UBS SECURITIES LLC,

BANC OF AMERICA SECURITIES LLC

AND

CREDIT SUISSE FIRST BOSTON LLC

AS INITIAL PURCHASERS

DATED AS OF SEPTEMBER 27, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	1.
	 	Definitions	 	 	1	 
	2.
	 	Shelf Registration	 	 	4	 
	3.
	 	Additional Interest	 	 	6	 
	4.
	 	Registration Procedures	 	 	7	 
	5.
	 	Registration Expenses	 	 	13	 
	6.
	 	Indemnification and Contribution	 	 	14	 
	7.
	 	Rule 144A	 	 	17	 
	8.
	 	Participation in Underwritten Registrations	 	 	17	 
	9.
	 	Selection of Underwriters	 	 	18	 
	10.
	 	Miscellaneous	 	 	18	 

 

1

          Registration Rights Agreement, dated as of September 27, 2005, by and among WESCO
International, Inc., a Delaware corporation (together with any successor entity, herein referred to
as the “Issuer”), and WESCO Distribution, Inc., a Delaware corporation (the “Guarantor”), and
Lehman Brothers Inc., Goldman, Sachs & Co., UBS Securities LLC, Banc of America Securities LLC and
Credit Suisse First Boston LLC (collectively, the “Initial Purchasers”).

          Pursuant to the Purchase Agreement, dated September 21, 2005, among the Issuer, the Guarantor
and the Initial Purchasers (the “Purchase Agreement”), the Initial Purchasers have agreed to
purchase from the Issuer up to $125,000,000 aggregate principal amount 2.625% Convertible Senior
Debentures due 2025 (the “Debentures”) together with the guarantee forming a part thereof (the
“Guarantee” and, together with the Debentures, the “Securities”) (or up to $150,000,000 aggregate
principal amount if the Initial Purchasers exercise in full their option to purchase additional
Debentures, as set forth in the Purchase Agreement). The Debentures initially may be convertible
into fully paid, nonassessable common stock, $0.01 par value per share, of the Issuer (the “Common
Stock”) on the terms, and subject to the conditions, set forth in the Indenture (as defined
herein). To induce the Initial Purchasers to purchase the Debentures, the Issuer and the Guarantor
have agreed to provide the registration rights set forth in this Agreement pursuant to the Purchase
Agreement.

          The parties hereby agree as follows:

          1. Definitions. As used in this Agreement, the following capitalized terms shall have the
following meanings:

          Additional Interest: As defined in Section 3(a) hereof.

          Additional Interest Payment Date: Each October 15 and April 15, commencing April 15,
2006.

          Agreement: This Registration Rights Agreement, as amended, modified or otherwise
supplemented from time to time in accordance with the terms hereof.

          Broker-Dealer: Any broker or dealer registered under the Exchange Act.

          Business Day: A day other than a Saturday or Sunday or any day on which banking
institutions in The City of New York are authorized or obligated by law or executive order
to close.

          Closing Date: The date of this Agreement.

          Commission: Securities and Exchange Commission.

          Common Stock: As defined in the preamble hereto.

          Debentures: As defined in the preamble hereto.

          Effectiveness Period: As defined in Section 2(a)(iii) hereof.

 

2

     Effectiveness Target Date: As defined in Section 2(a)(ii) hereof.

     Exchange Act: Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission thereunder.

     Guarantees: As defined in the preamble hereto.

     Guarantor: As defined in the preamble hereto.

     Holder: A Person who owns, beneficially or otherwise, Transfer Restricted Securities.

     Indemnified Holder: As defined in Section 6(a) hereof.

     Indenture: The Indenture, dated as of September 27, 2005, among the Issuer, the
Guarantor and J.P. Morgan Trust Company, National Association, as trustee (the “Trustee”),
pursuant to which the Securities are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

     Initial Purchasers: As defined in the preamble hereto.

     Issuer: As defined in the preamble hereto.

     Majority
of Holders: Registered Holders of a number of shares of the then outstanding Common Stock constituting Transfer Restricted Securities and an aggregate principal amount
of then outstanding Debentures constituting Transfer Restricted Securities, such that the
sum of such shares of Common Stock and the shares of Common Stock issuable upon conversion
of such Debentures constitute in excess of 50% of the sum of all of the then outstanding
 shares of Common Stock constituting Transfer Restricted Securities and the number of shares
of Common Stock issuable upon conversion of then outstanding Debentures constituting
Transfer Restricted Securities, in each case assuming that the Debentures are then
convertible and that no cash is paid upon a conversion of Debentures. For purposes of the
immediately preceding sentence, (i) any Holder may elect to make any request, notice,
demand, objection or other action hereunder with respect to all or any portion of Transfer
Restricted Securities held by it and only the portion as to which such action is taken shall
be included in the numerator of the fraction described in the preceding sentence and (ii)
Transfer Restricted Securities owned, directly or indirectly, by the Issuer or its
Affiliates shall be deemed not to be outstanding.

     NASD: National Association of Securities Dealers, Inc.

     New Securities: As defined in Section 10(d).

     Person: An individual, partnership, corporation, unincorporated organization, limited
liability company, trust, joint venture or a government or agency or political subdivision
thereof.

 

3

     Prospectus: The prospectus included in a Shelf Registration Statement (including,
without limitation, a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon Rule 430A
promulgated pursuant to the Securities Act), as amended or supplemented by any prospectus
supplement and by all other amendments thereto, including post-effective amendments, and all
material incorporated by reference into such Prospectus.

     Purchase Agreement: As defined in the preamble hereto.

     Questionnaire: As defined in Section 2(b) hereof.

     Questionnaire Deadline: As defined in Section 2(b) hereof.

     Record Holder: With respect to any Additional Interest Payment Date, each Person who
is a Holder on the record date with respect to such Additional Interest Payment Date, which
record date shall be the October 1 and April 1 immediately preceding the relevant October 15
or April 15 Additional Interest Payment Date, respectively.

     Registration Default: As defined in Section 3(a) hereof.

     Securities: As defined in the preamble hereto.

     Securities Act: Securities Act of 1933, as amended, and the rules and resolutions of
the Commission thereunder.

     Shelf Filing Deadline: As defined in Section 2(a)(i) hereof.

     Shelf Registration Statement: As defined in Section 2(a)(i) hereof.

     Suspension Notice: As defined in Section 4(c) hereof.

     Suspension Period: As defined in Section 4(b)(i) hereof.

     TIA: Trust Indenture Act of 1939, as amended, and the rules and regulations of the
Commission thereunder, in each case, as in effect on the date the Indenture is qualified
under the TIA.

     Transfer Restricted Securities: Each of the Securities and each of the shares of
Common Stock or New Securities issued upon conversion of Debentures until the earliest of,
in the case of any such Securities or share(s) of Common Stock or New Securities:

     (i) the date on which holders of such Securities or such shares of Common Stock
or New Securities issued upon conversion thereof may sell or
transfer all such securities immediately without restriction (including without
volume or manner of sale or filing restrictions) pursuant to Rule 144(k) under the
Securities Act (or any other similar provision then in force);

 

4

(ii) the date on which such Securities or such shares of Common Stock or New
Securities issued upon conversion thereof has been effectively registered under the
Securities Act with the Shelf Registration Statement and sold pursuant thereto; or

(iii) the date when all such Securities or such shares of Common Stock or New
Securities issued upon conversion have ceased to be outstanding (whether as a result
of repurchase and cancellation, conversion or otherwise).

          Underwritten Registration or Underwritten Offering: A registration in which Debentures
of the Issuer are sold to an underwriter for reoffering to the public.

          2. Shelf Registration.

          (a) The Issuer and the Guarantor shall:

(i) not later than 210 days after the date hereof (the “Shelf Filing
Deadline”), cause to be filed a registration statement for an offering to be made on
a continuous basis pursuant to Rule 415 under the Securities Act (together with any
amendments thereto, any registration statement required by Section 2(d) and
including any documents incorporated by reference therein, the “Shelf Registration
Statement”), which Shelf Registration Statement shall provide for resales of all
Transfer Restricted Securities held by Holders that have provided the information
required pursuant to the terms of Section 2(b) hereof;

(ii) use reasonable best efforts to cause the Shelf Registration Statement to
be declared effective by the Commission not later than 270 days after the date
hereof (the “Effectiveness Target Date”); and

(iii) use reasonable best efforts to keep the Shelf Registration Statement
continuously effective, supplemented and amended as required by the provisions of
Section 4(b) hereof to the extent necessary to ensure that it (A) is available for
resales by the Holders of Transfer Restricted Securities entitled to the benefit of
this Agreement and (B) conforms with the requirements of this Agreement and the
Securities Act for a period (the “Effectiveness Period”) ending on the earliest of:

(1) the date when the Holders of the Transfer Restricted Securities are
able to sell all Transfer Restricted Securities immediately without volume,
manner of sale, filing or other restriction under Rule 144(k) under the
Securities Act; or

(2) the date when all Transfer Restricted Securities are registered
under the Shelf Registration Statement and sold pursuant thereto; or

 

5

     (3) the date when all Transfer Restricted Securities have ceased to be
outstanding (whether as a result of repurchase and cancellation, conversion
or otherwise).

          (b) To have its Transfer Restricted Securities included in the Shelf Registration Statement
pursuant to this Agreement, each Holder shall complete the Selling Securityholder Notice and
Questionnaire, the form of which is contained in Annex A to the Offering Memorandum relating to the
Securities (the “Questionnaire”). The Issuer shall mail the Questionnaire to each Holder not less
than 20 Business Days (but not more than 40 Business Days) prior to the time the Issuer intends in
good faith to have the Shelf Registration Statement declared effective by the Commission. Holders
are required to complete and deliver the Questionnaire to the Issuer within 10 Business Days prior
to the effectiveness of the registration statement (the “Questionnaire Deadline”) in order to be
named as selling securityholders in the Prospectus at the time that the Shelf Registration
Statement is declared effective. Upon receipt of a Questionnaire from a Holder on or prior to the
Questionnaire Deadline, the Issuer shall include such Holder’s Transfer Restricted Securities in
the Shelf Registration Statement and the Prospectus. In addition, promptly upon the request of a
Holder given to the Issuer at any time, the Issuer shall deliver a Questionnaire to such Holder.
Any Holder that does not complete and deliver a Questionnaire prior to the Questionnaire Deadline
may not be named as a selling securityholder in the Shelf Registration Statement at the time that
it is declared effective. Upon receipt of a completed Questionnaire from a Holder who did not
complete and deliver a Questionnaire prior to the Questionnaire Deadline, the Issuer and the
Guarantor shall, within 10 Business Days of such receipt, file such amendments to the Shelf
Registration Statement or supplements to a related Prospectus as are necessary to permit such
Holder to deliver such Prospectus to transferees of Transfer Restricted Securities; provided, that
if a post-effective amendment to the Shelf Registration Statement is required (i) the Issuer and
the Guarantor shall not be obligated to file more than one amendment for all such Holders in any
one fiscal quarter unless the aggregate principal amount of all Transfer Restricted Securities
requested to be included in such amendment or supplement by all such Holders exceeds $5,000,000.

          The Issuer will give notice to all Holders of the effectiveness of the Shelf Registration
Statement by issuing a press release to Business Wire or PR Newswire.

          (c) Upon receipt of written request for additional information from the Issuer, each Holder
who intends to be named as a selling securityholder in the Shelf Registration Statement shall
furnish to the Issuer in writing, within five Business Days after such Holder’s receipt of such
request, such additional information regarding such Holder and the proposed distribution by such
Holder of its Transfer Restricted Securities, in connection with the Shelf Registration Statement
or Prospectus or Preliminary Prospectus included therein and in any application to be filed with or
under state securities law, as the Issuer may reasonably request. In connection with all such
requests for information from Holders of Transfer Restricted Securities, the Issuer shall notify
such Holders of the requirements set forth in this paragraph regarding their obligation to provide
the information requested pursuant to this Section 2. Each Holder as to
which the Shelf Registration Statement is being effected agrees to furnish promptly to the
Issuer all information required to be disclosed in order to make information previously furnished
to the Issuer by such Holder not materially misleading.

 

6

3. Additional Interest.

          (a) If:

     (i) the Shelf Registration Statement is not filed with the Commission prior to
or on the Shelf Filing Deadline;

     (ii) the Shelf Registration Statement has not been declared effective by the
Commission prior to or on the Effectiveness Target Date;

     (iii) except as provided in Section 4(b)(i) hereof, the Shelf Registration
Statement is filed and declared effective but, during the Effectiveness Period,
shall thereafter cease to be effective or fail to be usable for its intended purpose
without being succeeded within five Business Days by a post-effective amendment to
the Shelf Registration Statement, a supplement to the Prospectus or a report filed
with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange
Act that cures such failure and, in the case of a post-effective amendment, is
itself immediately declared effective; or

     (iv) (A) prior to or on the 45th or 60th day, as the
case may be, of any Suspension Period, such suspension has not been terminated or
(B) Suspension Periods exceed an aggregate of 90 days in any 360 day period,

(each such event referred to in foregoing clauses (i) through (iv), a “Registration Default”), the
Issuer and the Guarantor jointly and severally hereby agree to pay additional interest (“Additional
Interest”) with respect to Securities that are Transfer Restricted Securities from and including
the day following the Registration Default to but excluding the day on which the Registration
Default has been cured, accruing at a rate, to each holder of Securities, (x) with respect to the
first 90-day period during which a Registration Default shall have occurred and be continuing,
equal to 0.25% per annum of the principal amount of the Securities, and (y) with respect to the
period commencing on the 91st day following the day the Registration Default shall have
occurred and be continuing, equal to 0.50% per annum of the principal amount of the Securities;
provided that in no event shall Additional Interest accrue at an aggregate rate per year exceeding
0.50% of the principal amount of the Securities and provided further that Additional Interest with
respect to such Transferred Restricted Securities shall not accrue under more than one of the
foregoing clauses (i), (ii), (iii) and (iv) at any one time. No Additional Interest shall be
payable on any Securities that have been converted into shares of Common Stock or such Common
Stock.

          (b) All accrued Additional Interest shall be paid in arrears to Record Holders by the Issuer
or the Guarantor on each Additional Interest Payment Date by wire transfer of immediately available
funds or by federal funds check in accordance with the terms of the Indenture. Following the cure
of all Registration Defaults relating to any particular Securities, the accrual of Additional
Interest with respect to such Securities will cease. The Issuer and the
Guarantor agree to deliver all notices, certificates and other documents contemplated by the
Indenture in connection with the payment of Additional Interest.

 

7

          All obligations of the Issuer and the Guarantor set forth in this Section 3 that are
outstanding with respect to any Transfer Restricted Security at the time such security ceases to be
a Transfer Restricted Security shall survive until such time as all such obligations with respect
to such Transfer Restricted Security shall have been satisfied in full. The Additional Interest
set forth above shall be the exclusive monetary remedy available to the Holders of Transfer
Restricted Securities for such Registration Default.

          4. Registration Procedures.

          (a) In connection with the registration of the Transfer Restricted Securities, the Issuer and
the Guarantor shall comply with all the provisions of Section 4(b) hereof and shall use their
reasonable best efforts to effect such registration to permit the sale of the Transfer Restricted
Securities being sold in accordance with the intended method or methods of distribution thereof,
and pursuant thereto, shall as expeditiously as possible prepare and file with the Commission a
Shelf Registration Statement relating to the registration on any appropriate form under the
Securities Act.

          (b) In connection with the Shelf Registration Statement and any Prospectus required by this
Agreement to permit the sale or resale of Transfer Restricted Securities, the Issuer and the
Guarantor shall:

     (i) Subject to any notice by the Issuer in accordance with this Section 4(b) of
the existence of any fact or event of the kind described in Section 4(b)(iii)(D),
use reasonable best efforts to keep the Shelf Registration Statement continuously
effective during the Effectiveness Period; upon the occurrence of any event that
would cause the Shelf Registration Statement or the Prospectus contained therein (A)
to contain a material misstatement or omission or (B) not be effective and usable
for resale of Transfer Restricted Securities during the Effectiveness Period, the
Issuer and the Guarantor shall file promptly an appropriate amendment to the Shelf
Registration Statement, a supplement to the Prospectus or a report filed with the
Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act, in the
case of clause (A), correcting any such misstatement or omission, and, in the case
of either clause (A) or (B), use their reasonable best efforts to cause such
amendment to be declared effective and the Shelf Registration Statement and the
related Prospectus to become usable for their intended purposes as soon as
practicable thereafter. Notwithstanding the foregoing, the Issuer may suspend the
effectiveness of the Shelf Registration Statement by written notice to the Holders
for a period not to exceed an aggregate of 45 days in any 90-day period (each such
period, a “Suspension Period”) and not to exceed an aggregate of 90 days in any
360-day period if:

     (x) an event occurs and is continuing as a result of which the Shelf
Registration Statement would, in the Issuer’s reasonable judgment, contain
an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements
therein not misleading; and

 

8

     (y) the Issuer reasonably determines that the disclosure of such
event at such time would have a material adverse effect on the business of
the Issuer (and its subsidiaries, if any, taken as a whole);

provided that in the event the disclosure relates to a previously undisclosed
proposed or pending material business transaction or agreement, the disclosure of
which would impede the Issuer’s ability to consummate such transaction or agreement,
the Issuer may extend a Suspension Period from 45 days to 60 days in any 90-day
period.

     (ii) Prepare and file with the Commission such amendments and post-effective
amendments to the Shelf Registration Statement as may be necessary to keep the Shelf
Registration Statement effective during the Effectiveness Period; cause the
Prospectus to be supplemented by any required Prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Securities Act, and to
comply fully with the applicable provisions of Rules 424 and 430A under the
Securities Act in a timely manner; and comply with the provisions of the Securities
Act with respect to the disposition of all securities covered by the Shelf
Registration Statement during the applicable period in accordance with the intended
method or methods of distribution by the sellers thereof set forth in the Shelf
Registration Statement or supplement to the Prospectus; provided, however, that in
no event will such method(s) of distribution take the form of an underwritten
offering without the prior written agreement of the Issuer.

     (iii) Advise the underwriter(s), if any, and selling Holders promptly (but in
any event within five Business Days) and, if requested by such Persons, to confirm
such advice in writing:

     (A) when the Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to the Shelf Registration
Statement or any post-effective amendment thereto, when the same has become
effective,

     (B) of any request by the Commission for amendments to the Shelf
Registration Statement or amendments or supplements to the Prospectus or for
additional information relating thereto,

     (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the Shelf Registration Statement under the Securities Act
or of the suspension by any state securities commission of the qualification
of the Transfer Restricted Securities for offering or sale in any
jurisdiction, or the initiation of any proceeding for any of the preceding
purposes, or

     (D) of the existence of any fact or the happening of any event, during
the Effectiveness Period, that makes any statement of a material fact made
in the Shelf Registration Statement, the Prospectus, any

 

9

amendment or supplement thereto, or any document incorporated by reference therein
untrue, or that requires the making of any additions to or changes in the
Shelf Registration Statement or the Prospectus in order to make the
statements therein not misleading.

If at any time the Commission shall issue any stop order suspending the
effectiveness of the Shelf Registration Statement, or any state securities
commission or other regulatory authority shall issue an order suspending the
qualification or exemption from qualification of the Transfer Restricted Securities
under state securities or Blue Sky laws, the Issuer and the Guarantor shall use
their reasonable best efforts to obtain the withdrawal or lifting of such order at
the earliest possible time and will provide to the Initial Purchasers and each
Holder who is named in the Shelf Registration Statement prompt notice of the
withdrawal of any such order.

     (iv) Furnish to one counsel for the selling Holders and each of the
underwriter(s), if any, before filing with the Commission, a copy of the Shelf
Registration Statement and copies of any Prospectus included therein or any
amendments or supplements to the Shelf Registration Statement or Prospectus (other
than documents incorporated by reference after the initial filing of the Shelf
Registration Statement), which documents will be subject to the review of such
holders and underwriter(s), if any, for a period of at least five Business Days but
no more than seven Business Days (in the case of the Shelf Registration Statement
and Prospectus) and at least two Business Days but no more than four Business Days
(in the case of any amendment or supplement thereto), and the Issuer and the
Guarantor will not file the Shelf Registration Statement or Prospectus or any
amendment or supplement to the Shelf Registration Statement or Prospectus (other
than documents incorporated by reference) to which a selling Holder of Transfer
Restricted Securities covered by the Shelf Registration Statement or the
underwriter(s), if any, shall reasonably object prior to the filing thereof.

     (v) In connection with an Underwritten Offering of the Transfer Restricted
Securities pursuant to the Shelf Registration Statement, make available at
reasonable times for inspection by one or more representatives of the selling
Holders, designated in writing by a Majority of Holders whose Transfer Restricted
Securities are included in the Shelf Registration Statement, any underwriter
participating in any distribution pursuant to the Shelf Registration Statement, and
any attorney or accountant retained by such selling Holders or any of the
underwriter(s), all financial and other records, pertinent corporate documents and
properties of the Issuer and the Guarantor as shall be reasonably necessary to
enable them to exercise any applicable due diligence responsibilities, and cause the
officers, directors, managers and employees of the Issuer and the Guarantor to
supply all information reasonably requested by any such
representative or representatives of the selling Holders, underwriter, attorney
or accountant in connection with the Shelf Registration Statement after the filing
thereof and before its effectiveness, provided, however, that any information

 

10

designated by the Issuer as confidential at the time of delivery of such information
shall be kept confidential by the recipient thereof and shall be subject, upon
request of the Issuer, to the execution by such persons of a confidentiality
agreement in a form that is reasonable in the context of a registered public
offering.

     (vi) If requested by any selling Holders or the underwriter(s), if any,
promptly incorporate in the Shelf Registration Statement or Prospectus, pursuant to
a supplement or post-effective amendment if necessary, such information as such
selling Holders and underwriter(s), if any, may reasonably request to have included
therein, including, without limitation: (1) information relating to the “Plan of
Distribution” of the Transfer Restricted Securities, (2) information with respect to
the principal amount of Securities or number of shares of Common Stock being sold to
such underwriter(s), (3) the purchase price being paid therefor and (4) any other
terms of the offering of the Transfer Restricted Securities to be sold in such
offering; and make all required filings of such Prospectus supplement or
post-effective amendment as soon as reasonably practicable after the Issuer is
notified of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

     (vii) Furnish to each selling Holder and each of the underwriter(s), if any,
upon their request, without charge, at least one copy of the Shelf Registration
Statement, as first filed with the Commission, and of each amendment thereto (and
any documents incorporated by reference therein or exhibits thereto (or exhibits
incorporated in such exhibits by reference) as such Person may request).

     (viii) Deliver to each selling Holder and each of the underwriter(s), if any,
without charge, as many copies of the Prospectus (including each preliminary
prospectus) and any amendment or supplement thereto as such Persons reasonably may
request; subject to any notice by the Issuer in accordance with this Section 4(b) of
the existence of any fact or event of the kind described in Section 4(b)(iii) (D),
the Issuer and the Guarantor hereby consent to the use (in accordance with
applicable law) of the Prospectus and any amendment or supplement thereto by each of
the selling Holders and each of the underwriter(s), if any, in connection with the
offering and the sale of the Transfer Restricted Securities covered by the
Prospectus or any amendment or supplement thereto.

     (ix) The Issuer and the Guarantor shall:

     (A) upon request, furnish to each selling Holder and each underwriter, if any,
in such substance and scope as they may reasonably request and as are customarily
made by issuers to underwriters in primary underwritten offerings for selling
security holders, upon the date of closing of any sale of Transfer Restricted
Securities in an Underwritten Registration:

     (1) a certificate, dated the date of such closing, signed by the Chief
Financial Officer of the Issuer covering such matters as are

 

11

customarily covered in closing certificates delivered to underwriters in connection with
underwritten offerings of securities;

     (2) opinions, each dated the date of such closing, of counsel to the
Issuer and the Guarantor covering such of the matters as are customarily
covered in legal opinions to underwriters in connection with underwritten
offerings of securities; and

     (3) customary comfort letters, dated the date of such closing, from the
independent public accountants of the Issuer and the Guarantor (and from any
other accountants whose report is contained or incorporated by reference in
the Shelf Registration Statement) in the customary form and covering matters
of the type customarily covered in comfort letters to underwriters in
connection with underwritten offerings of securities;

         (B) set forth in full in the underwriting agreement, if any, indemnification
provisions and procedures which provide rights no less protective than those set
forth in Section 6 hereof with respect to all parties to be indemnified; and

         (C) deliver such other documents and certificates as may be reasonably
requested by such parties to evidence compliance with clause (A) above and with any
customary conditions contained in the underwriting agreement or other agreement
entered into by the selling Holders pursuant to this clause (ix).

         (x) Before any public offering of Transfer Restricted Securities, cooperate
with the selling Holders, the underwriter(s), if any, and their respective counsel
in connection with the registration and qualification of the Transfer Restricted
Securities under the securities or Blue Sky laws of such jurisdictions in the United
States as the selling Holders or underwriter(s), if any, may reasonably request and
do any and all other acts or things necessary or advisable to enable the disposition
in such jurisdictions of the Transfer Restricted Securities covered by the Shelf
Registration Statement; provided, however, that neither the Issuer nor the Guarantor
shall be required (A) to register or qualify as a foreign corporation or a dealer of
securities where it is not now so qualified or to take any action that would subject
it to the service of process in any jurisdiction where it is not now so subject or
(B) to subject itself to taxation in any such jurisdiction if it is not now so
subject.

         (xi) Cooperate with the selling Holders and the underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates representing Transfer
Restricted Securities to be sold and not bearing any restrictive legends (unless
required by applicable securities laws); and enable such Transfer Restricted
Securities to be in such denominations and registered in such names as
the Holders or the underwriter(s), if any, may request at least two Business
Days before any sale of Transfer Restricted Securities made by such underwriter(s).

 

12

     (xii) Use their reasonable best efforts to cause the Transfer Restricted
Securities covered by the Shelf Registration Statement to be registered with or
approved by such other U.S. governmental agencies or authorities as may be necessary
to enable the seller or sellers thereof or the underwriter(s), if any, to consummate
the disposition of such Transfer Restricted Securities.

     (xiii) Subject to Section 4(b)(i) hereof, if any fact or event contemplated by
Section 4(b)(iii)(D) hereof shall exist or have occurred, use their reasonable best
efforts to prepare a supplement or post-effective amendment to the Shelf
Registration Statement or related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered to
the purchasers of Transfer Restricted Securities, the Prospectus will not contain an
untrue statement of a material fact or omit to state any material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading.

     (xiv) Provide CUSIP numbers for all Transfer Restricted Securities not later
than the effective date of the Shelf Registration Statement and provide the Trustee
under the Indenture with certificates for the Securities that are in a form eligible
for deposit with The Depository Trust Company.

     (xv) Cooperate and assist in any filings required to be made with the NASD and
in the performance of any due diligence investigation by any underwriter that is
required to be retained in accordance with the rules and regulations of the NASD.

     (xvi) Otherwise use their reasonable best efforts to comply with all applicable
rules and regulations of the Commission and all reporting requirements under the
Exchange Act.

     (xvii) Cause the Indenture to be qualified under the TIA not later than the
effective date of the Shelf Registration Statement required by this Agreement, and,
in connection therewith, cooperate with the Trustee and the holders of Securities to
effect such changes to the Indenture as may be required for such Indenture to be so
qualified in accordance with the terms of the TIA; and execute and use their
reasonable best efforts to cause the Trustee thereunder to execute all documents
that may be required to effect such changes and all other forms and documents
required to be filed with the Commission to enable such Indenture to be so qualified
in a timely manner.

     (xviii) Cause all Transfer Restricted Securities covered by the Shelf
Registration Statement to be listed or quoted, as the case may be, on each
securities exchange or automated quotation system on which similar securities issued
by the Issuer are then listed or quoted.

 

13

     (xix) Provide to each Holder upon written request each document filed with the
Commission pursuant to the requirements of Section 13 and Section 15 of the Exchange
Act after the effective date of the Shelf Registration Statement.

     (xx) If requested by the underwriters, prepare and present to potential
investors customary “road show” or marketing materials in a manner consistent with
other new issuances of other securities similar to the Transfer Restricted
Securities.

          (c) Each Holder agrees by acquisition of a Transfer Restricted Security that, upon receipt of
any notice (a “Suspension Notice”) from the Issuer of the existence of any fact of the kind
described in Section 4(b)(iii)(D) hereof, such Holder will, and will use their reasonable best
efforts to cause any underwriter(s) in an Underwritten Offering to, forthwith discontinue
disposition of Transfer Restricted Securities pursuant to the Shelf Registration Statement until:

(i) such Holder has received copies of the supplemented or amended Prospectus
contemplated by Section 4(b)(xiii) hereof; or

(ii) such Holder is advised in writing by the Issuer that the use of the
Prospectus may be resumed, and has received copies of any additional or supplemental
filings that are incorporated by reference in the Prospectus.

If so directed by the Issuer, each Holder will deliver to the Issuer (at the Issuer’s expense) all
copies, other than permanent file copies then in such Holder’s possession, of the Prospectus
covering such Transfer Restricted Securities that was current at the time of receipt of such notice
of suspension.

          5. Registration Expenses.

          (a) All expenses incident to the performance of or compliance with this Agreement by the
Issuer and the Guarantor shall be borne by the Issuer and the Guarantor regardless of whether a
Shelf Registration Statement becomes effective, including, without limitation:

(i) all registration and filing fees and expenses (including filings made by
the Initial Purchasers or any Holders with the NASD);

(ii) all fees and expenses of compliance with federal securities and state Blue
Sky or securities laws;

(iii) all expenses of printing (including printing of Prospectuses and
certificates for the Common Stock to be issued upon conversion of the Securities)
and the expenses of the Issuer and the Guarantor for messenger and delivery services
and telephone;

 

14

     (iv) all fees and disbursements of counsel to the Issuer and the Guarantor and,
subject to Section 5(b) below, the Holders of Transfer Restricted Securities;

     (v) all application and filing fees in connection with listing (or authorizing
for quotation) the Common Stock on a national securities exchange or automated
quotation system pursuant to the requirements hereof; and

     (vi) all fees and disbursements of independent certified public accountants of
the Issuer and the Guarantor (including the expenses of any special audit and
comfort letters required by or incident to such performance).

          The Issuer and the Guarantor shall bear their internal expenses (including, without
limitation, all salaries and expenses of their officers and employees performing legal, accounting
or other duties), the expenses of any annual audit and the fees and expenses of any Person,
including special experts, retained by the Issuer and the Guarantor.

          (b) In connection with the Shelf Registration Statement required by this Agreement, including
any amendment or supplement thereto, and any other documents delivered to any Holders, the Issuer
and the Guarantor shall reimburse the Initial Purchasers and the Holders of Transfer Restricted
Securities being registered pursuant to the Shelf Registration Statement, as applicable, for the
reasonable fees and disbursements of not more than one counsel as may be chosen by a Majority of
Holders for whose benefit the Shelf Registration Statement is being prepared. The Issuer and the
Guarantor shall not be required to pay any underwriting discount, commission or similar fee related
to the sale of any securities.

          6. Indemnification and Contribution.

          (a) The Issuer and the Guarantor shall jointly and severally indemnify and hold harmless each
Holder, such Holder’s officers, directors, partners and employees and each person, if any, who
controls such Holder within the meaning of the Securities Act (each, an “Indemnified Holder”), from
and against any loss, claim, damage or liability, joint or several, or any action in respect
thereof (including, but not limited to, any loss, claim, damage, liability or action relating to
resales of the Transfer Restricted Securities), to which such Indemnified Holder may become
subject, insofar as any such loss, claim, damage, liability or action arises out of, or is based
upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Shelf
Registration Statement or Prospectus or any amendment or supplement thereto or (ii) the omission or
alleged omission to state therein any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not
misleading, and shall reimburse each Indemnified Holder promptly upon demand for any legal or other
expenses reasonably incurred by such Indemnified Holder in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability or action as such
expenses are incurred; provided, however, that the Issuer shall not be liable in any such case to
the extent that any such loss, claim, damage, liability or action arises out of, or is based upon,
any untrue statement or alleged untrue statement or omission or alleged omission made in the Shelf
Registration Statement or Prospectus or amendment or supplement thereto in reliance upon and in
conformity with written information furnished to the Issuer by or on behalf

 

15

of such Holder; provided, further, that the Issuer and the Guarantor shall not be liable for
any loss, liability, claim, damage or expense to the extent that it arises from (1) a sale of
Transfer Restricted Securities occurring during a Suspension Period, provided that such Holder
shall have received a Suspension Notice with respect to such Suspension Period prior to such sale
or (2) an untrue statement or omission or alleged untrue statement or omission of a material fact
contained in a Prospectus, if (w) the Issuer and the Guarantor had notified such Holder of such
untrue statement or omission or alleged untrue statement or omission prior to the Holder’s first
use of the Prospectus, (x) the Holder failed to deliver, at or prior to the written confirmation of
sale, a Prospectus that was amended or supplemented, (y) such Prospectus, as amended or
supplemented, would have corrected the untrue statement or omission or alleged untrue statement or
omission and (z) the Prospectus, as amended or supplemented, had been delivered to such Holder
prior to the time of the Holder’s first use of the Prospectus. The foregoing indemnity agreement
is in addition to any liability which the Issuer and the Guarantor may otherwise have to any
Indemnified Holder.

