Document:

Change in Control Agreement btw Tarantella and Steven Bannerman

  
 Exhibit 10.52

  
 

 
  
 March 16, 2004 
  

	To:	Stephen Bannerman 

	 	Vice President, Chief Marketing Officer 

  
 Dear Stephen, 
  
 Tarantella, Inc., a California corporation (the “Company”), considers it essential to the best interests of its shareholders to take reasonable steps to retain key management personnel. Further, the Board of
Directors of the Company, through its Compensation Committee (the “Committee”) recognizes that the uncertainty and questions which might arise among management in the context of a change in control of the Company could result in the
distraction or departure of management personnel to the detriment of the Company and its shareholders. 
  
 The Committee has determined, therefore, that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the management of the Company and its subsidiaries to
their assigned duties without distraction in the face of potentially disturbing circumstances arising from any possible change in control of the Company. 
  
 In order to induce you to remain in the employ of the Company, the Company has determined to enter into this letter agreement (this “Agreement”) which addresses
the terms and conditions of your employment in the event of a change in control of the Company. 
  

	1.	Term of Employment Under this Agreement. The term of your employment under this Agreement shall commence on the Change in Control Date and shall continue until the one year
anniversary of the Change in Control Date (the “Term”). 

  

	2.	Termination Payments and Other Benefits. 

  

	 	(a)	If, during the term of this Agreement, the Involuntary Termination of your employment, as defined in Item (g) of the Definitions, occurs in connection with a Change In Control, you
shall be entitled to receive a termination payment from the Company (the “Termination Payment”). The Termination Payment shall be made on the effective date of the Change in Control. The amount of the Termination Payment shall be:

  

	 	(i)	if there is a Change in Control arising from an acquisition of the Company for an amount equal to or less than $48 million, equal to the product of twelve (12) times your Total
Monthly Compensation including targeted bonuses at 100% attainment. You shall also receive the full base salary for the month in which the Involuntary Termination occurs. 

  

	 	(ii)	 if there is a Change in Control arising from an acquisition of the Company for an amount greater than $48 million, equal to the product of eighteen (18) times your
Total Monthly 

  

 -1- 

	 	 
Compensation including targeted bonuses at 100% attainment. You shall also receive the full base salary for the month in which the Involuntary Termination
occurs. 

  
 Notwithstanding anything in Section
2(a)(ii) to the contrary, the Board of Directors of the Company (the “Board”) may review the Termination Payment contemplated in Section 2(a)(ii) (the “Additional Termination Payment”) every 6 months and if the situation in the
Company changes materially, the Board may modify the Additional Termination Payment in its reasonable discretion upon notice to you. Under no circumstances shall the Board have the right to review or modify the Termination Payment contemplated in
Section 2(a)(i) without your prior written consent. 
  

	 	(b)	In the event of your Involuntary Termination during the Term, you and your eligible dependents shall continue to be eligible to participate during the Benefit Continuation Period
(as hereinafter defined) in health benefit plans applicable to you immediately prior to your Involuntary Termination on the same terms and conditions in effect for you and your dependents immediately prior to such Involuntary Termination. For
purposes of the previous sentence, “Benefit Continuation Period” means the period beginning on the Date of Termination and ending on the earlier to occur (i) the one year anniversary of the Date of Termination and (ii) the date that you
and your dependents are eligible and elect coverage under the plans of a subsequent employer which provide substantially equivalent or greater benefits to you and your dependents. To the extent that such benefits or service credit for benefits are
not payable or provided under such plans or programs the Company itself shall pay or provide payment of such benefits or service credit for benefits. For the purposes of this section, vacation, sick leave, stock option or stock purchase plans or
agreements shall not be considered “employee benefit plans or programs.” Also, for purposes of this section, coverage under the disability plans, life insurance or other death benefit plans provided to you by a new employer shall not be
deemed to be “substantially equivalent” to the corresponding coverage provided under this section unless the dollar amount thereof is substantially the same or greater. 

  

	 	(c)	Your right to the Termination Payment shall be conditioned upon your execution of a release in favor of the Company in substantially the form of the release required for the receipt
of severance payments under the Severance Plan (as in effect on the date of this Agreement) which is not revoked by you within the revocation period specified therein. 

  

	 	(d)	You shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or
benefit provided for in this Agreement be reduced by any compensation earned by you as the result of employment by another employer or by pension benefits paid by the Company or another employer after the Date of Termination or otherwise except as
specifically provided in clause (ii) of the last sentence of the Benefit Payment provision set forth in section 2(b) above. 

  

	3.	Stock Options 

  
 All stock options granted to you shall vest and become fully exercisable in the event of your Termination on or following the Change in Control Date so
long as you remain an employee on the Change in Control Date. 
  

 -2- 

	4.	Confidential Information 

  

	 	(a)	You agree not to disclose, either while in the Company’s employ or at any time thereafter, to any person not employed by the Company and not engaged to render services to the
Company any confidential information obtained while in the employ of the Company (including, without limitation, any of the Company’s inventions, processes, methods of distribution, customer or trade secrets). This section shall not preclude
you from the use or disclosure of information known generally to the public or of information not considered confidential by the Company or from making disclosures required by law or court order. 

  

	 	(b)	You agree that upon leaving the Company’s employ, you will not remove from the Company’s possession, without the prior written consent of an officer authorized to act in
the matter by the Board of Directors, any business plans, financial information, product pricing information, or other documents which are of a confidential nature (including, without limitation, its methods of distribution).

  

	 	(c)	You agree to continue to abide by the terms and conditions of the Proprietary Information Agreement signed upon the commencement of your employment with Company.

  

	5.	Limitation on Payments 

  

	 	(a)	In the event that the Termination Payment together with all other payments and the value of any benefit received or to be received by you in connection with the Termination or
otherwise (i) constitutes a “parachute payment” within the meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (“Code”) and (ii) such Termination Payment, together with all other payments or benefits
which constitute “parachute payments” within the meaning of Section 280G(b)(2) would result in all or a portion of such termination payment being subject to excise tax under Section 4999 of the Code, then you Termination Payment shall be
either: 

  

	 	(i)	the amount determined under sections 2 and 3; or 

  

	 	(ii)	such lesser amount which would result in no portion of the severance pay being subject to excise tax under Section 4999 of the Code 

  
 whichever of the foregoing amounts, taking into account the applicable
Federal, State and local income taxes and the excise tax imposed by Section 4999, results in your receipt, on an after-tax basis, of the greatest amount of Termination Pay under sections 2 and 3, notwithstanding that all of some portion of the
Termination Payment may be taxable under Section 4999 of the Code. 
  

	 	(b)	For purposes of applying the applicable limitation of section 5(a), the following provisions shall be in effect. 

  
 The parachute payment attributable to the accelerated vesting of your
options under Section 3.2 of this Agreement shall be calculated in accordance with the valuation methodology established under Internal Revenue Code Section 280G and the applicable Treasury Regulations thereunder and shall include an appropriate
dollar amount (utilizing the 1% per month formula set forth in Q&A 24 thereunder) to reflect the lapse of your obligation to remain in the Company’s employ as a condition to the vesting of one or more of the accelerated option installments.
In no event, however, shall such option parachute payment exceed the spread (the excess of the fair market value of the accelerated option shares over the option exercise price payable for those shares) existing at the time of acceleration.

  
 Should it become necessary to reduce part of your termination
benefits under this Agreement so as not to exceed the applicable section 5(a) limitation, then such reduction shall be 

  

 -3- 

 
effected, solely to the extent necessary to avoid an excess payment under section 56(a), by an appropriate reduction in the dollar amount of the Termination
Payment otherwise due to you under section 2. 
  

	6.	Assumption by Successor. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Company expressly to assume and to agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place; provided, however,
that no such assumption shall relieve the Company of its obligations hereunder. As used in this Agreement, the “company” shall mean the Company as hereinbefore defined any successor to its business and/or assets as aforesaid which assumes
and agrees to perform this Agreement by operation of law or otherwise. 

  

	7.	Enforceability; Beneficiaries. This Agreement shall be binding upon and inure to the benefit of you and your heirs and the Company and any organization which succeeds to
substantially all of the business or assets of the Company, whether by means of merger, consolidation, acquisition of all or substantially all of the assets of the Company or otherwise, including, without limitation, as a result of a Change in
Control or by operation of law. This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, and heirs. If you should die while any amount would still be payable to
you hereunder if you had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to your designee or estate 

  

	8.	No Contract of Employment. Your employment is at will. Nothing in this Agreement shall be construed as giving you any right to be retained in the employ of the Company or
shall affect the terms and conditions of your employment with the Company prior to the commencement of the term hereof. 

  

	9.	Withholding. Amounts paid to you hereunder shall be subject to all applicable federal, state and local withholding taxes. 

  

	10.	Notices. Any purported termination of your employment by the Company or by you shall be communicated by written Notice of Termination to the other party hereto. For purposes
of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of your employment under the provisions so indicated. 

  
 All notices, requests, and other communications contemplated by this Agreement shall be in writing and shall be sufficiently given if mailed in the continental United States by registered or certified mail, return
receipt requested, or personally delivered to the party entitled thereto at the address stated below (or to such changed address as the addressee may have given by a similar notice): 
  
 If to the Company: 
  
 Tarantella, Inc. 
 425 Encinal Street

 Santa Cruz, CA 95060 
 Attention: Chief Executive Officer 
  
 If to the
Addressee: to the current home address listed in the Company’s personnel records 
  

 -4- 

 Any notice delivered in person shall be deemed to have been received on the date of delivery. Any notices
delivered by mail shall be deemed to have been received on the date of acknowledgment of its receipt. 
  

	11.	No Setoff. There shall be no right of setoff or counterclaim, with respect to any claim, debt, or obligation, against payments to you under this Agreement.

  

	12.	Death or Incompetence. In the event of your death or a judicial determination of your incompetence, references in this Agreement to you shall, where appropriate, be deemed to
refer to your beneficiary or beneficiaries or, if none, to your legal representative. The term “beneficiary,” as used in this Agreement, shall mean a beneficiary or beneficiaries designated to receive any amount hereunder or, if no
beneficiary has been so designated, the legal representative of your estate. 

  

	13.	No Assignment. No right, benefit or interest hereunder shall be subject to anticipation, alienation, sale, assignment, encumbrance, charge, pledge, hypothecation, execution,
forfeiture, attachment, levy, or similar process or assignment by operation of law by you. Any attempt, voluntary or involuntary, to effect any action specified in the preceding sentence shall, to the full extent permitted by law, be null, void, and
of no effect. 

  

	14.	Company’s Successors. This Agreement shall be binding upon and inure to the benefit of the Company and any successor of the Company (including, without limitation, any
corporation or other entity which directly or indirectly acquires all or substantially all of the assets or shares of the Company, whether by merger, consolidation, sale, or otherwise) but shall not otherwise be assignable by the Company. The
Company shall require that any such successor expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform this Agreement if no succession had taken place.

  

	15.	Waivers and Amendments. No provision of the Agreement shall be amended or waived unless such amendment or waiver is authorized by the Board of Directors or any authorized
committee of the Board of Directors and is agreed to in writing and signed by you and by an officer of the Company. No waiver by either party hereto of any breach by the other party hereto of any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or at any prior or subsequent time. The waiver by one party of the performance of any covenant, condition or promise in this
Agreement shall not invalidate this Agreement, nor shall it be considered a waiver by such party of any other covenant, condition or promise hereunder. A waiver by either party or both parties of the time for performing any acts shall not constitute
a waiver of the time for performing any other act of any identical act required to be performed by any party. 

  

	16.	Arbitration. In the event that any dispute arises hereunder, such dispute shall, at the election and upon written demand of either party, be finally determined by arbitration
in the City of San Jose in accordance with the rules and procedures of the American Arbitration Association, and judgment upon the award may be entered in any court having jurisdiction thereof. 

  

 -5- 

	17.	Choice of Law. The validity, interpretation, construction, performance, and enforcement of this Agreement shall be governed by the internal laws of the State of California,
without regard to the principles of conflict of laws thereof. 

  

	18.	Headings. The titles of sections in the Agreement are intended solely for convenience, and no provision of this Agreement is to be construed by reference to the title of any
section. 

  

	19.	Severability. In the event that any provision or portion of this Agreement is determined by arbitration or by a court of competent jurisdiction to be invalid or unenforceable
for any reason, the remaining provisions and portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 

  

	20.	Specific Performance. The Company and you recognize that each party will have no adequate remedy at law for breach by the other of any of the agreements contained herein and,
in the event of any such breach, the Company and you hereby agree and consent that the other shall be entitled to a decree of specific performance, mandamus, or other appropriate remedy to enforce performance of such agreements.

  

	21.	Presumption. The Company shall make a payment described in this Agreement upon receiving written notice from you describing such payment, referring to the provision of this
Agreement under which such payment is claimed and certifying that all conditions for such payment, as set forth in this Agreement, have been satisfied. The information so furnished to the Company by you shall be presumed to be correct, subject to
rebuttal by the Company. 

  

	22.	Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and during the term of this Agreement
supersedes the provisions of all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party hereto with respect to the subject
matter contained herein. 