          (b) Each Holder, severally and not jointly, shall indemnify and hold harmless the Issuer, the
Guarantor, their officers, directors and employees and each person, if any, who controls the Issuer
or any Guarantor within the meaning of the Securities Act, from and against any loss, claim, damage
or liability, joint or several, or any action in respect thereof, to which the Issuer, any
Guarantor or any such officer, director, employee or controlling person may become subject, insofar
as any such loss, claim, damage or liability or action arises out of, or is based upon (i) any
untrue statement or alleged untrue statement of any material fact contained in the Shelf
Registration Statement or Prospectus or any amendment or supplement thereto or (ii) the omission or
the alleged omission to state therein any material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not
misleading, but in each case only to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in conformity with written
information furnished to the Issuer by or on behalf of such Holder (or its related Indemnified
Holder) specifically for use therein, and shall reimburse the Issuer, the Guarantor and any such
officer, director, employee or controlling person promptly upon demand for any legal or other
expenses reasonably incurred by the Issuer, the Guarantor or any such officer, director, employee
or controlling person in connection with investigating or defending or preparing to defend against
any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing
indemnity agreement is in addition to any liability that any Holder may otherwise have to the
Issuer, the Guarantor and any such officer, employee or controlling person.

          (c) Promptly after receipt by an indemnified party under this Section 6 of notice of any claim
or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to
be made against the indemnifying party under this Section 6, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that the failure to
notify the indemnifying party shall not relieve it from any liability which it may have under this
Section 6 except to the extent it has been materially prejudiced by such failure and, provided,
further, that the failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 6. If any such claim
or action shall be brought against an indemnified party, and it shall notify the indemnifying party
thereof, the indemnifying party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying

 

16

party, to assume the defense thereof with counsel satisfactory to the indemnified party.
After notice from the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to the indemnified
party under this Section 6 for any legal or other expenses subsequently incurred by the indemnified
party in connection with the defense thereof other than reasonable costs of investigation;
provided, however, that a Majority of Holders shall have the right to employ a single counsel to
represent jointly a Majority of Holders and their respective officers, directors, partners,
employees and controlling persons who may be subject to liability arising out of any claim in
respect of which indemnity may be sought by a Majority of Holders against the Issuer under this
Section 6, if a Majority of Holders seeking indemnification shall have been advised by legal
counsel that there may be one or more legal defenses available to them and their respective
officers, employees and controlling persons that are different from or additional to those
available to the Issuer, the Guarantor and their officers, directors, employees and controlling
persons, the fees and expenses of a single separate counsel shall be paid by the Issuer and the
Guarantor. No indemnifying party shall:

     (i) without the prior written consent of the indemnified parties (which consent shall
not be unreasonably withheld) settle or compromise or consent to the entry of any judgment
with respect to any pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action) unless such
settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action, suit or proceeding, or

     (ii) be liable for any settlement of any such action effected without its written
consent (which consent shall not be unreasonably withheld), but if settled with its written
consent or if there be a final judgment for the plaintiff in any such action, the
indemnifying party agrees to indemnify and hold harmless any indemnified party from and
against any loss or liability by reason of such settlement or judgment.

          (d) If the indemnification provided for in this Section 6 shall for any reason be unavailable
or insufficient to hold harmless an indemnified party under Section 6(a) or 6(b) in respect of any
loss, claim, damage or liability (or action in respect thereof) referred to therein, each
indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount
paid or payable by such indemnified party as a result of such loss, claim, damage or liability (or
action in respect thereof):

     (i) in such proportion as is appropriate to reflect the relative benefits received by
the Issuer and the Guarantor from the offering and sale of the Transfer Restricted
Securities on the one hand and a Holder with respect to the sale by such Holder of the
Transfer Restricted Securities on the other, or

     (ii) if the allocation provided by clause (6)(d)(i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to
in clause 6(d)(i) but also the relative fault of the Issuer and the Guarantor on the one
hand and the Holders on the other in connection with the statements or omissions or

 

17

alleged statements or alleged omissions that resulted in such loss, claim, damage or
liability (or action in respect thereof), as well as any other relevant equitable
considerations.

The relative benefits received by the Issuer and the Guarantor on the one hand and a Holder on the
other with respect to such offering and such sale shall be deemed to be in the same proportion as
the total net proceeds from the offering of the Securities purchased under the Purchase Agreement
(net of discounts and commissions but before deducting expenses) received by the Issuer and the
Guarantor on the one hand, bear to the total proceeds received by such Holder with respect to its
sale of Transfer Restricted Securities on the other. The relative fault of the parties shall be
determined by reference to whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the Issuer
and the Guarantor on the one hand or the Holders on the other, the intent of the parties and their
relative knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Issuer, the Guarantor and each Holder agree that it would not be just and equitable
if the amount of contribution pursuant to this Section 6(d) were determined by pro rata allocation
or by any other method of allocation that does not take into account the equitable considerations
referred to in the first sentence of this paragraph (d). The amount paid or payable by an
indemnified party as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section 6 shall be deemed to include, for purposes of this
Section 6, any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending or preparing to defend any such action or claim. Notwithstanding
the provisions of this Section 6, no Holder shall be required to contribute any amount in excess of
the amount by which the total price at which the Transfer Restricted Securities purchased by it
were resold exceeds the amount of any damages which such Holder has otherwise been required to pay
by reason of any untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Holders’ obligations to contribute as provided in this Section 6(d) are
several and not joint.

          7. Rule 144A. In the event the Issuer is not subject to Section 13 or 15(d) of the Exchange
Act, the Issuer hereby agrees with each Holder, for so long as any Transfer Restricted Securities
remain outstanding, to make available to any Holder or beneficial owner of Transfer Restricted
Securities in connection with any sale thereof and any prospective purchaser of such Transfer
Restricted Securities from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Securities Act in order to permit resales of such Transfer Restricted
Securities pursuant to Rule 144A.

          8. Participation in Underwritten Registrations. No Holder may participate in any Underwritten
Registration hereunder unless such Holder:

   (i) agrees to sell such Holder’s Transfer Restricted Securities on the basis provided
in any underwriting arrangements approved by the Persons entitled hereunder to approve such
arrangements; and

 

18

    (ii) completes and executes all reasonable questionnaires, powers of attorney,
indemnities, underwriting agreements, lock-up letters and other documents required under the
terms of such underwriting arrangements.

          9. Selection of Underwriters. The Holders of Transfer Restricted Securities covered by the
Shelf Registration Statement who desire to do so may sell such Transfer Restricted Securities in an
Underwritten Offering if approved by the Issuer, as provided in Section 4(b)(ii). In any such
Underwritten Offering, the investment banker or investment bankers and manager or managers that
will administer the offering will be selected by a Majority of Holders whose Transfer Restricted
Securities are included in such offering; provided, that such investment bankers and managers must
be reasonably satisfactory to the Issuer.

          10. Miscellaneous.

          (a) Remedies. The Issuer and the Guarantor acknowledge and agree that any failure by the
Issuer and the Guarantor to comply with its obligations under Section 2 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate
remedy at law, that it will not be possible to measure damages for such injuries precisely and
that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief
as may be required to specifically enforce the obligations of the Issuer and the Guarantor under
Section 2 hereof. The Issuer and the Guarantor further agree to waive the defense in any action
for specific performance that a remedy at law would be adequate.

          (b) Adjustments Affecting Transfer Restricted Securities. The Issuer and the Guarantor shall
not take any action with the primary purpose of adversely affecting the ability of the Holders of
the Transfer Restricted Securities as a class to include such Transfer Restricted Securities in a
registration undertaken pursuant to this Agreement.

          (c) No Inconsistent Agreements. The Issuer and the Guarantor will not, on or after the date
of this Agreement, enter into any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof. In addition, the Issuer and the Guarantor shall not grant to any of their security holders
(other than the Holders of Transfer Restricted Securities in such capacity) the right to include
any securities in the Shelf Registration Statement provided for in this Agreement other than the
Transfer Restricted Securities. Except as disclosed in the Offering Memorandum, the Issuer and the
Guarantor have not previously entered into any agreement (which has not expired or been terminated)
granting any registration rights with respect to its securities to any Person which rights conflict
with the provisions hereof.

          (d) Amendments and Waivers. Except as provided in the next paragraph, this Agreement may not
be amended, modified or supplemented, and waivers or consents to or departures from the provisions
hereof may not be given, unless the Issuer and the Guarantor have
obtained the written consent of a Majority of Holders or such greater percentage of the
Holders as required by the Indenture.

     In the event of a merger or consolidation or sale, assignment, conveyance, transfer, lease or
other disposition of all or substantially all of the properties and assets of the Issuer and its

 

19

subsidiaries on a consolidated basis, the Issuer and the Guarantor shall procure the assumption of
its obligations under this Agreement (which it is understood and agreed shall include the
registration of any other securities into which the Securities or the Common Stock (the “New
Securities”) have become convertible on substantially the same terms as provided for the
registration of the Common Stock) by the Person (if other than the Issuer) formed by such
consolidation or into which the Issuer and the Guarantor are merged or the Person who acquires by
sale, assignment, conveyance, transfer, lease or other disposition all or substantially all of the
properties and assets of the Issuer and its subsidiaries on a consolidated basis and this Agreement
may be amended, modified or supplemented without the consent of any Holders to provide for such
assumption of the Issuer’s and the Guarantor’ obligations hereunder (including the registration of
any New Securities). Without the consent of each Holder of Securities, no amendment or
modification may change the provisions relating to the payment of Additional Interest during the
pendency of a Registration Default.

     Each Holder of Transfer Restricted Securities outstanding at the time of any amendment,
modification, supplement, waiver or consent or thereafter shall be bound by any amendment,
modification, supplement, waiver or consent effected pursuant to this Section 10(d), whether or not
any notice, writing or marking indicating such amendment, modification, supplement, waiver or
consent appears on the Transfer Restricted Securities or is delivered to such Holder.

          (e) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail (registered or certified, return receipt
requested), telex, facsimile transmission, or air courier guaranteeing overnight delivery:

     (i) if to a Holder, at the address set forth on the records of the registrar
under the Indenture or the transfer agent of the Common Stock, as the case may be;
and

     (ii) if to the Issuer or the Guarantor:

WESCO International, Inc.

225 West Station Square Drive, Suite 700

Pittsburgh, Pennsylvania 15219

Attention: Daniel A. Brailer

Telephone: 412-454-4220

Facsimile: 412-454-2595

With a copy to:

Kirkpatrick & Lockhart Nicholson Graham LLP

535 Smithfield Street

Pittsburgh, PA 15222-2312

Attention: Michael C. McLean

 

20

Telephone: 412-355-6500

Facsimile: 412-355-6501

          All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
transmitted by facsimile; and on the next Business Day, if timely delivered to an air courier
guaranteeing overnight delivery.

          (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties, including without limitation and without the
need for an express assignment, subsequent Holders of Transfer Restricted Securities; provided,
however, that (i) this Agreement shall not inure to the benefit of or be binding upon a successor
or assign of a Holder unless and to the extent such successor or assign acquired Transfer
Restricted Securities from such Holder and (ii) nothing contained herein shall be deemed to permit
any assignment, transfer or other disposition of Transfer Restricted Securities in violation of the
terms of the Purchase Agreement or the Indenture. If any transferee of any Holder shall acquire
Transfer Restricted Securities, in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this Agreement, and by
taking and holding such Transfer Restricted Securities such person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

          (h) Securities Held by the Issuer or Its Affiliates. Whenever the consent or approval of
Holders of a specified percentage of Transfer Restricted Securities is required hereunder, Transfer
Restricted Securities held by the Issuer or its “affiliates” (as such term is defined in Rule 405
under the Securities Act) shall not be counted in determining whether such consent or approval was
given by the Holders of such required percentage.

          (i) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

          (j) Governing Law. This Agreement shall be governed by, and construed in accordance with, the
law of the State of New York.

          (k) Severability. If any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

          (l) Entire Agreement. This Agreement is intended by the parties as a final expression of
their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject matter contained

 

21

herein. There are no restrictions, promises, warranties or undertakings, other than those set
forth or referred to herein with respect to the registration rights granted by the Issuer and the
Guarantor with respect to the Transfer Restricted Securities. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject matter.

          In Witness Whereof, the parties have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	 	WESCO International, Inc. 
	 
	 	 	 	 
	 

	 	By
	 	/s/ Roy W. Haley
	 

	 	 	 	 
	 

	 	 	 	Name: Roy W. Haley
	 

	 	 	 	Title: CEO
	 
	 	 	 	 
	 	 	WESCO Distribution, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Stephen A. Van Oss
	 

	 	 	 	 
	 

	 	 	 	Name: Stephen A. Van Oss
	 

	 	 	 	Title: Sr. VP, CFO & CAO
	 
	 	 	 	 
	 	 	Lehman Brothers Inc.
	 	 	Goldman, Sachs & Co.
	 
	 	 	 	 
	 	 	For themselves and as Representatives of the
other Initial Purchasers
	 
	 	 	 	 
	 	 	By: Lehman Brothers Inc.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Scott W. Mohr 
	 

	 	 	 	 
	 

	 	 	 	Authorized Representative
	 
	 	 	 	 
	 	 	By: Goldman, Sachs & Co.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Goldman, Sachs & Co.
	 

	 	 	 	 
	 

	 	 	 	(Goldman, Sachs & Co.)EX-4.4

 

Exhibit 4.4

 
 

WESCO DISTRIBUTION, INC.

7.50% Senior Subordinated Notes due 2017

 

INDENTURE

Dated as of September 27, 2005

 

J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

Trustee

 
 

 

 

TABLE OF CONTENTS

Page

	 	 	 	 	 
	ARTICLE 1 Definitions and Incorporation by Reference
	 	 	2	 
	SECTION 1.01. Definitions
	 	 	2	 
	SECTION 1.02. Incorporation by Reference of Trust Indenture Act
	 	 	22	 
	SECTION 1.03. Rules of Construction
	 	 	23	 
	ARTICLE 2 The Notes
	 	 	23	 
	SECTION 2.01. Amount of Notes; Issuable in Series
	 	 	23	 
	SECTION 2.02. Form and Dating
	 	 	24	 
	SECTION 2.03. Execution and Authentication
	 	 	24	 
	SECTION 2.04. Registrar and Paying Agent
	 	 	25	 
	SECTION 2.05. Paying Agent to Hold Money in Trust
	 	 	26	 
	SECTION 2.06. Noteholder Lists
	 	 	26	 
	SECTION 2.07. Transfer and Exchange
	 	 	26	 
	SECTION 2.08. Replacement Notes
	 	 	27	 
	SECTION 2.09. Outstanding Notes
	 	 	27	 
	SECTION 2.10. Temporary Notes
	 	 	28	 
	SECTION 2.11. Cancellation
	 	 	28	 
	SECTION 2.12. Defaulted Interest
	 	 	28	 
	SECTION 2.13. CUSIP and ISIN Numbers
	 	 	28	 
	ARTICLE 3 Redemption
	 	 	28	 
	SECTION 3.01. Notices to Trustee
	 	 	28	 
	SECTION 3.02. Selection of Notes to Be Redeemed
	 	 	29	 
	SECTION 3.03. Notice of Redemption
	 	 	29	 
	SECTION 3.04. Effect of Notice of Redemption
	 	 	30	 

- i -

 

 

	 	 	 	 	 
	 	 	 	Page  
	 	 	 	 	 
	SECTION 3.05. Deposit of Redemption Price
	 	 	30	 
	SECTION 3.06. Notes Redeemed in Part
	 	 	30	 
	SECTION 3.07. Optional Remption
	 	 	30	 
	SECTION 3.08. Mandatory Redemption
	 	 	31	 
	ARTICLE 4 Covenants
	 	 	31	 
	SECTION 4.01. Payment of Notes
	 	 	31	 
	SECTION 4.02 Maintenance of Office or Agency
	 	 	31	 
	SECTION 4.03 144A Information
	 	 	32	 
	SECTION 4.04 Existence
	 	 	32	 
	SECTION 4.05 Payment of Taxes and Other Claims
	 	 	32	 
	SECTION 4.06. SEC Reports
	 	 	32	 
	SECTION 4.07. Limitation on Indebtedness
	 	 	33	 
	SECTION 4.08. Limitation on Restricted Payments
	 	 	36	 
	SECTION 4.09. Limitation on Restrictions on Distributions from Restricted Subsidiaries
	 	 	39	 
	SECTION 4.10. Limitation on Sales of Assets and Subsidiary Stock
	 	 	40	 
	SECTION 4.11. Limitation on Transactions with Affiliates
	 	 	43	 
	SECTION 4.12. Change of Control
	 	 	44	 
	SECTION 4.13. Compliance Certificate
	 	 	45	 
	SECTION 4.14. Further Instruments and Acts
	 	 	46	 
	SECTION 4.15. Limitation on the Sale or Issuance of Capital Stock of Restricted
Subsidiaries
	 	 	46	 
	SECTION 4.16. Limitation on Liens
	 	 	46	 
	ARTICLE 5 Successor Company
	 	 	46	 
	SECTION 5.01. When Company May Merge or Transfer Assets
	 	 	46	 
	ARTICLE 6 Defaults and Remedies
	 	 	48	 

- ii -

 

 

	 	 	 	 	 
	 	 	 	Page  
	SECTION 6.01. Events of Default
	 	 	48	 
	SECTION 6.02. Acceleration
	 	 	49	 
	SECTION 6.03. Other Remedies
	 	 	50	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	50	 
	SECTION 6.05. Control by Majority
	 	 	50	 
	SECTION 6.06. Limitation on Suits
	 	 	50	 
	SECTION 6.07. Rights of Noteholders to Receive Payment
	 	 	51	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	51	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	51	 
	SECTION 6.10. Priorities
	 	 	51	 
	SECTION 6.11. Undertaking for Costs
	 	 	52	 
	SECTION 6.12. Waiver of Stay, Extension or Usury Laws
	 	 	52	 
	ARTICLE 7 Trustee
	 	 	52	 
	SECTION 7.01. Duties of Trustee
	 	 	52	 
	SECTION 7.02. Rights of Trustee
	 	 	53	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	54	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	54	 
	SECTION 7.05. Notice of Defaults
	 	 	54	 
	SECTION 7.06. Reports by Trustee to Noteholders
	 	 	55	 
	SECTION 7.07. Compensation and Indemnity
	 	 	55	 
	SECTION 7.08. Replacement of Trustee
	 	 	56	 
	SECTION 7.09. Successor Trustee by Merger
	 	 	57	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	57	 
	SECTION 7.11. Preferential Collection of Claims Against Company
	 	 	57	 
	ARTICLE 8 Discharge of Indenture; Defeasance
	 	 	57	 

- iii -

 

 

	 	 	 	 	 
	 	 	 	Page  
	SECTION 8.01. Discharge of Liability on Notes; Defeasance
	 	 	57	 
	SECTION 8.02. Conditions to Defeasance
	 	 	58	 
	SECTION 8.03. Application of Trust Money
	 	 	59	 
	SECTION 8.04. Repayment to Company
	 	 	59	 
	SECTION 8.05. Indemnity for Government Obligations
	 	 	59	 
	SECTION 8.06. Reinstatement
	 	 	60	 
	ARTICLE 9 Amendments
	 	 	60	 
	SECTION 9.01. Without Consent of Noteholders
	 	 	60	 
	SECTION 9.02. With Consent of Noteholders
	 	 	61	 
	SECTION 9.03. Compliance with Trust Indenture Act
	 	 	62	 
	SECTION 9.04. Revocation and Effect of Consents and Waivers
	 	 	62	 
	SECTION 9.05. Notation on or Exchange of Notes
	 	 	62	 
	SECTION 9.06. Trustee to Sign Amendments
	 	 	62	 
	ARTICLE 10 Subordination
	 	 	63	 
	SECTION 10.01. Agreement to Subordinate
	 	 	63	 
	SECTION 10.02. Liquidation, Dissolution, Bankruptcy
	 	 	63	 
	SECTION 10.03. Default on Senior Indebtedness
	 	 	63	 
	SECTION 10.04. Acceleration of Payment of Notes
	 	 	64	 
	SECTION 10.05. When Distribution Must Be Paid Over
	 	 	65	 
	SECTION 10.06. Subrogation
	 	 	65	 
	SECTION 10.07. Relative Rights
	 	 	65	 
	SECTION 10.08. Subordination May Not Be Impaired by the Company
	 	 	65	 
	SECTION 10.09. Rights of Trustee and Paying Agent
	 	 	65	 
	SECTION 10.10. Distribution or Notice to Representative
	 	 	66	 
	SECTION 10.11. Article 10 Not to Prevent Events of Default or
Limit Right to Accelerate
	 	 	66	 

- iv -

 

 

	 	 	 	 	 
	 	 	 	Page  
	SECTION 10.12. Trust Moneys Not Subordinated
	 	 	66	 
	SECTION 10.13. Trustee Entitled to Rely
	 	 	66	 
	SECTION 10.14. Trustee to Effectuate Subordination
	 	 	66	 
	SECTION 10.15. Trustee Not Fiduciary for Holders of Senior
Indebtedness
	 	 	66	 
	SECTION 10.16. Reliance by Holders of Senior Indebtedness on
Subordination Provisions
	 	 	67	 
	SECTION 10.17. Trustee’s Compensation Not Prejudiced
	 	 	67	 
	ARTICLE 11 International Guarantee
	 	 	67	 
	SECTION 11.01. International Guarantee
	 	 	67	 
	SECTION 11.02. Limitation on Liability
	 	 	69	 
	SECTION 11.03. Successors and Assigns
	 	 	69	 
	SECTION 11.04. No Waiver
	 	 	69	 
	SECTION 11.05. Modification
	 	 	70	 
	ARTICLE 12 Miscellaneous
	 	 	70	 
	SECTION 12.01. Trust Indenture Act Controls
	 	 	70	 
	SECTION 12.02. Notices
	 	 	70	 
	SECTION 12.03. Communication by Noteholders with Other Noteholders
	 	 	71	 
	SECTION 12.04. Certificate and Opinion as to Conditions Precedent
	 	 	71	 
	SECTION 12.05. Statements Required in Certificate or Opinion
	 	 	71	 
	SECTION 12.06. When Notes Disregarded
	 	 	71	 
	SECTION 12.07. Rules by Trustee, Paying Agent and Registrar
	 	 	72	 
	SECTION 12.08. Legal Holidays
	 	 	72	 
	SECTION 12.09. GOVERNING LAW
	 	 	72	 
	SECTION 12.10. No Recourse Against Others
	 	 	72	 
	SECTION 12.11. Successors
	 	 	72	 
	SECTION 12.12. Multiple Originals
	 	 	72	 
	SECTION 12.13. Table of Contents; Headings
	 	 	72	 

- v -

 

 

	 	 	 	 	 
	Appendix A

	 	—
	 	Provisions Relating to Original Notes, Additional Notes, Private Exchange
Notes and Exchange Notes
	Exhibit A

	 	—
	 	Form of Initial Note
	Exhibit B

	 	—
	 	Form of Exchange Note
	Exhibit C

	 	—
	 	Form of Transferee Letter of Representation

- vi -

 

 

          INDENTURE dated as of September 27, 2005, among WESCO DISTRIBUTION, INC., a Delaware
corporation (the “Company”), WESCO INTERNATIONAL, INC., a Delaware corporation, as guarantor
(“International”), and J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, a national banking
association, as trustee (the “Trustee”).

          WHEREAS, the Company has duly authorized the creation of an issue of (i) its 7.50% Senior
Subordinated Notes due 2017 (the “Original Notes”), (ii) any Additional Notes (as defined herein)
that may be issued on any Issue Date (all such Notes in clauses (i) and (ii) being referred to
collectively as the “Initial Notes”), (iii) if and when issued as provided in a Registration Rights
Agreement, the Company’s 7.50% Senior Subordinated Notes due 2017 issued in a Registered Exchange
Offer (as defined in the Appendix) in exchange for any Initial Notes (the “Exchange Notes”) and
(iv) if and when issued as provided in a Registration Rights Agreement, the Private Exchange Notes
(as defined in the Appendix) issued in a Private Exchange (as defined in the Appendix, and together
with the Initial Notes and any Exchange Notes issued hereunder, the “Notes”), in each case,
together with the guarantee forming a part thereof of International
(together with the Notes, the “Securities”) having the terms, tenor, amount and other provisions hereinafter set forth, and, to
provide therefor, the Company has duly authorized the execution and delivery of this Indenture. On
the date hereof, $150,000,000 in aggregate principal amount of Notes will initially be issued.
Subject to the conditions and in compliance with the covenants set forth herein, the Company may
issue Additional Notes from time to time;

          WHEREAS, International has duly authorized the International Guarantee, having the terms,
tenor, amount and other provisions hereinafter set forth, and, to provide therefor, International
has duly authorized the execution and delivery of this Indenture; and

          WHEREAS, all things necessary to make the Notes, when the Notes are duly executed by the
Company and authenticated and delivered hereunder and duly issued by the Company, the valid
obligations of the Company, and all things necessary to make the International Guarantee, when the
Notes are duly executed by the Company and authenticated and delivered hereunder and duly issued by
the Company, a valid obligation of International, and to make this Indenture a valid and binding
agreement of the Company and International, in accordance with their and 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:

          For and in consideration of the premises and the purchase of the Securities by the holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
holders of the Notes, as follows:

 

 

ARTICLE 1

Definitions and Incorporation by Reference

          SECTION 1.01. Definitions.

          “Additional Assets” means (i) any property or assets (other than Indebtedness and Capital
Stock) to be used by the Company or a Restricted Subsidiary in a Related Business; (ii) the Capital
Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such
Capital Stock by the Company or another Restricted Subsidiary; or (iii) Capital Stock constituting
a minority interest in any Person that at such time is a Restricted Subsidiary; provided,
however, that any such Restricted Subsidiary described in clause (ii) or (iii) above is
primarily engaged in a Related Business.

          “Additional Notes” means any 7.50% Senior Subordinated Notes due 2017 issued under the terms
of this Indenture subsequent to the Closing Date.

          “Adjusted Consolidated Assets” means at any time the total amount of assets of the Company and
its Restricted Subsidiaries (less applicable depreciation, amortization and other valuation
reserves), after deducting therefrom all current liabilities of the Company and its Restricted
Subsidiaries (excluding intercompany items), all as set forth on the Consolidated balance sheet of
the Company and its Restricted Subsidiaries as of the end of the most recent fiscal quarter for
which financial statements are available prior to the date of determination.

          “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 Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

          “Affiliate Transaction” has the meaning specified in Section 4.11.

          “Asset Disposition” means any sale, lease, transfer or other disposition (or series of related
sales, leases, transfers or dispositions) by the Company or any Restricted Subsidiary, including
any disposition by means of a merger, consolidation, or similar transaction (each referred to for
the purposes of this definition as a “disposition”), of (i) any shares of Capital Stock of a
Restricted Subsidiary (other than directors’ qualifying shares or shares required by applicable law
to be held by a Person other than the Company or a Restricted Subsidiary), (ii) all or
substantially all the assets of any division or line of business of the Company or any Restricted
Subsidiary or (iii) any other assets of the Company or any Restricted Subsidiary outside the
ordinary course of business of the Company or such Restricted Subsidiary (other than, in the case
of (i), (ii) and (iii) above, (A) a disposition by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Wholly Owned Subsidiary, (B) for purposes of the provisions
described in Section 4.10 only, a disposition subject to Section 4.08, (C) a disposition of assets
with a fair market value of less than $5,000,000, (D) a sale of accounts
receivable and related assets of the type specified in the definition of “Qualified
Receivables
 

- 2 -

 

Transaction” to a Receivables Entity in a Qualified Receivables Transaction, (E) a
transfer of accounts receivables and related assets of the type specified in the definition of
“Qualified Receivables Transaction” (or a fractional undivided interest therein) by a Receivables
Entity in a Qualified Receivables Transaction, (F) the disposition of all or substantially all of
the assets of the Company in a manner permitted pursuant to the provisions of Section 5.01 or any
disposition that constitutes a Change of Control, (G) any exchange of like property pursuant to
Section 1031 of the Code for use in a Related Business, and (H) any sale of Capital Stock in, or
Indebtedness or other securities of, an Unrestricted Subsidiary).

          “Attributable Debt” in respect of a Sale/Leaseback Transaction means, as at the time of
determination, the present value (discounted at the interest rate borne by the Notes, compounded
annually) of the total obligations of the lessee for rental payments during the remaining term of
the lease included in such Sale/Leaseback Transaction (including any period for which such lease
has been extended).

          “Average Life” means, as of the date of determination, with respect to any Indebtedness or
Preferred Stock, the quotient obtained by dividing (i) the sum of the products of the numbers of
years from the date of determination to the dates of each successive scheduled principal payment of
such Indebtedness or redemption or similar payment with respect to such Preferred Stock multiplied
by the amount of such payment by (ii) the sum of all such payments.

          “Bank Indebtedness” means any and all amounts payable under or in respect of the Credit
Agreement and any Refinancing Indebtedness with respect thereto, as amended, restated, modified,
supplemented, waived, refinanced, replaced, renewed, extended or otherwise modified 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, indemnities and all other amounts payable thereunder or in
respect thereof.

          “Bankruptcy Law” has the meaning specified in Section 6.01.

          “Blockage Notice” has the meaning specified in Section 10.03.

          “Board of Directors” means the Board of Directors of the Company or any committee thereof duly
authorized to act on behalf of such Board.

          “Borrowing Base” means, as of the date of determination, an amount equal to the sum, without
duplication, of (i) 60% of an amount equal to (A) the net book value of the Company’s and its
Restricted Subsidiaries’ Canadian and U.S. accounts receivables less (B) any Qualified Receivables
Transaction commitment; provided, however, that at such time as all Qualified
Receivables Transactions have been terminated, then 85% of the net book value of the Company’s and
its Restricted Subsidiaries’ Canadian and U.S. accounts receivables, plus (ii) 50% of the net book
value of the Company’s and its Restricted Subsidiaries’ inventories. Net book value shall be
determined in accordance with GAAP and shall be that reflected on the most recent available balance
sheet (it being understood that the accounts receivables and inventories

- 3 -

 

of an acquired business may be included if such acquisition has been completed on or prior to
the date of determination).

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

          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into such equity.

          “Capitalized Lease Obligations” means an obligation that is required to be classified and
accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and
the amount of Indebtedness represented by such obligation shall be the capitalized amount of such
obligation determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of
the last payment of rent or any other amount due under such lease prior to the first date upon
which such lease may be prepaid by the lessee without payment of a penalty.

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

     (i) (A) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 of the Exchange
Act (except that for purposes of this clause such person shall be deemed to have “beneficial
ownership” of all shares that any such person has the right to acquire, whether such right
is exercisable immediately or only after the passage of time), directly or indirectly, of
more than 50% of the total voting power of the Voting Stock of the Company or International;

     (ii) during any period of two consecutive years commencing on the Closing Date,
individuals who at the beginning of such period constituted the board of directors of the
Company or International, as the case may be (together with any new directors whose election
by such board of directors of the Company or International, as the case may be, or whose
nomination for election by the shareholders of the Company or International, as the case may
be, was approved by a vote of 66-2/3% of the directors of the Company or International, as
the case may be, 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 to constitute a majority of the board of directors of the Company or
International, as the case may be, then in office; or

     (iii) the merger or consolidation of the Company or International with or into another
Person or the merger of another Person with or into the Company or International, or the
sale of all or substantially all the assets of the Company or International to another
Person, and, in the case of any such merger or consolidation, the securities of the Company
or International that are outstanding immediately prior to such transaction and which
represent 100% of the aggregate voting power of the Voting Stock of the Company or
International are changed into or exchanged for cash, securities or property, unless
pursuant to such transaction such securities are changed into or

- 4 -

 

exchanged for, in addition to any other consideration, securities of the surviving
Person that represent immediately after such transaction, at least a majority of the
aggregate voting power of the Voting Stock of the surviving Person; provided,
however, that any sale of accounts receivable in connection with a Qualified
Receivables Transaction shall not constitute a Change of Control.

          “Change of Control Offer” has the meaning specified in Section 4.12(b).