  

	23.	Definitions. 

  

	 	(a)	“Cause” shall mean a termination of your employment during the term which is a result of (i) your felony conviction, (ii) your willful disclosure of material trade secrets
or other material confidential information related to the business of the Company and its subsidiaries or (iii) your willful and continued failure substantially to perform your duties with the Company (other than any such failure resulting from your
incapacity due to physical or mental illness or any such actual or anticipated failure resulting from a resignation by you for Good Reason) after a written demand for performance is delivered to you by the Company, which demand specifically
identifies the manner in which the Company believes that you have not substantially performed your duties, and which performance is not substantially corrected by you within 10 days of receipt of such demand. For purposes of the previous sentence,
no act or failure to act on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in the best interest of the Company.

  

 -6- 

	 	(b)	“Change in Control” shall mean (i) when any “person,” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (other
than the Company, a Subsidiary or a Company employee benefit plan, including any trustee of such plan acting as trustee) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing at least fifty percent (50%) of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; or (ii) a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least seventy-five percent (75%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or
the stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all the Company’s assets; or (iii) a change in the composition of the Board of Directors of the Company occurring within a
two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or
nominated for election, to the Board of Directors of the Company with the affirmative votes of a least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination
is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). 

  

	 	(c)	“Change in Control Date” shall mean the earliest of (i) the date on which the Change in Control occurs, (ii) the date on which the Company executes an agreement, the
consummation of which would result in the occurrence of a Change in Control, and (iii) the date the Board approves a transaction or series of transactions, the consummation of which would result in a Change in Control. If the Change in Control Date
occurs as a result of an agreement described in clause (ii) of the previous sentence or as a result of the approval of the board described in clause (iii) of the previous sentence and the Change in Control to which such agreement or approval relates
(the “Contemplated Change in Control”) subsequently does not occur, then the term shall expire on the sixtieth day (the “Reset Date”) following the date the Board certifies by resolution duly adopted by a majority of the
Directors then in office that the Contemplated Change in Control is not reasonably likely to occur; provided, however, that this sentence shall not apply if (A) an Involuntary Termination of your employment with the Company has occurred on and after
the Change in Control Date and on or prior to the Reset Date of (B) the Contemplated Change in Control subsequently occurs within three months of the Reset Date. Following the Reset Date, the provisions of this Agreement shall remain in effect and a
new Term shall commence upon the occurrence of a subsequent Change in Control Date. Notwithstanding the first sentence of this section, if your employment with the Company terminates prior to the Change in Control Date and it is reasonably
demonstrated that your termination of employment (i) was at the request of the third party who has taken steps reasonably calculated to effect the Change in Control or (ii) otherwise arose in connection with or in anticipation of the Change in
Control, then Change in Control Date shall remain the date immediately prior to the date of your termination of employment. 

  

 -7- 

	 	(d)	“Code” means the Internal Revenue Code of 1986, as it may be amended. 

  

	 	(e)	“Company” means the Company, all Subsidiaries and any corporation owning not less than fifty percent (50%) percent of the total combined voting power of all classes of
outstanding shares of the Company. 

  

	 	(f)	“Good Reason” shall mean a resignation of your employment during the term as a result of any of the following: 

  

	 	(i)	A meaningful and detrimental alteration in your position, or the nature or status of your responsibilities or in your reporting responsibilities from those in effect immediately
prior to the Change in Control Date; 

  

	 	(ii)	A reduction by the Company in your annual base salary as in effect immediately prior to the Change in Control Date or as the same may be increased from time to time thereafter; a
failure by the Company to increase your salary at a rate commensurate with that of other key executives of the Company; or a reduction in your target annual bonus (expressed as a percentage of base salary) below the target in effect for you on the
Change in Control Date; 

  

	 	(iii)	The relocation of the office of the Company where you are employed immediately prior to the Change in Control Date (the “Location”) to a location which, in your good faith
assessment, would cause a hardship in commuting from your principal residence; 

  

	 	(iv)	The failure by the Company to continue in effect any compensation plan in which you participated prior to the Change in Control Date or made available to you after the Change in
Control Date, unless an equitable arrangement has been made with respect to such plan in connection with the Change in Control, or the failure by the Company to continue your participation therein on at least as favorable a basis, both in terms of
the amount of benefits provided and the level of your participation relative to other participants, as existed on the Change in Control Date; 

  

	 	(v)	The failure by the Company to continue to provide you with benefits at least as favorable in the aggregate to those enjoyed by you under the Company’s pension, savings, life
insurance, health, disability, and fringe benefit plans and programs (including, without limitation, programs, if any, relating to use of a car, secretary, office space, telephones, expense reimbursement) in which you were participating immediately
prior to the change in Control Date; or the failure by the company to provide you with the number of paid vacation days to which you are entitled on the basis of years of service with the Company in accordance with the Company’s normal vacation
policy in effect immediately prior to the Change in Control; 

  

	 	(vi)	Any termination of your employment which is not effected pursuant to the terms of this Agreement; or 

  

	 	(vii)	A material breach by the Company of the provisions of this Agreement; 

  
 provided, however, that an event described above in clause (ii), (iv), (v) or (vii) shall not constitute Good Reason unless it is communicated by you to
the Company in writing and is not corrected by the Company in a manner which is reasonably satisfactory to you (including 

  

 -8- 

 
full retroactive correction with respect to any monetary matter) within 10 days of the Company’s receipt of such written notice from you. 
  

	 	(g)	“Involuntary Termination” shall mean (i) the termination of your employment by the Company and/or its subsidiaries during the Term other than for Cause or Disability or
(ii) your resignation of employment with the Company and its subsidiaries during the Term for Good Reason. 

  

	 	(h)	“Subsidiary” means any corporation, if the Company and/or one or more other Subsidiaries own not less than fifty percent (50%) percent of the total combined voting power
of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the execution of this Agreement shall be considered a Subsidiary commencing as of such date. 

  

	 	(i)	“Total Monthly Compensation” means the sum of your monthly salary plus targeted bonus at the rate in effect immediately prior to the Termination, but in no event less than
your monthly salary at the rate in effect on the date of this Agreement. 

  
 This letter sets forth our agreement on the subject matter hereof. Please sign and return this Agreement to Daniel Jochnowitz in the Legal Department. 
  

	
	 Sincerely,

	
	 Tarantella, Inc.

	
	 /s/ Franke Wilde

	 Frank Wilde

	 Chief Executive Officer

  

			
	 Agreed:

	
	 /s/ Stephen Bannerman

	 Stephen Bannerman

		
	 Date:
	 	 

  

 -9-Indenture, November 18, 2004

 Exhibit 4.3 
  

EXECUTION COPY 
  

  
 KI HOLDINGS INC. 
  
 Issuer 
  
 9 7/8% Senior Discount Notes Due 2014 
  
 INDENTURE 
  
 Dated as of November 18, 2004 
  
 THE BANK OF NEW YORK 
 Trustee 
  

 CROSS-REFERENCE TABLE 
  

			
	 TIA Section

	  	Indenture Section

	 310(a)(1)
	  	7.10
	 (a)(2)
	  	7.10
	 (a)(3)
	  	N.A.
	 (a)(4)
	  	N.A.
	 (a)(5)
	  	7.10
	 (b)
	  	7.08; 7.10
	 (c)
	  	N.A.
	 311(a)
	  	7.11
	 (b)
	  	7.11
	 (c)
	  	N.A.
	 312(a)
	  	2.05
	 (b)
	  	10.03
	 (c)
	  	10.03
	 313(a)
	  	7.06
	 (b)(1)
	  	7.06
	 (b)(2)
	  	7.06
	 (c)
	  	10.02
	 (d)
	  	7.06
	 314(a)
	  	4.02; 4.09; 4.12; 10.02
	 (b)
	  	N.A.
	 (c)(1)
	  	10.04
	 (c)(2)
	  	10.04
	 (c)(3)
	  	10.04
	 (d)
	  	N.A.
	 (e)
	  	10.05
	 (f)
	  	N.A.
	 315(a)
	  	7.01
	 (b)
	  	7.05; 10.02
	 (c)
	  	7.01
	 (d)
	  	7.01
	 (e)
	  	6.11
	 316(a)(last sentence)
	  	10.06
	 (a)(1)(A)
	  	6.05
	 (a)(1)(B)
	  	6.04
	 (a)(2)
	  	N.A.
	 (b)
	  	6.07
	 (c)
	  	9.04
	 317(a)(1)
	  	6.08
	 (a)(2)
	  	6.09
	 (b)
	  	2.04
	 318(a)
	  	10.01
	 (b)
	  	N.A.
	 (c)
	  	N.A.

  
 N.A. means Not
Applicable. 
  
 Note: This Cross-Reference Table shall not, for
any purpose, be deemed to be part of the Indenture. 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	
	Article 1
	
	Definitions and Incorporation by Reference
	 SECTION 1.01
	  	Definitions	  	1
	 SECTION 1.02
	  	Other Definitions	  	31
	 SECTION 1.03
	  	Incorporation by Reference of Trust Indenture Act	  	32
	 SECTION 1.04
	  	Rules of Construction	  	32
	
	 Article 2

	
	 The Securities

	 SECTION 2.01
	  	Form and Dating	  	33
	 SECTION 2.02
	  	Execution and Authentication	  	33
	 SECTION 2.03
	  	Registrar and Paying Agent	  	34
	 SECTION 2.04
	  	Paying Agent To Hold Money in Trust	  	34
	 SECTION 2.05
	  	Securityholder Lists	  	35
	 SECTION 2.06
	  	Transfer and Exchange	  	35
	 SECTION 2.07
	  	Replacement Securities	  	35
	 SECTION 2.08
	  	Outstanding Securities	  	35
	 SECTION 2.09
	  	Temporary Securities	  	36
	 SECTION 2.10
	  	Cancellation	  	36
	 SECTION 2.11
	  	Defaulted Interest	  	36
	 SECTION 2.12
	  	CUSIP Numbers	  	36
	 SECTION 2.13
	  	Issuance of Additional Securities	  	36
	
	 Article 3

	
	 Redemption

	 SECTION 3.01
	  	Notices to Trustee	  	37
	 SECTION 3.02
	  	Selection of Securities to Be Redeemed	  	37
	 SECTION 3.03
	  	Notice of Redemption	  	38
	 SECTION 3.04
	  	Effect of Notice of Redemption	  	38
	 SECTION 3.05
	  	Deposit of Redemption Price	  	39
	 SECTION 3.06
	  	Securities Redeemed in Part	  	39

  

 i 

					
	Article 4
	
	Covenants
			
	 SECTION 4.01
	  	Payment of Securities	  	39
	 SECTION 4.02
	  	SEC Reports	  	39
	 SECTION 4.03
	  	Limitation on Indebtedness	  	40
	 SECTION 4.04
	  	Limitation on Restricted Payments	  	43
	 SECTION 4.05
	  	Limitation on Restrictions on Distributions from Restricted Subsidiaries	  	47
	 SECTION 4.06
	  	Limitation on Sales of Assets and Subsidiary Stock	  	48
	 SECTION 4.07
	  	Limitation on Affiliate Transactions	  	53
	 SECTION 4.08
	  	Limitation on the Sale or Issuance of Common Stock of Restricted Subsidiaries	  	54
	 SECTION 4.09
	  	Change of Control	  	55
	 SECTION 4.10
	  	Limitation on Liens	  	56
	 SECTION 4.11
	  	Limitation on Sale/Leaseback Transactions	  	57
	 SECTION 4.12
	  	Compliance Certificate	  	57
	 SECTION 4.13
	  	Further Instruments and Acts	  	57
	 SECTION 4.14
	  	Calculation of Original Issue Discount	  	57
	
	Article 5
	
	Successor Company
			
	 SECTION 5.01
	  	When Company May Merge or Transfer Assets	  	57
	
	Article 6
	
	Defaults and Remedies
			
	 SECTION 6.01
	  	Events of Default	  	59
	 SECTION 6.02
	  	Acceleration	  	60
	 SECTION 6.03
	  	Other Remedies	  	61
	 SECTION 6.04
	  	Waiver of Past Defaults	  	61
	 SECTION 6.05
	  	Control by Majority	  	61
	 SECTION 6.06
	  	Limitation on Suits	  	62
	 SECTION 6.07
	  	Rights of Holders to Receive Payment	  	62
	 SECTION 6.08
	  	Collection Suit by Trustee	  	62
	 SECTION 6.09
	  	Trustee May File Proofs of Claim	  	62
	 SECTION 6.10
	  	Priorities	  	63
	 SECTION 6.11
	  	Undertaking for Costs	  	63
	 SECTION 6.12
	  	Waiver of Stay or Extension Laws	  	63

  

 ii 

					
	Article 7
	
	Trustee
	 SECTION 7.01
	  	Duties of Trustee	  	64
	 SECTION 7.02
	  	Rights of Trustee	  	65
	 SECTION 7.03
	  	Individual Rights of Trustee	  	65
	 SECTION 7.04
	  	Trustee’s Disclaimer	  	66
	 SECTION 7.05
	  	Notice of Defaults	  	66
	 SECTION 7.06
	  	Reports by Trustee to Holders	  	67
	 SECTION 7.07
	  	Compensation and Indemnity	  	67
	 SECTION 7.08
	  	Replacement of Trustee	  	67
	 SECTION 7.09
	  	Successor Trustee by Merger	  	68
	 SECTION 7.10
	  	Eligibility; Disqualification	  	69
	 SECTION 7.11
	  	Preferential Collection of Claims Against Company	  	69
	
	Article 8
	
	Discharge of Indenture; Defeasance
			
	 SECTION 8.01
	  	Discharge of Liability on Securities; Defeasance	  	70
	 SECTION 8.02
	  	Conditions to Defeasance	  	70
	 SECTION 8.03
	  	Application of Trust Money	  	72
	 SECTION 8.04
	  	Repayment to Company	  	72
	 SECTION 8.05
	  	Indemnity for Government Obligations	  	72
	 SECTION 8.06
	  	Reinstatement	  	72
	
	Article 9
	
	Amendments
			
	 SECTION 9.01
	  	Without Consent of Holders	  	72
	 SECTION 9.02
	  	With Consent of Holders	  	73
	 SECTION 9.03
	  	Compliance with Trust Indenture Act	  	74
	 SECTION 9.04
	  	Revocation and Effect of Consents and Waivers	  	74
	 SECTION 9.05
	  	Notation on or Exchange of Securities	  	75
	 SECTION 9.06
	  	Trustee To Sign Amendments	  	75
	 SECTION 9.07
	  	Payment for Consent	  	75
	
	Article 10
	
	Miscellaneous
			
	 SECTION 10.01
	  	Trust Indenture Act Controls	  	75
	 SECTION 10.02
	  	Notices	  	75

  

 iii 

					
	 SECTION 10.03
	  	 Communication by Holders with Other Holders
	  	76
	 SECTION 10.04
	  	Certificate and Opinion as to Conditions Precedent	  	76
	 SECTION 10.05
	  	Statements Required in Certificate or Opinion	  	77
	 SECTION 10.06
	  	When Securities Disregarded	  	77
	 SECTION 10.07
	  	Rules by Trustee, Paying Agent and Registrar	  	77
	 SECTION 10.08
	  	Legal Holidays	  	77
	 SECTION 10.09
	  	Governing Law	  	77
	 SECTION 10.10
	  	No Recourse Against Others	  	77
	 SECTION 10.11
	  	Successors	  	78
	 SECTION 10.12
	  	Multiple Originals	  	78
	 SECTION 10.13
	  	Table of Contents; Headings	  	78

  
 Rule 144A/Regulation S/IAI Appendix

  

			
		
	Exhibit 1 –	  	Form of Initial Security
		
	Exhibit A –	  	Form of Exchange Security or Private Exchange Security
		
	Exhibit 2 –	  	Form of Transferee Letter of Representation

  

 iv 

 INDENTURE dated as of November 18, 2004, between KI HOLDINGS INC, a Pennsylvania
corporation (the “Company”), and The Bank of New York, a New York Banking corporation (the “Trustee”). 
  
 Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Company’s 9 7/8% Senior Discount Notes Due 2014 (the “Initial Securities”) and, if and when issued pursuant to a
registered exchange for Initial Securities, the Company’s 9 7/8% Senior Discount Notes Due 2014 (the
“Exchange Securities”) and, if and when issued pursuant to a private exchange for Initial Securities, the Company’s 9 7/8% Senior Discount Notes Due 2014 (the “Private Exchange Securities”, and together with the Exchange Securities and the Initial Securities collectively, the
“Securities”): 
  
 Article 1

  
 Definitions and Incorporation by Reference 
  
 SECTION 1.01 Definitions. 
  
 “Accreted Value” means, as of any date (the
“Specified Date”), the amount provided below for each $1,000 principal amount at maturity of Securities: 
  
 (1) if the Specified Date occurs on one of the following dates (each, a “Semi-Annual Accrual Date”), the Accreted Value
shall equal the amount set forth below for such Semi-Annual Accrual Date: 
  

				
	 Semi-Annual Accrual Date

	  	Accreted Value

	 Issue Date
	  	$	618.08
	 May 15, 2005
	  	$	648.08
	 November 15, 2005
	  	$	680.08
	 May 15, 2006
	  	$	713.66
	 November 15, 2006
	  	$	748.89
	 May 15, 2007
	  	$	785.87
	 November 15, 2007
	  	$	824.67
	 May 15, 2008
	  	$	865.39
	 November 15, 2008
	  	$	908.11
	 May 15, 2009
	  	$	952.95
	 November 15, 2009
	  	$	1,000.00

  
 (2) if
the Specified Date occurs between two Semi-Annual Accrual Dates, the Accreted Value shall be equal to the sum of (A) the Accreted Value for the Semi-Annual Accrual Date immediately preceding such Specified Date and (B) an amount equal to the product
of (x) the Accreted Value for the immediately following Semi-Annual Accrual Date less the Accreted Value for the immediately preceding Semi-Annual Accrual Date multiplied by (y) a fraction, the numerator of which is the 

 
number of days elapsed from the immediately preceding Semi-Annual Accrual Date to the Specified Date, using a 360-day year of 12 30-day months, and the
denominator of which is 180 (or, if the Semi-Annual Accrual Date immediately preceding the Specified Date is the Issue Date, the denominator of which is the number of days from and including the Issue Date to and excluding the next Semi-Annual
Accrual Date); or 
  
 (3) if the Specified Date
occurs after the last Semi-Annual Accrual Date, the Accreted Value shall equal $1,000. 
  
 Notwithstanding the foregoing, if Additional Interest accrues on the Securities prior to November 15, 2009 as a result of a Registration Default under the Registration Rights Agreement, subject to the Company’s
option to pay Additional Interest on the Securities in cash, such Additional Interest shall be added to the Accreted Value, and the Accreted Value as of any Specified Date shall equal the sum of (A) the Accreted Value, as calculated above, as of the
date such Additional Interest began to accrue, plus (B) the amount of interest that would otherwise accrue on the Accreted Value from time to time on a daily basis at a rate of interest per annum borne by the Securities plus the rate of such
Additional Interest as applicable from time to time, compounded semi-annually on each Semi-Annual Accrual Date from the date such Additional Interest began to accrete through the Specified Date, computed on the basis of a 360-day year of twelve
30-day months. If such an event were to occur, the Accreted Value on and after the last Semi-Annual Accrual Date would exceed $1,000. 
  
 “Additional Assets” means (1) any property, plant or equipment used in a Related Business; (2) the Capital Stock of a Person that becomes
a Restricted Subsidiary of the Company as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary of the Company; or (3) Capital Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary of the Company; provided, however, that any such Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a Related Business. 
  
 “Additional Interest” has the meaning set forth in the Registration Rights Agreement. 
  
 “Additional Securities” means Securities issued under this
Indenture after the Issue Date and in compliance with Sections 2.13 and 4.03, it being understood that any Securities issued in exchange for or replacement of any Initial Security issued on the Issue Date shall not be an Additional Security,
including any such Securities issued in compliance with a Registration Rights Agreement. 
  
 “Affiliate” of any specified Person means any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes
of this definition, “control” when used with respect to any 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. For 

  

 2 

 
purposes of Sections 4.04, 4.06 and 4.07 only, “Affiliate” shall also mean any beneficial owner of Capital Stock representing 10% or more of the
total voting power of the Voting Stock (on a fully diluted basis) of the Company or of rights or warrants to purchase such Capital Stock (whether or not currently exercisable) and any Person who would be an Affiliate of any such beneficial owner
pursuant to the first sentence hereof. 
  
 “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: 
  
 (1) 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); 
  
 (2) all or substantially all the assets of any division or line of business of the Company or any Restricted Subsidiary; or 
  
 (3) any other assets of the Company or any Restricted
Subsidiary outside of the ordinary course of business of the Company or such Restricted Subsidiary; 
  
 (other than, in the case of clauses (1), (2) and (3) above, (A) a disposition by a Restricted Subsidiary to the Company or by the Company or a Restricted Subsidiary to a Restricted Subsidiary, (B) for purposes of
Section 4.06 only, (i) a disposition that constitutes a Restricted Payment (or would constitute a Restricted Payment but for the exclusions from the definition thereof) and that is not prohibited by Section 4.04 and (ii) a disposition of all or
substantially all the assets of the Specified Person in accordance with Section 5.01; (C) a disposition of assets with a fair market value of less than $500,000; (D) a disposition of cash or Temporary Cash Investments; (E) the creation of a Lien
(but not the sale or other disposition of the property subject to such Lien); (F) any disposition of receivables and related assets (including contract rights of the type described in the definition of “Qualified Securitization
Transaction”) to a Securitization Entity pursuant to a Qualified Securitization Transaction for the fair market value thereof, including cash and Temporary Cash Investments in an amount at least equal to 80% of the fair market value thereof
(for purposes of this clause (F), Purchase Money Notes will be deemed to be cash); (G) any transfer of receivables and related assets (including contract rights of the type described in the definition of “Qualified Securitization
Transaction”), or a fractional undivided interest therein, by a Securitization Entity in a Qualified Securitization Transaction); and (H) any issuance of Common Stock of Koppers Inc. to members of management, directors or employees of the
Company and its Restricted Subsidiaries, in exchange for shares of Capital Stock of the Company, solely in connection with the redemption of such Koppers Inc. Common Stock). 
  
 “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 Koppers Inc. Existing Notes, compounded annually) of the total obligations of the lessee for rental 

  

 3 

 
payments during the remaining term of the lease included in such Sale/Leaseback Transaction (including any period for which such lease has been extended);
provided, however, that if such Sale/Leaseback Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease
Obligation”. 
  
 “Average Life” means, as of
the date of determination, with respect to any Indebtedness, the quotient obtained by dividing (1) 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 or
redemption or similar payment with respect to such Indebtedness multiplied by the amount of such payment by (2) the sum of all such payments. 
  
 “Board of Directors” with respect to a Person means the Board of Directors of such Person or any committee thereof duly authorized to act
on behalf of such Board. 
  
 “Business Day” means
each day which is not a Legal Holiday. 
  
 “Capital Lease
Obligation” means an obligation that is required to be classified and accounted for as a capital 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
terminated by the lessee without payment of a penalty. For purposes of Section 4.10, a Capital Lease Obligation will be deemed to be secured by a Lien on the property being leased. 
  
 “Capital Stock” of any Person means any and all shares, interests (including partnership 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. 
  
 “Change of Control” means the occurrence of any of the
following events: 
  
 (1) prior to the first
public offering of common stock of the Company, the Permitted Holders cease to be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of a majority in the aggregate of the total
voting power of the Voting Stock of the Company, whether as a result of issuance of securities of the Company, any merger, consolidation, liquidation or dissolution of the Company, or any direct or indirect transfer of securities (for purposes of
this clause (1) and clause (2) below, the Permitted Holders shall be deemed to beneficially own any Voting Stock of the Company (the “specified person”) held by any other Person (the “parent entity”) so long as the
Permitted Holders beneficially own (as so defined), directly or indirectly, in the aggregate a majority of the voting power of the Voting Stock of the parent entity); 
  

 4 

 (2) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act), other than one or more Permitted Holders, is or becomes the beneficial owner (as defined in clause (1) above, except that for purposes of this clause (2), (x) 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 and (y) such person shall not be deemed to have “beneficial ownership” of any shares solely as a result
of a voting or similar agreement entered into in connection with a merger agreement or asset sale agreement), directly or indirectly, of more than 35% of the total voting power of the Voting Stock of the Company; provided, however,
that the Permitted Holders beneficially own (as defined in clause (1) above), directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Company than such other person and do not have the right
or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors (for the purposes of this clause (2), such other person shall be deemed to beneficially own any Voting Stock of a specified
person held by a parent entity, if such other person is the beneficial owner (as defined in this clause (2)), directly or indirectly, of more than 35% of the voting power of the Voting Stock of such parent entity and the Permitted Holders
beneficially own (as defined in clause (1) above), directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent entity and do not have the right or ability by voting power, contract or otherwise
to elect or designate for election a majority of the board of directors of such parent entity); 
  
 (3) individuals who on the Issue Date constituted the Board of Directors (together with any new directors whose election by such Board of
Directors or whose nomination for election by the shareholders of the Company was approved by a vote of a majority of the directors of the Company then still in office who were either directors on the Issue Date or whose election or nomination for
election was previously so approved) cease for any reason to constitute a majority of the Board of Directors then in office; 
  
 (4) the adoption by the Company of a plan relating to the liquidation or dissolution of the Company; 
  
 (5) the merger or consolidation of the Company with or into
another Person or the merger of another Person with or into the Company, or the sale of all or substantially all the assets of the Company (determined on a consolidated basis) to another Person other than a transaction in which holders of securities
that represented 100% of the Voting Stock of the Company immediately prior to such transaction (or other securities into which such securities are converted as part of such merger or consolidation transaction) own directly or indirectly at least a
majority of the voting power of the Voting Stock of the transferee Person or surviving Person in such merger or consolidation transaction immediately after such transaction; 
  

 5 

 (6) to the extent any Koppers Inc. Existing Notes are outstanding, a “Change of
Control,” as defined in the Koppers Inc. Existing Indenture, shall have occurred; or 
  
 (7) the failure at any time by the Company to beneficially own (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, 100% of the Voting Stock of Koppers Inc. (except to the extent Koppers Inc. is merged with and into the Company in accordance with the terms of this Indenture); provided, however, any issuance or transfer of Koppers Inc.
stock to members of management or directors or employees of the Company and its Restricted Subsidiaries, in exchange for KI Holdings Inc. stock held by such members of management or directors or employees solely for purposes of redeeming such
Koppers Inc. stock shall not constitute a Change of Control. 
  