          “Closing Date” means the date of this Indenture.

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

          “Company” means the party named as such in this Indenture until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained herein and required by
the TIA, each other obligor on the indenture securities.

          “Consolidated Coverage Ratio” as of any date of determination means the ratio of (i) the
aggregate amount of EBITDA for the period of the most recent four consecutive fiscal quarters for
which internal financial statements are available prior to the date of such determination to (ii)
Consolidated Interest Expense for such four fiscal quarters; provided, however,
that (A) if the Company or any Restricted Subsidiary has Incurred any Indebtedness since the
beginning of such period that remains outstanding on such date of determination or if the
transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence
of Indebtedness, EBITDA and Consolidated Interest Expense for such period shall be calculated after
giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period and the discharge of any other Indebtedness repaid, repurchased,
defeased or otherwise discharged with the proceeds of such new Indebtedness as if such discharge
had occurred on the first day of such period (except that, in making such computation, the amount
of Indebtedness under any revolving credit facility outstanding on the date of such calculation
shall be computed based on (1) the average daily balance of such Indebtedness (and any Indebtedness
under a revolving credit facility replaced by such Indebtedness) during such four fiscal quarters
or such shorter period when such facility and any replaced facility was outstanding or (2) if such
facility was created after the end of such four fiscal quarters, the average daily balance of such
Indebtedness (and any Indebtedness under a revolving credit facility replaced by such Indebtedness)
during the period from the date of creation of such facility to the date of the calculation), (B)
if the Company or any Restricted Subsidiary has repaid, repurchased, defeased or otherwise
discharged any Indebtedness since the beginning of such period or if any Indebtedness is to be
repaid, repurchased, defeased or otherwise discharged (in each case other than Indebtedness
Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid
and has not been replaced) on the date of the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio, EBITDA and Consolidated Interest Expense for such period shall be
calculated on a pro forma basis as if such discharge had occurred on the first day of such period
and as if the Company or such Restricted Subsidiary has not earned the interest income actually
earned during such period in respect of cash or Temporary Cash Investments used to repay,
repurchase, defease or otherwise discharge such Indebtedness, (C) if since the beginning of such
period the Company or any Restricted Subsidiary shall have made any Asset Disposition, the EBITDA
for such period
 

- 5 -

 

shall be reduced by an amount equal to the EBITDA (if positive) directly attributable to the
assets that are the subject of such Asset Disposition for such period or increased by an amount
equal to the EBITDA (if negative) directly attributable thereto for such period and Consolidated
Interest Expense for such period shall be reduced by an amount equal to the Consolidated Interest
Expense directly attributable to any Indebtedness of the Company or any Restricted Subsidiary
repaid, repurchased, defeased or otherwise discharged with respect to the Company and its
continuing Restricted Subsidiaries in connection with such Asset Disposition for such period (or,
if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent
the Company and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness
after such sale), (D) if since the beginning of such period the Company or any Restricted
Subsidiary (by merger or otherwise) shall have made an Investment in any Restricted Subsidiary (or
any Person that becomes a Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction causing a calculation to be made
hereunder, which constitutes all or substantially all of an operating unit of a business, EBITDA
and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect
thereto (including the Incurrence of any Indebtedness) as if such Investment or acquisition
occurred on the first day of such period and (E) if since the beginning of such period any Person
(that subsequently became a Restricted Subsidiary or was merged with or into the Company or any
Restricted Subsidiary since the beginning of such period) shall have made any Asset Disposition or
any Investment or acquisition of assets that would have required an adjustment pursuant to clause
(C) or (D) above if made by the Company or a Restricted Subsidiary during such period, EBITDA and
Consolidated Interest Expense for such period shall be calculated after giving pro forma effect
thereto as if such Asset Disposition, Investment or acquisition of assets occurred on the first day
of such period. For purposes of this definition, whenever pro forma effect is to be given to an
acquisition of assets, the amount of income or earnings relating thereto and the amount of
Consolidated Interest Expense associated with any Indebtedness Incurred in connection therewith,
the pro forma calculations shall be determined in good faith by a responsible financial or
accounting Officer of the Company, and such pro forma calculations shall include (A)(x) the savings
in cost of goods sold that would have resulted from using the Company’s actual costs for comparable
goods and services during the comparable period and (y) other savings in cost of goods sold or
eliminations of selling, general and administrative expenses as determined by a responsible
financial or accounting Officer of the Company in good faith in connection with the Company’s
consideration of such acquisition and consistent with the Company’s experience in acquisitions of
similar assets, less (B) the incremental expenses that would be included in cost of goods sold and
selling, general and administrative expenses that would have been incurred by the Company in the
operation of such acquired assets during such period. If any Indebtedness bears a floating rate of
interest and is being given pro forma effect, the interest expense on such Indebtedness shall be
calculated as if the rate in effect on the date of determination had been the applicable rate for
the entire period (taking into account any Interest Rate Agreement applicable to such Indebtedness
if such Interest Rate Agreement has a remaining term as at the date of determination in excess of

12 months).

          “Consolidated Interest Expense” means, for any period, the total interest expense (net of
interest income) of the Company and its Consolidated Restricted Subsidiaries, plus, to the extent
Incurred by the Company and its Restricted Subsidiaries in such period but not included in such
interest expense, (i) interest expense attributable to Capitalized Lease
 

- 6 -

 

Obligations and the interest expense attributable to leases constituting part of a
Sale/Leaseback Transaction, (ii) amortization of debt discount, (iii) capitalized interest, (iv)
non-cash interest expense, (v) commissions, discounts and other fees and charges attributable to
letters of credit and bankers’ acceptance financing, (vi) interest accruing on any Indebtedness of
any other Person to the extent such Indebtedness is Guaranteed by the Company or any Restricted
Subsidiary, (vii) net costs associated with Hedging Obligations (including amortization of fees),
(viii) dividends in respect of all Preferred Stock of the Company and any of the Restricted
Subsidiaries of the Company (other than pay in kind dividends and accretions to liquidation value)
to the extent held by Persons other than the Company or a Wholly Owned Subsidiary, (ix) interest
Incurred in connection with investments in discontinued operations and (x) the cash contributions
to any employee stock ownership plan or similar trust to the extent such contributions are used by
such plan or trust to pay interest or fees to any Person (other than the Company) in connection
with Indebtedness Incurred by such plan or trust, less, to the extent included in such total
interest expense, the amortization during such period of capitalized financing costs.
Notwithstanding anything to the contrary contained herein, interest expense, commissions,
discounts, yield and other fees and charges Incurred in connection with any Qualified Receivables
Transaction pursuant to which the Company or any Subsidiary may sell, convey or otherwise transfer
or grant a security interest in any accounts receivable or related assets of the type specified in
the definition of “Qualified Receivables Transaction” shall not be included in Consolidated
Interest Expense; provided that any interest expense, commissions, discounts, yield and
other fees and charges Incurred in connection with any receivables financing or securitization that
does not constitute a Qualified Receivables Transaction shall be included in Consolidated Interest
Expense.

          “Consolidated Net Income” means, for any period, the net income of the Company and its
Consolidated Subsidiaries for such period; provided, however, that there shall not
be included in such Consolidated Net Income:

     (i) any net income of any Person (other than the Company) if such Person is not a
Restricted Subsidiary, except that (A) subject to the limitations contained in clause (iv)
below, the Company’s equity in the net income of any such Person for such period shall be
included in such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other distribution
made to a Restricted Subsidiary, to the limitations contained in clause (iii) below) and (B)
the Company’s equity in a net loss of any such Person for such period shall be included in
determining such Consolidated Net Income;

     (ii) any net income (or loss) of any Person acquired by the Company or a Subsidiary in
a pooling of interests transaction for any period prior to the date of such acquisition;

     (iii) any net income (or loss) of any Restricted Subsidiary if such Restricted
Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends
or the making of distributions by such Restricted Subsidiary, directly or indirectly, to the
Company, except that (A) subject to the limitations contained in clause (iv) below, the
Company’s equity in the net income of any such Restricted Subsidiary for such period

- 7 -

 

shall be included in such Consolidated Net Income up to the aggregate amount of cash
which could have been distributed by such Restricted Subsidiary during such period to the
Company or another Restricted Subsidiary as a dividend or other distribution (subject, in
the case of a dividend or other distribution made to another Restricted Subsidiary, to the
limitation contained in this clause) and (B) the Company’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in determining such Consolidated Net
Income;

     (iv) any gain (or loss) realized upon the sale or other disposition of any asset of the
Company or its Consolidated Subsidiaries (including pursuant to any Sale/Leaseback
Transaction) that is not sold or otherwise disposed of in the ordinary course of business
and any gain (or loss) realized upon the sale or other disposition of any Capital Stock of
any Person;

     (v) any extraordinary gain or loss;

     (vi) the cumulative effect of a change in accounting principles; and

     (vii) any expenses or charges paid to third parties related to any Equity Offering,
Permitted Investment, acquisition, recapitalization or Indebtedness permitted to be Incurred
by this Indenture (whether or not successful).

Notwithstanding the foregoing, for the purposes of Section 4.08 only, there shall be excluded from
Consolidated Net Income any dividends, repayments of loans or advances or other transfers of assets
from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the extent such
dividends, repayments or transfers increase the amount of Restricted Payments permitted under such
Section pursuant to clause (a)(3)(D) thereof.

          “Consolidated Net Worth” means the total of the amounts shown on the balance sheet of the
Company and its Restricted Subsidiaries, determined on a Consolidated basis, as of the end of the
most recent fiscal quarter of the Company for which internal financial statements are available, as
(i) the par or stated value of all outstanding Capital Stock of the Company plus (ii) paid-in
capital or capital surplus relating to such Capital Stock plus (iii) any retained earnings or
earned surplus less (A) any accumulated deficit and (B) any amounts attributable to Disqualified
Stock.

          “Consolidation” means the consolidation of the amounts of each of the Restricted Subsidiaries
with those of the Company in accordance with GAAP consistently applied; provided,
however, that “Consolidation” shall not include consolidation of the accounts of any
Unrestricted Subsidiary, but the interest of the Company or any Restricted Subsidiary in an
Unrestricted Subsidiary shall be accounted for as an investment. The term “Consolidated” has a
correlative meaning.

          “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 J.P.
Morgan Trust Company, National Association, Worldwide Securities, 4 New York Plaza, 15th
Floor, New York, New York 10004, Attention: Institutional Trust Services or at

- 8 -

 

any other time at such other address as the Trustee may designate from time to time by notice
to the Company.

          “covenant defeasance option” has the meaning specified in Section 8.01(b).

          “Credit Agreement” means the amended and restated credit agreement dated as of June 17, 2005
among the Company, the other Credit Parties (as defined therein) party thereto, General Electric
Capital Corporation, for itself as lender and as agent for lenders, CIT Group/Business Credit Inc.,
as syndication agent and lender and the other lenders party thereto from time to time, as amended,
waived, restated, supplemented, refinanced, replaced, renewed, extended or otherwise modified from
time to time.

          “Credit Facilities” means, with respect to the Company, one or more debt facilities, or
commercial paper facilities with banks or other institutional lenders or indentures providing for
revolving credit loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow from such lenders
against receivables), letters of credit or other long-term Indebtedness, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to
time.

          “Currency Agreement” means with respect to any Person any foreign exchange contract, currency
swap agreement or other similar agreement or arrangement to which such Person is a party or of
which it is a beneficiary.

          “Custodian” has the meaning specified in Section 6.01.

          “Debentures” means the 2.625% Convertible Senior Debentures due 2025 issued by International
under the indenture dated as of September 27, 2005 among International, the Company, as guarantor
and J.P. Morgan Trust Company, National Association, as trustee.

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

          “Designated Noncash Consideration” means the fair market value of noncash consideration
received by the Company or any of its Restricted Subsidiaries in connection with an Asset
Disposition that is so designated as Designated Noncash Consideration pursuant to an Officers’
Certificate, setting forth the basis of such valuation, less the amount of cash or cash equivalents
received in connection with a subsequent sale of such Designated Noncash Consideration.

          “Designated Senior Indebtedness” of the Company means (i) the Bank Indebtedness and (ii) 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 $25.0 million 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.

- 9 -

 

          “Disqualified Stock” means, with respect to any Person, any Capital Stock which by its
terms (or by the terms of any security into which it is convertible or for which it is exchangeable
or exercisable) or upon the happening of any event (i) matures or is mandatorily redeemable
pursuant to a sinking fund obligation or otherwise, (ii) is convertible or exchangeable for
Indebtedness or Disqualified Stock or (iii) is redeemable at the option of the holder thereof, in
whole or in part, in each case on or prior to the 91st day following the Stated Maturity of the
Notes; provided, however, that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right to require such
Person to repurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or “change
of control” occurring prior to the first anniversary of the Stated Maturity of the Notes shall not
constitute Disqualified Stock if the “asset sale” or “change of control” provisions applicable to
such Capital Stock are not more favorable to the holders of such Capital Stock than the provisions
of Sections 4.10 and 4.12.

          “EBITDA” for any period means the Consolidated Net Income for such period, plus the following
to the extent deducted in calculating such Consolidated Net Income: (i) income tax expense of the
Company and its Consolidated Restricted Subsidiaries, (ii) Consolidated Interest Expense, (iii)
depreciation expense of the Company and its Consolidated Restricted Subsidiaries, (iv) amortization
expense of the Company and its Consolidated Restricted Subsidiaries (excluding amortization expense
attributable to a prepaid cash item that was paid in a prior period), (v) all other non-cash
charges of the Company and its Consolidated Restricted Subsidiaries (excluding any such non-cash
charge to the extent it represents an accrual of or reserve for cash expenditures in any future
period) in each case for such period and (vi) income attributable to discontinued operations.
Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the
depreciation and amortization and non-cash charges of, a Restricted Subsidiary of the Company shall
be added to Consolidated Net Income to compute EBITDA only to the extent (and in the same
proportion) that the net income of such Restricted Subsidiary was included in calculating
Consolidated Net Income and only if a corresponding amount would be permitted at the date of
determination to be dividended to the Company by such Restricted Subsidiary without prior approval
(that has not been obtained), pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations applicable to such
Restricted Subsidiary or its stockholders.

          “Equity Offering” means a public offering of Capital Stock (other than Disqualified Stock) of
the Company or International.

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

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

          “Excluded Contribution” means the Net Cash Proceeds received by the Company from (a)
contributions to its common equity capital and (b) the sale (other than to a Subsidiary or to any
Company or Subsidiary management equity plan or stock option plan or any other management or
employee benefit plan or agreement) of Capital Stock (other than Disqualified Stock) of the
Company, in each case designated as Excluded Contributions pursuant to an Officers’ Certificate
executed by the principal executive officer and the principal financial

- 10 -

 

officer of the Company on the date such capital contributions are made or the date such
Capital Stock is sold.

          “GAAP” means generally accepted accounting principles in the United States of America as in
effect as of the Closing Date, including those set forth in (i) the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants, (ii)
statements and pronouncements of the Financial Accounting Standards Board, (iii) such other
statements by such other entity as approved by a significant segment of the accounting profession,
and (iv) the rules and regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in periodic reports required to be filed pursuant to
Section 13 of the Exchange Act, including opinions and pronouncements in staff accounting bulletins
and similar written statements from the accounting staff of the SEC. All ratios and computations
based on GAAP contained in this Indenture shall be computed in conformity with GAAP.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness 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 (ii) entered into for purposes of assuring in any other manner the obligee of such Indebtedness
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.

          “Guaranteed Obligations” has the meaning specified in Section 11.01.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to any
Interest Rate Agreement or Currency Agreement.

          “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),

     (i) the principal of and premium (if any) in respect of indebtedness of such Person for
borrowed money;

- 11 -

 

     (ii) the principal of and premium (if any) in respect of obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

     (iii) all obligations of such Person in respect of letters of credit or other similar
instruments (including reimbursement obligations with respect thereto) (other than
obligations with respect to letters of credit securing obligations (other than obligations
described in clauses (i), (ii), (iv) and (v) hereof) to the extent such letters of credit
are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later
than the 30th day following payment on the letter of credit so long as such letter of credit
is entered into in the ordinary course of business);

     (iv) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services (except Trade Payables), which purchase price is due more than six
months after the date of placing such property in service or taking delivery and title
thereto or the completion of such services;

     (v) all Capitalized Lease Obligations and all Attributable Debt of such Person;

     (vi) the amount of all obligations of such Person with respect to the redemption,
repayment or other repurchase of any Disqualified Stock or, with respect to any Subsidiary
of such Person, any Preferred Stock (but excluding, in each case, any accrued dividends);

     (vii) all Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided,
however, that the amount of Indebtedness of such Person shall be the lesser of (A)
the fair market value of such asset at such date of determination and (B) the amount of such
Indebtedness of such other Persons;

     (viii) to the extent not otherwise included in this definition, Hedging Obligations of
such Person; and

     (ix) all obligations of the type referred to in clauses (i) through (viii) of other
Persons and all dividends of other Persons for the payment of which, in either case, such
Person is responsible or liable, directly or indirectly, as obligor, guarantor or otherwise,
including by means of any Guarantee.

The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date
of all unconditional obligations as described above and the maximum liability, upon the occurrence
of the contingency giving rise to the obligation, of any contingent obligations at such date;
provided, however, that the amount outstanding at any time of any Indebtedness
Incurred with original issue discount is the face amount of such Indebtedness less the remaining
unamortized portion of the original issue discount of such Indebtedness at such time as determined
in conformity with GAAP. Any “Qualified Receivables Transaction,” whether or not such transfer
constitutes a sale for the purposes of GAAP, shall not constitute Indebtedness hereunder;
provided that any receivables financing or securitization that does not constitute a
Qualified Receivables Transaction and does not qualify as a sale under GAAP shall constitute
Indebtedness hereunder.

- 12 -

 

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

          “Independent Financial Advisor” means an accounting, appraisal, investment banking firm or
consultant of nationally recognized standing that is, in the good faith determination of the
Company, qualified to perform the task for which it has been engaged.

          “Initial Notes” has the meaning specified in the recitals.

          “Interest Rate Agreement” means with respect to any Person any interest rate protection
agreement, interest rate future agreement, interest rate option agreement, interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement as to which such Person is party or a
beneficiary.

          “International Guarantee” means the Guarantee issued by International of the obligations with
respect to the Notes pursuant to the terms of this Indenture.

          “Investment” in any Person means any direct or indirect advance, loan (other than advances to
customers in the ordinary course of business that are recorded as accounts receivable on the
balance sheet of the lender) or other extension of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or other property to
others or any payment for property or services for the account or use of others), or any purchase
or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such Person.
For purposes of the definition of “Unrestricted Subsidiary” and Section 4.08, (i) “Investment”
shall include the portion (proportionate to the Company’s equity interest in such Subsidiary) of
the fair market value of the net assets of any Subsidiary of the Company at the time that such
Subsidiary is designated an Unrestricted Subsidiary; provided, however, that upon a
redesignation of such Subsidiary as a Restricted Subsidiary, the Company shall be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive)
equal to (x) the Company’s “Investment” in such Subsidiary at the time of such redesignation less
(y) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of such Subsidiary at the time of such redesignation; and (ii) any
property transferred to or from an Unrestricted Subsidiary shall be valued at its fair market value
at the time of such transfer, in each case as determined in good faith by the Board of Directors.

          “Issue Date”, with respect to any Initial Notes, means the date on which the Initial Notes are
originally issued.

          “legal defeasance option” has the meaning specified in Section 8.01(b)

          “Legal Holiday” has the meaning specified in Section 12.08.

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

- 13 -

 

          “Net Available Cash” from an Asset Disposition means cash payments received (including (a) any
cash payments received upon the sale or other disposition of any Designated Noncash Consideration
received in any Asset Disposition, (b) any cash proceeds received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise and (c) any cash proceeds from
the sale or other disposition of any securities received as consideration, but only as and when
received, but excluding any other consideration received in the form of assumption by the acquiring
Person of Indebtedness or other obligations relating to the properties or assets that are the
subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case
net of (i) all legal, title and recording tax expenses, commissions and other fees and expenses
incurred (including, without limitation, all broker’s and finder’s fees and expenses, all
investment banking fees and expenses, employee severance and termination costs, and trade payable
and similar liabilities solely related to the assets sold or otherwise disposed of and required to
be paid by the seller as a result thereof), and all Federal, state, provincial, foreign and local
taxes required to be paid or accrued as a liability under GAAP, as a consequence of such Asset
Disposition, (ii) all relocation expenses incurred as a result thereof, (iii) all payments made on
any Indebtedness which is secured by any assets subject to such Asset Disposition, in accordance
with the terms of any Lien upon or other security agreement of any kind with respect to such
assets, or which must by its terms, or in order to obtain a necessary consent to such Asset
Disposition, or by applicable law be repaid out of the proceeds from such Asset Disposition, (iv)
all distributions and other payments required to be made to minority interest holders in
Subsidiaries or joint ventures as a result of such Asset Disposition and (v) appropriate amounts to
be provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated
with the property or other assets disposed of in such Asset Disposition and retained by the Company
or any Restricted Subsidiary after such Asset Disposition.

          “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock, means the cash
proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or payable as a result
thereof.

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

          “Notes” has the meaning specified in the recitals.

          “1998 Notes” means the $300,000,000 aggregate principal amount of the Company’s 9-1/8% Senior
Subordinated Notes due 2008 issued under the 1998 Notes Indenture.

          “1998 Notes Indenture” means the indenture dated as of June 5, 1998, among the Company,
International and J.P. Morgan Trust Company, National Association, as successor trustee to Bank
One, N.A., under which the 1998 Notes were issued.

          “Offer” has the meaning specified in Section 4.10(b).

          “Offer Amount” has the meaning specified in Section 4.10(c)(2).

- 14 -

 

          “Offer Period” has the meaning specified in Section 4.10(c)(2).

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary
or any Assistant Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers.

          “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company or the Trustee.

          “Pay the Notes” has the meaning specified in Section 10.03.

          “Paying Agent” has the meaning specified in Section 2.04.

          “Payment Blockage Period” has the meaning specified in Section 10.03

          “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary in (i)
the Company, a Restricted Subsidiary or a Person that will, upon the making of such Investment,
become a Restricted Subsidiary; (ii) another Person if as a result of such Investment such other
Person is merged or consolidated with or into, or transfers or conveys all or substantially all its
assets to, the Company or a Restricted Subsidiary; (iii) Temporary Cash Investments; (iv)
receivables owing to the Company or any Restricted Subsidiary if created or acquired in the
ordinary course of business and payable or dischargeable in accordance with customary trade terms;
provided, however, that such trade terms may include such concessionary trade terms
as the Company or any such Restricted Subsidiary deems reasonable under the circumstances; (v)
payroll, travel and similar advances to cover matters that are expected at the time of such
advances ultimately to be treated as expenses for accounting purposes and that are made in the
ordinary course of business; (vi) loans or advances to employees made in the ordinary course of
business consistent with past practices of the Company or such Restricted Subsidiary and not
exceeding $5.0 million in the aggregate outstanding at any one time; (vii) stock, obligations or
securities received in settlement of debts created in the ordinary course of business and owing to
the Company or any Restricted Subsidiary or in satisfaction of judgments; (viii) any Person to the
extent such Investment represents the non-cash portion of the consideration received for an Asset
Disposition that was made pursuant to and in compliance with Section 4.10; (ix) Investments made in
connection with any Asset Disposition or other sale, lease, transfer or other disposition permitted
under this Indenture; (x) a Receivables Entity or any Investment by a Receivables Entity in any
other Person in connection with a Qualified Receivables Transaction, including Investments of funds
held in accounts permitted or required by the arrangements governing such Qualified Receivables
Transaction or any related Indebtedness; provided that any Investment in a Receivables
Entity is in the form of a Purchase Money Note, contribution of additional receivables or an equity
interest; (xi) Investments in a Related Business having an aggregate fair market value, taken
together with all other Investments made pursuant to this clause (xi) that are at that time
outstanding (and not including any Investments outstanding on the Closing Date), not to exceed 5%
of Adjusted Consolidated Assets at the time of such Investments (with the fair market value of each
Investment being
 

- 15 -

 

measured at the time made and without giving effect to subsequent changes in value); and (xii)
additional Investments in an aggregate amount which, together with all other Investments made
pursuant to this clause that are then outstanding, does not exceed $10.0 million.

          “Permitted Liens” means (a) Liens of the Company and its Restricted Subsidiaries securing
Indebtedness of the Company or any of its Restricted Subsidiaries Incurred under the Credit
Agreement or other Credit Facilities to the extent permitted to be Incurred under Section
4.07(b)(i) and (xiii); (b) Liens in favor of the Company or its Wholly Owned Restricted
Subsidiaries; (c) Liens on property of a Person existing at the time such Person becomes a
Restricted Subsidiary of the Company or is merged into or consolidated with the Company or any
Restricted Subsidiary of the Company; provided that such Liens were not Incurred in
connection with, or in contemplation of, such merger or consolidation and such Liens do not extend
to or cover any property other than such property, improvements thereon and any proceeds therefrom;
(d) Liens of the Company securing Indebtedness of the Company Incurred under Section 4.07(b)(v);
(e) Liens of the Company and its Restricted Subsidiaries securing Indebtedness of the Company or
any of its Restricted Subsidiaries (including under a Sale/Leaseback Transaction) permitted to be
Incurred under Section 4.07(b)(vi), (vii) and (viii) so long as the Capital Stock, property (real
or personal) or equipment to which such Lien attaches solely consists of the Capital Stock,
property or equipment which is the subject of such acquisition, purchase, lease, improvement,
Sale/Leaseback Transaction and additions and improvements thereto (and the proceeds therefrom); (f)
Liens on property existing at the time of acquisition thereof by the Company or any Restricted
Subsidiary of the Company; provided that such Liens were not Incurred in connection with,
or in contemplation of, such acquisition and such Liens do not extend to or cover any property
other than such property, additions and improvements thereon and any proceeds therefrom; (g) Liens
Incurred or deposits made to secure the performance of tenders, bids, leases, statutory
obligations, surety or appeal bonds, government contracts, performance and return of money bonds or
other obligations of alike nature Incurred in the ordinary course of business; (h) Liens existing
on the Closing Date and any additional Liens created under the terms of the agreements relating to
such Liens existing on the Closing Date; (i) Liens for taxes, assessments or governmental charges
or claims that are not yet delinquent or that are being contested in good faith by appropriate
proceedings; provided that any reserve or other appropriate provision as shall be required
in conformity with GAAP shall have been made therefor; (j) Liens Incurred in the ordinary course of
business of the Company or any Restricted Subsidiary with respect to obligations that do not exceed
$20.0 million in the aggregate at any one time outstanding and that (l) are not Incurred in
connection with or in contemplation of the borrowing of money or the obtaining of advances or
credit (other than trade credit in the ordinary course of business) and (2) do not in the aggregate
materially detract from the value of the property or materially impair the use thereof in the
operation of the business by the Company or such Restricted Subsidiary; (k) statutory Liens of
landlords and warehousemen’s, carrier’s, mechanics’, suppliers’, materialmen’s, repairmen’s or
other like Liens (including contractual landlords’ liens) arising in the ordinary course of
business of the Company and its Restricted Subsidiaries; (l) Liens Incurred or deposits made in the
ordinary course of business of the Company and its Restricted Subsidiaries in connection with
workers’ compensation, unemployment insurance and other types of social security; (m) easements,
rights of way, restrictions, minor defects or irregularities i
n title and other similar charges or
encumbrances not interfering in any material respect with the business of the Company or any of its
Restricted Subsidiaries; (n) Liens securing reimbursement obligations with respect to letters

- 16 -

 

of credit permitted under Section 4.07 which encumber only cash and marketable securities and
documents and other property relating to such letters of credit and the products and proceeds
thereof; (o) judgment and attachment Liens not giving rise to an Event of Default; (p) any interest
or title of a lessor in the property subject to any Capitalized Lease Obligation permitted under
Section 4.07; (q) Liens on accounts receivable and related assets of the type specified in the
definition of “Qualified Receivables Transaction” Incurred in connection with a Qualified
Receivables Transaction; (r) Liens securing Refinancing Indebtedness to the extent such Liens do
not extend to or cover any property of the Company not previously subjected to Liens relating to
the Indebtedness being refinanced; or (s) Liens on pledges of the capital stock of any Unrestricted
Subsidiary securing any Indebtedness of such Unrestricted Subsidiary.

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

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

          “Principal” of a Note means the principal of the Note plus the premium, if any, payable on the
Note that is due or overdue or is to become due at the relevant time.

          “Protected Purchaser” has the meaning specified in Section 2.08.

          “Purchase Date” has the meaning specified in Section 4.10(c)(1).

          “Purchase Money Note” means a promissory note of a Receivables Entity evidencing a line of
credit, which may be irrevocable, from the Company or any Subsidiary of the Company in connection
with a Qualified Receivables Transaction to a Receivables Entity, which note (a) shall be repaid
from cash available to the Receivables Entity, other than (i) amounts required to be established as
reserves pursuant to agreements, (ii) amounts paid to investors in respect of interest, (iii)
principal and other amounts owing to such investors and amounts owing to such investors, (iv)
amounts required to pay expenses in connection with such Qualified Receivables Transaction and (v)
amounts paid in connection with the purchase of newly generated receivables and (b) may be
subordinated to the payments described in (a).

          “Qualified Receivables Transaction” means any financing by the Company or any of its
Subsidiaries of accounts receivable in any transaction or series of transactions that may be
entered into by the Company or any of its Subsidiaries pursuant to which (a) the Company or any of
its Subsidiaries sells, conveys or otherwise transfers to a Receivables Entity and (b) a
Receivables Entity sells, conveys or otherwise transfers to any other Person or grants a security
interest to any Person in, any accounts receivable (whether now existing or arising in the future)
of the Company or any of its Subsidiaries, and any assets related thereto including, without
limitation, all collateral securing such accounts receivable, all contracts and all Guarantees or
other obligations in respect of such accounts receivable, proceeds of such accounts receivable and
other assets which are customarily transferred or in respect of which security interests are

- 17 -

 

customarily granted in connection with asset securitization transactions involving accounts
receivable; provided that (i) the Board of Directors shall have determined in good faith
that such Qualified Receivables Transaction is economically fair and reasonable to the Company and
the Receivables Entity and (ii) all sales of accounts receivable and related assets to the
Receivables Entity are made at fair market value (as determined in good faith by the Company). The
grant of a security interest in any accounts receivable of the Company or any of its Restricted
Subsidiaries to secure Bank Indebtedness shall not be deemed a Qualified Receivables Transaction.

          “Receivables Entity” means any Wholly Owned Subsidiary of the Company (or another Person in
which the Company or any Subsidiary of the Company makes an Investment and to which the Company or
any Subsidiary of the Company transfers accounts receivable and related assets) (i) which engages
in no activities other than in connection with the financing of accounts receivable, all proceeds
thereof and all rights (contractual or other), collateral and other assets relating thereto, and
any business or activities incidental or related to such business, (ii) which is designated by the
Board of Directors (as provided below) as a Receivables Entity and (iii) no portion of the
Indebtedness or any other obligations (contingent or otherwise) of which (A) is Guaranteed by the
Company or any other Subsidiary of the Company (excluding Guarantees of obligations (other than the
principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings), (B)
is recourse to or obligates the Company or any other Subsidiary of the Company in any way other
than pursuant to Standard Securitization Undertakings or (C) subjects any property or asset of the
Company or any other Subsidiary of the Company, directly or indirectly, contingently or otherwise,
to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings. Any such
designation by the Board of Directors shall be evidenced to the Trustee by filing with the Trustee
a certified copy of the resolution of the Board of Directors giving effect to such designation and
an Officers’ Certificate certifying that such designation complied with the foregoing conditions.

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

          “Refinancing Indebtedness” means Indebtedness that is Incurred to refund, refinance, replace,
renew, repay or extend (including pursuant to any defeasance or discharge mechanism) any
Indebtedness of the Company or any Restricted Subsidiary existing on the Closing Date, or Incurred
in compliance with this Indenture (including Indebtedness of the Company that Refinances
Refinancing Indebtedness); provided, however, that (i) the Refinancing Indebtedness
has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being Refinanced,
(ii) the Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness is
Incurred that is equal to or greater than the Average Life of the Indebtedness being refinanced and
(iii) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with
original issue discount, an aggregate issue price) that is equal to or less than the aggregate
principal amount (or if issued with original issue discount, the aggregate accreted value) then
outstanding of the Indebtedness being Refinanced (plus any accrued interest and premium thereon and
reasonable expenses Incurred in connection therewith); provided further,
however, that Refinancing Indebtedness shall not include (x)

- 18 -

 

Indebtedness of a Restricted Subsidiary that Refinances Indebtedness of the Company or (y)
Indebtedness of the Company or a Restricted Subsidiary that Refinances Indebtedness of an
Unrestricted Subsidiary.