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
  
 “Commodity Agreement” means
any forward contracts, commodity swap, commodity option or other similar financial agreement or arrangement relating to, or the value of which is dependent upon, fluctuations in commodity prices. 
  
 “Common Stock” of any Person means any and all shares,
interests (including partnership interests), rights to purchase, warrants, options, participations or other equivalents or interests in (however designated) equity of such Person, excluding any Preferred Stock and any debt securities convertible
into such equity. 
  
 “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 Securities. 
  
 “Consolidated Coverage Ratio” means, with respect to any
Person (the “Specified Person”) as of any date of determination means the ratio of 
  
 (a) the aggregate amount of EBITDA of the Specified Person and its Restricted Subsidiaries for the period of the most recent four
consecutive fiscal quarters ending at least 45 days prior to the date of such determination to 
  
 (b) Consolidated Interest Expense of the Specified Person and its Restricted Subsidiaries for such four fiscal quarters; 
  
 provided, however, that 
  
 (1) if the Specified Person or any of its Restricted
Subsidiaries has Incurred any Indebtedness since the beginning of such period that remains outstanding or if the transaction giving rise to the need to calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, or both, 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; 
  

 6 

 (2) if the Specified Person or any of its Restricted Subsidiaries 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 Specified Person or such Restricted Subsidiary had 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; 
  
 (3) if since the beginning of such period the Specified Person or any of its Restricted Subsidiaries shall have made any Asset
Disposition, EBITDA for such period shall be reduced by an amount equal to EBITDA (if positive) directly attributable to the assets which are the subject of such Asset Disposition for such period, or increased by an amount equal to 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 Specified Person or
any of its Restricted Subsidiaries repaid, repurchased, defeased or otherwise discharged with respect to the Specified Person and its continuing Restricted Subsidiaries in connection with such Asset Disposition for such period (or, if the Capital
Stock of any of its Restricted Subsidiaries is sold, the Consolidated Interest Expense for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the extent the Specified Person and its continuing Restricted
Subsidiaries are no longer liable for such Indebtedness after such sale); 
  
 (4) if since the beginning of such period the Specified Person or any of its Restricted Subsidiaries (by merger or otherwise) shall have made an Investment in any Restricted Subsidiary of the Specified Person (or any
Person which becomes a Restricted Subsidiary of the Specified Person) or an acquisition of assets, including any acquisition of assets occurring in connection with a transaction requiring 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 
  
 (5) if since the beginning of such period any Person (that subsequently became a Restricted Subsidiary of the Specified Person or was merged with or into the Specified Person or any of its Restricted Subsidiaries
since the beginning of such period) shall have made any Asset Disposition, any Investment or acquisition of assets 

  

 7 

 
that would have required an adjustment pursuant to clause (3) or (4) above if made by the Specified Person or a Restricted Subsidiary of the Specified Person
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 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 Specified Person. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest 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 to the extent such Interest Rate Agreement has a
remaining term in excess of 12 months). If any Indebtedness is incurred under a revolving credit facility and is being given pro forma effect, the interest on such Indebtedness shall be calculated based on the average daily balance of such
Indebtedness for the four fiscal quarters subject to the pro forma calculation to the extent that such Indebtedness was incurred solely for working capital purposes. 
  
 “Consolidated Interest Expense” means, with respect to any Person (the “Specified Person”)
for any period, the total interest expense of the Specified Person and its consolidated Restricted Subsidiaries, plus, to the extent not included in such total interest expense, and to the extent incurred by the Specified Person or its Restricted
Subsidiaries, without duplication: 
  
 (1)
interest expense attributable to Capital Lease Obligations; 
  
 (2) amortization of debt discount and debt issuance cost; 
  
 (3) capitalized interest; 
  
 (4) non-cash interest expense; 
  
 (5) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing;

  
 (6) net payments pursuant to Hedging
Obligations; 
  
 (7) dividends accrued in respect
of all Preferred Stock held by Persons other than the Specified Person or a Restricted Subsidiary of the Specified Person (other than dividends payable solely in Capital Stock (other than Disqualified Stock) of the Specified Person);
provided, however, that such dividends will be multiplied by a fraction, the numerator of which is one and the denominator of which is one minus the effective combined tax rate of the issuer of such Preferred Stock (expressed as a
decimal) for such period (as estimated by the chief financial officer of the Specified Person in good faith); 
  

 8 

 (8) interest incurred in connection with Investments in discontinued operations;

  
 (9) interest accruing on any Indebtedness of
any other Person if such Indebtedness is in default to the extent such Indebtedness is Guaranteed by (or secured by the assets of) the Specified Person or any Restricted Subsidiary of the Specified Person; and 
  
 (10) 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 Specified Person) in connection with Indebtedness Incurred by such plan or trust. 
  
 “Consolidated Net Income” means, with respect to any Person
(the “Specified Person”) for any period, the net income of the Specified Person and its consolidated Subsidiaries; provided, however, that there shall not be included in such Consolidated Net Income: 
  
 (1) any net income of any Person (other than the Specified
Person) if such Person is not a Restricted Subsidiary of the Specified Person, except that: 
  
 (A) subject to the exclusion contained in clause (4) below, the Specified Person’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 Specified Person or a Restricted Subsidiary of the Specified Person as a dividend or other
distribution (subject, in the case of a dividend or other distribution paid to a Restricted Subsidiary of the Specified Person, to the limitations contained in clause (3) below); and 
  
 (B) the Specified Person’s equity in a net loss of any such Person for such period shall be included in
determining such Consolidated Net Income; 
  
 (2)
any net income (or loss) of any Person acquired by the Specified Person or a Subsidiary of the Specified Person in a pooling of interests transaction (or any transaction accounted for in a manner similar to a pooling of interests) for any period
prior to the date of such acquisition; 
  
 (3)
any net income of any Restricted Subsidiary of the Specified Person 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 Specified Person, except that: 
  

 9 

 (A) subject to the exclusion contained in clause (4) below, the Specified Person’s
equity in the net income of any such Restricted Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash permitted at the date of determination to be distributed by such Restricted Subsidiary
during such period to the Specified Person or another Restricted Subsidiary of the Specified Person as a dividend or other distribution (subject, in the case of a dividend or other distribution paid to another Restricted Subsidiary of the Specified
Person, to the limitation contained in this clause); and 
  
 (B) the Specified Person’s equity in a net loss of any such Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income; 
  
 (4) any gain (or loss) realized upon the sale or other
disposition of any assets of the Specified Person, its consolidated Subsidiaries or any other Person (including pursuant to any sale-and-leaseback arrangement) which 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; 
  
 (5) any gain or loss realized upon the discontinuation of the utility pole business of the Company and its Restricted Subsidiaries up to a
cumulative aggregate amount since October 15, 2003 of $13.0 million; 
  
 (6) extraordinary gains or losses; and 
  
 (7) the cumulative effect of a change in accounting principles; 
  
 in each case, for such period. Notwithstanding the foregoing, for the purpose of Section 4.04 only, there shall be excluded from Consolidated Net Income any repurchases, repayments or redemptions of Investments,
proceeds realized on the sale of Investments or return of capital to the Specified Person or any of its Restricted Subsidiaries to the extent such repurchases, repayments, redemptions, proceeds or returns increase the amount of Restricted Payments
permitted pursuant to Section 4.04(a)(3)(D). 
  
 “Corporate Trust Office” means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the dated hereof is located at 101 Barclay Street, Floor 8 West,
New York, New York 10286, Attention: Corporate Trust Administration, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company). 
  
 “Credit Agreement” means one or more debt facilities (including the Existing Credit Agreement) or other financing arrangements (including
commercial paper facilities, revolving credit loans, term loans, receivables financings, letters of credit and any debt 

  

 10 

 
securities or other form of debt, convertible debt or exchangeable debt financing), in each case, as amended, supplemented, extended, replaced, renewed,
restated or otherwise modified (in whole or in part and without limitation as to amount, terms, conditions, covenants and other provisions) from time to time, and any agreement (and related document) governing Indebtedness Incurred to Refinance, in
whole or in part, the borrowings and commitments then outstanding or permitted to be outstanding under such debt facility or other financing arrangement or a successor debt facility or financing arrangement, whether by the same or any other lender
or group of lenders or creditor or group of creditors. 
  
 “Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement with respect to currency values. 
  
 “Default” means any event which is, or after notice or passage of time or both would be, an Event of
Default. 
  
 “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 at the option of the holder) or upon the happening of any event: 
  
 (1) matures or is mandatorily redeemable (other than
redeemable only for Capital Stock of such Person which is not itself Disqualified Stock) pursuant to a sinking fund obligation or otherwise; 
  
 (2) is convertible or exchangeable at the option of the holder for Indebtedness or Disqualified Stock; or 
  
 (3) is mandatorily redeemable or must be purchased upon the
occurrence of certain events or otherwise, in whole or in part; 
  
 in each case
on or prior to the first anniversary of the Stated Maturity of the Securities; 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 purchase 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 Securities shall not constitute
Disqualified Stock if (A) 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 corresponding terms applicable to the Securities
in Sections 4.06 and 4.09 of this Indenture and (B) any such requirement only becomes operative after compliance with such corresponding terms applicable to the Securities, including the purchase of any Securities tendered pursuant thereto.

  
 The amount of any Disqualified Stock that does not have a
fixed redemption, repayment or repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of such Disqualified Stock
is to be determined pursuant to the Indenture; provided, however, that if such Disqualified Stock could not be required to be 

  

 11 

 
redeemed, repaid or repurchased at the time of such determination, the redemption, repayment or repurchase price will be the book value of such Disqualified
Stock as reflected in the most recent financial statements of such Person. 
  
 “EBITDA” with respect to any Person (the “Specified Person”) for any period means the sum of Consolidated Net Income of the Specified Person, plus the following to the extent deducted
in calculating such Consolidated Net Income: 
  
 (1) all income tax expense of the Specified Person and its consolidated Restricted Subsidiaries; 
  
 (2) Consolidated Interest Expense; 
  
 (3) depreciation and amortization expense of the Specified Person and its consolidated Restricted Subsidiaries (excluding amortization
expense attributable to a prepaid operating activity item that was paid in cash in a prior period); and 
  
 (4) all other non-cash charges of the Specified Person and its consolidated Restricted Subsidiaries (excluding any such non-cash charge to
the extent that it represents an accrual of or reserve for cash expenditures in any future period); 
  
 in each case for such period. 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
Specified Person shall be added to Consolidated Net Income to compute EBITDA only to the extent (and in the same proportion, including by reason of minority interests) that the net income or loss 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 or otherwise made available 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 any public or private sale of the
common stock of the Company, other than any public offering with respect to the Company’s common stock registered on Form S-8 or other issuances upon exercise of options by employees of the Company or any of its Restricted Subsidiaries.

  
 “Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended. 
  
 “Existing Credit
Agreement” means the Credit Agreement dated as of May 12, 2003, by and among, the Company, certain of its Subsidiaries, the lenders referred to therein, PNC Bank, National Association, as Administrative Agent, National City Bank of
Pennsylvania, as Syndication Agent, and Citizens Bank of Pennsylvania, Fleet National Bank and Wachovia Bank, National Association, as co-Documentation Agents, together with the related documents thereto (including the term loans and revolving loans
thereunder, any 

  

 12 

 
guarantees and security documents), as amended, extended, replaced, renewed, restated, supplemented or otherwise modified (in whole or in part, and without
limitation as to amount, terms, conditions, covenants and other provisions) from time to time, and any agreement (and related document) governing Indebtedness Incurred to Refinance, in whole or in part, the borrowings and commitments then
outstanding or permitted to be outstanding under such Credit Agreement or a successor Credit Agreement. 
  
 “Foreign Subsidiary” means any Restricted Subsidiary of the Company that is not organized under the laws of the United States of America
or any State thereof or the District of Columbia. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect as of the Issue Date, including those set forth in: 
  
 (1) the opinions and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants; 
  
 (2) statements
and pronouncements of the Financial Accounting Standards Board; 
  
 (3) such other statements by such other entity as approved by a significant segment of the accounting profession; and 
  
 (4) 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 Person and any obligation, direct or indirect, contingent or otherwise, of such Person:

  
 (1) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness of such Person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial
statement conditions or otherwise); or 
  
 (2)
entered into for the purpose 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); 
  

 13 

 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. 
  
 “Hedging Obligations” of any Person means the obligations of such Person pursuant to any Interest Rate Agreement, Currency Agreement or
Commodity Agreement 
  
 “Holder” or
“Securityholder” means the Person in whose name a Security is registered on the Registrar’s books. 
  
 “Incur” means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness of a
Person existing at the time such Person becomes a Restricted Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Restricted Subsidiary. The term
“Incurrence” when used as a noun shall have a correlative meaning. 
  
 Solely for purposes of determining compliance with Section 4.03: 
  
 (1) amortization of debt discount or the accretion of principal with respect to a non-interest bearing or other discount security;

  
 (2) the payment of regularly scheduled
interest in the form of additional Indebtedness of the same instrument or the payment of regularly scheduled dividends on Capital Stock in the form of additional Capital Stock of the same class and with the same terms; and 
  
 (3) the obligation to pay a premium in respect of
Indebtedness arising in connection with the issuance of a notice of redemption or making of a mandatory offer to purchase such Indebtedness; 
  
 shall not be deemed to be the Incurrence of Indebtedness. 
  
 “Indebtedness” means, with respect to any Person on any date of determination (without duplication): 
  
 (1) the principal in respect of (A) indebtedness of such
Person for money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable, including, in each case, any premium on such indebtedness to the extent
such premium has become due and payable; 
  
 (2)
all Capital Lease Obligations of such Person and all Attributable Debt in respect of Sale/Leaseback Transactions entered into by such Person; 
  
 (3) all obligations of such Person issued or assumed as the deferred purchase price of property, which purchase price is due more than six
months after the 

  

 14 

 
date of taking delivery of title to such property, all conditional sale obligations of such Person and all obligations of such Person under any title
retention agreement (but excluding trade accounts payable arising in the ordinary course of business); 
  
 (4) all obligations of such Person for the reimbursement of any obligor on any letter of credit, bankers’ acceptance or similar
credit transaction (other than obligations with respect to letters of credit securing obligations (other than obligations described in clauses (1) through (3) above) entered into in the ordinary course of business of such Person 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 tenth Business Day following payment on the letter of credit); 
  
 (5) the amount of all obligations of such Person with respect to the redemption, repayment or other
repurchase of any Capital Stock of such Person or any Subsidiary of such Person or that are determined by the value or liquidation preference of such Capital Stock, the principal amount of such Capital Stock to be determined in accordance with this
Indenture; 
  
 (6) all obligations of the type
referred to in clauses (1) through (5) 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; 
  
 (7) all obligations of the
type referred to in clauses (1) through (6) of other Persons secured by any Lien on any property or asset of such Person (whether or not such obligation is assumed by such Person), the amount of such obligation being deemed to be the lesser of the
value of such property or assets and the amount of the obligation so secured; and 
  
 (8) to the extent not otherwise included in this definition, Hedging Obligations of such Person. 
  
 Notwithstanding the foregoing, in connection with the purchase by the Company or any
Restricted Subsidiary of the Company of any business, the term “Indebtedness” will exclude post-closing payment adjustments to which the seller may become entitled to the extent such payment is determined by a final closing balance sheet
or such payment depends on the performance of such business after the closing; provided, however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such payment thereafter becomes fixed
and determined, the amount is paid within 30 days thereafter. 
  
 The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all obligations as described above; provided, however, that in the case of Indebtedness sold at a discount, the amount of
such Indebtedness at any time will be the accreted value thereof at such time. 
  

 15 

 None of the following shall constitute “Indebtedness”: 
  
 (1) any trade payables or other similar liabilities to trade
creditors and other accrued current liabilities Incurred in the ordinary course of business as the deferred purchase price of property; 
  
 (2) any liability for Federal, state, local or other taxes owed or owing by such Person; 
  
 (3) amounts due in the ordinary course of business to
royalty and working interest owners; 
  
 (4)
obligations arising from guarantees to suppliers, lessors, licensees, contractors, franchisees or customers Incurred in the ordinary course of business; 
  
 (5) obligations (other than express Guarantees of Indebtedness for borrowed money) in respect of Indebtedness of Persons arising in
connection with (A) the sale or discount of accounts receivable, (B) trade acceptances and (C) endorsements of instruments for deposit in the ordinary course of business; 
  
 (6) obligations in respect of performance, bid and surety bonds and completion guarantees provided by the
Company or any Restricted Subsidiary of the Company in the ordinary course of business; 
  
 (7) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business; provided, however, that such Indebtedness is extinguished within two Business Days of its Incurrence; and 
  
 (8) any obligations under workers’ compensation laws and similar legislation. 
  
 “Indenture” means this Indenture as amended or supplemented
from time to time. 
  
 “Independent Qualified
Party” means an investment banking firm, accounting firm or appraisal firm of national standing; provided, however, that such firm is not an Affiliate of the Company. 
  
 “Interest Rate Agreement” means any interest rate swap
agreement, interest rate cap agreement or other financial agreement or arrangement with respect to exposure to interest rates. 
  
 “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 extensions of credit (including by way 

  

 16 

 
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. Except as otherwise provided for herein, the amount of an Investment shall be its fair
value at the time the Investment is made and without giving effect to subsequent changes in value. 
  
 For purposes of the definition of “Unrestricted Subsidiary”, the definition of “Restricted Payment” and Section 4.04: 
  
 (1) “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 equal to an amount (if positive) equal to (A)
the Company’s “Investment” in such Subsidiary at the time of such redesignation less (B) 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 
  
 (2) 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” means November 18, 2004. 
  
 “Koppers Inc.” means Koppers Inc., a Pennsylvania
corporation, and its successors and assignees. 
  
 “Koppers Inc. Existing Indenture” means the Indenture dated as of September 30, 2003, among Koppers Inc., the Koppers Inc. Guarantors and JPMorgan Chase Bank, as trustee, together with the related collateral agreements,
pledge agreements, security agreements and related agreements and documents. 
  
 “Koppers Inc. Existing Notes” means the Koppers 9 7/8% Senior
Secured Notes Due 2013 issued pursuant to the Koppers Inc. Existing Indenture. 
  
 “Koppers Inc. Guarantors” means the Subsidiaries of Koppers Inc. that have guaranteed the Koppers Inc. Existing Notes pursuant to the terms of the Koppers Inc. Existing Indenture and each other
Subsidiary of Koppers Inc. that thereafter guarantees the Koppers Inc. Existing Notes pursuant to the terms of the Koppers Inc. Existing Indenture. 
  
 “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions are not required to be open in the State of New York.

  

 17 

 “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). 
  
 “Management Investors” means each member of the Company’s or Koppers Inc.’s management that is party to the Stockholders’
Agreement among the Permitted Holders as of the Issue Date. 
  
 “Moody’s” means Moody’s Investors Service, Inc. and any successor to its rating agency business. 
  
 “Net Available Cash” from an Asset Disposition means cash payments received therefrom (including any cash payments received by way of
deferred payment of principal pursuant to a note or installment receivable or otherwise and 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 such properties or assets or received in any other non-cash form), in each case net of: 
  
 (1) all legal, title and recording tax expenses,
commissions, financial, advisory and other fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP, as a consequence of such Asset Disposition; 
  
 (2) 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; 
  
 (3) all distributions and other payments required to be made to minority interest holders in Restricted Subsidiaries of the Company as a
result of such Asset Disposition; 
  
 (4) the
deduction of appropriate amounts provided by the seller as a reserve, in accordance with GAAP, against any liabilities associated with the property or other assets disposed in such Asset Disposition and retained by the Company or any Restricted
Subsidiary of the Company after such Asset Disposition; and 
  
 (5) any portion of the purchase price from an Asset Disposition placed in escrow, whether as a reserve for adjustment of the purchase price, for satisfaction of indemnities in respect of such Asset Disposition or
otherwise in connection with that Asset Disposition; provided, however, that upon the termination of that escrow, Net Available Cash will be increased by any portion of funds in the escrow that are released to the Company or any
Restricted Subsidiary of the Company. 
  

 18 

 “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock or
Indebtedness, 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. 
  
 “Non-Recourse Securitization Entity Indebtedness” has the meaning set forth in the definition of “Securitization Entity”.

  
 “Obligations” means with respect to any
Indebtedness, all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements and other amounts payable pursuant to the documentation governing such Indebtedness. 
  
 “Offering Circular” means the offering circular dated
November 15, 2004, used in connection with the sale of Initial Securities issued on the Issue Date. 
  
 “Officer” means the Chairman of the Board, the President, any Vice President, the Treasurer or the 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 reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company or the Trustee. 
  
 “Permitted Holders” means (1) Saratoga Associates III LLC, a Delaware limited liability company, and its Affiliates, (2) the Management
Investors and (3) any Related Party. Except for a Permitted Holder specifically identified by name, in determining whether Voting Stock is owned by a Permitted Holder, only Voting Stock acquired by a Permitted Holder in its described capacity will
be treated as “beneficially owned” by such Permitted Holder. 
  
 “Permitted Investment” means an Investment by the Company or any Restricted Subsidiary in: 
  
 (1) the Company, a Restricted Subsidiary or a Person that will, upon the making of such Investment, become a Restricted Subsidiary of the
Company; 
  
 (2) 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 of the Company; 
  
 (3) Temporary Cash Investments; 
  
 (4) receivables owing to the Company or any Restricted
Subsidiary of the Company if created or acquired in the ordinary course of business and payable or 

  

 19 

 
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; 
  
 (5) 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; 
  
 (6) loans or advances to employees made in the ordinary course of business consistent with past practices of the Company or such
Restricted Subsidiary; 
  
 (7) 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 of the Company or in satisfaction of judgments; 
  
 (8) any Person to the extent such Investment represents the
non-cash portion of the consideration received for (A) an Asset Disposition as permitted pursuant to Section 4.06 or (B) a disposition of assets not constituting an Asset Disposition; 
  
 (9) any Person where such Investment was acquired by the Company or any of its Restricted Subsidiaries (A)
in exchange for any other Investment or accounts receivable held by the Company or any such Restricted Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the issuer of such other Investment
or accounts receivable or (B) as a result of a foreclosure by the Company or any of its Restricted Subsidiaries with respect to any secured Investment or other transfer of title with respect to any secured Investment in default; 
  
 (10) any Person to the extent such Investments consist of
prepaid expenses, negotiable instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits made in the ordinary course of business by the Company or any Restricted Subsidiary; 

 
 (11) any Person to the extent such Investments consist of
Hedging Obligations otherwise permitted under Section 4.03; 
  
 (12) any Person existing on the Issue Date, and any extension, modification or renewal of any such Investments existing on the Issue Date, but only to the extent not involving additional advances, contributions or
other Investments of cash or other assets or other increases thereof (other than as a result of the accrual or accretion of interest or original issue discount or the issuance of pay-in-kind securities, in each case, pursuant to the terms of such
Investment as in effect on the Issue Date); 
  
 (13) Investments by the Company in a Securitization Entity or any Investment by a Securitization Entity in any other Person in connection with a Qualified Securitization Transaction which Investments consist of the transfer of receivables
and related assets; provided, however, that any Investment in a Securitization Entity is in 

  

 20 

 
the form of (A) a Purchase Money Note, (B) an equity interest, (C) obligations of the Securitization Entity to pay the purchase price for assets transferred
to it or (D) interests in accounts receivable generated by the Company or a Restricted Subsidiary of the Company and, in each case, transferred to such Securitization Entity or other Person in connection with a Qualified Securitization Transaction;
and 
  
 (14) Persons to the extent such
Investment, when taken together with all other Investments made pursuant to this clause (14) outstanding on the date such Investment is made, does not exceed $15.0 million. 
  
 “Permitted Liens” means, with respect to any Person: 
  
 (1) pledges or deposits by such Person under worker’s
compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure
public or statutory obligations of such Person or deposits of cash or United States government bonds to secure surety or appeal bonds to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment of
rent, in each case Incurred in the ordinary course of business; 
  
 (2) Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens, in each case for sums not yet due or being contested in good faith by appropriate proceedings or other Liens arising out
of judgments or awards against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review and Liens arising solely by virtue of any statutory or common law provision relating to
banker’s Liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution; provided, however, that (A) such deposit account is not a dedicated cash
collateral account and is not subject to restrictions against access by the Company in excess of those set forth by regulations promulgated by the Federal Reserve Board and (B) such deposit account is not intended by the Company or any Restricted
Subsidiary of the Company to provide collateral to the depository institution; 
  
 (3) Liens for property taxes not yet subject to penalties for non-payment or which are being contested in good faith by appropriate
proceedings; 
  
 (4) Liens in favor of issuers of
surety bonds or letters of credit issued pursuant to the request of and for the account of such Person in the ordinary course of its business; provided, however, that such letters of credit do not constitute Indebtedness; 

 
 (5) minor survey exceptions, minor encumbrances, easements
or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property or Liens incidental to the conduct
of the business of such Person 

  

 21 

 
or to the ownership of its properties which were not Incurred in connection with Indebtedness and which do not in the aggregate materially adversely affect
the value of said properties or materially impair their use in the operation of the business of such Person; 
  
 (6) Liens securing Indebtedness Incurred to finance the construction, purchase or lease of, or repairs, improvements or additions to, any
property or assets of such Person; provided, however, that the Lien may not extend to any other property owned by such Person or any of its Restricted Subsidiaries at the time the Lien is Incurred (other than assets and property
affixed or appurtenant thereto), and the Indebtedness (other than any interest thereon) secured by the Lien may not be Incurred more than 180 days after the later of the acquisition, completion of construction, repair, improvement, addition or
commencement of full operation of the property subject to the Lien; 
  
 (7) Liens to secure Indebtedness under the Credit Agreement not to exceed the greater of (A) $140.0 million and (B) the sum of (i) 60% of the book value of the inventory of the Company and its Restricted Subsidiaries
and (ii) 80% of the book value of the accounts receivable of the Company and its Restricted Subsidiaries, plus in the case of clauses (A) and (B) $20.0 million; provided, however, that such $20.0 million of Indebtedness or any portion
thereof is issued to and held by the same lender or group of lenders providing the balance of the then outstanding Indebtedness under the Credit Agreement; 
  
 (8) Liens existing on the Issue Date (other than Liens subject to clause (7) of this definition); 
  
 (9) Liens on property or shares of Capital Stock of another
Person at the time such other Person becomes a Subsidiary of such Person; provided, however, that the Liens may not extend to any other property owned by such Person or any of its Restricted Subsidiaries (other than assets and property
affixed or appurtenant thereto); 
  
 (10) Liens
on property at the time such Person or any of its Subsidiaries acquires the property, including any acquisition by means of a merger or consolidation with or into such Person or a Subsidiary of such Person; provided, however, that the
Liens may not extend to any other property owned by such Person or any of its Restricted Subsidiaries (other than assets and property affixed or appurtenant thereto); 
  
 (11) Liens securing Indebtedness or other obligations of a Subsidiary of such Person owing to such Person or
a Restricted Subsidiary of such Person; 
  
 (12)
Liens securing Hedging Obligations so long as such Hedging Obligations relate to Indebtedness that is, and is permitted to be under this Indenture, secured by a Lien on the same property securing such Hedging Obligations; 
  

 22 

 (13) Liens encumbering property or assets under construction arising from progress or
partial payments by a customer of the Company or any one of its Subsidiaries relating to such property or assets; 
  
 (14) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of any Indebtedness secured by any Lien referred
to in the foregoing clause (6), (8), (9) or (10) or clause (15) or (16) below; provided, however, that: (A) such new Lien shall be limited to all or part of the same property and assets that secured or, under the written agreements
pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to such property or proceeds or distributions thereof); and (B) the Indebtedness secured by such Lien at such time is not increased to any
amount greater than the sum of (i) the outstanding principal amount or, if greater, committed amount of the Indebtedness described under clause (6), (8), (9), (10), (15) or (16) at the time the original Lien became a Permitted Lien and (ii) an
amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or replacement; 
  
 (15) Liens under the Koppers Inc. Existing Indenture; and 
  
 (16) Liens to secure Indebtedness of any Foreign Subsidiary permitted to be Incurred under the Section 4.03.