          “Registrar” has the meaning specified in Section 2.04.

          “Registration Rights Agreement” means (i) the exchange and registration rights agreement dated
September 27, 2005 by and among the Company, International and the initial purchasers set forth
therein and (ii) any other similar Exchange and Registration Rights Agreement relating to
Additional Notes.

          “Related Business” means any businesses of the Company and the Restricted Subsidiaries on the
Closing Date and any business related, ancillary or complementary thereto.

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

          “Restricted Payment” has the meaning specified in Section 4.08(b).

          “Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted
Subsidiary.

          “Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter
acquired by the Company or a Restricted Subsidiary whereby the Company or a Restricted Subsidiary
transfers such property to a Person and the Company or such Restricted Subsidiary leases it from
such Person, other than leases between the Company and a Wholly Owned Subsidiary or between Wholly
Owned Subsidiaries.

          “SEC” means the Securities and Exchange Commission.

          “Secured Indebtedness” means any Indebtedness of the Company secured by a Lien. “Secured
Indebtedness” of International has a correlative meaning.

          “Securities” has the meaning specified in the recital.

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

          “Senior Discount Notes” means the 11-1/8% senior discount notes due 2008 issued by
International under the indenture dated as of June 5, 1998 between International and J.P. Morgan
Trust Company, National Association, as trustee.

          “Senior Indebtedness” of the Company means the principal of, premium (if any) and 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 all other amounts owing in
respect of, Bank Indebtedness and all other Indebtedness of the Company, whether outstanding on the
Closing Date 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

- 19 -

 

superior in right of payment to the Notes; provided, however, that Senior
Indebtedness shall not include (i) any obligation of the Company to any Subsidiary, (ii) any
liability for federal, state, local or other taxes owed or owing by the Company, (iii) any accounts
payable or other liability to trade creditors arising in the ordinary course of business (including
Guarantees thereof or instruments evidencing such liabilities), (iv) any Indebtedness 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 of the Company and any Subordinated Obligations of
the Company, (v) any payment obligations with respect to any Capital Stock or (vi) any Indebtedness
Incurred in violation of this Indenture. “Senior Indebtedness” of International has a correlative
meaning.

          “Senior Subordinated Indebtedness” of the Company means the 1998 Notes, 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 International has a correlative meaning.

          “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Company within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC, but shall in no event include a Receivables Entity.

          “Standard Securitization Undertakings” means representations, warranties, covenants and
indemnities entered into by the Company or any Subsidiary of the Company which the Company has
determined in good faith to be customary in an accounts receivable transaction including, without
limitation, those relating to the servicing of the assets of a Receivables Entity.

          “Stated Maturity” means, with respect to any security, the date specified in such security as
the fixed date on which the final payment of principal of such security is due and payable,
including pursuant to any mandatory redemption provision (but excluding any provision providing for
the repurchase of such security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has occurred).

          “Subordinated Obligation” means any Indebtedness of the Company (whether outstanding on the
Closing Date or thereafter Incurred) that is subordinate or junior in right of payment to the Notes
pursuant to a written agreement. “Subordinated Obligation” of International has a correlative
meaning.

          “Subsidiary” of any Person means any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital Stock or other
interests (including partnership interests) 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 (i) such Person, (ii) such Person and one or more
Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

- 20 -

 

          “Successor Company” has the meaning specified in Section 5.01.

          “Temporary Cash Investments” means any of the following: (i) any investment in direct
obligations of the United States of America or any agency thereof or obligations Guaranteed by the
United States of America or any agency thereof, (ii) investments in time deposit accounts,
certificates of deposit and money market deposits maturing within one year of the date of
acquisition thereof issued by a bank or trust company that is organized under the laws of the
United States of America, any state thereof or any foreign country recognized by the United States
of America having capital, surplus and undivided profits aggregating in excess of $100,000,000 (or
the foreign currency equivalent thereof) and whose long-term debt is rated “A” (or such similar
equivalent rating) or higher by at least one nationally recognized statistical rating organization
(as defined in Rule 436 under the Securities Act) or any money market fund sponsored by a
registered broker-dealer or mutual fund distributor, (iii) repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in clause (i) above entered
into with a financial institution meeting the qualifications described in clause (ii) above, (iv)
investments in commercial paper, maturing not more than one year after the date of acquisition,
issued by a corporation (other than an Affiliate of the Company) organized and in existence under
the laws of the United States of America or any foreign country recognized by the United States of
America with a rating at the time as of which any investment therein is made of “P-1” (or higher)
according to Moody’s Investors Service, Inc. or “A-1” (or higher) according to Standard and Poor’s
Ratings Service, a division of The McGraw-Hill Companies, Inc. (“S&P”), and (v) investments in
securities with maturities of one year or less from the date of acquisition issued or fully
guaranteed by any state, commonwealth or territory of the United States of America, or by any
political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A” by Moody’s
Investors Service, Inc.

          “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb), as amended, as in effect on the date of this Indenture.

          “Trade Payables” means, with respect to any Person, any accounts payable or any indebtedness
or monetary obligation to trade creditors created, assumed or Guaranteed by such Person arising in
the ordinary course of business in connection with the acquisition of goods or services.

          “Trust Officer” means the Chairman of the Board, the President or any other officer or
assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters.

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

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

          “Unrestricted Subsidiary” means (i) any Subsidiary of the Company that at the time of
determination shall be designated an Unrestricted Subsidiary by the Board of Directors in the
manner provided below and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of

- 21 -

 

Directors may designate any Subsidiary of the Company (including any newly acquired or newly
formed Subsidiary of the Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of
its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on any
property of, the Company or any other Subsidiary of the Company that is not a Subsidiary of the
Subsidiary to be so designated; provided, however, that either (A) the Subsidiary
to be so designated has total Consolidated assets of $1,000 or less or (B) if such Subsidiary has
Consolidated assets greater than $1,000, then such designation would be permitted under Section
4.08. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, however, that immediately after giving effect to such
designation (x) the Company could Incur $1.00 of additional Indebtedness under Section 4.07(a) and
(y) no Default shall have occurred and be continuing. Any such designation of a Subsidiary as a
Restricted Subsidiary or Unrestricted Subsidiary by the Board of Directors shall be evidenced to
the Trustee by promptly filing with the Trustee a copy of the resolution of the Board of Directors
giving effect to such designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions.

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

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

          “Wholly Owned Subsidiary” means a Restricted Subsidiary of the Company, all the Capital Stock
of which (other than directors’ qualifying shares) is owned by the Company or another Wholly Owned
Subsidiary

          SECTION 1.02. Incorporation by Reference of Trust Indenture Act. This Indenture is
subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a
part of this Indenture. The following TIA terms have the following meanings:

          “Commission” means the SEC.

          “indenture securities” means the Notes and the International Guarantee.

          “indenture security holder” means a Noteholder.

          “indenture to be qualified” means this Indenture.

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

          “obligor” on the indenture securities means the Company, International and any other obligor
on the indenture securities.

- 22 -

 

          All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule have the meanings assigned to them by such
definitions.

          SECTION 1.03. Rules of Construction. Unless the context otherwise requires:

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

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

     (3) “or” is not exclusive;

     (4) “including” means including without limitation;

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

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

     (7) the principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance sheet of the
issuer dated such date prepared in accordance with GAAP; and

     (8) the principal amount of any Preferred Stock shall be (i) the maximum liquidation
value of such Preferred Stock or (ii) the maximum mandatory redemption or mandatory
repurchase price with respect to such Preferred Stock, whichever is greater.

ARTICLE 2

The Notes

          SECTION 2.01. Amount of Notes; Issuable in Series. The aggregate principal amount of
Notes which may be authenticated and delivered under this Indenture shall not be limited. The
Notes may be issued in one or more series. All Notes of any one series shall be substantially
identical except as to denomination.

          With respect to any Additional Notes issued after the Closing Date (except for Notes
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Notes pursuant to Section 2.07, 2.08, 2.09, 2.10 or 3.06 or the Appendix), there shall be (i)
established in or pursuant to a resolution of the Board of Directors and (ii) (A) set forth or
determined in the manner provided in an Officers’ Certificate or (B) established in one or
more indentures supplemental hereto, prior to the issuance of such Additional Notes:

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

- 23 -

 

     (2) the aggregate principal amount of such Additional Notes which may be authenticated
and delivered under this Indenture, which may be in an unlimited aggregate principal amount;

     (3) the issue price and issuance date of such Additional Notes, including the date from
which interest on such Additional Notes shall accrue;

     (4) if applicable, that such Additional Notes shall be issuable in whole or in part in
the form of one or more Global Notes (as defined in the Appendix) and, in such case, the
respective depositaries for such Global Notes, the form of any legend or legends which shall
be borne by such Global Notes in addition to or in lieu of those set forth in Exhibit A
hereto and any circumstances in addition to or in lieu of those set forth in Section 2.3 of
the Appendix in which any such Global Note may be exchanged in whole or in part for
Additional Notes registered, or any transfer of such Global Note in whole or in part may be
registered, in the name or names of Persons other than the depositary for such Global Note
or a nominee thereof; and

     (5) if applicable, that such Additional Notes shall not be issued in the form of
Initial Notes as set forth in Exhibit A, but shall be issued in the form of Exchange Notes
as set forth in Exhibit B.

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

          SECTION 2.02. Form and Dating. Provisions relating to the Original Notes, the
Additional Notes, the Private Exchange Notes and the Exchange Notes are set forth in the Appendix,
which is hereby incorporated in and expressly made a part of this Indenture. The (i) Original
Notes and the Trustee’s certificate of authentication, (ii) Private Exchange Notes and the
Trustee’s certificate of authentication and (iii) any Additional Notes (if issued as Transfer
Restricted Notes (as defined in the Appendix)) and the Trustee’s certificate of authentication
shall each be substantially in the form of Exhibit A hereto, which is hereby incorporated in and
expressly made a part of this Indenture. The Exchange Notes and any Additional Notes issued other
than as Transfer Restricted Notes and the Trustee’s certificate of authentication shall each be
substantially in the form of Exhibit B hereto, which is hereby incorporated in and expressly made a
part of this Indenture. The Notes may have notations, legends or endorsements required by law,
stock exchange rule, agreements to which the Company or International is subject, if any, or
usage (provided that any such notation, legend or endorsement is in a form acceptable to the
Company). Each Note shall be dated the date of its authentication. The Notes shall be issued only
in registered form without coupons and only in denominations of $2,000 and integral multiples of
$1,000.

          SECTION 2.03. Execution and Authentication. One or more Officers shall sign the
Notes for the Company by manual or facsimile signature.

- 24 -

 

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

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

          The Trustee shall authenticate and make available for delivery Notes as set forth in the
Appendix.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Company to
authenticate the Notes. Any such appointment shall be evidenced by an instrument signed by a Trust
Officer, a copy of which shall be furnished to the Company. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of
notices and demands.

          SECTION 2.04. Registrar and Paying Agent. The Company shall maintain an office or
agency where Notes may be presented for registration of transfer or for exchange (the “Registrar”)
and an office or agency where Notes may be presented for payment (the “Paying Agent”). The
Corporate Trust Office shall be considered as one such office or agency of the Company for each of
the aforesaid purposes. The Registrar shall keep a register of the Notes and of their transfer and
exchange. The Company may have one or more co-registrars and one or more additional paying agents.
The term “Paying Agent” includes any additional paying agent, and the term “Registrar” includes
any co-registrars. The Company initially appoints the Trustee as (i) Registrar and Paying Agent in
connection with the Notes and (ii) the Custodian (as defined in the Appendix) with respect to the
Global Notes.

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

          The Company may remove any Registrar or Paying Agent upon written notice to such Registrar or
Paying Agent and to the Trustee; provided, however, that no such removal shall
become effective until (1) acceptance of an appointment by a successor as evidenced by an
appropriate agreement entered into by the Company and such successor Registrar or Paying Agent, as
the case may be, and delivered to the Trustee or (2) notification to the Trustee that the Trustee
shall serve as Registrar or Paying Agent until the appointment of a successor in accordance with
clause (1) above. The Registrar or Paying Agent may resign at any time upon written notice;
provided, however, that the Trustee may resign as Paying Agent or Registrar only if
the Trustee also resigns as Trustee in accordance with Section 7.08.

- 25 -

 

          SECTION 2.05. Paying Agent to Hold Money in Trust. Prior to each due date of the
principal and interest on any Note, the Company shall deposit with the Paying Agent (or if the
Company or a Subsidiary is acting as Paying Agent, segregate and hold in trust for the benefit of
the Persons entitled thereto) a sum sufficient to pay such principal and interest when so becoming
due. The Company shall require each Paying Agent (other than the Trustee) to agree in writing that
the Paying Agent shall hold in trust for the benefit of Noteholders or the Trustee all money held
by the Paying Agent for the payment of principal of or interest on the Notes and shall notify the
Trustee of any default by the Company in making any such payment. If the Company or a Subsidiary
of the Company acts as Paying Agent, it shall segregate the money held by it as Paying Agent and
hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all
money held by it to the Trustee and to account for any funds disbursed by the Paying Agent. Upon
complying with this Section, the Paying Agent shall have no further liability for the money
delivered to the Trustee.

          SECTION 2.06. Noteholder Lists. The Trustee shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and addresses of
Noteholders. If the Trustee is not the Registrar, the Company shall furnish, or cause the
Registrar to furnish, to the Trustee, in writing at least five Business Days before each interest
payment date and at such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses of Noteholders.

          SECTION 2.07. Transfer and Exchange. The Notes shall be issued in registered form
and shall be transferable only upon the surrender of a Note for registration of transfer and in
compliance with the Appendix. When a Note is presented to the Registrar with a request to register
a transfer, the Registrar shall register the transfer as requested if the requirements of Section
8-401(a)(l) of the Uniform Commercial Code are met. When Notes are presented to the Registrar with
a request to exchange them for an equal principal amount of Notes of other denominations, the
Registrar shall make the exchange as requested if the same requirements are met. To permit
registration of transfers and exchanges, the Company shall execute and the Trustee shall
authenticate Notes at the Registrar’s request. The Company may require payment of a sum sufficient
to pay all taxes, assessments or other governmental charges in connection with any transfer or
exchange pursuant to this Section. The
Company shall not be required to make and the Registrar need not register transfers or
exchanges of Notes selected for redemption (except, in the case of Notes to be redeemed in part,
the portion thereof not to be redeemed) or any Notes for a period of 15 days before a selection of
Notes to be redeemed.

          Prior to the due presentation for registration of transfer of any Note, the Company,
International, the Trustee, the Paying Agent, and the Registrar may deem and treat the Person in
whose name a Note is registered as the absolute owner of such Note for the purpose of receiving
payment of principal of and interest, if any, on such Note and for all other purposes whatsoever,
whether or not such Note is overdue, and none of the Company, International, the Trustee, the
Paying Agent, or the Registrar shall be affected by notice to the contrary.

          Any Holder of a Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interest in such Global Note may be effected only through a book-entry system maintained
by (i) the Noteholder of such Global Note (or its agent) or (ii) any Noteholder

- 26 -

 

of a beneficial interest in such Global Note, and that ownership of a beneficial interest in such Global Note shall
be required to be reflected in a book entry.

          All Notes issued upon any transfer or exchange pursuant to the terms of this Indenture will
evidence the same debt and will be entitled to the same benefits under this Indenture as the Notes
surrendered upon such transfer or exchange.

          SECTION 2.08. Replacement Notes. If a mutilated Note is surrendered to the Registrar
or if the Noteholder of a Note claims that the Note has been lost, destroyed or wrongfully taken,
the Company shall issue and the Trustee shall authenticate a replacement Note if the requirements
of Section 8-405 of the Uniform Commercial Code are met, such that the Noteholder (i) satisfies the
Company or the Trustee within a reasonable time after he has notice of such loss, destruction or
wrongful taking and the Registrar does not register a transfer prior to receiving such
notification, (ii) makes such request to the Company or the Trustee prior to the Note being
acquired by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code (a
“protected purchaser”) and (iii) satisfies any other reasonable requirements of the Trustee. If
required by the Trustee or the Company, such Noteholder shall furnish an indemnity bond sufficient
in the judgment of the Trustee to protect the Company, the Trustee, the Paying Agent and the
Registrar from any loss that any of them may suffer if a Note is replaced. The Company and the
Trustee may charge the Noteholder for their expenses in replacing a Note. In the event any such
mutilated, lost, destroyed or wrongfully taken Note has become or is about to become due and
payable, the Company in its discretion may pay such Note instead of issuing a new Note in
replacement thereof.

          Every replacement Note is an additional obligation of the Company.

          The provisions of this Section 2.08 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, lost,
destroyed or wrongfully taken Notes.

          SECTION 2.09. Outstanding Notes. Notes outstanding at any time are all Notes authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in this Section as not
outstanding. A Note does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Note.

          If a Note is replaced pursuant to Section 2.08, it ceases to be outstanding unless the Trustee
and the Company receive proof satisfactory to them that the replaced Note is held by a protected
purchaser.

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

- 27 -

 

          SECTION 2.10. Temporary Notes. In the event that Definitive Notes (as defined in the
Appendix) are to be issued under the terms of this Indenture, until such Definitive Notes are ready
for delivery, the Company may prepare and the Trustee shall authenticate temporary Notes.
Temporary Notes shall be substantially in the form of Definitive Notes but may have variations that
the Company considers appropriate for temporary Notes. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Definitive Notes and deliver them in exchange for
temporary Notes upon surrender of such temporary Notes at the office or agency of the Company,
without charge to the Noteholder.

          SECTION 2.11. Cancellation. The Company at any time may deliver Notes to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else
shall cancel all Notes surrendered for registration of transfer, exchange, payment or cancellation
and deliver canceled Notes to the Company pursuant to written direction by an Officer. The Company
may not issue new Notes to replace Notes it has redeemed, paid or delivered to the Trustee for
cancellation. The Trustee shall not authenticate Notes in place of canceled Notes other than
pursuant to the terms of this Indenture.

          SECTION 2.12. Defaulted Interest. If the Company defaults in a payment of interest
on the Notes, the Company shall pay the defaulted interest (plus interest on such defaulted
interest at the rate of 7.50% per annum to the extent lawful) in any lawful manner. The Company
may pay the defaulted interest to the Persons who are Noteholders on a subsequent special record
date. The Company shall fix or cause to be fixed any such special record date and payment date to
the reasonable satisfaction of the Trustee and shall promptly mail or cause to be mailed to each
Noteholder a notice that states the special record date, the payment date and the amount of
defaulted interest to be paid.

          SECTION 2.13. CUSIP and ISIN Numbers. The Company in issuing the Notes may use
“CUSIP” and “ISIN” numbers (if then generally in use) and, if so, the Trustee shall use “CUSIP” and
“ISIN” numbers in notices of redemption as a convenience to Noteholders; provided,
however, 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.

ARTICLE 3

Redemption

          SECTION 3.01. Notices to Trustee. If the Company elects to redeem Notes pursuant to
paragraph 5 of the Notes, it shall notify the Trustee in writing of the redemption date and the
principal amount of Notes to be redeemed.

          The Company shall give each notice to the Trustee provided for in this Section at least five
Business Days before the redemption date unless the Trustee consents to a shorter period. Such
notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel

- 28 -

 

from the Company to the effect that such redemption will comply with the conditions herein. If fewer than all the
Notes are to be redeemed, the record date relating to such redemption shall be selected by the
Company and given to the Trustee, which record date shall be not fewer than 15 days after the date
of notice to the Trustee. Any such notice may be canceled at any time prior to notice of such
redemption being mailed to any Noteholder and shall thereby be void and of no effect.

          SECTION 3.02. Selection of Notes to Be Redeemed. If fewer than all the Notes are to
be redeemed, the Trustee shall select the Notes to be redeemed pro rata or by lot. The Trustee
shall make the selection from outstanding Notes not previously called for redemption. The Trustee
may select for redemption portions of the principal of Notes that have denominations larger than
$2,000. Notes and portions of them that the Trustee selects shall be in amounts of $2,000 or any
integral multiple of $1,000. Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption. The Trustee shall notify the
Company promptly of the Notes or portions of Notes to be redeemed.

          SECTION 3.03. Notice of Redemption. At least 30 days but not more than 60 days
before a date for redemption of Notes, the Company shall mail a notice of redemption by first-class
mail to each Noteholder of Notes to be redeemed at such Noteholder’s registered address.

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

       (1) the redemption date;

       (2) the redemption price and the amount of accrued interest to the redemption date;

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

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

       (5) if fewer than all of the outstanding Notes are to be redeemed, the certificate
numbers and principal amounts of the particular Notes to be redeemed;

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

       (7) the CUSIP or ISIN number, if any, printed on the Notes being redeemed;

       (8) that no representation is made as to the correctness or accuracy of the CUSIP
number or ISIN number, if any, listed in such notice or printed on the Notes; and

       (9) if applicable, that a Change of Control has occurred and the circumstances and
relevant facts regarding such Change of Control.

- 29 -

 

          At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at the Company’s expense. In such event, the Company shall provide the Trustee with the
information required by this Section.

          SECTION 3.04. Effect of Notice of Redemption. Once notice of redemption is mailed,
Notes called for redemption become due and payable on the redemption date and at the redemption
price stated in the notice (except as specifically provided for in Section 3.07). Upon surrender
to the Paying Agent, such Notes shall be paid at the redemption price stated in the notice, plus
accrued interest, if any, to the redemption date; provided, however, that if the
redemption date is after a regular record date and on or prior to the interest payment date, the
accrued interest shall be payable to the Noteholder of the redeemed Notes registered on the
relevant record date. Failure to give notice or any defect in the notice to any Noteholder shall
not affect the validity of the notice to any other Noteholder.

          SECTION 3.05. Deposit of Redemption Price. Prior to 10:00 a.m. on the redemption
date, the Company shall deposit with the Paying Agent (or, if the Company or a Subsidiary is the
Paying Agent, shall segregate and hold in trust) money sufficient to pay the redemption price of
and accrued interest on all Notes to be redeemed on that date other than Notes or portions of Notes
called for redemption that have been delivered by the Company to the Trustee for cancellation.

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

          SECTION 3.07. Optional Remption. Except as set forth in the following paragraph, the
Notes will not be redeemable at the option of the Company prior to October 15, 2010. Thereafter,
the Notes will be redeemable at the option of the Company, in whole or in part, upon not less than
30 nor more than 60 days’ prior notice, at the following redemption prices (expressed as
percentages of principal amount), plus accrued and unpaid interest and additional interest (if any)
to the redemption date (subject to the right of holders of record on the relevant record date to
receive interest due on the relevant interest payment date), if redeemed during the 12-month period
commencing on October 15 of the years set forth below:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2010
	 	 	103.750	%
	2011
	 	 	102.500	%
	2012
	 	 	101.250	%
	2013 and thereafter
	 	 	100.000	%

          Notwithstanding the foregoing, at any time prior to October 15, 2008, the Company may on any
one or more occasions redeem up to an aggregate of 35% of the notes originally issued at a
redemption price of 107.500% of the principal amount thereof, plus accrued and unpaid interest and
additional interest, if any, to the redemption date, with the Net Cash

- 30 -

 

Proceeds of one or more
Equity Offerings by the Company or the Net Cash Proceeds of one more Equity Offerings by
International that are contributed to the Company as common equity capital; provided,
that, at least 65% of the Notes originally issued remain outstanding immediately after the
occurrence of each such redemption; and provided, further, that any such redemption must occur
within 120 days of the date of the closing of such Equity Offering. Notice of any redemption upon
any Equity Offering may be given prior to the redemption thereof, and any such redemption or notice
may, at the Company’s discretion, be subject to the completion of the related Equity Offering.

          SECTION 3.08. Mandatory Redemption. The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

ARTICLE 4

Covenants

          SECTION 4.01. Payment of Notes.
The Company shall promptly pay the principal of and interest on the Notes on the dates and in
the manner provided in the Notes and in this Indenture. Principal and interest shall be considered
paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with this
Indenture money sufficient to pay all principal and interest then due and the Trustee or the Paying
Agent, as the case may be, is not prohibited from paying such money to the Noteholders on that date
pursuant to the terms of this Indenture.

          The Company shall pay interest on overdue principal at the rate specified therefor in the
Notes, and it shall pay interest on overdue installments of interest at the same rate to the extent
lawful.

          SECTION 4.02 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 redemption or
repurchase and where notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. As of the date of this Indenture, such office is located at the office of
the Trustee located at J.P. Morgan Trust Company, National Association, Worldwide Securities, 4 New
York Plaza, 15th Floor, New York, New York 10004, Attention: Institutional Trust
Services and, at any other time, at such other address as the Trustee may designate from time to
time by notice to the Company. 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

- 31 -

 

notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or
agency.

          So long as the Trustee is the Registrar, the Trustee agrees to mail, or cause to be mailed,
the notices set forth in Section 7.08. 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 4.03 144A Information. The Company covenants and agrees that it shall,
during any period in which International or the Company is not subject to Section 13 or 15(d) under
the Exchange Act, make available to any holder or beneficial holder of the Notes which continue to
bear the Restricted Notes Legend (as defined in Appendix A) and any prospective purchaser of the
Notes 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, all to the
extent required to enable such holder or beneficial holder to sell its Notes without
registration under the Securities Act within the limitation of the exemption provided by Rule 144A.

          SECTION 4.04 Existence. Subject to Article 5 hereof, 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 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 4.05 Payment of Taxes and Other Claims. The Company will pay or discharge,
or cause to be paid or discharged, before the same may become delinquent, (i) all taxes,
assessments and governmental charges levied or imposed upon the Company or any Significant
Subsidiary or upon the income, profits or property of the Company or any Significant Subsidiary,
(ii) all claims for labor, materials and supplies which, if unpaid, might by law become a lien or
charge upon the property of the Company or any Significant Subsidiary and (iii) all stamp taxes and
other duties, if any, which may be imposed by the United States or any political subdivision
thereof or therein in connection with the issuance, transfer, exchange, redemption or repurchase of
any Notes or with respect to this Indenture; provided, that, in the case of clauses
(i) and (ii), the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim (A) if the failure to do so will not, in the
aggregate, have a material adverse impact on the Company, or (B) if the amount, applicability or
validity is being contested in good faith by appropriate proceedings.

          SECTION 4.06. SEC Reports. International shall continue to file with the SEC and
provide the Trustee and any Noteholder or prospective Noteholder (upon the request of such
Noteholder or prospective Noteholder) with such annual reports and such information, documents and
other reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a
U.S. corporation subject to such Sections, such information, documents and other reports to be so
filed and provided at the times specified for the filing of such information, documents and reports
under such Sections.

- 32 -

 

          Notwithstanding that International may not be subject to the reporting requirements of Section
13 or 15(d) of the Exchange Act or otherwise report on an annual and quarterly basis on forms
provided for such annual and quarterly reporting pursuant to rules and regulations promulgated by
the SEC, International shall file with the SEC (and make available to the Trustee and Noteholders
(without exhibits), without cost to any Noteholder, within 15 days after the Company files them
with the SEC),

(1) within 90 days after the end of each fiscal year, annual reports on Form 10-K, or any
successor or comparable form, containing the information required to be contained therein,
or required in such successor or comparable form;

(2) within 45 days after the end of each of the first three fiscal quarters of each fiscal
year, reports on Form 10-Q containing all quarterly information that would be required to be
contained in Form 10-Q, or any successor or comparable form;

(3) promptly from time to time after the occurrence of an event required to be therein
reported, such other reports on Form 8-K, or any successor or comparable form; and

(4) any other information, documents and other reports that International would be required
to file with the SEC if it were subject to Section 13 or 15(d) of the Exchange Act;

in each case, in a manner that complies in all material respects with the requirements specified in
such form; provided, that International shall not be so obligated to file such
reports with the SEC if the SEC does not permit such filing, in which event International shall
make available such information to prospective purchasers of Notes, in addition to providing such
information to the Trustee and the Noteholders, in each case, within 15 days after the time
International would be required to file such information with the SEC, if it were subject to
Sections 13 or 15(d) of the Exchange Act.

          SECTION 4.07. Limitation on Indebtedness. (a) The Company shall not, and shall not
permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness;
provided, however, that the Company may Incur Indebtedness if on the date of such
Incurrence and after giving effect thereto, the Consolidated Coverage Ratio would be greater than
2.00:1.00.

          (b) Notwithstanding Section 4.07(a), the Company and its Restricted Subsidiaries may Incur the
following Indebtedness:

     (i) Indebtedness Incurred pursuant to the Credit Agreement or any other Credit Facility
in an aggregate principal amount up to the greater of the Borrowing Base and $350 million;

     (ii) Indebtedness of the Company owed to and held by any Wholly Owned Subsidiary or
Indebtedness of a Restricted Subsidiary owed to and held by the Company or any Wholly Owned
Subsidiary; provided, however, that (A) any subsequent issuance or transfer
of any Capital Stock or any other event that results in any such Wholly Owned Subsidiary
ceasing to be a Wholly Owned Subsidiary or any subsequent transfer of any such Indebtedness
(except to the Company or a Wholly Owned Subsidiary) shall be

- 33 -

 

deemed, in each case, to
constitute the Incurrence of such Indebtedness by the issuer thereof and (B) if the Company
is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the
prior payment in full in cash of all obligations with respect to the Notes;

     (iii) Indebtedness (A) represented by the Notes (not including any Additional Notes)
and the Exchange Notes, (B) outstanding on the Closing Date, including the Guarantee by the
Company of the Debentures (other than the Indebtedness described in clauses (i) and (ii)
above ), (C) consisting of Refinancing Indebtedness Incurred in
respect of any Indebtedness described in this clause (iii) (including Indebtedness that
Refinances any Refinancing Indebtedness) or Section 4.07(a) and (D) consisting of Guarantees
of any Indebtedness permitted under clauses (i) and (ii) of this paragraph (b);

     (iv) (A) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior
to the date on which such Restricted Subsidiary was acquired by the Company (other than
Indebtedness Incurred as consideration in, or to provide all or any portion of the funds or
credit support utilized to consummate, the transaction or series of related transactions
pursuant to which such Restricted Subsidiary became a Subsidiary of or was otherwise
acquired by the Company); provided, however, if the aggregate amount of all
such Indebtedness of all such Restricted Subsidiaries would exceed $50 million, that on the
date that such Restricted Subsidiary is acquired by the Company, the Company would have been
able to Incur $1.00 of additional Indebtedness pursuant to Section 4.07(a) after giving
effect to the Incurrence of such Indebtedness pursuant to this clause (iv) and (B)
Refinancing Indebtedness Incurred by a Restricted Subsidiary in respect of Indebtedness
Incurred by such Restricted Subsidiary pursuant to this clause (iv);

     (v) Indebtedness (A) in respect of performance bonds, bankers’ acceptances, letters of
credit and surety or appeal bonds provided by the Company and the Restricted Subsidiaries in
the ordinary course of their business, and (B) under Hedging Obligations consisting of
Interest Rate Agreements directly related (as determined in good faith by the Company) to
Indebtedness permitted to be Incurred by the Company and its Restricted Subsidiaries
pursuant to this Indenture and Currency Agreements Incurred in the ordinary course of
business;

     (vi) Indebtedness Incurred by the Company or any Restricted Subsidiary (including
Capitalized Lease Obligations) financing the purchase, lease or improvement of property
(real or personal) or equipment (whether through the direct purchase of assets or the
Capital Stock of the Person owning such assets), in each case Incurred no more than 180 days
after such purchase, lease or improvement of such property and any Refinancing Indebtedness
in respect of such Indebtedness; provided, however, that at the time of the
Incurrence of such Indebtedness and after giving effect thereto, the aggregate principal
amount of all such Indebtedness incurred pursuant to this clause (vi) and then outstanding
shall not exceed the greater of $50.0 million and 7% of Adjusted Consolidated Assets;

     (vii) Indebtedness Incurred by the Company in connection with the acquisition of a
Related Business and any Refinancing Indebtedness in respect of such Indebtedness;

- 34 -

 

provided, however, that the aggregate amount of all such Indebtedness
Incurred and outstanding pursuant to this clause (vii) shall not exceed $75.0 million at any
one time;

     (viii) Attributable Debt Incurred by the Company in respect of Sale/Leaseback
Transactions; provided, however, that the aggregate amount of any such
Attributable Debt Incurred and outstanding pursuant to this clause (viii) shall not exceed
$75.0 million at any one time;

     (ix) Indebtedness arising from agreements of the Company or a Restricted Subsidiary
providing for indemnification, purchase price adjustment or similar obligations, in each
case, Incurred or assumed in connection with the disposition of any business, assets or a
Subsidiary, other than Guarantees of Indebtedness Incurred by any Person acquiring all or
any portion of such business, assets or a Subsidiary for the purpose of financing such
acquisition; provided, however, that the maximum assumable liability in
respect of all such Indebtedness shall at no time exceed the gross proceeds actually
received by the Company and its Restricted Subsidiaries in connection with such disposition;

     (x) any Guarantee by the Company of Indebtedness or other obligations of any of its
Restricted Subsidiaries so long as the Incurrence of such Indebtedness Incurred by such
Restricted Subsidiary is permitted under the terms of this Indenture;

     (xi) Indebtedness arising from Guarantees to suppliers, lessors, licensees,
contractors, franchisees or customers Incurred in the ordinary course of business;

     (xii) Indebtedness Incurred by a Receivables Entity in a Qualified Receivables
Transaction that is not recourse to the Company or any other Restricted Subsidiary of the
Company (except for Standard Securitization Undertakings); and

     (xiii) Indebtedness (other than Indebtedness permitted to be Incurred pursuant to
Section 4.07(a) or any other clause of this Section 4.07(b)) in an aggregate principal
amount on the date of Incurrence that, when added to all other Indebtedness Incurred
pursuant to this clause (xiii) and then outstanding, shall not exceed $75.0 million.

          (c) The Company shall not Incur any Indebtedness if such Indebtedness is subordinate or junior
in ranking in any respect to any Senior Indebtedness of the Company unless such Indebtedness is
Senior Subordinated Indebtedness of the Company or is expressly subordinated in right of payment to
Senior Subordinated Indebtedness of the Company.

          (d) Notwithstanding any other provision of this Section 4.07, the maximum amount of
Indebtedness that the Company or any Restricted Subsidiary may Incur pursuant to this Section 4.07
shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rates of
currencies. For purposes of determining the outstanding principal amount of any particular
Indebtedness Incurred pursuant to this Section 4.07, (i) Indebtedness permitted by this Section
4.07 need not be permitted solely by reference to one provision permitting such Indebtedness but
may be permitted in part by one such provision and in part by one or more other provisions of this
Section permitting such Indebtedness and (ii) in the event that Indebtedness meets the criteria of
more than one of the types of Indebtedness described in this

- 35 -

 

Section, the Company, in its sole
discretion, shall classify or reclassify such Indebtedness and only be required to include the
amount of such Indebtedness in one of such clauses.

          SECTION 4.08. Limitation on Restricted Payments. (a) The Company shall not, and
shall not permit any Restricted Subsidiary, directly or indirectly, to (i) declare or pay any
dividend or make any distribution on or in respect of its Capital Stock (including any payment in
connection with any merger or consolidation
involving the Company) or similar payment to the direct or indirect holders of its Capital
Stock except dividends or distributions payable solely in its Capital Stock (other than
Disqualified Stock) and except dividends or distributions payable to the Company or another
Restricted Subsidiary (and, if such Restricted Subsidiary has equity holders other than the Company
or other Restricted Subsidiaries, to its other equity holders on a pro rata basis), (ii) purchase,
redeem, retire or otherwise acquire for value any Capital Stock of International, the Company or
any Restricted Subsidiary held by Persons other than the Company or another Restricted Subsidiary,
(iii) purchase, repurchase, redeem, defease or otherwise acquire or retire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment any Subordinated
Obligations of the Company (other than the purchase, repurchase or other acquisition of
Subordinated Obligations of the Company purchased in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case due within one year of the date
of acquisition) or (iv) make any Investment (other than a Permitted Investment) in any Person (any
such dividend, distribution, purchase, redemption, repurchase, defeasance, other acquisition,
retirement or Investment being herein referred to as a “Restricted Payment”) if at the time the
Company or such Restricted Subsidiary makes such Restricted Payment:

     (1) a Default shall have occurred and be continuing (or would result therefrom);

     (2) the Company could not Incur at least $1.00 of additional Indebtedness under Section
4.07(a); or

     (3) the aggregate amount of such Restricted Payment and all other Restricted Payments
(the amount so expended, if other than in cash, to be determined in good faith by the Board
of Directors, whose determination shall be conclusive and evidenced by a resolution of the
Board of Directors) declared or made subsequent to June 5, 1998 would exceed the sum of:

     (A) 50% of the Consolidated Net Income accrued during the period (treated as
one accounting period) from the beginning of the fiscal quarter beginning June 5,
1998 to the end of the most recent fiscal quarter for which internal financial
statements are available prior to the date of such Restricted Payment (or, in case
such Consolidated Net Income will be a deficit, minus 100% of such deficit);

     (B) the aggregate Net Cash Proceeds or fair market value of assets or property
received by the Company as a contribution to its equity capital or as an
inter-company advance from International or its Subsidiaries from the issue or sale
of its Capital Stock (in each case other than Disqualified Stock and Excluded

- 36 -

 

Contributions) subsequent to June 5, 1998 (other than an issuance or sale to (x) a
Subsidiary of the Company or (y) an employee stock ownership plan or other trust
established by the Company or any of its Subsidiaries);

     (C) the amount by which Indebtedness or Disqualified Stock of the Company or
its Restricted Subsidiaries is reduced on the Company’s balance sheet upon the
conversion or exchange (other than by a Subsidiary of the
Company) subsequent to June 5, 1998 of any Indebtedness or Disqualified Stock
of the Company or its Restricted Subsidiaries issued after June 5, 1998, for Capital
Stock (other than Disqualified Stock) of the Company (less the amount of any cash or
the fair market value of other property distributed by the Company or any Restricted
Subsidiary upon such conversion or exchange);

     (D) the amount equal to the net reduction in Investments in any Person (other
than a Restricted Subsidiary) since June 5, 1998 resulting from (i) payments of
dividends, repayments of the principal of loans or advances or other transfers of
assets to the Company or any Restricted Subsidiary from such Person, (ii) the sale
or liquidation for cash of such Investment or (iii) the redesignation of
Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case as
provided in the definition of “Investment”) not to exceed, in the case of any
Unrestricted Subsidiary, the amount of Investments previously made by the Company or
any Restricted Subsidiary in such Unrestricted Subsidiary, which amount was included
in the calculation of the amount of Restricted Payments;

     (E) the amount of any dividends or distributions paid to International equal to
the amounts required for International to pay interest/and or principal, or accreted
value payments on, or to make any mandatory redemptions or repurchases in respect of
the Senior Discount Notes; and

     (F) less the amount equal to the sum of (x) the amount of Net Cash Proceeds
from the initial Equity Offering by International, consummated on or about May 17,
1999, received by the Company in connection with such Equity Offering, plus (y) the
amount of net proceeds from the issuance of the Debentures contributed to the
Company as equity capital.

       (b) The provisions of Section 4.08(a) shall not prohibit:

       (i) any Restricted Payment made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Company (other than Disqualified
Stock and other than Capital Stock issued or sold to a Subsidiary of the Company or an
employee stock ownership plan or other trust established by the Company or any of its
Subsidiaries); provided, however, that (A) such Restricted Payment shall be
excluded in the calculation of the amount of Restricted Payments and (B) the Net Cash
Proceeds from such sale applied in the manner set forth in this clause (i) shall be excluded
from the calculation of amounts under Section 4.08(a)(3)(B);

- 37 -

 

     (ii) any purchase, repurchase, redemption, defeasance or other acquisition or
retirement for value of Subordinated Obligations of the Company made by exchange for, or out
of the proceeds of the substantially concurrent sale of, Indebtedness of the Company that is
permitted to be Incurred pursuant to Section 4.07(b); provided, however,
that such purchase, repurchase, redemption, defeasance or other acquisition or retirement
for value shall be excluded in the calculation of the amount of Restricted Payments;

     (iii) any purchase or redemption of Subordinated Obligations of the Company from Net
Available Cash to the extent permitted by Section 4.10; provided, however,
that such purchase or redemption shall be excluded in the calculation of the amount of
Restricted Payments;

     (iv) dividends paid within 60 days after the date of declaration thereof if at such
date of declaration such dividend would have complied with Section 4.08(a);
provided, however, that such dividend shall be included in the calculation
of the amount of Restricted Payments;

     (v) any Restricted Payment made for the repurchase, redemption or other acquisition or
retirement for value of any Capital Stock of International, the Company or any of their
respective Subsidiaries held by any employee, former employee, director or former director
of International, the Company or any of their respective Subsidiaries (and any permitted
transferees thereof) pursuant to any equity subscription agreement, stock option agreement
or plan or other similar agreement; provided, however, that the aggregate
amount of such Restricted Payments shall not exceed $5.0 million in any calendar year and
$20.0 million in the aggregate, in each case since the Closing Date; provided further,
however, that such Restricted Payments shall be included in the calculation of the amount of
Restricted Payments;

     (vi) payment of dividends, other distributions or other amounts by the Company for the
purposes set forth in clauses (A) through (E) below; provided, however, that
such dividend, distribution or amount shall be excluded in the calculation of the amount of
Restricted Payments:

     (A) to International in amounts equal to the amounts required for International
to pay franchise taxes and other fees required to maintain its corporate existence
and provide for other operating costs of up to $5.0 million per calendar year;

     (B) to International in amounts equal to amounts required for International to
pay federal, state and local income taxes that are then actually due and owing by
International to the extent such items relate to the Company and its Subsidiaries;

     (C) to International to permit International to pay any employment,
noncompetition, compensation or confidentiality arrangements entered into with its
employees in the ordinary course of business to the extent such employees are

- 38 -

 

primarily engaged in activities which relate to the Company and its Subsidiaries;
and

     (D) to International to permit International to pay customary fees and
indemnities to directors and officers of International to the extent such directors
and officers are primarily engaged in activities which relate to the Company and its
Subsidiaries;

     (vii) any repurchase of Capital Stock deemed to occur upon exercise of stock options if
such Capital Stock represents a portion of the exercise price of such option;
provided, however, that such repurchase shall be included in the calculation
of the amount of Restricted Payments;

     (viii) the declaration and payment of dividends to holders of any class or series of
Disqualified Stock of the Company issued in accordance with Section 4.07(b) to the extent
such dividends are included in the definition of Consolidated Interest Expense;
provided, however, that such dividends shall be included in the calculation
of the amount of Restricted Payments;

     (ix) Investments made with Excluded Contributions; provided, however,
that such Investments shall be excluded in the calculation of the amount of Restricted
Payments;

     (x) the payment of dividends or distributions to International in amounts equal to
amounts required for International to pay interest/and or principal, or to make any
mandatory redemptions or repurchases in respect of, the Debentures; provided,
however, that such dividends or distributions shall be excluded in the calculation
of the amount of Restricted Payments; and

     (xi) other Restricted Payments in an aggregate amount not to exceed $30.0 million since
June 5, 1998; provided, however, that such payments shall be included in the
calculation of the amount of Restricted Payments.

            SECTION 4.09. Limitation on Restrictions on Distributions from Restricted
Subsidiaries. The Company shall not, and shall not permit any Restricted Subsidiary to, create
or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to (i) pay dividends or make any other distributions on
its Capital Stock or pay any Indebtedness or other obligations owed to the Company, (ii) make any
loans or advances to the Company, or (iii) transfer any of its property or assets to the Company,
except:

     (1) any encumbrance or restriction pursuant to an agreement in effect at or entered
into on the Closing Date;

     (2) any encumbrance or restriction with respect to a Restricted Subsidiary pursuant to
an agreement relating to any Indebtedness Incurred by such Restricted Subsidiary on or prior
to the date on which such Restricted Subsidiary was acquired by the Company (other than
Indebtedness Incurred as consideration in, in contemplation of,

- 39 -

 

or to provide all or any
portion of the funds or credit support utilized to consummate the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a Restricted
Subsidiary or was otherwise acquired by the Company) and outstanding on such date;

     (3) any encumbrance or restriction pursuant to an agreement effecting a Refinancing of
Indebtedness Incurred pursuant to an agreement referred to in clause (1) or (2) of this
Section 4.09 or this clause (3) or contained in any amendment to an agreement referred to in
clause (1) or (2) of this Section 4.09 or this clause (3); provided,
however, that the encumbrances and restrictions contained in any such Refinancing
agreement or amendment are no less favorable to the Noteholders than the encumbrances and
restrictions contained in such predecessor agreements;

     (4) in the case of clause (iii), any encumbrance or restriction (A) that restricts in a
customary manner the subletting, assignment or transfer of any property or asset that is
subject to a lease, license or similar contract, (B) contained in security agreements or
mortgages securing Indebtedness of a Restricted Subsidiary to the extent such encumbrance or
restriction restricts the transfer of the property subject to such security agreements or
mortgages or (C) in connection with purchase money obligations for property acquired in the
ordinary course of business;

     (5) with respect to a Restricted Subsidiary, any restriction imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all the Capital
Stock or assets of such Restricted Subsidiary pending the closing of such sale or
disposition;

     (6) any encumbrance or restriction of a Receivables Entity effected in connection with
a Qualified Receivables Transaction; provided, however, that such
restrictions apply only to such Receivables Entity; and

     (7) any encumbrance or restriction existing pursuant to other Indebtedness permitted to
be Incurred subsequent to the Closing Date pursuant to Section 4.07; provided,
however, that any such encumbrance or restrictions are ordinary and customary with
respect to the type of Indebtedness being Incurred (under the relevant circumstances).

            SECTION 4.10. Limitation on Sales of Assets and Subsidiary Stock. (a) The Company
shall not, and shall not permit any Restricted Subsidiary to, make any Asset Disposition unless (i)
the Company or such Restricted Subsidiary receives consideration (including by way of relief from,
or by any other Person assuming sole responsibility for, any liabilities, contingent or otherwise)
at the time of such Asset Disposition at least equal to the fair market value (as determined in
good faith by the Company) of the shares and assets subject to such Asset Disposition, (ii) at
least 75% of the consideration thereof received by the Company or such Restricted Subsidiary is in
the form of cash or cash equivalents (provided that the amount of (w) any liabilities (as shown on
the Company’s or such Restricted Subsidiary’s most recent balance sheet or in the notes thereto) of
the Company or any Restricted Subsidiary (other than liabilities that are by their terms
subordinated to the Notes) that are assumed by the transferee of

- 40 -

 

any such assets without recourse
to the Company or any of the Restricted Subsidiaries, (x) any notes or other obligations received
by the Company or such Restricted Subsidiary from such transferee that are converted by the Company
or such Restricted Subsidiary into cash (to the extent of the cash received) within 180 days
following the closing of
such Asset Disposition, (y) any Designated Noncash Consideration received by the Company or
any of its Restricted Subsidiaries in such Asset Disposition having an aggregate fair market value,
taken together with all other Designated Noncash Consideration received pursuant to this clause
(y), not to exceed 5% of Adjusted Consolidated Assets at the time of the receipt of such Designated
Noncash Consideration (with the fair market value of each item of Designated Noncash Consideration
being measured at the time received and without giving effect to subsequent changes in value) and
(z) any assets received in exchange for assets related to a Related Business of comparable market
value in the good faith determination of the Board of Directors shall be deemed to be cash for
purposes of this provision) and (iii) an amount equal to 100% of the Net Available Cash from such
Asset Disposition is applied by the Company (or such Restricted Subsidiary, as the case may be) (A)
first, to the extent the Company elects (or is required by the terms of any Indebtedness),
to prepay, repay, redeem or purchase Senior Indebtedness of the Company or Indebtedness (other than
any Disqualified Stock and other than any Preferred Stock) of a Wholly Owned Subsidiary (in each
case other than Indebtedness owed to the Company or an Affiliate of the Company) within 365 days
after the later of the date of such Asset Disposition or the receipt of such Net Available Cash;
(B) second, to the extent of the balance of Net Available Cash after application in
accordance with clause (A), to the extent the Company or such Restricted Subsidiary elects, to
reinvest in Additional Assets (including by means of an Investment in Additional Assets by a
Restricted Subsidiary with Net Available Cash received by the Company or another Restricted
Subsidiary) within 365 days from the later of such Asset Disposition or the receipt of such Net
Available Cash; and (C) third, to the extent of the balance of such Net Available Cash
after application in accordance with clauses (A) and (B), to make an Offer (as defined below) to
purchase Notes pursuant to and subject to the conditions of Section 4.10(b); provided,
however, that if the Company elects (or is required by the terms of any other Senior
Subordinated Indebtedness of the Company), such Offer may be made ratably to purchase the Notes and
other Senior Subordinated Indebtedness of the Company; provided, however, that in
connection with any prepayment, repayment or purchase of Indebtedness pursuant to clause (A) or (C)
above, the Company or such Restricted Subsidiary shall retire such Indebtedness and shall cause the
related loan commitment (if any) to be permanently reduced in an amount equal to the principal
amount so prepaid, repaid or purchased. Notwithstanding the foregoing provisions of this Section
4.10, the Company and the Restricted Subsidiaries shall not be required to apply any Net Available
Cash in accordance with this Section 4.10(a) except to the extent that the aggregate Net Available
Cash from all Asset Dispositions that is not applied in accordance with this Section 4.10(a)
exceeds $20.0 million.

          (b) In the event of an Asset Disposition that requires the purchase of Notes (and other Senior
Subordinated Indebtedness of the Company) pursuant to Section 4.10(a)(iii)(C), the Company shall be
required to purchase Notes (and other Senior Subordinated Indebtedness of the Company) tendered
pursuant to an offer by the Company for the Notes (and other Senior Subordinated Indebtedness of
the Company) (the “Offer”) at a purchase price of 100% of their principal amount plus accrued and
unpaid interest and additional interest, if any, to the date of purchase in accordance with the
procedures (including prorating in the event of oversubscription), set forth in Section 4.10(c).
If the aggregate purchase price of

- 41 -

 

Notes (and other Senior Subordinated Indebtedness of the
Company) tendered pursuant to the Offer is less than the Net Available Cash allotted to the
purchase of the Notes (and other Senior Subordinated Indebtedness of the Company), the Company may
apply the remaining Net Available Cash for any purpose permitted by the terms of this Indenture.
The Company shall not
be required to make an Offer for Notes (and other Senior Subordinated Indebtedness of the
Company) pursuant to this Section 4.10 if the Net Available Cash available therefor (after
application of the proceeds as provided in clauses (A) and (B) of Section 4.10(a)(iii)) is less
than $10.0 million for any particular Asset Disposition (which lesser amount shall be carried
forward for purposes of determining whether an Offer is required with respect to the Net Available
Cash from any subsequent Asset Disposition).

          (c) (1) Promptly, and in any event within 30 days after the Company becomes obligated to make
an Offer, the Company shall be obligated to deliver to the Trustee and send, by first-class mail to
each Noteholder, a written notice stating that the Noteholder may elect to have his Notes purchased
by the Company either in whole or in part (subject to prorating as hereinafter described in the
event the Offer is oversubscribed) in integral multiples of $1,000 of principal amount, at the
applicable purchase price. The notice shall specify a purchase date not less than 30 days nor more
than 60 days after the date of such notice (the “Purchase Date”) and shall contain or incorporate
by reference such information concerning the business of the Company which the Company in good
faith believes will enable such Noteholders to make an informed decision and all instructions and
materials necessary to tender Notes pursuant to the Offer, together with the address referred to in
clause (3).

          (2) Not later than the date upon which written notice of an Offer is delivered to the Trustee
as provided above, the Company shall deliver to the Trustee an Officers’ Certificate as to (i) the
amount of the Offer (the “Offer Amount”), (ii) the allocation of the Net Available Cash from the
Asset Dispositions pursuant to which such Offer is being made and (iii) the compliance of such
allocation with the provisions of Section 4.10(a). On such date, the Company shall also
irrevocably deposit with the Trustee or with a paying agent (or, if the Company is acting as its
own paying agent, segregate and hold in trust) an amount equal to the Offer Amount to be invested
in Temporary Cash Investments and to be held for payment in accordance with the provisions of this
Section. Upon the expiration of the period for which the Offer remains open (the “Offer Period”),
the Company shall deliver to the Trustee for cancellation the Notes or portions thereof that have
been properly tendered to and are to be accepted by the Company. The Trustee (or the Paying Agent,
if not the Trustee) shall, on the date of purchase, mail or deliver payment to each tendering
Noteholder in the amount of the purchase price. In the event that the aggregate purchase price of
the Notes (and other Senior Subordinated Indebtedness of the Company) delivered by the Company to
the Trustee is less than the Offer Amount applicable to the Notes (and other Senior Subordinated
Indebtedness of the Company), the Trustee shall deliver the excess to the Company immediately after
the expiration of the Offer Period for application in accordance with this Section 4.10.

          (3) Noteholders electing to have a Note purchased shall be required to surrender the Note,
with an appropriate form duly completed, to the Company at the address specified in the notice at
least three Business Days prior to the Purchase Date. Noteholders shall be entitled to withdraw
their election if the Trustee or the Company receives not later than one Business Day prior to the
Purchase Date, a telegram, telex, facsimile transmission or letter

- 42 -

 

setting forth the name of the
Noteholder, the principal amount of the Note which was delivered by the Noteholder for purchase and
a statement that such Noteholder is withdrawing his election to have such Note purchased. If at
the expiration of the Offer Period the aggregate principal amount of Notes and any other Senior
Subordinated Indebtedness of the Company included in
the Offer surrendered by holders thereof exceeds the Offer Amount, the Company shall select
the Notes and other Senior Subordinated Indebtedness of the Company to be purchased on a pro rata
basis (with such adjustments as may be deemed appropriate by the Company so that only Notes and
other Senior Subordinated Indebtedness of the Company in denominations of $1,000, or integral
multiples thereof, shall be purchased). Noteholders whose Notes are purchased only in part will be
issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered.

          (4) At the time the Company delivers Notes to the Trustee which are to be accepted for
purchase, the Company shall also deliver an Officers’ Certificate stating that such Notes are to be
accepted by the Company pursuant to and in accordance with the terms of this Section. A Note shall
be deemed to have been accepted for purchase at the time the Trustee, directly or through an agent,
mails or delivers payment therefor to the surrendering Noteholder.

          (d) The Company shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Notes pursuant to this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its obligations under this
Section by virtue thereof.

          SECTION 4.11. Limitation on Transactions with Affiliates. (a) The Company shall
not, and shall not cause or permit any of its Restricted Subsidiaries to, make any payment to, or
sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction, contract, agreement,
understanding, loan, advance or Guarantee with, or for the benefit of, any Affiliate (each of the
foregoing, an “Affiliate Transaction”) involving aggregate consideration in excess of $5.0 million,
unless (i) such Affiliate Transaction is on terms that are not materially less favorable to the
Company or the relevant Restricted Subsidiary than those that would have been obtained in a
comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person and
(ii) with respect to any Affiliate Transaction or series of related Affiliate Transactions
involving aggregate consideration in excess of $10.0 million, the Company delivers to the Trustee a
resolution adopted by the majority of the Board of Directors, approving such Affiliate Transaction
and set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with
clause (i) above.

          (b) The provisions of Section 4.11(a) shall not prohibit (i) any Restricted Payment permitted
to be paid pursuant to Section 4.08, (ii) any issuance of securities, or other payments,
Guarantees, awards or grants in cash, securities or otherwise pursuant to, or the funding of,
employment arrangements, stock options and stock ownership plans approved by the Board of
Directors, (iii) the grant of stock options or similar rights to employees and directors of the
Company pursuant to plans approved by the Board of Directors, (iv) loans or advances to employees
in the ordinary course of business in accordance with past practices of the Company,

- 43 -

 

but in any
event not to exceed $5.0 million in the aggregate outstanding at any one time, (v) the payment of
reasonable fees to directors of the Company and its Restricted Subsidiaries who are not employees
of the Company or its Subsidiaries, (vi) any transaction between the Company
and a Restricted Subsidiary or between Restricted Subsidiaries, (vii) any transaction effected
as part of a Qualified Receivables Transaction, (viii) any payment by the Company to International
to permit International to pay any Federal, state, local or other taxes that are then actually due
and owing by International, (ix) indemnification agreements with, and the payment of fees and
indemnities to, directors, officers and employees of the Company and its Restricted Subsidiaries,
in each case, in the ordinary course of business, (x) any employment, compensation, noncompetition
or confidentiality agreement entered into by the Company and its Restricted Subsidiaries with its
employees in the ordinary course of business, (xi) any issuance of Capital Stock of the Company
(other than Disqualified Stock), (xii) any agreement as in effect as of the Closing Date or any
amendment or replacement thereto so long as any such amendment or replacement agreement is not more
disadvantageous to the Noteholders of the Notes in any material respect than the original agreement
as in effect on the Closing Date and (xiii) transactions in which the Company or any of its
Restricted Subsidiaries, as the case may be, delivers to the Trustee a letter from an Independent
Financial Advisor stating that such transaction is fair to the Company or such Restricted
Subsidiary from a financial point of view or meets the requirements of Section 4.11(a).

          SECTION 4.12. Change of Control. (a) Upon the occurrence of a Change of Control,
unless all Notes have been called for redemption pursuant to paragraph 5 of the Notes, each
Noteholder shall have the right to require the Company to repurchase all or any part of such
Noteholder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus
accrued and unpaid interest and additional interest, if any, to the date of repurchase (subject to
the right of Noteholders of record on the relevant record date to receive interest due on the
relevant interest payment date), in accordance with Section 4.12(b). Prior to the mailing of the
notice referred to below, but in any event within 30 days following the date on which the Company
becomes aware that a Change of Control has occurred, if the purchase of the Notes would violate or
constitute a default under any other Indebtedness of the Company, then the Company shall, to the
extent needed to permit such purchase of Notes, either (i) repay all such Indebtedness and
terminate all commitments outstanding thereunder or (ii) request the holders of such Indebtedness
to give the requisite consents to permit the purchase of the Notes as provided below. Until such
time as the Company is able to repay all such Indebtedness and terminate all commitments
outstanding thereunder or such time as such requisite consents are obtained, the Company shall not
be required to make the Change of Control Offer or purchase the Notes pursuant to the provisions
described below.

          (b) Within 30 days following any Change of Control, unless all Notes have been called for
redemption pursuant to paragraph 5 of the Notes, the Company shall mail a notice to each Noteholder
with a copy to the Trustee (the “Change of Control Offer”) stating:

(1) that a Change of Control has occurred and that such Noteholder has the right to
require the Company to purchase such Noteholder’s Notes at a purchase price in cash equal to
10l% of the principal amount thereof, plus accrued and unpaid interest and additional
interest, if any, to the date of repurchase (subject to the right of Noteholders of

- 44 -

 

record
on the relevant record date to receive interest on the relevant interest payment date);

      (2) the circumstances and relevant facts regarding such Change of Control;

      (3) the repurchase date (which shall be no earlier than 30 days nor later than 60 days
from the date such notice is mailed); and

      (4) the instructions determined by the Company, consistent with this Section, that a
Noteholder must follow in order to have its Notes repurchased.

            (c) Noteholders electing to have a Note repurchased shall be required to surrender the Note,
with an appropriate form duly completed, to the Company at the address specified in the notice at
least three Business Days prior to the repurchase date. Noteholders shall be entitled to withdraw
their election if the Trustee or the Company receives not later than one Business Day prior to the
repurchase date a telegram, telex, facsimile transmission or letter setting forth the name of the
Noteholder, the principal amount of the Note which was delivered for repurchase by the Noteholder
and a statement that such Noteholder is withdrawing his election to have such Note repurchased.

            (d) On the repurchase date, all Notes repurchased by the Company under this Section shall be
delivered to the Trustee for cancellation, and the Company shall pay the purchase price plus
accrued and unpaid interest and additional interest, if any, to the Noteholders entitled thereto.

            (e) Notwithstanding the foregoing provisions of this Section, the Company will not be required
to make a Change of Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the requirements set
forth in Section 4.12(b) applicable to a Change of Control Offer made by the Company and purchases
all Notes validly tendered and not withdrawn under such Change of Control Offer.

            (f) The Company shall comply, to the extent applicable, with the requirements of Section 14(e)
of the Exchange Act and any other securities laws or regulations in connection with the repurchase
of Notes pursuant to this Section. To the extent that the provisions of any securities laws or
regulations conflict with provisions of this Section, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its obligations under this
Section by virtue thereof.

            SECTION 4.13. Compliance Certificate. The Company shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company an Officers’ Certificate stating
that a review of the Company’s activities during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Indenture and further stating, as to
each such Officer signing such certificate, whether to the best of such Officer’s knowledge the
Company during such preceding fiscal year has kept, observed, performed and fulfilled each and
every such covenant contained in this Indenture and that in the course of the performance by the
signers of their duties as Officers of the Company they would normally have

- 45 -

 

knowledge of any
Default and whether or not the signers know of any Default that occurred during such period. If
they do know of any
Default, the certificate shall describe the Default, its status and what action the Company is
taking or proposes to take with respect thereto. The Company also shall comply with Section
314(a)(4) of the TIA.

          SECTION 4.14. Further Instruments and Acts. Upon request of the Trustee, the Company
shall execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

          SECTION 4.15. Limitation on the Sale or Issuance of Capital Stock of Restricted
Subsidiaries. The Company shall not sell or otherwise dispose of any shares of Capital Stock
of a Restricted Subsidiary, and shall not permit any Restricted Subsidiary, directly or indirectly,
to issue or sell or otherwise dispose of any shares of its Capital Stock except: (i) to the Company
or a Wholly Owned Subsidiary or to any director of a Restricted Subsidiary to the extent required
as director’s qualifying shares; (ii) if, immediately after giving effect to such issuance, sale or
other disposition, neither the Company nor any of its Subsidiaries own any Capital Stock of such
Restricted Subsidiary or (iii) if, immediately after giving effect to such issuance or sale, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and any Investment in such
Person remaining after giving effect thereto would have been permitted to be made under Section
4.08 if made on the date of such issuance, sale or other disposition. The provisions of this
Section 4.15 shall not prohibit any transaction effected as part of a Qualified Receivables
Transaction. The proceeds of any sale of such Capital Stock permitted hereby shall be treated as
Net Available Cash from an Asset Disposition and shall be applied in accordance with Section 4.10.

          SECTION 4.16. Limitation on Liens. The Company shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any Lien of any nature
whatsoever that secures Senior Subordinated Indebtedness of the Company or Subordinated Obligations
of the Company on any of its property or assets (including Capital Stock of a Restricted
Subsidiary), whether owned at the Closing Date or thereafter acquired, other than Permitted Liens,
without effectively providing that the Notes shall be secured equally and ratably with (or on a
senior basis to in the case of Subordinated Obligations of the Company) the obligations so secured
for so long as such obligations are so secured.

ARTICLE 5

Successor Company

          SECTION 5.01. When Company May Merge or Transfer Assets. The Company shall not
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 Company”) shall be a
corporation, partnership, trust or limited liability company 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 an indenture
supplemental hereto, executed and delivered to the Trustee, in form

- 46 -

 

satisfactory to the
Trustee, all the obligations of the Company under the Notes and this Indenture;

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

     (iii) immediately after giving effect to such transaction, (A) the Successor Company
would be able to Incur an additional $1.00 of Indebtedness pursuant to Section 4.07(a) or
(B) the Consolidated Coverage Ratio for the Successor Company and its Restricted
Subsidiaries would be greater than such ratio for the Company and its Restricted
Subsidiaries immediately prior to such transaction;

     (iv) immediately after giving effect to such transaction, the Successor Company shall
have Consolidated Net Worth in an amount which is not less than the Consolidated Net Worth
of the Company immediately prior to such transaction; and

     (v) 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
conveyance, transfer or lease of all or substantially all its assets shall not be released from the
obligation to pay the principal of and interest on the Notes.

          Notwithstanding clause (iii) above, a Wholly Owned Subsidiary may be consolidated with or
merged into the Company and the Company may consolidate with or merge with or into (A) another
Person, if such Person is a single purpose corporation that has not conducted any business or
Incurred any Indebtedness or other liabilities and such transaction is being consummated solely to
change the state of incorporation of the Company and (B) International; provided,
however, that, in the case of clause (B), (x) International shall not have owned any assets
other than the Capital Stock of the Company (and other immaterial assets incidental to its
ownership of such Capital Stock) or conducted any business other than owning the Capital Stock of
the Company, (y) International shall not have any Indebtedness or other liabilities (other than
Indebtedness that has been Guaranteed by, or is otherwise considered Indebtedness of, the Company
and ordinary course liabilities incidental to its ownership of the Capital Stock of the Company)
and (z) immediately after giving effect to such consolidation or merger, the Successor Company
shall have a pro forma Consolidated Coverage Ratio that is not
less than the Consolidated Coverage Ratio of the Company immediately prior to such
consolidation or merger.