  
 Notwithstanding the foregoing, “Permitted Liens” will not include
any Lien described in clause (6), (9) or (10) above to the extent such Lien applies to any Additional Assets acquired directly or indirectly from Net Available Cash pursuant to Section 4.06. For purposes of this definition, the term
“Indebtedness” shall be deemed to include interest on such Indebtedness. 
  
 “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) which is preferred as to the payment of dividends or distributions, 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 Security means the principal of such Security including any amounts accreted thereon, plus
the premium, if any, payable on the Security which is due or overdue or is to become due at the relevant time. 
  
 “Purchase Money Note” means a promissory note of a Securitization Entity evidencing a line of credit, which may be irrevocable, from the
Company or any Subsidiary of the Company in connection with a Qualified Securitization Transaction to a Securitization Entity, which note shall be repaid from cash available to the Securitization Entity, other than amounts required to be established
as reserves pursuant to agreements, amounts paid to investors in respect of interest, principal and other amounts paid in connection with the purchase of newly generated receivables. 
  

 23 

 “Qualified Securitization Transaction” means any transaction or series of transactions
that may be entered into by the Company or any of its Subsidiaries pursuant to which the Company or any of its Subsidiaries may sell, convey or otherwise transfer to (1) a Securitization Entity, in the case of a transfer by the Company or any of its
Subsidiaries, and (2) any other Person, in the case of a transfer by a Securitization Entity, or may grant a security interest in, any accounts receivable, whether now existing or arising or acquired in the future, of the Company or any of its
Subsidiaries, and any assets related thereto, including all collateral securing such accounts receivable, all contracts and contract rights and all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts
receivable and other assets, including contract rights, that are customarily transferred or in respect of which security interests are customarily granted in connection with asset securitization transactions involving accounts receivable.

  
 “Refinance” means, in respect of any
Indebtedness, to refinance, extend, renew, refund, repay, prepay, purchase, 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 Refinances any Indebtedness of the Company or any Restricted Subsidiary of the Company existing on the Issue Date or Incurred in compliance with this Indenture, including Indebtedness that Refinances
Refinancing Indebtedness; provided, however, that: 
  
 (1) such Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being Refinanced; 
  
 (2) such 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; 
  
 (3) such Refinancing Indebtedness has an aggregate principal amount (or if Incurred with original issue discount, an aggregate issue
price) that is equal to or less than the aggregate principal amount (or if Incurred with original issue discount, the aggregate accreted value) then outstanding or committed (plus fees and expenses, including any premium and defeasance costs) under
the Indebtedness being Refinanced; and 
  
 (4) if
the Indebtedness being Refinanced is subordinated in right of payment to the Securities, such Refinancing Indebtedness is subordinated in right of payment to the Securities at least to the same extent as the Indebtedness being Refinanced;

  

 24 

 provided further, however, that Refinancing Indebtedness shall not include (A) Indebtedness of a
Subsidiary that Refinances Indebtedness of the Company or (B) Indebtedness of the Company or a Restricted Subsidiary of the Company that Refinances Indebtedness of an Unrestricted Subsidiary. 
  
 “Registration Rights Agreement” means the Registration
Rights Agreement dated November 18, 2004, between the Company and the Initial Purchasers. 
  
 “Related Business” means any business in which the Company or any of the Restricted Subsidiaries was engaged on the Issue Date and any business related, ancillary or complementary to such business.

  
 “Related Party” means (1) any majority owned
Subsidiary, or spouse or immediate family member (in the case of an individual) of any Permitted Holder, (2) any estate, trust, corporation, partnership or other entity, the beneficiaries, stockholders, partners, owners or Persons holding a
controlling interest of which consist solely of one or more Permitted Holders and/or such other Persons referred to in the immediately preceding clause (1) or (3) any executor, administrator, trustee, manager, director or other similar fiduciary of
any Person referred to in the immediately preceding clause (2) acting solely in such capacity. 
  
 “Restricted Payment” with respect to any Person means: 
  
 (1) the declaration or payment of any dividends or any other distributions of any sort in respect of its Capital Stock (including any
payment in connection with any merger or consolidation involving such Person) or similar payment to the direct or indirect holders of its Capital Stock (other than (A) dividends or distributions payable solely in its Capital Stock (other than
Disqualified Stock), (B) dividends or distributions payable solely to the Company or a Restricted Subsidiary of the Company and (C) pro rata dividends or other distributions made by a Subsidiary that is not a Wholly Owned Subsidiary to minority
stockholders (or owners of an equivalent interest in the case of a Subsidiary that is an entity other than a corporation)); 
  
 (2) the purchase, redemption or other acquisition or retirement for value of any Capital Stock of the Company held by any Person (other
than by a Restricted Subsidiary of the Company) or of any Capital Stock of a Restricted Subsidiary held by any Affiliate of the Company (other than by a Restricted Subsidiary of the Company), including in connection with any merger or consolidation
and including the exercise of any option to exchange any Capital Stock (other than into Capital Stock of the Company that is not Disqualified Stock); 
  
 (3) the purchase, repurchase, redemption, defeasance or other acquisition or retirement for value, prior to scheduled maturity, scheduled
repayment or scheduled sinking fund payment of any Subordinated Obligations or Disqualified Stock of the Company (other than (A) from the Company or a Restricted Subsidiary of the Company or (B) the purchase, repurchase, redemption, defeasance or
other acquisition of 

  

 25 

 
Subordinated Obligations or Disqualified Stock 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 such purchase, repurchase, redemption, defeasance or other acquisition); or 
  
 (4) the making of any Investment (other than a Permitted Investment) in any Person. 
  
 “Restricted Subsidiary” of a Person means any Subsidiary of
such Person that is not an Unrestricted Subsidiary of such Person. 
  
 “Revolving Credit Facility” means the revolving credit facility contained in a Credit Agreement and any other facility or financing arrangement that Refinances, in whole or in part, any such revolving credit facility.

  
 “Sale/Leaseback Transaction” means an
arrangement relating to property owned by the Company or a Restricted Subsidiary of the Company on the Issue Date or thereafter 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 a Restricted Subsidiary of the Company leases it from such Person. 
  
 “SEC” means the U.S. Securities and Exchange Commission. 
  
 “Securities” has the meaning stated in the recital of this Indenture and more particularly means any
Securities authenticated and delivered under this Indenture. For all purposes of this Indenture, the term “Securities” shall include any Exchange Securities and any Private Exchange Securities to be issued and exchanged for any Initial
Securities pursuant to a Registration Rights Agreement and this Indenture. From and after the issuance of any Additional Securities (but not for purposes of determining whether such issuance is permitted hereunder), “Securities” shall
include such Additional Securities for purposes of this Indenture and all Exchange Securities and Private Exchange Securities from time to time issued with respect to any Initial Securities that constitute such Additional Securities. 
  
 “Securities Act” means the U.S. Securities Act of 1933, as
amended. 
  
 “Securitization Entity” means a
Wholly Owned Subsidiary of the Company (or a wholly owned Subsidiary of another Person in which the Company or any Subsidiary of the Company makes an Investment and in which the Company or any Subsidiary of the Company transfers accounts receivable)
that engages in no activities other than in connection with the financing of accounts receivable and that is designated by the Board of Directors of the Company (as provided below) as a Securitization Entity and: 
  
 (1) no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which: 
  

 26 

 (a) is guaranteed by the Company or any Restricted 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 Restricted Subsidiary of the Company (other than such Securitization Entity) in any way
other than pursuant to Standard Securitization Undertakings; or 
  
 (c) subjects any property or asset of the Company or any Restricted Subsidiary of the Company (other than such Securitization Entity), directly or indirectly, contingently or otherwise, to the satisfaction thereof,
other than pursuant to Standard Securitization Undertakings; (such Indebtedness described in this clause (1), “Non-Recourse Securitization Entity Indebtedness”); 
  
 (2) with which neither the Company nor any Restricted Subsidiary of the Company (other than such
Securitization Entity) has any material contract, agreement, arrangement or understanding other than those that might be obtained at the time from Persons that are not Affiliates of the Company, other than fees payable in the ordinary course of
business in connection with servicing accounts receivable of such entity; and 
  
 (3) to which neither the Company nor any Restricted Subsidiary of the Company (other than such Securitization Entity) has any obligation to maintain or preserve such entity’s financial condition or cause such
entity to achieve certain levels of operating results. 
  
 Any
designation of a Subsidiary as a Securitization Entity shall be evidenced to the Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors of the Company giving effect to the designation and an Officers’
Certificate certifying that the designation complied with the preceding conditions and was permitted by the Indenture. 
  
 “Senior Indebtedness” means with respect to any Person: 
  
 (1) Indebtedness of such Person, whether outstanding on the Issue Date or thereafter Incurred; and

  
 (2) all other Obligations of such Person
(including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to such Person whether or not post-filing interest is allowed in such proceeding) in respect of Indebtedness described in clause (1)
above 
  
 unless, in the case of clauses (1) and (2), in the instrument creating
or evidencing the same or pursuant to which the same is outstanding, it is provided that such Indebtedness or other Obligations are subordinate in right of payment to the Securities; provided, however, that Senior Indebtedness shall
not include: 
  
 (1) any obligation of such
Person to the Company or any Subsidiary of the Company; 
  

 27 

 (2) any liability for Federal, state, local or other taxes owed or owing by such Person;

  
 (3) any accounts payable or other liability
to trade creditors arising in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities); 
  
 (4) any Indebtedness or other Obligation of such Person which is subordinate or junior in any respect to any other Indebtedness or other
Obligation of such Person; or 
  
 (5) that
portion of any Indebtedness which at the time of Incurrence is Incurred in violation of this Indenture. 
  
 “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. 
  
 “Standard & Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and any successor to its rating agency business. 
  
 “Standard Securitization Undertakings” means representations, warranties, covenants and indemnities entered
into by the Company or any Restricted Subsidiary that are customary in an accounts receivable securitization transaction, including servicing of the obligations thereunder. 
  
 “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 unless such contingency has occurred). 
  
 “Subordinated Obligation” means, with respect to a Person, any Indebtedness of such Person (whether outstanding on the Issue Date or thereafter Incurred) which is subordinate or junior in right of
payment to the Securities, pursuant to a written agreement to that effect. 
  
 “Subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Voting Stock is at the
time owned or controlled, directly or indirectly, by (1) such Person, (2) such Person and one or more Subsidiaries of such Person or (3) one or more Subsidiaries of such Person. 
  

 28 

 “Temporary Cash Investments” means any of the following: 
  
 (1) 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; 
  
 (2) investments in demand and 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 which 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, and which bank or trust company has
capital, surplus and undivided profits aggregating in excess of $50.0 million (or the foreign currency equivalent thereof) and has outstanding debt which 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; 
  
 (3) repurchase obligations with a term of not more than 30 days for underlying securities of the types
described in clause (1) above entered into with a bank meeting the qualifications described in clause (2) above; 
  
 (4) 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 or “A-1” (or higher) according to Standard & Poor’s; 
  
 (5) investments in securities with maturities of six months 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 Standard & Poor’s or “A” by Moody’s; and 
  
 (6) investments in money market funds that invest
substantially all their assets in securities of the types described in clauses (1) through (5) above. 
  
 “Term Loan Facility” means the term loan facility contained in a Credit Agreement and any other facility or financing arrangement that
Refinances in whole or in part any such term loan facility. 
  
 “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of this Indenture. 
  