- 47 -

 

ARTICLE 6

Defaults and Remedies

     SECTION 6.01. Events of Default. An “Event of Default” occurs if:

     (1) the Company defaults in any payment of interest on any Note when the same becomes
due and payable, whether or not such payment shall be prohibited by Article 10, and such
default continues for a period of 30 days;

     (2) the Company (i) defaults in the payment of the principal of any Note when the same
becomes due and payable at its Stated Maturity, upon redemption, upon declaration or
otherwise, whether or not such payment shall be prohibited by Article 10 or (ii) fails to
redeem or repurchase Notes when required pursuant to this Indenture or the Notes, whether or
not such redemption or repurchase shall be prohibited by Article 10;

     (3) the Company fails to comply with Section 5.01;

     (4) the Company fails to comply with Section 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13 or 4.14 (other than a failure to purchase Notes when required under Section 4.10 or
4.12) and such failure continues for 30 days after the notice specified below;

     (5) the Company fails to comply with any of its agreements contained in the Notes or
this Indenture (other than those referred to in (1), (2), (3) or (4) above) and such failure
continues for 60 days after the notice specified below;

     (6) Indebtedness of the Company or any Significant Subsidiary is not paid within any
applicable grace period after final maturity or the acceleration of any such Indebtedness by
the holders thereof because of a default and the total amount of such Indebtedness unpaid or
accelerated exceeds $35 million or its foreign currency equivalent at the time and such
failure continues for 10 days after the notice specified below;

     (7) the Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

     (A) commences a voluntary case;

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

     (C) consents to the appointment of a Custodian of it or for any substantial
part of its property; or

     (D) makes a general assignment for the benefit of its creditors;

or takes any comparable action under any foreign laws relating to insolvency;

- 48 -

 

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

     (A) is for relief against the Company or any Significant Subsidiary in an
involuntary case;

     (B) appoints a Custodian of the Company or any Significant Subsidiary or for
any substantial part of its property; or

     (C) orders the winding up or liquidation of the Company or any Significant
Subsidiary;

or any similar relief is granted under any foreign laws and the order or decree remains
unstayed and in effect for 60 days; or

     (9) any judgment or decree for the payment of money in excess of $35 million or its
foreign currency equivalent at the time is entered against the Company or any Significant
Subsidiary and is not discharged, waived or stayed and either (A) an enforcement proceeding
has been commenced by any creditor upon such judgment or decree or (B) there is a period of
60 days following the entry of such judgment or decree during which such judgment or decree
is not discharged, waived or the execution thereof stayed and such judgment or decree is not
discharged, waived or the execution thereof stayed within 10 days after the notice specified
below.

          The foregoing shall constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is 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.

          The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal
or state law for the relief of debtors. The term “Custodian” means any receiver, trustee,
assignee, liquidator, custodian or similar official under any Bankruptcy Law.

          A Default under clause (4), (5), (6) or (9) above is not an Event of Default until the Trustee
or the Noteholders of at least 25% in principal amount of the outstanding Notes notify the Company
of the Default and the Company does not cure such Default within the time specified after receipt
of such notice. Such notice must specify the Default, demand that it be remedied and state that
such notice is a “Notice of Default”.

          The Company shall deliver to the Trustee, within 30 days after the occurrence thereof, written
notice in the form of an Officers’ Certificate of any event which with the giving of notice or the
lapse of time would become an Event of Default under clause (4), (5), (6) or (9), its status and
what action the Company is taking or proposes to take with respect thereto.

          SECTION 6.02. Acceleration. If an Event of Default (other than an Event of Default
specified in Section 6.01(7) or (8) with respect to the Company) occurs and is continuing, the
Trustee by notice to the Company, or the Noteholders of at least 25% in principal amount of the
outstanding Notes by notice to the Company, may declare the principal of and

- 49 -

 

accrued but unpaid
interest on all the Notes to be due and payable. Upon such a declaration, such principal and
interest shall be due and payable immediately. If an Event of Default specified in Section 6.01(7)
or (8) with respect to the Company occurs, the principal of and interest on all the Notes shall
ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Noteholders. The Noteholders of a majority in
principal amount of the Notes by notice to the Trustee may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree and if all existing
Events of Default have been cured or waived except nonpayment of principal or interest that has
become due solely because of acceleration. No such rescission shall affect any subsequent Default
or impair any right consequent thereto.

          SECTION 6.03. Other Remedies. If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal of or interest on the
Notes or to enforce the performance of any provision of the Notes or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not
produce any of them in the proceeding. A delay or omission by the Trustee or any Noteholder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive
of any other remedy. All available remedies are cumulative.

          SECTION 6.04. Waiver of Past Defaults. The Holders of a majority in principal amount
of the Notes by notice to the Trustee may waive an existing Default and its consequences except (i)
a Default in the payment of the principal of or interest on a Note, (ii) a Default arising from the
failure to redeem or purchase any Note when required pursuant to the terms of this Indenture or
(iii) a Default in respect of a provision that under Section 9.02 cannot be amended without the
consent of each Noteholder affected. When a Default is waived, it is deemed cured, but no such
waiver shall extend to any subsequent or other Default or impair any consequent right.

          SECTION 6.05. Control by Majority. The Noteholders of a majority in principal amount
of the Notes may direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the Trustee. However,
the Trustee may refuse to follow any direction that conflicts with law or this Indenture or,
subject to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of other
Noteholders or would involve the Trustee in personal liability; provided, however,
that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent
with such direction. Prior to taking any
action hereunder, the Trustee shall be entitled to indemnification satisfactory to it in its
sole discretion against all losses and expenses caused by taking or not taking such action.

          SECTION 6.06. Limitation on Suits. Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Noteholder may pursue any remedy with respect
to this Indenture or the Notes unless:

- 50 -

 

     (1) the Noteholder gives to the Trustee written notice stating that an Event of Default
is continuing;

     (2) the Noteholders of at least 25% in principal amount of the Notes make a written
request to the Trustee to pursue the remedy;

     (3) such Noteholder or Noteholders offer to the Trustee reasonable security or
indemnity against any loss, liability or expense;

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

     (5) the Noteholders of a majority in principal amount of the Notes do not give the
Trustee a direction inconsistent with the request during such 60-day period.

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

          SECTION 6.07. Rights of Noteholders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Noteholder to receive payment of principal of and
additional interest and interest on the Notes held by such Noteholder, on or after the respective
due dates expressed in the Notes, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent of such
Noteholder.

          SECTION 6.08. Collection Suit by Trustee. If an Event of Default specified in
Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name
and as trustee of an express trust against the Company for the whole amount then due and owing
(together with interest on any unpaid interest to the extent lawful) and the amounts provided for
in Section 7.07.

          SECTION 6.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee and the Noteholders allowed in any judicial proceedings relative to the Company,
International, their creditors or their property and, unless prohibited by law or applicable
regulations, may vote on behalf of the
Noteholders in any election of a trustee in bankruptcy or other Person performing similar
functions, and any Custodian in any such judicial proceeding is hereby authorized by each
Noteholder to make 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
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
its counsel, and any other amounts due the Trustee under Section 7.07.

          SECTION 6.10. Priorities. If the Trustee collects any money or property pursuant to
this Article 6, it shall pay out the money or property in the following order:

          FIRST: to the Trustee for amounts due under Section 7.07;

- 51 -

 

     SECOND: to holders of Senior Indebtedness of the Company to the extent required by
Article 10;

     THIRD: to Noteholders for amounts due and unpaid on the Notes for principal and
interest, ratably, and any additional interest without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal, any additional interest
and interest, respectively; and

     FOURTH: to the Company.

           The Trustee may fix a record date and payment date for any payment to Noteholders pursuant to
this Section. At least 15 days before such record date, the Trustee shall mail to each Noteholder
and the Company a notice that states the record date, the payment date and amount to be paid.

           SECTION 6.11. Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party litigant in the suit
of an undertaking to pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section does not apply to a suit by the Trustee, a suit by a Noteholder pursuant to
Section 6.07 or a suit by Noteholders of more than 10% in principal amount of the Notes or to any
suit instituted by any holder of Notes for the enforcement of the payment of the principal of, or
premium, if any, or interest on any Notes on or after the due date expressed in such Notes.

           SECTION 6.12. Waiver of Stay, Extension or Usury Laws. Neither the Company nor
International (to the extent it may lawfully do so) shall at any time insist upon, or plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law
wherever enacted, now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company
and International (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any
power herein granted to the Trustee, but shall suffer and permit the execution of every such power
as though no such law had been enacted.

ARTICLE 7

Trustee

           SECTION 7.01. Duties of Trustee. (a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use
the same degree of care and skill in its exercise as a prudent Person would exercise or use under
the circumstances in the conduct of such Person’s own affairs.

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

- 52 -

 

     (1) the Trustee need only perform such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against
the Trustee; and

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

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

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

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

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

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company.

          (f) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law.

          (g) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

          (h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section and to the
provisions of the TIA.

          SECTION 7.02. Rights of Trustee. (a) The Trustee may rely on any document believed
by it to be genuine and to have been signed or presented by the proper person. The Trustee need
not investigate any fact or matter stated in the document.

- 53 -

 

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officers’ Certificate or Opinion of Counsel.

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

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

          (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Notes shall be full and complete authorization and
protection from liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

          (f) 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, consent,
order, approval, bond, debenture, note or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see
fit.

          (g) 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 reasonable
security or indemnity against the costs, expenses and liabilities which may be incurred therein or
thereby.

          SECTION 7.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or its Affiliates with the same rights it would have if it
were not Trustee. Any Paying Agent, Registrar or co-paying agent may do the same with like rights.
However, the Trustee must comply with Sections 7.10 and 7.11.

          SECTION 7.04. Trustee’s Disclaimer. The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not
be accountable for the Company’s use of the proceeds from the Notes, and it shall not be
responsible for any statement of the Company in this Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication.

          SECTION 7.05. Notice of Defaults. (a) The Trustee shall not be deemed to have
notice of any Default, other than a payment default, unless a Trust Officer shall have been advised
in writing that a Default has occurred. No duty imposed upon the Trustee in this Indenture shall
be applicable with respect to any Default of which the Trustee is not deemed to have notice.

- 54 -

 

          (b) If a Default occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Noteholder notice of the Default within the earlier of 90 days after it occurs or 30
days after it is known to a Trust Officer or written notice of it is received by the Trustee.
Except in the case of a Default in payment of principal, premium (if any) or interest on any Note
(including payments pursuant to the redemption provisions of such Note), the Trustee may withhold
notice if and so long as a committee of its Trust Officers in good faith determines that
withholding notice is in the interests of the Noteholders.

          SECTION 7.06. Reports by Trustee to Noteholders. As promptly as practicable after
each June 30, beginning with the June 30 following the first anniversary of the date of this
Indenture, and in any event prior to August 31 in each subsequent year, the Trustee shall, to the
extent that any of the events described in TIA § 313(a) occurred within the previous twelve months,
but not otherwise, mail to each Noteholder a brief report dated as of June 30 that complies with
Section 313(a) of the TIA. The Trustee shall also comply with Section 313(b) of the TIA.

          A copy of each report at the time of its mailing to Noteholders shall be filed with the SEC
and each stock exchange (if any) on which the Notes are listed. The Company agrees to notify
promptly the Trustee whenever the Notes become listed on any stock exchange and of any delisting
thereof.

          SECTION 7.07. Compensation and Indemnity. The Company shall pay to the Trustee from
time to time such compensation as the Company and the Trustee shall from time to time agree in
writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee
of an express trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses, disbursements and advances of
the Trustee’s agents, counsel, accountants and experts. The Company and International, jointly and
severally shall indemnify the Trustee, and hold it harmless, against any and all loss, liability or
expense (including reasonable attorneys’ fees) incurred by or in connection with the offer and sale
of the Notes or the administration of this trust and the performance of its duties hereunder. The
Trustee shall notify the Company of any claim for which it may seek indemnity promptly upon
obtaining actual knowledge thereof; provided, however, that any failure so to
notify the Company shall not relieve the Company or International of its indemnity obligations
hereunder. The Company shall defend the claim and the indemnified party shall provide reasonable
cooperation at the Company’s expense in the defense. Such indemnified parties may have separate
counsel and the Company and International, as applicable, shall pay the fees and expenses of such
counsel; provided, however, that the Company shall not be required to pay such fees
and expenses if it assumes such indemnified parties’ defense and, in such indemnified parties’
reasonable judgment, there is no conflict of interest between the Company and International, as
applicable, and such parties in connection with such defense. The Company need not reimburse any
expense or indemnify against any loss, liability or expense incurred by an indemnified party
through such party’s own willful misconduct and negligence.

          To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee other than

- 55 -

 

money or
property held in trust to pay principal of and interest and any additional interest on particular
Notes.

          The Company’s payment obligations pursuant to this Section shall survive the satisfaction or
discharge of this Indenture, any rejection or termination of this Indenture under any bankruptcy
law or the resignation or removal of the Trustee. When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(7) or (8) with respect to the Company, the
expenses are intended to constitute expenses of administration under the Bankruptcy Law.

          SECTION 7.08. Replacement of Trustee. The Trustee may resign at any time by so
notifying the Company. The Holders of a majority in principal amount of the Notes may remove the
Trustee by so notifying the Trustee and may appoint a successor Trustee. The Company shall remove
the Trustee if:

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

    (2) the Trustee is adjudged bankrupt or insolvent;

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

    (4) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns, is removed by the Company or by the Holders of a majority in principal
amount of the Notes and such Noteholders do not reasonably promptly appoint a
successor Trustee, or if a vacancy exists in the office of Trustee for any reason (the Trustee
in such event being referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Noteholders. The retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 7.07.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee or the Holders of 10% in principal amount of the Notes may
petition any court of competent jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Noteholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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

- 56 -

 

          SECTION 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges
or converts into, or transfers all or substantially all of its corporate trust business or assets
to, another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee.

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

          SECTION 7.10. Eligibility; Disqualification. The Trustee shall at all times satisfy
the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at
least $100,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA § 310(b); provided, however, that there shall be
excluded from the operation of TIA § 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in
other securities of the Company are outstanding if the requirements for such exclusion set
forth in TIA § 310(b)(1) are met.

          SECTION 7.11. Preferential Collection of Claims Against Company. The Trustee shall
comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee
who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

ARTICLE 8

Discharge of Indenture; Defeasance

          SECTION 8.01. Discharge of Liability on Notes; Defeasance. (a) When (i) the Company
delivers to the Trustee all outstanding Notes (other than Notes replaced pursuant to Section 2.08)
for cancellation or (ii) all outstanding Notes have become due and payable, whether at maturity or
as a result of the mailing of a notice of redemption pursuant to Article 3 hereof, and the Company
irrevocably deposits with the Trustee funds or U.S. Government Obligations on which payment of
principal and interest when due will be sufficient to pay at maturity or upon redemption all
outstanding Notes, including interest thereon to maturity or such redemption date (other than Notes
replaced pursuant to Section 2.08), and if in either case the Company pays all other sums payable
hereunder by the Company, then this Indenture shall, subject to Section 8.01(c), cease to be of
further effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture on
demand of the Company accompanied by an Officers’ Certificate and an Opinion of Counsel and at the
cost and expense of the Company.

          (b) Subject to Sections 8.01 (c) and 8.02, the Company at any time may terminate (i) all of
its obligations under the Notes and this Indenture (“legal defeasance option”)

- 57 -

 

or (ii) its
obligations under Sections 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14,
4.15 and 4.16 and the operation of Section 5.01(iii), 5.01(iv), 6.01(4), 6.01(6), 6.01(7) (with
respect to Significant Subsidiaries of the Company only), 6.01(8) (with respect to Significant
Subsidiaries of the Company only) and 6.01(9) (“covenant defeasance option”). The Company may
exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance
option. In the event that the Company terminates all of its obligations under the Notes and this
Indenture by exercising its legal defeasance option, the obligations under the International
Guarantee shall be terminated simultaneously with the termination of such obligations.

           If the Company exercises its legal defeasance option, payment of the Notes may not be
accelerated because of an Event of Default. If the Company exercises its covenant defeasance
option, payment of the Notes may not be accelerated because of an Event of Default specified in
Section 6.01(4), 6.01(6), 6.01(7) (with respect to Significant Subsidiaries of the Company only) or
6.01(8) (with respect to Significant Subsidiaries of the Company only) or because of the failure of
the Company to comply with clauses (iii) and (iv) of Section 5.01.

           Upon satisfaction of the conditions set forth herein and upon request of the Company, the
Trustee shall acknowledge in writing the discharge of those obligations that the Company
terminates.

           (c) Notwithstanding clauses (a) and (b) above, the Company’s obligations in Sections 2.04,
2.05, 2.06, 2.07, 2.08, 2.09, 7.07, 7.08 and in this Article 8 shall survive until the Notes have
been paid in full. Thereafter, the Company’s obligations in Sections 7.07, 8.04 and 8.05 shall
survive.

           SECTION 8.02. Conditions to Defeasance. The Company may exercise its legal
defeasance option or its covenant defeasance option only if:

     (1) the Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of principal, premium (if any) and interest on the Notes to
maturity or redemption, as the case may be;

     (2) the Company delivers to the Trustee a certificate from a nationally recognized firm
of independent accountants expressing their opinion that the payments of principal and
interest when due and without reinvestment on the deposited U.S. Government Obligations plus
any deposited money without investment will provide cash at such times and in such amounts
as will be sufficient to pay principal and interest when due on all the Notes to maturity or
redemption, as the case may be;

     (3) 123 days pass after the deposit is made and during the 123-day period no Default
specified in Section 6.01(7) or (8) with respect to the Company occurs which is continuing
at the end of the period;

     (4) the deposit does not constitute a default under any other agreement binding on the
Company and is not prohibited by Article 10;

- 58 -

 

     (5) the Company delivers to the Trustee an Opinion of Counsel to the effect that the
trust resulting from the deposit does not constitute, or is qualified as, a regulated
investment company under the Investment Company Act of 1940;

     (6) in the case of the legal defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from, or there has
been published by, the Internal Revenue Service a ruling, or (ii) since the date of this
Indenture there has been a change in the applicable Federal income tax law, in either case
to the effect that, and based thereon such Opinion of Counsel shall confirm that, the
Noteholders will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit and defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred;

     (7) in the case of the covenant defeasance option, the Company shall have delivered to
the Trustee an Opinion of Counsel to the effect that the Noteholders will not
recognize income, gain or loss for Federal income tax purposes as a result of such
deposit and defeasance and will be subject to Federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such deposit and defeasance
had not occurred; and

     (8) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent to the defeasance and discharge of the
Notes as contemplated by this Article 8 have been complied with.

          Before or after a deposit, the Company may make arrangements satisfactory to the Trustee for
the redemption of Notes at a future date in accordance with Article 3.

           SECTION 8.03. Application of Trust Money. The Trustee shall hold in trust money or
U.S. Government Obligations deposited with it pursuant to this Article 8. It shall apply the
deposited money and the money from U.S. Government Obligations through the Paying Agent and in
accordance with this Indenture to the payment of principal of and interest on the Notes. Money and
securities so held in trust are not subject to Article 10.

           SECTION 8.04. Repayment to Company. The Trustee and the Paying Agent shall promptly
turn over to the Company upon request any excess money or securities held by them at any time.

           Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay
to the Company upon written request any money held by them for the payment of principal or interest
that remains unclaimed for two years, and, thereafter, Noteholders entitled to the money must look
to the Company for payment as general creditors.

           SECTION 8.05. Indemnity for Government Obligations. The Company shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or assessed against deposited
U.S. Government Obligations or the principal and interest received on such U.S. Government
Obligations.

- 59 -

 

           SECTION 8.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any
money or U.S. Government Obligations in accordance with this Article 8 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant
to this Article 8 until such time as the Trustee or Paying Agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article 8; provided,
however, that, if the Company has made any payment of interest on or principal of any Notes
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Noteholders of such Notes to
receive such payment from the money or U.S. Government Obligations held by the Trustee or
Paying Agent.

ARTICLE 9

Amendments

           SECTION 9.01. Without Consent of Noteholders. The Company, International and the
Trustee may amend this Indenture or the Notes without notice to or consent of any Noteholder:

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

     (2) to comply with Article 5;

     (3) to provide for uncertificated Notes in addition to or in place of certificated
Notes; provided, however, that the uncertificated Notes are issued in
registered form for purposes of Section 163(f) of the Code or in a manner such that the
uncertificated Notes are described in Section 163(f)(2)(B) of the Code;

     (4) to make any change in Article 10 that would limit or terminate the benefits
available to any holder of Senior Indebtedness (or Representatives therefor) under Article
10;

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

     (6) to add to the covenants of the Company for the benefit of the Noteholders or to
surrender any right or power herein conferred upon the Company;

     (7) to comply with any requirements of the SEC in connection with qualifying, or
maintaining the qualification of, this Indenture under the TIA;

     (8) to make any change that does not adversely affect the rights of any Noteholder;

     (9) to provide for the issuance of the Exchange Notes, Private Exchange Notes or
Additional Notes, which shall have terms substantially identical in all material respects to
the Original Notes (except that the transfer restrictions contained in the

- 60 -

 

Original Notes shall be modified or eliminated, as appropriate), and which shall be
treated, together with any outstanding Original Notes, as a single issue of securities.

      (10) to provide for a successor trustee; or

      (11) to make any changes or modifications necessary in connection with the registration
of the Exchange Notes as contemplated in the Registration Rights Agreement;
provided, that, such change or modification does not adversely affect the
interests of the Noteholders in any material respect.

            An amendment under this Section may not make any change that adversely affects the rights
under Article 10 of any holder of Senior Indebtedness of the Company then outstanding unless the
holders of such Senior Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

            After an amendment under this Section becomes effective, the Company shall mail to Noteholders
a notice briefly describing such amendment. The failure to give such notice to all Noteholders, or
any defect therein, shall not impair or affect the validity of an amendment under this Section.

            SECTION 9.02. With Consent of Noteholders. The Company, International and the
Trustee may amend this Indenture or the Notes with the written consent of the Holders of at least a
majority in principal amount of the Notes then outstanding (including consents obtained in
connection with a tender offer or exchange offer for the Notes), without notice to any other
Noteholder. However, without the consent of each Holder of an outstanding Note affected, an
amendment may not:

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

      (2) reduce the rate of or extend the time for payment of interest or any additional
interest on any Note;

      (3) reduce the principal of or extend the Stated Maturity of any Note;

      (4) reduce the premium payable upon the redemption of any Note or change the time at
which any Note may be redeemed in accordance with Article 3;

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

      (6) make any change in Article 10 that adversely affects the rights of any Noteholder
under Article 10;

      (7) impair the right of a Noteholder to institute suit for payment of any Notes; or

      (8) make any change in Section 6.04 or 6.07 or the second sentence of this Section
9.02.

- 61 -

 

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

            An amendment under this Section 9.02 may not make any change that adversely affects the rights
under Article 10 of any holder of Senior Indebtedness of the Company then outstanding unless the
holders of such Senior Indebtedness (or any group or representative thereof authorized to give a
consent) consent to such change.

            After an amendment under this Section becomes effective, the Company shall mail to Noteholders
a notice briefly describing such amendment. The failure to give such notice to all Noteholders, or
any defect therein, shall not impair or affect the validity of an amendment under this Section.

            SECTION 9.03. Compliance with Trust Indenture Act. Every amendment to this Indenture
or the Notes shall comply with the TIA as then in effect.

            SECTION 9.04. Revocation and Effect of Consents and Waivers. A consent to an
amendment or a waiver by a Noteholder of a Note shall bind the Noteholder and every subsequent
Noteholder of that Note or portion of the Note that evidences the same debt as the consenting
Noteholder’s Note, even if notation of the consent or waiver is not made on the Note. However, any
such Noteholder or subsequent Noteholder may revoke the consent or waiver as to such Noteholder’s
Note or portion of the Note if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall
bind every Noteholder. An amendment or waiver becomes effective once both (i) the requisite number
of consents have been received by the Company or the Trustee and (ii) such amendment or waiver has
been executed by the Company and the Trustee.

            The Company may, but shall not be obligated to, fix a record date for the purpose of
determining the Noteholders entitled to give their consent or take any other action described above
or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then
notwithstanding the immediately preceding paragraph, those Persons who were Noteholders at such
record date (or their duly designated proxies), and only those Persons, shall be entitled to give
such consent or to revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Noteholders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date.

            SECTION 9.05. Notation on or Exchange of Notes. If an amendment changes the terms of
a Note, the Trustee may require the Noteholder of the Note to deliver it to the Trustee. The
Trustee may place an appropriate notation on the Note regarding the changed terms and return it to
the Noteholder. Alternatively, if the Company or the Trustee so determines, the Company in
exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the
changed terms. Failure to make the appropriate notation or to issue a new Note shall not affect
the validity of such amendment.

            SECTION 9.06. Trustee to Sign Amendments. The Trustee shall sign any amendment
authorized pursuant to this Article 9 if the amendment does not adversely affect the

- 62 -

 

rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but
need not sign it. In signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, and (subject to Section 7.01) shall be fully
protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture and that such amendment is the legal, valid
and binding obligation of the Company and International enforceable against them in accordance with
its terms, subject to customary exceptions, and complies with the provisions hereof (including
Section 9.03).

ARTICLE 10

Subordination

            SECTION 10.01. 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 10, to the prior payment in full
in cash or cash equivalents 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 10, the Indebtedness evidenced by the Notes shall be deemed to include the additional
interest payable pursuant to the provisions set forth in the Notes and the Registration Rights
Agreement. All provisions of this Article 10 shall be subject to Section 10.12.

            SECTION 10.02. 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 or cash equivalents of such Senior Indebtedness before the Noteholders shall
be entitled to receive any payment of principal of, interest, premium (if any) or additional
interest on the Notes; and

      (2) until the Senior Indebtedness of the Company is paid in full in cash or cash
equivalents, any payment or distribution to which Noteholders would be entitled but for this
Article 10 shall be made to holders of such Senior Indebtedness as their interests may
appear.

            SECTION 10.03. Default on Senior Indebtedness. The Company may not pay the principal
of, premium (if any) or interest on the Notes, or any additional interest payable pursuant to the
provisions set forth in the Notes and the Registration Rights Agreement, or make any deposit
pursuant to Section 8.01 and may not repurchase, redeem or otherwise retire any Notes
(collectively, “pay the Notes”) if (i) any Designated Senior Indebtedness of the Company is not
paid in cash or cash equivalents when due or (ii) any other default on Designated Senior

- 63 -

 

Indebtedness of the Company occurs and the maturity of such Designated Senior Indebtedness is
accelerated in accordance with its terms unless, in either case, (x) the default has been cured or
waived and any such acceleration has been rescinded or (y) such Designated Senior Indebtedness has
been paid in full in cash or cash equivalents; 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 (i) or (ii) of this sentence has occurred
and is continuing. During the continuance of any default (other than a default described in clause
(i) or (ii) of the immediately 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 (i) by written notice to the
Trustee and the Company from the Person or Persons who gave such Blockage Notice, (ii) by repayment
in full in cash or cash equivalents of such Designated Senior Indebtedness or (iii) 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), unless the holders of such Designated Senior Indebtedness
or the Representative of such holders shall have accelerated the maturity of such Designated Senior
Indebtedness, the Company may resume payments on the Notes after the end of such Payment Blockage
Period. 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 of the
Company 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 of
the Company 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 10.04. Acceleration of Payment of Notes. If payment of the Notes is
accelerated because of an Event of Default, the Company or the Trustee 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 the
Designated Senior Indebtedness receive notice of such acceleration and, thereafter, may pay the
Notes only if this Article 10 otherwise permits payment at that time.

- 64 -

 

            SECTION 10.05. When Distribution Must Be Paid Over. If a distribution is made to
Noteholders that because of this Article 10 should not have been made to them, 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.

            SECTION 10.06. 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 10 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 10.07. Relative Rights. This Article 10 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 and additional
interest in respect of, 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 10.08. Subordination May Not Be Impaired by the 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 or by its
failure to comply with this Indenture.

            SECTION 10.09. Rights of Trustee and Paying Agent. Notwithstanding Section 10.03,
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 notice satisfactory to it that payments may not be made under this Article 10.
The Company, the 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 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 10 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 7 shall deprive the Trustee of any of its rights as such holder. Nothing in this Article
10 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 7.07.

- 65 -

 

            SECTION 10.10. 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 10.11. Article 10 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 10 shall not be construed as preventing the occurrence of a Default. Nothing in this
Article 10 shall have any effect on the right of the Noteholders or the Trustee to accelerate the
maturity of the Notes.

            SECTION 10.12. Trust Moneys Not Subordinated. Notwithstanding anything contained
herein to the contrary, payments from money or the proceeds of U.S. Government Obligations held in
trust under Article 8 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 10, and none of the 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 10.13. Trustee Entitled to Rely. Upon any payment or distribution pursuant
to this Article 10, the Trustee and the Noteholders shall be entitled to rely (i) upon any order or
decree of a court of competent jurisdiction in which any proceedings of the nature referred to in
Section 10.02 are pending, (ii) 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 (iii) 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 10. 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 10, 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 10, 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 7.01 and 7.02 shall be applicable to all actions or omissions of actions
by the Trustee pursuant to this Article 10.

            SECTION 10.14. Trustee to Effectuate Subordination. 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 Company as provided in this Article 10 and appoints the
Trustee as attorney-in-fact for any and all such purposes.

            SECTION 10.15. 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

- 66 -

 

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 10 or
otherwise.

            SECTION 10.16. Reliance by Holders 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.

            SECTION 10.17. Trustee’s Compensation Not Prejudiced. Nothing in this Article shall
apply to amounts due to the Trustee pursuant to other sections of this Indenture.

ARTICLE 11

International Guarantee

            SECTION 11.01. International Guarantee. International hereby unconditionally and
irrevocably guarantees, as a primary obligor and not merely as a surety, to each Noteholder and to
the Trustee and its successors and assigns (a) the full and punctual payment of principal of and
interest on and additional interest in respect of the Notes when due, whether at Stated Maturity,
by acceleration, by redemption or otherwise, and all other monetary obligations of the Company
under this Indenture (including obligations to the Trustee) and the Notes and (b) the full and
punctual performance within applicable grace periods of all other obligations of the Company
whether for expenses, indemnification or otherwise under this Indenture and the Notes (all the
foregoing being hereinafter collectively called the “Guaranteed Obligations”). International
further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part,
without notice or further assent from International, and that International shall remain bound
under this Article 11 notwithstanding any extension or renewal of any Guaranteed Obligation.

            International 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. International
waives notice of any default under the Notes or the Guaranteed Obligations. The obligations of
International hereunder shall not be affected by (a) 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 Indenture, the Notes or any other agreement or otherwise; (b) any extension or
renewal of any thereof; (c) any rescission, waiver, amendment or modification of any of the terms
or provisions of this Indenture, the Notes or any other agreement; (d) the release of any security
held by any Noteholder or the Trustee for the Guaranteed Obligations or any of them; (e) the
failure of any Noteholder or Trustee to exercise any right or remedy against any other guarantor of
the Guaranteed Obligations; or (f) any change in the ownership of International, except as provided
in Section 11.02(b).

- 67 -

 

            International 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 International’s obligations
hereunder prior to any amounts being claimed from or paid by International hereunder.
International hereby waives any right to which it may be entitled to require that the Company be
sued prior to an action being initiated against International.

            International further agrees that its International 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.

            The International Guarantee shall be a general unsecured senior obligation of International
and shall be pari passu in right of payment with all existing and future senior Indebtedness of
such Guarantor, if any.

            Except as expressly set forth in Sections 8.01 (b) and 11.02, the obligations of International
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 International
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 Indenture, the
Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure
or delay, willful 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 International or would otherwise operate as a discharge of International as a
matter of law or equity.

            International agrees that its International Guarantee shall remain in full force and effect
until payment in full of all the Guaranteed Obligations. International further agrees that its
International 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.

            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 International 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, International 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) 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.

- 68 -

 

            International 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 Senior Indebtedness. International further agrees that, as
between it, on the one hand, and the Noteholders and the Trustee, on the other hand, (x) the
maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as provided in Article
6 for the purposes of the International Guarantee herein, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the Guaranteed Obligations guaranteed
hereby, and (y) in the event of any declaration of acceleration of such Guaranteed Obligations as
provided in Article 6, such Guaranteed Obligations (whether or not due and payable) shall forthwith
become due and payable by International for the purposes of this Section 11.01.

            International 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 11.01.

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

            SECTION 11.02. Limitation on Liability. (a) Any term or provision of this Indenture
to the contrary notwithstanding, the maximum, aggregate amount of the Guaranteed Obligations
guaranteed hereunder by International shall not exceed the maximum amount that can be hereby
guaranteed without rendering this Indenture, as it relates to International, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting
the rights of creditors generally.

            (b) This International Guarantee shall terminate and be of no further force or effect and
International shall be deemed to be released from all obligations under this Article 11 upon the
merger or consolidation of International with or into any Person other than the Company or a
Subsidiary or Affiliate of the Company where International is not the surviving entity of such
consolidation or merger; provided, however, that each such merger or consolidation
shall comply with Section 5.01. At the request of the Company, the Trustee shall execute and
deliver an appropriate instrument evidencing such release.

            SECTION 11.03. Successors and Assigns. This Article 11 shall be binding upon
International 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 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 Indenture.

            SECTION 11.04. 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 Article 11 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

- 69 -

 

other rights, remedies or benefits which either may have under this Article 11 at law, in
equity, by statute or otherwise.

            SECTION 11.05. Modification. No modification, amendment or waiver of any provision
of this Article 11, nor the consent to any departure by International 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 International in any case shall entitle International to any other or
further notice or demand in the same, similar or other circumstances.

ARTICLE 12

Miscellaneous

            SECTION 12.01. Trust Indenture Act Controls. If any provision of this Indenture
limits, qualifies or conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.

            SECTION 12.02. Notices. Any notice or communication shall be in writing and
delivered in person or mailed by first-class mail addressed as follows:

	 	 	 
	 

	 	if to the Company:
	 
	 	 
	 

	 	WESCO Distribution, Inc.
	 

	 	Commerce Court, Suite 700
	 

	 	Four Station Square
	 

	 	Pittsburgh, PA 15219
	 
	 	 
	 

	 	Attention: Daniel A. Brailer, Corporate Secretary
	 
	 	 
	 

	 	if to the Trustee:
	 
	 	 
	 

	 	J.P. Morgan Trust Company,
	 

	 	National Association
	 

	 	227 W. Monroe, Suite 2600
	 

	 	Chicago, IL 60606
	 
	 	 
	 

	 	Attention: Corporate Trust Department

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

            Any notice or communication mailed to a Noteholder shall be mailed to the Noteholder at the
Noteholder’s address as it appears on the registration books of the Registrar and shall be
sufficiently given if so mailed within the time prescribed.

- 70 -

 

            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 12.03. Communication by Noteholders with Other Noteholders. Noteholders may
communicate pursuant to TIA § 312(b) with other Noteholders with respect to their rights under this
Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

            SECTION 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request
or application by the Company to the Trustee to take or refrain from taking any action under this
Indenture, the Company shall furnish to the Trustee:

      (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee stating that, in the opinion of the signers, all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been complied with; and

      (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
stating that, in the opinion of such counsel, all such conditions precedent have been
complied with.

            SECTION 12.05. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a covenant or condition provided for in this Indenture
shall include:

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

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

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

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

            SECTION 12.06. When Notes Disregarded. In determining whether the Noteholders of the
required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Company, International or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or International shall be disregarded
and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only Notes which the
Trustee knows are so owned shall be so disregarded. Subject to the foregoing, only Notes
outstanding at the time shall be considered in any such determination.

- 71 -

 

            SECTION 12.07. Rules by Trustee, Paying Agent and Registrar. The Trustee may make
reasonable rules for action by or a meeting of Noteholders. The Registrar and the Paying Agent may
make reasonable rules for their functions.

            SECTION 12.08. Legal Holidays. A “Legal Holiday” is a Saturday, a Sunday or a day on
which banking institutions are not required to be open in the State of New York or the State of
Ohio. If a payment date is a Legal Holiday, payment shall be made on the next succeeding day that
is not a Legal Holiday, and no interest shall accrue for the intervening period. If a regular
record date is a Legal Holiday, the record date shall not be affected.

            SECTION 12.09. GOVERNING LAW. THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

            SECTION 12.10. No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any obligations of the
Company under the Notes or this Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Note, each Noteholder shall waive and release
all such liability. The waiver and release shall be part of the consideration for the issue of the
Notes.

            SECTION 12.11. Successors. All agreements of the Company and International in this
Indenture and the Notes shall bind its successors. All agreements of the Trustee in this Indenture
shall bind its successors.

            SECTION 12.12. Multiple Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement. One signed copy is enough to prove this Indenture.

            SECTION 12.13. Table of Contents; Headings. The table of contents, cross-reference
sheet and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify
or restrict any of the terms or provisions hereof.

            SECTION 12.14. Indenture, Notes and Guarantee Solely Corporate Obligations. No
recourse for the payment of the principal of or, premium, if any, or interest on any Notes, or
under any Guarantee, or for any claim based upon any Notes or Guarantee 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 Notes or Guarantee, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator, stockholder,
member, manager, employee, agent, officer, director or subsidiary, as such, past, present or
future, of the Company or any of the Company’s Subsidiaries or of any successor thereto, either
directly or through the Company or any of the Company’s Subsidiaries or any successor thereto,
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.

- 72 -

 

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

	 	 	 	 	 	 	 
	 	 	WESCO DISTRIBUTION, INC., as Issuer
	 
	 	 	 	 	 	 
	[CORPORATE SEAL]
	 	 	 	 	 	 
	 	 	By:	 	  /s/ Stephen A. Van Oss
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Stephen A. Van Oss
	 

	 	 	 	Title:
	 	Senior Vice President and Chief
	 

	 	 	 	 	 	Financial and Administrative Officer
	 
	 	 	 	 	 	 
	 	 	WESCO INTERNATIONAL, INC., as Guarantor
	 
	 	 	 	 	 	 
	[CORPORATE SEAL]
	 	 	 	 	 	 
	 	 	By:	 	  /s/ Roy W. Haley
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Roy W. Haley
	 

	 	 	 	Title:
	 	Chairman and Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	J.P. MORGAN TRUST COMPANY,
	 	 	NATIONAL ASSOCIATION, as Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Carol Ng 
	 	 	 	 	 
	 

	 	 	 	Name:	 	Carol Ng 
	 

	 	 	 	Title:	 	Vice President

- 73 -

 

APPENDIX A

PROVISIONS RELATING TO ORIGINAL NOTES, 

ADDITIONAL NOTES, PRIVATE EXCHANGE NOTES AND 

EXCHANGE NOTES

            1. Definitions

            1.1 Definitions

            For the purposes of this Appendix A the following terms shall have the meanings indicated
below:

                  “Agent Members” has the meaning specified in Section 2.1(b).

                  “Applicable Procedures” means, with respect to any transfer or transaction involving a
Regulation S Global Note or beneficial interest therein, the rules and procedures of the Depositary
for such Global Note, Euroclear and Clearstream, in each case to the extent applicable to such
transaction and as in effect from time to time.

                  “Clearstream” means Clearstream Banking, société anonyme, or any successor securities clearing
agency.

                  “Custodian” means the custodian with respect to a Global Note (as appointed by the Depositary)
or any successor person thereto, who shall initially be the Trustee.

                  “Definitive Note” means a certificated Initial Note or Exchange Note (bearing the Restricted
Notes Legend if the transfer of such Note is restricted by applicable law) that does not include
the Global Notes Legend.

                  “Depositary” means The Depository Trust Company, its nominees and their respective successors.

                  “Euroclear” means the Euroclear Clearance System or any successor securities clearing agency.

                  “Global Note” has the meaning specified in Section 2.1(a).

                  “Global Notes Legend” means the legend set forth under that caption in Exhibit A to this
Indenture.

                  “IAI” means an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act.

                  “IAI Global Note” has the meaning specified in Section 2.1(a).

 

 

                  “Initial Purchasers” means Goldman, Sachs & Co., Lehman Brothers Inc., UBS Securities LLC,
Banc of America Securities LLC and Credit Suisse First Boston LLC.

                  “Private Exchange” means an offer by the Company, pursuant to a Registration Agreement, to
issue and deliver to certain purchasers, in exchange for the Initial Notes held by such purchasers
as part of their initial distribution, a like aggregate principal amount of Private Exchange Notes.

                  “Private Exchange Notes” means the Notes of the Company issued in exchange for Initial Notes
pursuant to this Indenture in connection with a Private Exchange pursuant to a Registration
Agreement.

                  “Purchase Agreement” means (i) the Purchase Agreement dated September 22, 2005, among the
Company, International and the Initial Purchasers and (ii) any other similar Purchase Agreement
relating to Additional Notes.

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

                  “Registered Exchange Offer” means an offer by the Company, pursuant to a Registration Rights
Agreement, to certain Holders of Initial Notes, to issue and deliver to such Holders, in exchange
for their Initial Notes, a like aggregate principal amount of Exchange Notes registered under the
Securities Act.

                  “Registration Rights Agreement” means (i) the Exchange and Registration Rights Agreement dated
September 27, 2005, among the Company, International and the Initial Purchasers and (ii) any other
similar Exchange and Registration Rights Agreement relating to Additional Notes.

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

                  “Regulation S Global Note” has the meaning specified in Section 2.1(a).

                  “Regulation S Notes” means all Initial Notes offered and sold outside the United States in
reliance on Regulation S.

                  “Restricted Period”, with respect to any Notes, means the period of 40 consecutive days
beginning on and including the later of (i) the day on which such Notes are first offered to
persons other than distributors (as defined in Regulation S under the Securities Act) in reliance
on Regulation S and (ii) the Issue Date with respect to such Notes.

                  “Restricted Notes Legend” means the legend set forth in Section 2.3(e)(i) herein.

                  “Rule 501” means Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

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

                  “Rule 144A Global Note” has the meaning specified in Section 2.1(a).

- 2 -

 

                  “Rule 144A Notes” means all Initial Notes offered and sold to QIBs in reliance on Rule 144A.

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

                  “Shelf Registration Statement” means a registration statement filed by the Company in
connection with the offer and sale of Initial Notes pursuant to a Registration Agreement.

                  “Transfer Restricted Notes” means Definitive Notes and any other Notes that bear or are
required to bear the Restricted Notes Legend.

            2. The Notes

            2.1 Form and Dating. The Initial Notes issued on the date hereof will be (i) offered
and sold by the Company pursuant to the Purchase Agreement and (ii) resold, initially only to (A)
QIBs in reliance on Rule 144A and (B) Persons other than U.S. Persons (as defined in Regulation S)
in reliance on Regulation S. Such Initial Notes may thereafter be transferred to, among others,
QIBs, purchasers in reliance on Regulation S and, except as set forth below, IAIs in accordance
with Rule 501. Additional Notes offered after the date hereof may be offered and sold by the
Company from time to time pursuant to one or more Purchase Agreements in accordance with applicable
law.

                  (a) Global Notes. Rule 144A Notes shall be issued initially in the form of one or
more permanent global Notes in definitive, fully registered form (collectively, the “Rule 144A
Global Note”) and Regulation S Notes shall be issued initially in the form of one or more global
Notes (collectively, the “Regulation S Global Note”), in each case without interest coupons and
bearing the Global Notes Legend and Restricted Notes Legend, which shall be deposited on behalf of
the purchasers of the Notes represented thereby with the Custodian, and registered in the name of
the Depositary or a nominee of the Depositary, duly executed by the Company and authenticated by
the Trustee as provided in this Indenture. One or more global securities in definitive, fully
registered form without interest coupons and bearing the Global Notes Legend and the Restricted
Notes Legend (collectively, the “IAI Global Note”) shall also be issued on the Closing Date,
deposited with the Custodian, and registered in the name of the Depositary or a nominee of the
Depositary, duly executed by the Company and authenticated by the Trustee as provided in this
Indenture to accommodate transfers of beneficial interests in the Notes to IAIs subsequent to the
initial distribution. Beneficial ownership interests in the Regulation S Global Note will not be
exchangeable for interests in the Rule 144A Global Note, the IAI Global Note or any other Note
without a Restricted Notes Legend until the expiration of the Restricted Period. The Rule 144A
Global Note, the IAI Global Note and the Regulation S Global Note are each referred to herein as a
“Global Note” and are collectively referred to herein as “Global Notes.” Subject to the terms of
this Indenture, the aggregate principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and the Depositary or its
nominee as hereinafter provided.

                  (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Note
deposited with or on behalf of the Depositary.

- 3 -

 

                  The Company shall execute and the Trustee shall, in accordance with this Section 2.1 (b) and
pursuant to an order of the Company, authenticate and deliver initially one or more Global Notes
that (a) shall be registered in the name of the Depositary for such Global Note or Global Notes or
the nominee of such Depositary and (b) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instructions or held by the Trustee as Custodian.

                  Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the Depositary or by the
Trustee as Custodian or under such Global Note, and the Depositary may be treated by the Company,
the Trustee and any agent of the Company or the Trustee as the absolute owner 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 impair, as between the
Depositary and its Agent Members, the operation of customary practices of such Depositary governing
the exercise of the rights of a holder of a beneficial interest in any Global Note.

                  (c) Definitive Notes. Except as provided in Section 2.3 or 2.4, owners of beneficial
interests in Global Notes will not be entitled to receive physical delivery of certificated Notes.

            2.2 Authentication. The Trustee shall authenticate and make available for delivery
upon a written order of the Company signed by one Officer (1) Original Notes for original issue on
the date hereof in an aggregate principal amount of $150 million, (2) subject to the terms of this
Indenture, Additional Notes in an unlimited aggregate principal amount and (3) the (A) Exchange
Notes for issue only in a Registered Exchange Offer and (B) Private Exchange Notes for issue only
in a Private Exchange, in the case of each of (A) and (B) pursuant to a Registration Agreement and
for a like principal amount of Initial Notes exchanged pursuant thereto. Such order shall specify
the amount of the Notes to be authenticated, the date on which the original issue of Notes is to be
authenticated and whether the Notes are to be Initial Notes, Exchange Notes or Private Exchange
Notes. The aggregate principal amount of Notes that may be outstanding at any time is unlimited.
Notwithstanding anything to the contrary in this Appendix or otherwise in this Indenture, any
issuance of Additional Notes after the Closing Date shall be in a principal amount of at least $50
million, whether such Additional Notes are of the same or a different series than the Original
Notes.

            2.3 Transfer and Exchange. (a) Transfer and Exchange of Definitive Notes.
When Definitive Notes are presented to the Registrar with a request:

            (x) to register the transfer of such Definitive Notes; or

            (y) to exchange such Definitive Notes for an equal principal amount of Definitive Notes
of other authorized denominations,

- 4 -

 

the Registrar shall register the transfer or make the exchange as requested if its reasonable
requirements for such transaction are met; provided, however, that the Definitive
Notes surrendered for transfer or exchange:

      (i) shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Company and the Registrar,
duly executed by the Noteholder thereof or his attorney duly authorized in
writing; and

      (ii) are accompanied by the following additional information and
documents, as applicable:

      (A) if such Definitive Notes are being delivered to the
Registrar by a Noteholder for registration in the name of such
Noteholder, without transfer, a certification from such Noteholder to
that effect (in the form set forth on the reverse side of the Initial
Note); or

      (B) if such Definitive Notes are being transferred to the
Company, a certification to that effect (in the form set forth on the
reverse side of the Initial Note); or

      (C) if such Definitive Notes are being transferred pursuant to
an exemption from registration in accordance with Rule 144 under the
Securities Act or in reliance upon another exemption from the
registration requirements of the Securities Act, (i) a certification
to that effect (in the form set forth on the reverse side of the
Initial Note) and (ii) if the Company so requests, an opinion of
counsel or other evidence reasonably satisfactory to it as to the
compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

                  (b) Restrictions on Transfer of a Definitive Note for a Beneficial Interest in a Global
Note. A Definitive Note may not be exchanged for a beneficial interest in a Global Note except
upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive
Note, duly endorsed or accompanied by a written instrument of transfer in form reasonably
satisfactory to the Company and the Registrar, together with:

      (i) certification (in the form set forth on the reverse side of the
Initial Note) that such Definitive Note is being transferred (A) to a QIB in
accordance with Rule 144A, (B) to an IAI that has furnished to the Trustee a
signed letter substantially in the form of Exhibit C or (C) outside the
United States in an offshore transaction within the meaning of Regulation S
and in compliance with Rule 904 under the Securities Act; and

      (ii) written instructions directing the Trustee to make, or to direct
the Custodian to make, an adjustment on its books and records with respect
to such Global Note to reflect an increase in the aggregate

- 5 -

 

principal amount of the Notes represented by the Global Note, such
instructions to contain information regarding the Depositary account to be
credited with such increase,

then the Trustee shall cancel such Definitive Note and cause, or direct the Custodian to cause, in
accordance with the standing instructions and procedures existing between the Depositary and the
Custodian, the aggregate principal amount of Notes represented by the Global Note to be increased
by the aggregate principal amount of the Definitive Note to be exchanged and shall credit or cause
to be credited to the account of the Person specified in such instructions a beneficial interest in
the Global Note equal to the principal amount of the Definitive Note so canceled. If no Global
Notes are then outstanding and the Global Note has not been previously exchanged for certificated
securities pursuant to Section 2.4, the Company shall issue and the Trustee shall authenticate,
upon written order of the Company in the form of an Officers’ Certificate, a new Global Note in the
appropriate principal amount.

                  (c) Transfer and Exchange of Global Notes. (i) The transfer and exchange of Global
Notes or beneficial interests therein shall be effected through the Depositary, in accordance with
this Indenture (including applicable restrictions on transfer set forth herein, if any) and the
procedures of the Depositary therefor. A transferor of a beneficial interest in a Global Note
shall deliver a written order given in accordance with the Depositary’s procedures containing
information regarding the participant account of the Depositary to be credited with a beneficial
interest in such Global Note or another Global Note and such account shall be credited in
accordance with such order with a beneficial interest in the applicable Global Note and the account
of the Person making the transfer shall be debited by an amount equal to the beneficial interest in
the Global Note being transferred. Transfers by an owner of a beneficial interest in the Rule 144A
Global Note or the IAI Global Note to a transferee who takes delivery of such interest through the
Regulation S Global Note, whether before or after the expiration of the Restricted Period, will be
made only upon receipt by the Trustee of a certification from the transferor to the effect that
such transfer is being made in accordance with Regulation S or (if available) Rule 144 under the
Securities Act and that, if such transfer is being made prior to the expiration of the Restricted
Period, the interest transferred will be held immediately thereafter through Euroclear or
Clearstream. In the case of a transfer of a beneficial interest in either the Regulation S Global
Note or the Rule 144A Global Note for an interest in the IAI Global Note, the transferee must
furnish a signed letter substantially in the form of Exhibit C to the Trustee.

      (ii) If the proposed transfer is a transfer of a beneficial interest in
one Global Note to a beneficial interest in another Global Note, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Global Note to which such interest is being
transferred in an amount equal to the principal amount of the interest to be
so transferred, and the Registrar shall reflect on its books and records the
date and a corresponding decrease in the principal amount of Global Note
from which such interest is being transferred.

      (iii) Notwithstanding any other provisions of this Appendix (other than
the provisions set forth in Section 2.4), a Global Note may not be
transferred as a whole except by the Depositary to a nominee of the

- 6 -

 

Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary.

      (iv) In the event that a Global Note is exchanged for Definitive Notes
pursuant to Section 2.4 prior to the consummation of a Registered Exchange
Offer or the effectiveness of a Shelf Registration Statement with respect to
such Notes, such Notes may be exchanged only in accordance with such
procedures as are substantially consistent with the provisions of this
Section 2.3 (including the certification requirements set forth on the
reverse of the Initial Notes intended to ensure that such transfers comply
with Rule 144A, Regulation S or such other applicable exemption from
registration under the Securities Act, as the case may be) and such other
procedures as may from time to time be adopted by the Company.

                  (d) Restrictions on Transfer of Regulation S Global Note. (i) Prior to the
expiration of the Restricted Period, interests in the Regulation S Global Note may only be held
through Euroclear or Clearstream. During the Restricted Period, beneficial ownership interests in
the Regulation S Global Note may only be sold, pledged or transferred through Euroclear or
Clearstream in accordance with the Applicable Procedures and only (A) to the Company, (B) so long
as such security is eligible for resale pursuant to Rule 144A, to a person whom the selling holder
reasonably believes is a QIB that purchases for its own account or for the account of a QIB to whom
notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, (C) in
an offshore transaction in accordance with Regulation S, (D) pursuant to an exemption from
registration under the Securities Act provided by Rule 144 (if applicable) under the Securities
Act, (E) to an IAI purchasing for its own account, or for the account of such an IAI, in a minimum
principal amount of Notes of $250,000 or (F) pursuant to an effective registration statement under
the Securities Act, in each case in accordance with any applicable securities laws of any state of
the United States. Prior to the expiration of the Restricted Period, transfers by an owner of a
beneficial interest in the Regulation S Global Note to a transferee who takes delivery of such
interest through the Rule 144A Global Note or the IAI Global Note will be made only in accordance
with Applicable Procedures and upon receipt by the Trustee of a written certification from the
transferor of the beneficial interest in the form provided on the reverse of the Initial Note to
the effect that such transfer is being made to (i) a person whom the transferor reasonably believes
is a QIB within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A or
(ii) an IAI purchasing for its own account, or for the account of such an IAI, in a minimum
principal amount of the Notes of $250,000. Such written certification will no longer be required
after the expiration of the Restricted Period. In the case of a transfer of a beneficial interest
in the Regulation S Global Note for an interest in the IAI Global Note, the transferee must furnish
a signed letter substantially in the form of Exhibit C to the Trustee.

      (ii) Upon the expiration of the Restricted Period, beneficial ownership interests in
the Regulation S Global Note will be transferable in accordance with applicable law and the
other terms of this Indenture.

- 7 -

 

                  (e) Legend.

      (i) Except as permitted by the following paragraphs (ii), (iii) or (iv), each Note
certificate evidencing the Global Notes and the Definitive Notes (and all Notes issued in
exchange therefor or in substitution thereof) shall bear a legend in substantially the
following form (each defined term in the legend being defined as such for purposes of the
legend only):

“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 AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH
IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH
THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY
PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A 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) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT
THAT IS AN INSTITUTIONAL INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F)
PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER,
SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION
OF COUNSEL, CERTIFICATION AND/OR OTHER

- 8 -

 

INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

            Each Definitive Note will also bear the following additional legend:

“IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.”

      (ii) Upon any sale or transfer of a Transfer Restricted Note that is a
Definitive Note, the Registrar shall permit the Noteholder thereof to
exchange such Transfer Restricted Note for a Definitive Note that does not
bear the legends set forth above and rescind any restriction on the transfer
of such Transfer Restricted Note if the Noteholder certifies in writing to
the Registrar that its request for such exchange was made in reliance on
Rule 144 (such certification to be in the form set forth on the reverse of
the Initial Note).

      (iii) After a transfer of any Initial Notes or Private Exchange Notes
during the period of the effectiveness of a Shelf Registration Statement
with respect to such Initial Notes or Private Exchange Notes, as the case
may be, all requirements pertaining to the Restricted Notes Legend on such
Initial Notes or such Private Exchange Notes will cease to apply and the
requirements that any such Initial Notes or such Private Exchange Notes be
issued in global form will continue to apply.

      (iv) Upon the consummation of a Registered Exchange Offer with respect
to the Initial Notes pursuant to which Noteholders of such Initial Notes are
offered Exchange Notes in exchange for their Initial Notes, all requirements
pertaining to Initial Notes that Initial Notes be issued in global form will
continue to apply, and Exchange Notes in global form without the Restricted
Notes Legend will be available to Noteholders that exchange such Initial
Notes in such Registered Exchange Offer.

      (v) Upon the consummation of a Private Exchange with respect to the
Initial Notes pursuant to which Holders of such Initial Notes are offered
Private Exchange Notes in exchange for their Initial Notes, all requirements
pertaining to such Initial Notes that Initial Notes be issued in global form
will continue to apply, and Private Exchange Notes in global form with the
Restricted Notes Legend will be available to Noteholders that exchange such
Initial Notes in such Private Exchange.

- 9 -

 

      (vi) Upon a sale or transfer after the expiration of the Restricted
Period of any Initial Note acquired pursuant to Regulation S, all
requirements that such Initial Note bear the Restricted Notes Legend will
cease to apply and the requirements requiring any such Initial Note be
issued in global form will continue to apply.

      (vii) Any Additional Notes sold in a registered offering shall not be
required to bear the Restricted Notes Legend.

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

                  (g) Obligations with Respect to Transfers and Exchanges of Notes.

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

      (ii) No service charge shall be made for any registration of transfer
or exchange, but the Company may require payment of a sum sufficient to
cover any transfer tax, assessments, or similar governmental charge payable
in connection therewith (other than any such transfer taxes, assessments or
similar governmental charge payable upon exchange or transfer pursuant to
Sections 3.06, 4.10, 4.12 and 9.05 of the Indenture).

      (iii) Prior to the due presentation for registration of transfer of any
Note, the Company, the Trustee, the Paying Agent or the Registrar may deem
and treat the person in whose name a Note is registered as the absolute
owner of such Note for the purpose of receiving payment of principal of and
interest on such Note and for all other purposes whatsoever, whether or not
such Note is overdue, and none of the Company, the Trustee, the Paying Agent
or the Registrar shall be affected by notice to the contrary.

      (iv) All Notes issued upon any transfer or exchange pursuant to the
terms of this Indenture shall evidence the same debt and shall be entitled
to the same benefits under this Indenture as the Notes surrendered upon such
transfer or exchange.

- 10 -

 

(h) No Obligation of the Trustee.

      (i) The Trustee shall have no responsibility or obligation to any
beneficial owner of a Global Note, a member of, or a participant in the
Depositary or any other Person with respect to the accuracy of the records
of the Depositary or its nominee or of any participant or member thereof,
with respect to any ownership interest in the Notes or with respect to the
delivery to any participant, member, beneficial owner or other Person (other
than the Depositary) of any notice (including any notice of redemption or
repurchase) or the payment of any amount, under or with respect to such
Notes. All notices and communications to be given to the Noteholders and
all payments to be made to Noteholders under the Notes shall be given or
made only to the registered Noteholders (which shall be the Depositary or
its nominee in the case of a Global Note). The rights of beneficial owners
in any Global Note shall be exercised only through the Depositary subject to
the applicable rules and procedures of the Depositary. The Trustee may rely
and shall be fully protected in relying upon information furnished by the
Depositary with respect to its members, participants and any beneficial
owners.

      (ii) The Trustee shall have no obligation or duty to monitor, determine
or inquire as to compliance with any restrictions on transfer imposed under
this Indenture or under applicable law with respect to any transfer of any
interest in any Note (including any transfers between or among Depositary
participants, members or beneficial owners 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.

            2.4 Definitive Notes.

            (a) A Global Note deposited with the Depositary or with the Trustee as Custodian pursuant to
Section 2.1 shall be transferred to the beneficial owners thereof in the form of Definitive Notes
in an aggregate principal amount equal to the principal amount of such Global Note, in exchange for
such Global Note, only if such transfer complies with Section 2.3 and (i) the Depositary notifies
the Company that it is unwilling or unable to continue as a Depositary for such Global Note or if
at any time the Depositary ceases to be a “clearing agency” registered under the Exchange Act, and
a successor depositary is not appointed by the Company within 90 days of such notice, or (ii) an
Event of Default has occurred and is continuing or (iii) the Company, in its sole discretion,
notifies the Trustee in writing that it elects to cause the issuance of certificated Notes under
this Indenture.

            (b) Any Global Note that is transferable to the beneficial owners thereof pursuant to this
Section 2.4 shall be surrendered by the Depositary to the Trustee, to be so transferred, in whole
or from time to time in part, without charge, and the Trustee shall

- 11 -

 

authenticate and deliver, upon such transfer of each portion of such Global Note, an equal
aggregate principal amount of Definitive Notes of authorized denominations. Any portion of a
Global Note transferred pursuant to this Section shall be executed, authenticated and delivered
only in denominations of $2,000 and any integral multiple of $1,000 and registered in such names as
the Depositary shall direct. Any certificated Initial Note in the form of a Definitive Note
delivered in exchange for an interest in the Global Note shall, except as otherwise provided by
Section 2.3(e), bear the Restricted Notes Legend.

            (c) Subject to the provisions of Section 2.4(b), the registered Noteholder of a Global Note
may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Noteholder is entitled to take
under this Indenture or the Notes.

            (d) In the event of the occurrence of any of the events specified in Section 2.4(a)(i), (ii)
or (iii), the Company will promptly make available to the Trustee a reasonable supply of Definitive
Notes in fully registered form without interest coupons.

- 12 -

 

EXHIBIT A

[FORM OF FACE OF INITIAL NOTE]

[Global Notes Legend]

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

            TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.

[Restricted Notes Legend]

            “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 AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO
YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR
ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY),
ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A 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) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING
OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING OF RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN INSTITUTIONAL
INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE.”

            Each Definitive Note will also bear the following additional legend:

            “IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT
SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.”

- 2 -

 

			
	No.
	 	$                    

7.50% Senior Subordinated Note due 2017

CUSIP No. ________

            WESCO Distribution, Inc., a Delaware corporation, promises to pay to Cede & Co., or registered
assigns, the principal sum [of                      Dollars] [, as revised by on the Schedule of Increases or
Decreases in Global Note attached hereto]1 on October 15, 2017.

            Interest Payment Dates: April 15 and October 15.

            Record Dates: April 1 and October 1.

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

            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.

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

	 	 	 	 	 	 	 
	 	 	WESCO DISTRIBUTION, INC.,
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	[SEAL]

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 

 

			
	1	 	Use the Schedule of Increases and Decreases language if Note is in Global Form.

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	 	 	 	 	 	 	 
	J.P. MORGAN TRUST COMPANY,	 	 
	NATIONAL ASSOCIATION,	 	 
	 

	 	 	 	as Trustee, certifies that this is one of	 	 
	 

	 	 	 	the Notes referred to in the Indenture.	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Authorized Signatory	 	 

 

 

[FORM OF REVERSE SIDE OF NOTE]

7.50% Senior Subordinated Note due 2017

1. Interest

            (a) WESCO DISTRIBUTION, INC., a Delaware corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at the rate per annum shown above. The
Company will pay interest semiannually on April 15 and October 15 of each year. Interest on the
Notes will accrue from the most recent date to which interest has been paid or, if no interest has
been paid, from September 27, 2005. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

            (b) Additional Interest. The holder of this Note is entitled to the benefits of an
Exchange and Registration Rights Agreement, dated as of September 27, 2005, among the Company,
WESCO International, Inc. (“International”) and the Initial Purchasers named therein (the
“Registration Rights Agreement”). Capitalized terms used in this paragraph (b) but not defined
herein have the meanings assigned to them in the Registration Rights Agreement. If (i) the
Exchange Offer Registration Statement or the Shelf Registration Statement, as applicable under the
Registration Rights Agreement, is not filed with the Commission on or prior to 210 days after the
Issue Date (or, in the case of a Shelf Registration Statement required to be filed in response to a
change in law or applicable interpretations of the Commission’s staff, if later, within 45 days
after publication of the change in law or interpretations, but in no event before 210 days after
the Issue Date), (ii) the Exchange Offer Registration Statement or the Shelf Registration
Statement, as the case may be, is not declared effective within 270 days after the Issue Date (or
in the case of a Shelf Registration Statement required to be filed in response to a change in law
or the applicable interpretations of Commission’s staff, if later, within 90 days after publication
of the change in law or interpretation, but in no event before 270 days after the Issue Date),
(iii) the Registered Exchange Offer is not consummated on or prior to 300 days after the Issue Date
(other than in the event the Company files a Shelf Registration Statement), or (iv) the Shelf
Registration Statement is filed and declared effective within 270 days after the Issue Date (or in
the case of a Shelf Registration Statement required to be filed in response to a change in law or
the applicable interpretations of Commission’s staff, if later, within 90 days after publication of
the change in law or interpretation, but in no event before 270 days after the Issue Date) but
shall thereafter cease to be effective (at any time that the Company is obligated to maintain the
effectiveness thereof) without being succeeded within 90 days by an additional Registration
Statement filed and declared effective (each such event referred to in clauses (i) through (iv), a
“Registration Default”), the Company shall pay additional interest to each Holder of Transfer
Restricted Notes, during the period of one or more such Registration Default, in an amount equal to
$0.192 per week per $1,000 principal amount of Transfer Restricted Notes held by such Holder until
(i) the Exchange Offer Registration Statement or Shelf Registration Statement, as the case may be,
is filed, (ii) the Exchange Offer Registration Statement is declared effective and the Registered
Exchange Offer is consummated, (iii) the Shelf Registration Statement is declared effective or (iv)
the Shelf Registration Statement again becomes effective, as the case may be. All accrued
additional interest shall be paid to holders in the same manner as interest payments on the Notes
on semi-annual payment dates which correspond to interest

 

 

payment dates for the Notes. Following the cure of all Registration Defaults, the accrual of
additional interest will cease. The Trustee shall have no responsibility with respect to the
determination of the amount of any such additional interest. For purposes of the foregoing,
“Transfer Restricted Notes” means (i) each Initial Note until the date on which such Initial Note
has been exchanged for a freely transferable Exchange Note in the Registered Exchange Offer, (ii)
each Initial Note or Private Exchange Note until the date on which such Initial Note or Private
Exchange Note has been effectively registered under the Securities Act and disposed of in
accordance with a Shelf Registration Statement or (iii) each Initial Note or Private Exchange Note
until the date on which such Initial Note or Private Exchange Note is distributed to the public
pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the
Securities Act.