 “Trust Officer” means, when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant treasurer, trust officer or any other officer of the Trustee who 

  

 29 

 
customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
  
 “Trustee” means The Bank of New York 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: 
  
 (1) 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 
  
 (2) any Subsidiary of an Unrestricted Subsidiary. 
  
 On
the Issue Date, (1) Koppers Mauritius and (2) Koppers (China) Carbon & Chemical Co., Ltd will be designated as Unrestricted Subsidiaries. 
  
 The Board of Directors may designate any Subsidiary of the Company (including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, 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 assets of $1,000 or less or (B) if such Subsidiary has assets greater than $1,000, such designation would be permitted under Section 4.04. The
Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that immediately after giving effect to such designation no Default shall have occurred and be continuing and either (x) in
the case of any Subsidiary of the Company that is not also a Subsidiary of Koppers Inc., the Company could Incur $1.00 of additional Indebtedness under Section 4.03(a) or (y) in the case of Koppers Inc. or any Restricted Subsidiary of Koppers Inc.,
Koppers Inc. could Incur $1.00 of additional Indebtedness under Section 4.03(a). Any such designation 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. Dollar Equivalent” means with respect to any monetary amount in a currency other than U.S. dollars, at any time for determination
thereof, the amount of U.S. dollars obtained by converting such foreign currency involved in such computation into U.S. dollars at the spot rate for the purchase of U.S. dollars with the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” column under the heading “Currency Trading” on the date two Business Days prior to such determination. 
  

 30 

 Except as described in Section 4.03, whenever it is necessary to determine whether the Company has
complied with any provision in this Indenture or a Default has occurred and an amount is expressed in a currency other than U.S. dollars, such amount will be treated as the U.S. Dollar Equivalent determined as of the date such amount is initially
determined in such currency. 
  
 “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 at the issuer’s option. 
  
 “Voting Stock” of a Person means all classes of Capital Stock 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” of a Person means a Restricted Subsidiary of such Person all the Capital Stock of which (other than
directors’ qualifying shares) is owned by the Company or one or more other Wholly Owned Subsidiaries of such Person 
  
 SECTION 1.02 Other Definitions. 
  

			
	 Term

	  	 Defined in
 Section

	 “Affiliate Transaction”
	  	4.07(a)
	 “Bankruptcy Law”
	  	6.01
	 “Change of Control Offer”
	  	4.09(b)
	 “covenant defeasance option”
	  	8.01(b)
	 “Custodian”
	  	6.01
	 “Event of Default”
	  	6.01
	 “Exchange Securities”
	  	Appendix
	 “Initial Lien”
	  	4.10
	 “Initial Securities”
	  	Appendix
	 “legal defeasance option”
	  	8.01(b)
	 “Offer”
	  	4.06(c)
	 “Offer Amount”
	  	4.06(d)(2)
	 “Offer Period”
	  	4.06(d)(2)
	 “Paying Agent”
	  	2.03
	 “Purchase Date”
	  	4.06(d)(1)
	 “Registrar”
	  	2.03
	 “Semi Annual Accrual Date”
	  	1.01 (definition of Accreted Value)
	 “Specified Date”
	  	1.01 (definition of Accreted Value)
	 “Successor Company”
	  	5.01(1)

  

 31 

 SECTION 1.03 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 Securities; 
  
 “indenture security holder” means a Securityholder; 
  
 “indenture to be qualified” means this Indenture;

  
 “indenture trustee” or
“institutional trustee” means the Trustee; and 
  
 “obligor” on the indenture securities means the Company and any other obligor on the indenture securities. 
  
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions. 
  
 SECTION 1.04
Rules of Construction. Unless the context otherwise requires: 
  
 (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) secured Indebtedness shall not be deemed to be subordinate or junior to any other secured Indebtedness merely because it has a junior
priority with respect to the same collateral; 
  

 32 

 (8) 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; 
  
 (9) the principal amount of any Preferred Stock shall be (A) the maximum liquidation value of such Preferred Stock or (B) the maximum
mandatory redemption or mandatory repurchase price with respect to such Preferred Stock, whichever is greater; and 
  
 (10) all references to the date the Securities were originally issued shall refer to the Issue Date. 
  
 Article 2 
  
 The Securities 
  
 SECTION 2.01 Form and Dating. Provisions relating to the Initial Securities, the Private Exchange Securities and the Exchange Securities are set
forth in the Rule 144A/Regulation S Appendix attached hereto (the “Appendix”) which is hereby incorporated in, and expressly made part of, this Indenture. The Initial Securities and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit 1 to the Appendix which is hereby incorporated in, and expressly made a part of, this Indenture. The Exchange Securities, the Private Exchange Securities and the Trustee’s certificate of
authentication shall be substantially in the form of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture. The Securities may have notations, legends or endorsements required by law, stock exchange rule, agreements
to which the Company is subject, if any, or usage (provided that any such notation, legend or endorsement is in a form acceptable to the Company). Each Security shall be dated the date of its authentication. The terms of the Securities set forth in
the Appendix and Exhibit A are part of the terms of this Indenture. 
  
 SECTION 2.02 Execution and Authentication. Two Officers shall execute the Securities for the Company by manual or facsimile signature. The Company’s seal shall be impressed, affixed, imprinted or reproduced on the Securities and
may be in facsimile form. 
  
 If an Officer whose signature is on
a Security no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless. 
  
 A Security shall not be valid until an authorized signatory of the Trustee manually signs the certificate of authentication on the Security. The signature
shall be conclusive evidence that the Security has been authenticated under this Indenture. 
  
 On the Issue Date, the Trustee shall authenticate and deliver $203.0 million stated aggregate principal amount at maturity of 9 7/8% Senior Discount Notes Due 2014 and, at any time from time to time thereafter, the Trustee shall authenticate and deliver Securities for original issue in a stated aggregate
principal amount at maturity specified in such order, in 

  

 33 

 
each case upon a written order of the Company signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company. Such order shall specify the amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated and, in the case of an issuance of Additional Securities pursuant to Section 2.13 after
the Issue Date, shall certify that such issuance is in compliance with Section 4.03. 
  
 The Trustee may appoint an authenticating agent reasonably acceptable to the Company to authenticate the Securities. Unless limited by the terms of such appointment, an authenticating agent may authenticate Securities
whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as any Registrar, Paying Agent or agent for service of notices and
demands. 
  
 SECTION 2.03 Registrar and Paying Agent. The
Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (the “Registrar”) and an office or agency where Securities may be presented for payment (the “Paying
Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents. The term “Paying Agent” includes any
additional paying agent. 
  
 The Company shall enter into an
appropriate agency agreement with any Registrar, Paying Agent or co-registrar 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 Wholly Owned Subsidiary of the Company incorporated or organized within The United States of America may act as Paying Agent, Registrar, co-registrar or transfer agent. 
  
 The Company hereby appoints the Trustee as initial Registrar and Paying Agent
in connection with the Securities and the Trustee hereby accepts such appointments, subject to the terms herein. 
  
 SECTION 2.04 Paying Agent To Hold Money in Trust. Prior to each due date of the principal and interest on any Security, the Company shall deposit
with the Paying Agent 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
Securityholders or the Trustee all money held by the Paying Agent for the payment of principal of or interest on the Securities and shall notify the Trustee of any default by the Company in making any such payment. If the Company or a Subsidiary
acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee and to account for any 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. 
  

 34 

 SECTION 2.05 Securityholder 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 Securityholders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least five Business Days before each interest
payment date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders. 
  
 SECTION 2.06 Transfer and Exchange. The Securities shall be issued in
registered form and shall be transferable only upon the surrender of a Security for registration of transfer. When a Security is presented to the Registrar or a co-registrar with a request to register a transfer, the Registrar shall register the
transfer as requested if the requirements of this Indenture and Section 8-401(1) of the Uniform Commercial Code are met. When Securities are presented to the Registrar or a co-registrar with a request to exchange them for an equal principal amount
at maturity of Securities of other denominations, the Registrar shall make the exchange as requested if the same requirements are met. 
  
 SECTION 2.07 Replacement Securities. If a mutilated Security is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Company shall execute and the Trustee shall authenticate a replacement Security if the requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any other
reasonable requirements of the Trustee. If required by the Trustee or the Company, such Holder shall furnish an indemnity bond sufficient in the judgment of the Company and the Trustee to protect the Company, the Trustee, the Paying Agent, the
Registrar and any co-registrar from any loss which any of them may suffer if a Security is replaced. The Company and the Trustee may charge the Holder for their expenses in replacing a Security. 
  
 Every replacement Security is an additional Obligation of the Company.

  
 SECTION 2.08 Outstanding Securities. Securities
outstanding at any time are all Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation and those described in this Section as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Security. 
  
 If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee and the Company receive proof satisfactory to them that the replaced Security is held by a bona fide purchaser. 
  
 If the Paying Agent segregates and holds in trust, in accordance with this
Indenture, on a redemption date or maturity date money sufficient to pay all principal and interest payable on that date with respect to the Securities (or portions thereof) to be redeemed or maturing, as the case may be, then on and after that date
such Securities (or portions thereof) cease to be outstanding and interest on them ceases to accrue. 
  

 35 

 SECTION 2.09 Temporary Securities. Until definitive Securities are ready for delivery, the Company
may execute and the Trustee shall authenticate (pursuant to a valid order by the Company) temporary Securities. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company shall execute and the Trustee shall authenticate (pursuant to a valid order by the Company) definitive Securities and deliver them in exchange for temporary Securities.

  
 SECTION 2.10 Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee and no one else shall cancel and
dispose of (subject to the record retention requirements of the Exchange Act) all Securities surrendered for registration of transfer, exchange, payment or cancellation in accordance with its customary practices and deliver a certificate of such
disposition to the Company unless the Company directs the Trustee to deliver canceled Securities to the Company. The Company may not issue new Securities to replace Securities it has redeemed, paid or delivered to the Trustee for cancellation.

  
 SECTION 2.11 Defaulted Interest. If the Company
defaults in a payment of interest on the Securities, the Company shall pay defaulted interest (plus interest on such defaulted interest to the extent lawful) in any lawful manner. The Company may pay the defaulted interest to the persons who are
Securityholders 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 to each Securityholder a notice that
states the special record date, the payment date and the amount of defaulted interest to be paid. 
  
 SECTION 2.12 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use) and, if so, the
Trustee shall use “CUSIP” numbers, which the Company shall have provided to the Trustee, in notices of redemption as a convenience to Holders; 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 Securities or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the CUSIP numbers. 
  
 SECTION 2.13 Issuance of Additional Securities. After the Issue Date, the Company shall be entitled, subject to its compliance with Section 4.03,
to issue an unlimited amount of Additional Securities under this Indenture, which Securities shall have identical terms as the Initial Securities issued on the Issue Date, other than with respect to the date of issuance, issue price and first
Semi-Annual Accrual Date or interest payment date. All the Securities issued under this Indenture shall be treated as a single class for all purposes of this Indenture. 
  

 36 

 With respect to any Additional Securities, the Company shall set forth in a resolution of the Board of
Directors and an Officers’ Certificate, a copy of each of which shall be delivered to the Trustee, the following information: 
  
 (1) the stated aggregate principal amount at maturity of such Additional Securities to be authenticated and delivered pursuant to this
Indenture and the provision of Section 4.03 that the Company is relying on to issue such Additional Securities; 
  
 (2) the issue price, the issue date, the first Semi-Annual Accrual Date or interest payment date and the CUSIP number of such Additional
Securities; provided, however, that no Additional Securities may be issued at a price that would cause such Additional Securities to not be fungible for U.S. federal income tax purposes with any other Securities issued under this
Indenture; and 
  
 (3) whether such Additional
Securities shall be Initial Securities or shall be issued in the form of Exchange Securities as set forth in Exhibit A. 
  
 Article 3 
  
 Redemption 
  
 SECTION 3.01 Notices to Trustee. If the Company elects to redeem Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee in writing of the redemption date, the principal amount at maturity of Securities to
be redeemed and the paragraph of the Securities pursuant to which the redemption will occur. 
  
 The Company shall give each notice to the Trustee provided for in this Section at least 60 days before the redemption date unless the Trustee, in its sole discretion, consents to a shorter period. Such notice shall be
accompanied by an Officers’ Certificate and an Opinion of Counsel from the Company to the effect that such redemption will comply with the conditions herein. 
  
 SECTION 3.02 Selection of Securities to Be Redeemed. If fewer than all the Securities are to be redeemed, the Trustee
shall select the Securities to be redeemed pro rata or by lot or by a method that complies with applicable legal and securities exchange requirements, if any, and that the Trustee in its sole discretion shall deem to be fair and
appropriate and in accordance with methods generally used at the time of selection by fiduciaries in similar circumstances. The Trustee shall make the selection from outstanding Securities not previously called for redemption. The Trustee may select
for redemption portions of the principal at maturity of Securities that have denominations larger than $1,000 stated aggregate principal amount at maturity. Securities and portions of them the Trustee selects shall be in principal amounts at
maturity of $1,000 or a whole multiple of $1,000 principal amount at 

  

 37 

 
maturity. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee
shall notify the Company promptly of the Securities or portions of Securities to be redeemed. 
  
 SECTION 3.03 Notice of Redemption. At least 30 days but not more than 60 days before a date for redemption of Securities, the Company shall mail a notice of redemption by first-class mail to each Holder of
Securities to be redeemed at such Holder’s registered address. 
  