2. Method of Payment

            The Company will pay interest on the Notes (except defaulted interest) to the Persons who are
registered holders of the Notes at the close of business on the April 1 or October 1 next preceding
the interest payment date even if the Notes are cancelled after the record date and on or before
the interest payment date. Holders must surrender the Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United States of America
that at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Notes represented by a Global Note (including principal, premium and interest) will
be made by wire transfer of immediately available funds to the account of the Depositary or its
nominee. The Company will make all payments in respect of a certificated Note (including
principal, premium and interest), by mailing a check to the registered address of each Noteholder
thereof; provided, however, that payments on the Notes may also be made, in the
case of a Noteholder of at least $1,000,000 aggregate principal amount of the Notes, by wire
transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such
Noteholder elects payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar

            Initially, J.P. Morgan Trust Company, National Association, a national banking association
(the “Trustee”), will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture

            The Company issued the Notes under an Indenture dated as of September 27, 2005 (the
“Indenture”), among the Company, International and the Trustee. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture
(the “TIA”). Terms defined in the Indenture and not defined herein have the meanings

- 2 -

 

ascribed thereto in the Indenture (except as specifically provided in Section 1(b)). The
Notes are subject to all such terms, and Noteholders are referred to the Indenture and the TIA for
a statement of those terms.

     The Notes are senior subordinated unsecured obligations of the Company. This Note is one of
the Original Notes referred to in the Indenture issued in an aggregate principal amount of $150
million. The Notes include the Initial Notes and any Exchange Notes issued in exchange for Initial
Notes. The Initial Notes and the Exchange Notes are treated as a single class of securities under
the Indenture. The Indenture imposes certain limitations on the ability of the Company and its
Restricted Subsidiaries to, among other things, make certain Investments and other Restricted
Payments, pay dividends and other distributions, incur Indebtedness, enter into consensual
restrictions upon the payment of certain dividends and distributions by such Restricted
Subsidiaries, issue or sell shares of capital stock of such Restricted Subsidiaries, enter into or
permit certain transactions with Affiliates, create or incur Liens and make asset sales. The
Indenture also imposes limitations on the ability of the Company to consolidate or merge with or
into any other Person or convey, transfer or lease all or substantially all of the property of the
Company.

     To guarantee the due and punctual payment of the principal and interest on the Notes and all
other amounts payable by the Company under the Indenture and the Notes when and as the same shall
be due and payable, whether at maturity, by acceleration or otherwise, according to the terms of
the Notes and the Indenture, International has unconditionally guaranteed the Guaranteed
Obligations on a senior basis pursuant to the terms of the Indenture.

5. Optional Redemption

     Except as set forth in the following paragraph, the Notes will not be redeemable at the option
of the Company prior to October 15, 2010. Thereafter, the Notes will be redeemable at the option
of the Company, in whole or in part, upon not less than 30 nor more than 60 days’ prior notice, at
the following redemption prices (expressed as percentages of principal amount), plus accrued and
unpaid interest and additional interest (if any) to the redemption date (subject to the right of
holders of record on the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the 12-month period commencing on October 15 of the years set
forth below:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2010
	 	 	103.750	%
	2011
	 	 	102.500	%
	2012
	 	 	101.250	%
	2013 and thereafter
	 	 	100.000	%

     Notwithstanding the foregoing, at any time prior to October 15, 2008, the Company may on any
one or more occasions redeem up to an aggregate of 35% of the Notes originally issued at a
redemption price of 107.500% of the principal amount thereof, plus accrued and unpaid interest and
additional interest, if any, to the redemption date, with the Net Cash

- 3 -

 

Proceeds of one or more Equity Offerings by the Company or the Net Cash Proceeds of one more
Equity Offerings by International that are contributed to the Company as common equity capital;
provided, that, at least 65% of the Notes originally issued remain outstanding immediately after
the occurrence of each such redemption; and provided, further, that any such redemption must occur
within 120 days of the date of the closing of such Equity Offering. Notice of any redemption upon
any Equity Offering may be given prior to the redemption thereof, and any such redemption or notice
may, at the Company’s discretion, be subject to the completion of the related Equity Offering.

6. Mandatory Redemption

     The Company shall not be required to make any mandatory redemption or payments with respect to
the Notes.

7. Notice of Redemption

     Subject to Section 5 above, notice of redemption will be mailed by first-class mail at least
30 days but not more than 60 days before the redemption date to each Noteholder of Notes to be
redeemed at his or her registered address. Notes in denominations larger than $2,000 may be
redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the redemption
price of and accrued interest on all Notes (or portions thereof) to be redeemed on the redemption
date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Notes (or such
portions thereof) called for redemption.

8. Repurchase of Notes at the Option of Noteholders upon Change of Control

     Upon a Change of Control, any Noteholder of Notes will have the right, subject to certain
conditions specified in the Indenture, to cause the Company to repurchase all or any part of the
Notes of such Noteholder at a purchase price equal to 101% of the principal amount of the Notes to
be repurchased plus accrued and unpaid interest and additional interest, if any, to the date of
repurchase (subject to the right of Noteholders of record on the relevant record date to receive
interest due on the relevant interest payment date) as provided in, and subject to the terms of,
the Indenture.

9. Subordination

     The Notes are subordinated to Senior Indebtedness of the Company, as defined in the Indenture.
To the extent provided in the Indenture, Senior Indebtedness of the Company must be paid before
the Notes may be paid. The Company and International agree, 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.

10. Denominations, Transfer, Exchange

     The Notes are in registered form without coupons in denominations of $2,000 and whole
multiples of $1,000. A Noteholder may transfer or exchange Notes in accordance with the

- 4 -

 

Indenture. Upon any transfer or exchange, the Registrar and the Trustee may require a
Noteholder, among other things, to furnish appropriate endorsements or transfer documents and to
pay any taxes required by law or permitted by the Indenture. The Registrar need not register the
transfer of or exchange any Notes selected for redemption (except, in the case of a Note to be
redeemed in part, the portion of the Note not to be redeemed) or to transfer or exchange any Notes
for a period of 15 days prior to a selection of Notes to be redeemed.

11. Persons Deemed Owners

     The registered Noteholder of this Note may be treated as the owner of it for all purposes.

12. Unclaimed Money

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Noteholders entitled to the money
must look only to the Company and not to the Trustee for payment.

13. Discharge and Defeasance

     Subject to certain conditions, the Company at any time may terminate some of or all its
obligations under the Notes and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of principal and interest on the Notes to redemption or
maturity, as the case may be.

14. Amendment, Waiver

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended without prior notice to any Noteholder but with the written consent of the Noteholders
of at least a majority in aggregate principal amount of the outstanding Notes and (ii) any default
or noncompliance with any provision may be waived with the written consent of the Noteholders of at
least a majority in principal amount of the outstanding Notes. Subject to certain exceptions set
forth in the Indenture, without the consent of any Noteholder of Notes, the Company and the Trustee
may amend the Indenture or the Notes (i) to cure any ambiguity, omission, defect or inconsistency;
(ii) to comply with Article 5 of the Indenture; (iii) to provide for uncertificated Notes in
addition to or in place of certificated Notes; (iv) to make any change in the subordination
provisions of the Indenture that would limit or terminate the benefits available to any holder of
Senior Indebtedness of the Company (or any representative thereof) under such subordination
provisions; (v) to add additional Guarantees with respect to the Notes; (vi) to add additional
covenants of the Company for the benefit of the Noteholders or to surrender rights and powers
conferred on the Company; (vii) to comply with the requirements of the SEC in connection with
qualifying, or maintaining the qualification of, the Indenture under the TIA; (viii) to make any
change that does not adversely affect the rights of any Noteholder; or (ix) to provide for the
issuance of the Exchange Notes, Private Exchange Notes or Additional Notes; (x) to provide for a
successor trustee; or (xi) to make any changes or modifications necessary in connection with the
registration of the Exchange Notes as contemplated in the

- 5 -

 

Registration Rights Agreement; provided that such change or modification does not adversely
affect the interests of the Noteholders in any material respect.

15. Defaults and Remedies

     If an Event of Default occurs (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company) and is continuing, the Trustee or the
Noteholders of at least 25% in principal amount of the outstanding Notes may declare the principal
of and accrued but unpaid interest on all the Notes to be due and payable. If an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Company occurs, the
principal of and interest on all the Notes will become immediately due and payable without any
declaration or other act on the part of the Trustee or any Noteholders. Under certain
circumstances, the Noteholders of a majority in principal amount of the outstanding Notes may
rescind any such acceleration with respect to the Notes and its consequences.

     If an Event of Default occurs and is continuing, the Trustee will be under no obligation to
exercise any of the rights or powers under the Indenture at the request or direction of any of the
Noteholders unless such Noteholders have offered to the Trustee reasonable indemnity or security
against any loss, liability or expense. Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Noteholder may pursue any remedy with respect
to the Indenture or the Notes unless (i) such Noteholder has previously given the Trustee notice
that an Event of Default is continuing, (ii) Noteholders of at least 25% in principal amount of the
outstanding Notes have requested the Trustee in writing to pursue the remedy, (iii) such
Noteholders have offered the Trustee reasonable security or indemnity against any loss, liability
or expense, (iv) the Trustee has not complied with such request within 60 days after the receipt of
the request and the offer of security or indemnity and (v) the Noteholders of a majority in
principal amount of the outstanding Notes have not given the Trustee a direction inconsistent with
such request within such 60-day period. Subject to certain restrictions, the Noteholders of a
majority in principal amount of the outstanding Notes are given the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. The Trustee, however, may refuse to follow
any direction that conflicts with law or the Indenture or that the Trustee determines is unduly
prejudicial to the rights of any other Noteholder or that would involve the Trustee in personal
liability. Prior to taking any action under the Indenture, the Trustee will be entitled to
indemnification satisfactory to it in its sole discretion against all losses and expenses caused by
taking or not taking such action.

16. Trustee Dealings with the Company

     Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal
with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it were not Trustee.

- 6 -

 

17. No Recourse Against Others

     A director, officer, employee or stockholder, as such, of the Company or International shall
not have any liability for any obligations of the Company under the Notes or the Indenture or for
any claim based on, in respect of or by reason of such obligations or their creation. By accepting
a Note, each Noteholder waives and releases all such liability. The waiver and release are part of
the consideration for the issue of the Notes.

18. Authentication

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Note.

19. Abbreviations

     Customary abbreviations may be used in the name of a Noteholder or an assignee, such as TEN
COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights
of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

20. GOVERNING LAW

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

21. CUSIP and ISIN Numbers

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

     The Company will furnish to any Noteholder upon written request and without charge to the
Noteholder a copy of the Indenture which has in it the text of this Note.

- 7 -

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

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

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

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

 

	 	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	Your Signature:
	 	 
	 	 
	 

	 	 
	 	 	 	 	 	 

 

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

 

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF

TRANSFER RESTRICTED NOTES

This
certificate relates to $_______ principal amount of Notes held in (check applicable space)
______ book-entry or
_______ definitive form by the undersigned.

The undersigned (check one box below):

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

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

In connection with any transfer of any of the Notes
evidenced by this certificate occurring prior to the
expiration of the period referred to in Rule 144(k)
under the Securities Act, the undersigned confirms
that such Notes are being transferred in accordance
with its terms:

CHECK ONE BOX BELOW

	 	(1)	 	to the Company; or
	 
	 	(2)	 	pursuant to an effective
registration statement under the Securities Act of 1933; or
	 
	 	(3)	 	inside the United States to a
“qualified institutional buyer” (as defined in Rule 144A under
the Securities Act of 1933) that purchases for its own account
or for the account of a qualified institutional buyer to whom
notice is given that such transfer is being made in reliance on
Rule 144A, in each case pursuant to and in compliance with Rule
144A under the Securities Act of 1933; or
	 
	 	(4)	 	outside the United States in an
offshore transaction within the meaning of Regulation S under
the Securities Act in compliance with Rule 904 under the
Securities Act of 1933; or
	 
	 	(5)	 	to an institutional “accredited
investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act of 1933) that has furnished to the Trustee a
signed letter containing certain representations and
agreements; or

 

 

	 	(6)	 	pursuant to any other available
exemption from the registration requirements of the Securities
Act of 1933.

Unless one of the boxes is checked, the Trustee will refuse to register any of the
Notes evidenced by this certificate in the name of any Person other than the
registered holder thereof; provided, however, that if box (4), (5)
or (6) is checked, the Trustee may require, prior to registering any such transfer
of the Notes, such legal opinions, certifications and other information as the
Company has reasonably requested to confirm that such transfer is being made
pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

	 	 	 	 	 	 	 
	 

	 	 	 	Your Signature
	 	 
	 
	 	 	 	 	 	 
	Signature Guarantee:	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 
	 	 	 	 
	 

	 	 
	 	 	 	 
	Signature must be guaranteed
by a participant in a
recognized signature guaranty
medallion program or other
signature guarantor acceptable
to the Trustee	 	    Signature of
Signature
     Guarantee	 	 

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

     The undersigned represents and warrants that it is purchasing this Note for its own account or
an account with respect to which it exercises sole investment discretion and that it and any such
account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the undersigned has
requested pursuant to Rule 144A or has determined not to request such information and that it is
aware that the transferor is relying upon the undersigned’s foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

	 	 	 	 	 	 	 
	Dated:

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	    NOTICE: To be executed by

    an executive officer	 	 

- 2 -

 

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SENIOR

SUBORDINATED NOTE

     The
initial principal amount of this Global Note is
$[      ]. The following increases or
decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of decrease in	 	 	Amount of increase in	 	 	Principal amount of this	 	 	Signature of authorized	 
	 	 	Principal Amount of this	 	 	Principal Amount of	 	 	Global Note following	 	 	signatory of Trustee or	 
	Date of Exchange	 	Global Note	 	 	this Global Note	 	 	such decrease or increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

OPTION OF NOTEHOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10
(Asset Sale) or 4.12 (Change of Control) of the Indenture, check the box:

Asset Sale       Change of Control

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or 4.12 of the Indenture, state the amount:

	 	 	 	 	 	 	 	 	 
	$
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	Your Signature:
	 	 
	 	 
	 

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

	 	 	 
	Signature Guarantee:

	 	 
	 

	 	 
	 

	 	Signature must be guaranteed by a participant in a recognized signature
guaranty medallion program or other signature guarantor acceptable to the
Trustee

 

 

EXHIBIT B

[FORM OF FACE OF EXCHANGE NOTE]

			
	 	 	 
	No.
	 	$_____

7.50% Senior Subordinated Note due 2017

			
	 	 	 
	 
	 	CUSIP No.___

     WESCO Distribution, Inc., a Delaware corporation, promises to pay to Cede & Co., or registered
assigns, the principal sum [of
_______ Dollars] [, as revised by the Schedule of Increases or
Decreases in Global Note attached hereto]2 on October 15, 2017.

     Interest Payment Dates: April 15 and October 15.

     Record Dates: April 1 and October 1.

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

     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.

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

	 	 	 	 	 	 	 
	 	 	WESCO DISTRIBUTION, INC.,	 	 
	 
	 	 	 	 	 	 
	[SEAL]

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

			
	2	 	Use the Schedule of Increases and Decreases
language if Note is in Global Form.

 

 

     TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     J.P. MORGAN TRUST COMPANY,

     NATIONAL ASSOCIATION,

          as Trustee, certifies that this is one of

          the Notes referred to in the Indenture.

	 	 	 	 	 	 	 
	 

	 	By:
	 	 
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

 

			
	*/	 	If the Note is to be issued in global form, add the Global Notes Legend and the
attachment from Exhibit A captioned “TO BE ATTACHED TO GLOBAL NOTES — SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL NOTE”.

- 2 -

 

[FORM OF REVERSE SIDE OF EXCHANGE NOTE]

7.50% Senior Subordinated Note due 2017

1. Interest.

     WESCO DISTRIBUTION, INC., a Delaware corporation (such corporation, and its successors and
assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at the rate per annum shown above. The
Company will pay interest semiannually on April 15 and October 15 of each year. Interest on the
Notes will accrue from the most recent date to which interest has been paid or, if no interest has
been paid, from September 27, 2005. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

2. Method of Payment.

     The Company will pay interest on the Notes (except defaulted interest) to the Persons who are
registered holders of Notes at the close of business on the April 1 or October 1 next preceding the
interest payment date even if Notes are canceled after the record date and on or before the
interest payment date. Noteholders must surrender Notes to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United States of America
that at the time of payment is legal tender for payment of public and private debts. Payments in
respect of the Notes represented by a Global Note (including principal, premium and interest) will
be made by wire transfer of immediately available funds to the account of the Depositary or its
nominee. The Company will make all payments in respect of a certificated Note (including
principal, premium and interest), by mailing a check to the registered address of each Noteholder
thereof; provided, however, that payments on the Notes may also be made, in the
case of a Noteholder of at least $1,000,000 aggregate principal amount of Notes, by wire transfer
to a U.S. dollar account maintained by the payee with a bank in the United States if such
Noteholder elects payment by wire transfer by giving written notice to the Trustee or the Paying
Agent to such effect designating such account no later than 30 days immediately preceding the
relevant due date for payment (or such other date as the Trustee may accept in its discretion).

3. Paying Agent and Registrar.

     Initially, J.P. Morgan Trust Company, National Association, a national banking association
(the “Trustee”), will act as Paying Agent and Registrar. The Company may appoint and change any
Paying Agent, Registrar or co-registrar without notice. The Company or any of its domestically
incorporated Wholly Owned Subsidiaries may act as Paying Agent, Registrar or co-registrar.

4. Indenture.

     The Company issued the Notes under an Indenture dated as of September 27, 2005 (the
“Indenture”), among the Company, International and the Trustee. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the

 

 

Indenture (the “TIA”). Terms defined in the Indenture and not defined herein have the
meanings ascribed thereto in the Indenture. The Notes are subject to all such terms, and
Noteholders are referred to the Indenture and the TIA for a statement of those terms.

     The Notes are senior subordinated unsecured obligations of the Company. This Note is one of
the Initial Notes referred to in the Indenture issued in an aggregate principal amount of $150
million. The Notes include the Original Notes, the Additional Notes and any Exchange Notes and
Private Exchange Notes issued in exchange for the Initial Notes pursuant to the Indenture. The
Original Notes, the Additional Notes, the Exchange Notes and the Private Exchange Notes are treated
as a single class of securities under the Indenture. The Indenture imposes certain limitations on
the ability of the Company and its Restricted Subsidiaries to, among other things, make certain
Investments and other Restricted Payments, pay dividends and other distributions, incur
Indebtedness, enter into consensual restrictions upon the payment of certain dividends and
distributions by such Restricted Subsidiaries, issue or sell shares of capital stock of such
Restricted Subsidiaries, enter into or permit certain transactions with Affiliates, create or incur
Liens and make Asset Sales. The Indenture also imposes limitations on the ability of the Company
to consolidate or merge with or into any other Person or convey, transfer or lease all or
substantially all of the property of the Company.

     To guarantee the due and punctual payment of the principal and interest, if any, on the Notes
and all other amounts payable by the Company under the Indenture and the Notes when and as the same
shall be due and payable, whether at maturity, by acceleration or otherwise, according to the terms
of the Notes and the Indenture, International has unconditionally guaranteed the Guaranteed
Obligations on a senior basis pursuant to the terms of the Indenture.

5. Optional Redemption.

     Except as set forth in the following paragraph, the Notes will not be redeemable at the option
of the Company prior to October 15, 2010. Thereafter, the Notes will be redeemable at the option
of the Company, in whole or in part, upon not less than 30 nor more than 60 days’ prior notice, at
the following redemption prices (expressed as percentages of principal amount), plus accrued and
unpaid interest and additional interest (if any) to the redemption date (subject to the right of
holders of record on the relevant record date to receive interest due on the relevant interest
payment date), if redeemed during the 12-month period commencing on June 1 of the years set forth
below:

	 	 	 	 	 
	 	 	Redemption
	Year	 	Price
	2010
	 	 	103.750	%
	2011
	 	 	102.500	%
	2012
	 	 	101.250	%
	2013 and thereafter
	 	 	100.000	%

     Notwithstanding the foregoing, at any time prior to October 15, 2008, the Company may on any
one or more occasions redeem up to an aggregate of 35% of the notes originally issued at a
redemption price of 107.500% of the principal amount thereof, plus accrued

- 2 -

 

and unpaid interest and additional interest, if any, to the redemption date, with the Net Cash
Proceeds of one or more Equity Offerings by the Company or the Net Cash Proceeds of one more Equity
Offerings by International that are contributed to the Company as common equity capital; provided,
that, at least 65% of the Notes originally issued remain outstanding immediately after the
occurrence of each such redemption; and provided, further, that any such redemption must occur
within 120 days of the date of the closing of such Equity Offering. Notice of any redemption upon
any Equity Offering may be given prior to the redemption thereof, and any such redemption or notice
may, at the Company’s discretion, be subject to the completion of the related Equity Offering.

6. Mandatory Redemption.

     The Company shall not be required to make any mandatory redemption or payments with respect to
the Notes.

7. Notice of Redemption.

     Subject to Section 5, above, notice of redemption will be mailed by first-class mail at least
30 days but not more than 60 days before the redemption date to each Noteholder of Notes to be
redeemed at his or her registered address. Notes in denominations larger than $2,000 may be
redeemed in part but only in whole multiples of $1,000. If money sufficient to pay the redemption
price of and accrued interest on all Notes (or portions thereof) to be redeemed on the redemption
date is deposited with the Paying Agent on or before the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on such Notes (or such
portions thereof) called for redemption.

8. Repurchase of Notes at the Option of Senior Subordinated Noteholders upon Change of Control 

     Upon a Change of Control, any Noteholder of Notes will have the right, subject to certain
conditions specified in the Indenture, to cause the Company to repurchase all or any part of the
Notes of such Noteholder at a purchase price equal to 101 % of the principal amount of the Notes to
be repurchased plus accrued and unpaid interest and additional interest, if any, to the date of
repurchase (subject to the right of Noteholders of record on the relevant record date to receive
interest due on the relevant interest payment date) as provided in, and subject to the terms of,
the Indenture.

9. Subordination.

     The Notes are subordinated to Senior Indebtedness of the Company, as defined in the Indenture.
To the extent provided in the Indenture, Senior Indebtedness of the Company must be paid before
the Notes may be paid. The Company and International agree, 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.

- 3 -

 

10. Denominations; Transfer; Exchange.

     The Notes are in registered form without coupons in denominations of $2,000 and whole
multiples of $1,000. A Noteholder may transfer or exchange Notes in accordance with the Indenture.
Upon any transfer or exchange, the Registrar and the Trustee may require a Noteholder, among other
things, to furnish appropriate endorsements or transfer documents and to pay any taxes required by
law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any
Notes selected for redemption (except, in the case of a Note to be redeemed in part, the portion of
the Note not to be redeemed) or to transfer or exchange any Notes for a period of 15 days prior to
a selection of Notes to be redeemed or 15 days before an interest payment date.

11. Persons Deemed Owners.

     The registered Noteholder of this Note may be treated as the owner of it for all purposes.

12. Unclaimed Money.

     If money for the payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent shall pay the money back to the Company at its written request unless an abandoned
property law designates another Person. After any such payment, Noteholders entitled to the money
must look only to the Company and not to the Trustee for payment.

13. Discharge and Defeasance.

     Subject to certain conditions, the Company at any time may terminate some of or all its
obligations under the Notes and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of principal and interest on the Notes to redemption or
maturity, as the case may be.

14. Amendment, Waiver.

     Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Notes may
be amended without prior notice to any Noteholder but with the written consent of the Noteholders
of at least a majority in aggregate principal amount of the outstanding Notes and (ii) any default
or noncompliance with any provision may be waived with the written consent of the Noteholders of at
least a majority in principal amount of the outstanding Notes. Subject to certain exceptions set
forth in the Indenture, without the consent of any Noteholder of Notes, the Company and the Trustee
may amend the Indenture or the Notes (i) to cure any ambiguity, omission, defect or inconsistency;
(ii) to comply with Article 5 of the Indenture; (iii) to provide for uncertificated Notes in
addition to or in place of certificated Notes; (iv) to make any change in the subordination
provisions of the Indenture that would limit or terminate the benefits available to any holder of
Senior Indebtedness of the Company (or any representative thereof) under such subordination
provisions; (v) to add additional Guarantees with respect to the Notes; (vi) to add additional
covenants of the Company for the benefit of the Noteholders or to surrender rights and powers
conferred on the Company; (vii) to comply with the requirements of

- 4 -

 

the SEC in connection with qualifying or maintaining the qualification of, the Indenture under
the TIA; (viii) to make any change that does not adversely affect the rights of any Noteholder;
(ix) to provide for the issuance of the Exchange Notes, Private Exchange Notes, or Additional
Notes; (x) to provide for a successor trustee; or (xi) to make any changes or modifications
necessary in connection with the registration of the Exchange Notes as contemplated in the
Registration Rights Agreement; provided that such change or modification does not adversely affect
the interests of the Noteholders in any material respect.

15. Defaults and Remedies.

     If an Event of Default occurs (other than an Event of Default relating to certain events of
bankruptcy, insolvency or reorganization of the Company) and is continuing, the Trustee or the
Noteholders of at least 25% in principal amount of the outstanding Notes may declare the principal
of and accrued but unpaid interest on all the Notes to be due and payable. If an Event of Default
relating to certain events of bankruptcy, insolvency or reorganization of the Company occurs, the
principal of and interest on all the Notes will become immediately due and payable without any
declaration or other act on the part of the Trustee or any Noteholders. Under certain
circumstances, the Noteholders of a majority in principal amount of the outstanding Notes may
rescind any such acceleration with respect to the Notes and its consequences.

     If an Event of Default occurs and is continuing, the Trustee will be under no obligation to
exercise any of the rights or powers under the Indenture at the request or direction of any of the
Noteholders unless such Noteholders have offered to the Trustee reasonable indemnity or security
against any loss, liability or expense. Except to enforce the right to receive payment of
principal, premium (if any) or interest when due, no Noteholder may pursue any remedy with respect
to the Indenture or the Notes unless (i) such Noteholder has previously given the Trustee notice
that an Event of Default is continuing, (ii) Noteholders of at least 25% in principal amount of the
outstanding Notes have requested the Trustee in writing to pursue the remedy, (iii) such
Noteholders have offered the Trustee reasonable security or indemnity against any loss, liability
or expense, (iv) the Trustee has not complied with such request within 60 days after the receipt of
the request and the offer of security or indemnity and (v) the Noteholders of a majority in
principal amount of the outstanding Notes have not given the Trustee a direction inconsistent with
such request within such 60-day period. Subject to certain restrictions, the Noteholders of a
majority in principal amount of the outstanding Notes are given the right to direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or of
exercising any trust or power conferred on the Trustee. The Trustee, however, may refuse to follow
any direction that conflicts with law or the Indenture or that the Trustee determines is unduly
prejudicial to the rights of any other Noteholder or that would involve the Trustee in personal
liability. Prior to taking any action under the Indenture, the Trustee will be entitled to
indemnification satisfactory to it in its sole discretion against all losses and expenses caused by
taking or not taking such action.

16. Trustee Dealings with the Company.

     Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its
individual or any other capacity, may become the owner or pledgee of Notes and

- 5 -

 

may otherwise deal with and collect obligations owed to it by the Company or its Affiliates
and may otherwise deal with the Company or its Affiliates with the same rights it would have if it
were not Trustee.

17. No Recourse Against Others.

     A director, officer, employee or stockholder, as such, of the Company or International shall
not have any liability for any obligations of the Company under the Notes or the Indenture or for
any claim based on, in respect of or by reason of such obligations or their creation. By accepting
a Note, each Noteholder waives and releases all such liability. The waiver and release are part of
the consideration for the issue of the Notes.

18. Authentication.

     This Note shall not be valid until an authorized signatory of the Trustee (or an
authenticating agent) manually signs the certificate of authentication on the other side of this
Note.

19. Abbreviations.

     Customary abbreviations may be used in the name of a Noteholder or an assignee, such as TEN
COM (=tenants in common), TEN ENT (=tenants by the entireties), JT TEN (=joint tenants with rights
of survivorship and not as tenants in common); CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

20. GOVERNING LAW.

     THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

21. CUSIP and ISIN Numbers.

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

     The Company will furnish to any Noteholder upon written request and without charge to the
Noteholder a copy of the Indenture which has in it the text of this Note.

- 6 -

 

ASSIGNMENT FORM

To assign this Note, fill in the form below:

I or we assign and transfer this Note to

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

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

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

 

	 	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	Your Signature:
	 	 
	 	 
	 

	 	 
	 	 	 	 	 	 

 

Sign exactly as your name appears on the other side of this Note. Signature

must be guaranteed by a participant in a recognized signature guaranty medallion program or other
signature guarantor acceptable to the Trustee.

 

 

OPTION OF NOTEHOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10
(Asset Sale) or 4.12 (Change of Control) of the Indenture, check the box:

Asset Sale       Change of Control

     If you want to elect to have only part of this Note purchased by the Company pursuant to
Section 4.10 or 4.12 of the Indenture, state the amount:

	 	 	 	 	 	 	 	 	 
	$
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 
	 	Your Signature:
	 	 
	 	 
	 

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

	 	 	 
	Signature Guarantee:

	 	 
	 

	 	 
	 

	 	Signature must be guaranteed by a participant in a recognized
signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

 

EXHIBIT C

Form of

Transferee Letter of Representation

WESCO Distribution, Inc.

In care of

J.P. Morgan Trust Company, National Association

[Address]

Ladies and Gentlemen:

     This
certificate is delivered to request a transfer of $______ principal amount of the
7.50% Senior Subordinated Notes due 2017 (the “Notes”) of WESCO Distribution, Inc. (the “Company”).

     Upon transfer, the Notes would be registered in the name of the new beneficial owner as
follows:

	 	 	 	 	 
	Name:

	 	 
	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Taxpayer ID Number:

	 	 	 	 
	 

	 	 	 	 

     The undersigned represents and warrants to you that:

     1. We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act of 1933, as amended (the “Securities Act”)) purchasing for our own
account or for the account of such an institutional “accredited investor” at least $250,000
principal amount of the Notes, and we are acquiring the Notes not with a view to, or for offer or
sale in connection with, any distribution in violation of the Securities Act. We have such
knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we invest in or purchase Notes similar to the
Notes in the normal course of our business. We, and any accounts for which we are acting, are each
able to bear the economic risk of our or its investment.

     2. We understand that the Notes have not been registered under the Securities Act and, unless
so registered, may not be sold except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date that is two years after the later of the date of
original issue and the last date on which the Company or any affiliate of the Company was the owner
of such Notes (or any predecessor thereto) (the “Resale Restriction Termination Date”) only (a) to
the Company, (b) pursuant to a registration statement that has been declared effective under the
Securities Act, (c) in a transaction

 

 

complying with the requirements of Rule 144A under the Securities Act (“Rule 144A”), to a
person we reasonably believe is a qualified institutional buyer under Rule 144A (a “QIB”) that
purchases for its own account or for the account of a QIB and to whom notice is given that the
transfer is being made in reliance on Rule 144A, (d) pursuant to offers and sales that occur
outside the United States within the meaning of Regulation S under the Securities Act, (e) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is an institutional investor purchasing for its own account or for the account
of such an institutional “accredited investor”, in each case in a minimum principal amount of Notes
of $250,000, or (f) pursuant to any other available exemption from the registration requirements of
the Securities Act, subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or accounts be at all times
within our or their control and in compliance with any applicable state securities laws. The
foregoing restrictions on resale will not apply subsequent to the Resale Restriction Termination
Date. If any resale or other transfer of the Notes is proposed to be made pursuant to clause (e)
above prior to the Resale Restriction Termination Date, the transferor shall deliver a letter from
the transferee substantially in the form of this letter to the Company and the Trustee, which shall
provide, among other things, that the transferee is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act and that it is acquiring
such Notes for investment purposes and not for distribution in violation of the Securities Act.
Each purchaser acknowledges that the Company and the Trustee reserve the right prior to the offer,
sale or other transfer prior to the Resale Restriction Termination Date of the Notes pursuant to
clause (d), (e) or (f) above to require the delivery of an opinion of counsel, certifications or
other information satisfactory to the Company and the Trustee.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	TRANSFEREE:	 	 	 	,	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	by:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]