 The notice shall identify the Securities to be redeemed and shall state: 
  
 (1) the redemption date; 
  
 (2) the redemption price; 
  
 (3) the name and address of the Paying Agent; 
  
 (4) that Securities called for redemption must be surrendered to the Paying Agent to collect the redemption price; 
  
 (5) if fewer than all the outstanding Securities are to be
redeemed, the identification and principal amounts at maturity of the particular Securities to be redeemed; 
  
 (6) that, unless the Company defaults in making such redemption payment, interest on Securities (or portion thereof) called for redemption
ceases to accrue on and after the redemption date; 
  
 (7) the “CUSIP” number, ISIN or “Common Code” number, if any, printed on the Securities being redeemed; and 
  
 (8) that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the
Securities. 
  
 At the Company’s 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, Securities called for redemption become due and payable on the redemption date and at the redemption price stated in the notice. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price stated in the
notice, plus accrued interest to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the related interest payment date). Failure to give notice or any defect in the notice to any
Holder shall not affect the validity of the notice to any other Holder. 
  

 38 

 SECTION 3.05 Deposit of Redemption Price. Prior to 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 Securities to be redeemed on that date other than
Securities or portions of Securities called for redemption which have been delivered by the Company to the Trustee for cancellation. 
  
 SECTION 3.06 Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall
authenticate for the Holder (at the Company’s expense) a new Security in principal amount at maturity equal to the unredeemed portion of the Security surrendered. 
  
 Article 4 
  
 Covenants 
  
 SECTION 4.01 Payment of Securities. The Company shall promptly pay the principal of and interest on the Securities on the dates and in the manner
provided in the Securities 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. 
  
 The Company shall pay interest on overdue
principal at the rate specified therefor in the Securities, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
  

All references in this Indenture, in any context, to Accreted Value or any interest or other amount payable on or with respect to the Securities shall
be deemed to include any Additional Interest pursuant to a Registration Rights Agreement. 
  
 SECTION 4.02 SEC Reports. Whether or not the Company is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, so long as any Securities are outstanding, the Company shall file with
the SEC (subject to the next sentence) and provide the Trustee and Holders with such annual reports and such information, documents and other reports as are specified in Sections 13 and 15(d) of the Exchange Act and applicable to a U.S. corporation
subject to such Sections, such information, documents and other reports to be so filed and provided at the times specified for the filings of such information, documents and reports under such Sections, and containing all the information, audit
reports and exhibits required for such reports. If at any time the Company is not subject to the periodic reporting requirements of the Exchange Act for any reason, the Company shall nevertheless continue filing the reports specified in the
preceding sentence with the SEC within the time periods required unless the SEC will not accept such a filing. The Company shall not take any action for the purpose of causing the SEC not to accept such filings. If, notwithstanding the foregoing,
the SEC will not accept such filings for any reason, the Company shall post the reports specified in the first sentence of this Section 4.02 on its website within the time 

  

 39 

 
periods that would apply if the Company were required to file those reports with the SEC. Notwithstanding the foregoing, the Company shall be entitled to
satisfy such requirements prior to the effectiveness of the Exchange Offer Registration Statement or the Shelf Registration Statement (each as defined in the Registration Rights Agreement) by filing with the SEC the Exchange Offer Registration
Statement or Shelf Registration Statement, to the extent that any such Registration Statement contains substantially the same information (and at substantially the same time) as would be required to be filed by the Company if it were subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, and by providing the Trustee and Holders with such Registration Statement (and any amendments thereto) promptly following the filing thereof. 
  
 At any time that any of the Company’s Subsidiaries are Unrestricted
Subsidiaries, then the quarterly and annual financial information required by the preceding paragraph shall include a reasonably detailed presentation, either on the face of the financial statements or in the footnotes thereto, and in
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the financial condition and
results of operations of the Unrestricted Subsidiaries of the Company. 
  
 In addition, the Company shall furnish to the Holders of the Securities and to prospective investors, upon the requests of such Holders, any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long
as the Securities are not freely transferable under the Securities Act. 
  
 SECTION 4.03 Limitation on Indebtedness. 
  
 (a)
The Company shall not, and shall not permit any of its Restricted Subsidiaries to, Incur, directly or indirectly, any Indebtedness; provided, however, that (1) the Company and any of its Restricted Subsidiaries shall be entitled to Incur
Indebtedness if, on the date of such Incurrence and after giving effect thereto on a pro forma basis, the Consolidated Coverage Ratio of the Company exceeds 2 to 1 and (2) notwithstanding that the Company and its Restricted
Subsidiaries may not be entitled to Incur Indebtedness pursuant to clause (1) above, Koppers Inc. and any of its Restricted Subsidiaries shall be entitled to Incur Indebtedness if, on the date of such Incurrence and after giving effect thereto on a
pro forma basis, the consolidated Coverage Ratio of Koppers Inc. exceeds 2 to 1. 
  
 (b) Notwithstanding the foregoing paragraph (a), the Company and the Restricted Subsidiaries shall be entitled to Incur any or all of the following Indebtedness: 
  
 (1) Indebtedness Incurred by the Company or any of its
Restricted Subsidiaries Subsidiary pursuant to any Revolving Credit Facility; provided, however, that, immediately after giving effect to any such Incurrence, the aggregate principal amount of all Indebtedness Incurred under this
clause (b)(1) and clause (b)(12) and then outstanding does not exceed the greater of (A) $100.0 million less the sum of all principal payments with respect to such Indebtedness pursuant to Section 4.06(a)(3)(A) hereof 

  

 40 

 
and (B) the sum of (i) 60% of the book value of the inventory of the Company and its Restricted Subsidiaries and (ii) 80% of the book value of the accounts
receivable of the Company and its Restricted Subsidiaries; 
  
 (2) Indebtedness Incurred by the Company or any of its Restricted Subsidiaries pursuant to any Term Loan Facility; provided, however, that, after giving effect to any such Incurrence, the aggregate
principal amount of all Indebtedness Incurred under this clause (b)(2) and then outstanding does not exceed $40.0 million; 
  
 (3) Indebtedness owed to and held by the Company or any of its Restricted Subsidiaries; provided, however, that (A) any
subsequent issuance or transfer of any Capital Stock which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary of the Company or any subsequent transfer of such Indebtedness (other than to the Company or a Restricted
Subsidiary of the Company) shall be deemed, in each case, to constitute the Incurrence of such Indebtedness by the obligor thereon, and (B) if the Company is the obligor on such Indebtedness, such Indebtedness (other than Indebtedness owed to a
Restricted Subsidiary of the Company) is expressly subordinated to the prior payment in full in cash of all obligations with respect to the Securities; 
  
 (4) the Securities and the Exchange Securities (other than any Additional Securities); 
  
 (5) Indebtedness outstanding on the Issue Date (other than
Indebtedness described in clause (1), (2), (3) or (4) of this Section 4.03(b)); 
  
 (6) Indebtedness of a Restricted Subsidiary of the Company Incurred and outstanding on or prior to the date on which such Subsidiary was
acquired by the Company (other than Indebtedness Incurred in connection with, 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 Subsidiary
became a Subsidiary or was acquired by the Company or a Restricted Subsidiary of the Company); provided, however, that on the date of such acquisition and after giving pro forma effect thereto, the Company would have been able
to Incur at least $1.00 of additional Indebtedness pursuant to Section 4.03(a)(1) or, if such Restricted Subsidiary is a Subsidiary of Koppers Inc. or was acquired by Koppers Inc. or a Subsidiary of Koppers Inc., Koppers Inc. would have been able to
Incur at least $1.00 of additional Indebtedness pursuant to Section 4.03(a)(2); 
  
 (7) Refinancing Indebtedness in respect of Indebtedness Incurred pursuant to Section 4.03(a) or pursuant to clause (4), (5) or (6) or this
clause (7); provided, however, that to the extent such Refinancing Indebtedness directly or indirectly Refinances Indebtedness of a Subsidiary Incurred pursuant to clause (6), such Refinancing Indebtedness shall be Incurred only by
such Subsidiary; 
  

 41 

 (8) Hedging Obligations consisting of (i) Interest Rate Agreements directly related to
Indebtedness permitted to be Incurred by the Company and its Restricted Subsidiaries pursuant to this Indenture or (ii) Currency Agreements entered into in the ordinary course of business; 
  
 (9) Indebtedness consisting of any Guarantee by a Restricted
Subsidiary of the Company of Indebtedness Incurred pursuant to Section 4.03(a) or pursuant to clause (1), (2) or (5) of this Section 4.03(b) or pursuant to clause (7) of this Section 4.03(b) to the extent the Refinancing Indebtedness Incurred
thereunder directly or indirectly Refinances Indebtedness Incurred pursuant to Section 4.03(a) or pursuant to clause (5) of this Section 4.03(b); 
  
 (10) Indebtedness (including Capital Lease Obligations) Incurred by the Company or any of its Restricted Subsidiaries to finance the
purchase, lease or improvement of property (real or personal) or equipment (whether through the direct purchase of assets or the Capital Stock of any Person owning such assets) within 180 days of such purchase, lease or improvement, and any
Refinancing Indebtedness Incurred to Refinance such Indebtedness, in an aggregate principal amount which, when taken together with the amount of Indebtedness Incurred pursuant to this clause (10) and then outstanding, does not exceed $5.0 million;

  
 (11) Indebtedness of Foreign Subsidiaries in
an aggregate principal amount which, when taken together with all other Indebtedness of Foreign Subsidiaries Incurred pursuant to this clause (11) and then outstanding, does not exceed the greater of (A) $15.0 million and (B) the sum of 60% of the
book value of the inventory of the Foreign Subsidiaries and (ii) 80% of the book value of the accounts receivable of the Foreign Subsidiaries; 
  
 (12) Non-Recourse Securitization Entity Indebtedness Incurred by a Securitization Entity in connection with a Qualified Securitization
Transaction; provided, however, that at the time of such Incurrence, the Company or any Restricted Subsidiary of the Company would have been entitled to Incur the same amount of Indebtedness pursuant to clause (1) of this Section
4.03(b); and 
  
 (13) Indebtedness of the Company
or any of its Restricted Subsidiaries in an aggregate principal amount which, when taken together with all other Indebtedness of the Company and its Restricted Subsidiaries outstanding on the date of such Incurrence (other than Indebtedness
permitted by clauses (1) through (12) above or Section 4.03(a)) does not exceed $30.0 million. 
  
 (c) Notwithstanding the foregoing, the Company shall not Incur any Indebtedness pursuant to Section 4.03(b) if the proceeds thereof are used, directly or indirectly, to Refinance any Subordinated Obligations of the
Company unless such Indebtedness shall be subordinated to the Securities to at least the same extent as such Subordinated Obligations. 
  

 42 

 (d) For purposes of determining compliance with this Section 4.03. 
  
 (1) any Indebtedness Incurred or outstanding on the Issue
Date under any Credit Agreement will be deemed to have been Incurred under Section 4.03(b)(1) and 4.03(b)(2); 
  
 (2) in the event that an item of Indebtedness (or any portion thereof) meets the criteria of more than one of the types of Indebtedness
described herein, the Company, in its sole discretion, shall classify such item of Indebtedness (or any portion thereof) at the time of Incurrence and shall only be required to include the amount and type of such Indebtedness in one of the above
clauses; and 
  
 (3) the Company shall be
entitled to divide and classify an item of Indebtedness in more than one of the types of Indebtedness described above. 
  
 (e) For purposes of determining compliance with any U.S. dollar denominated restriction on the Incurrence of Indebtedness where the Indebtedness Incurred
is denominated in a different currency, the amount of such Indebtedness shall be the U.S. Dollar Equivalent determined on the date of the Incurrence of such Indebtedness; provided, however, that if any such Indebtedness denominated in
a different currency is subject to a Currency Agreement with respect to U.S. dollars covering all principal, premium, if any, and interest payable on such Indebtedness, the amount of such Indebtedness expressed in U.S. dollars shall be as provided
in such Currency Agreement. The principal amount of any Refinancing Indebtedness Incurred in the same currency as the Indebtedness being Refinanced shall be the U.S. Dollar Equivalent of the Indebtedness Refinanced, except to the extent that (1)
such U.S. Dollar Equivalent was determined based on a Currency Agreement, in which case the Refinancing Indebtedness shall be determined in accordance with the preceding sentence and (2) the principal amount of the Refinancing Indebtedness exceeds
the principal amount of the Indebtedness being Refinanced, in which case the U.S. Dollar Equivalent of such excess shall be determined on the date such Refinancing Indebtedness is Incurred. 
  
 SECTION 4.04 Limitation on Restricted Payments. 
  
 (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries, directly or indirectly, to, make 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) if the Restricted Payment is made by the Company or any
of its Restricted Subsidiaries (other than Koppers Inc. and any of its Restricted Subsidiaries), the Company is not entitled to Incur an additional $1.00 of Indebtedness pursuant to Section 4.03(a)(1) or, if the Restricted Payment is made by Koppers
Inc. or any of its Restricted Subsidiaries, Koppers Inc. is not entitled to Incur an additional $1.00 of Indebtedness under Section 4.03(a)(2); or 
  

 43 

 (3) the aggregate amount of such Restricted Payment and all other Restricted Payments since October 15,
2003 would exceed the sum of (without duplication): 
  
 (A) 50% of the Consolidated Net Income of Koppers Inc. accrued during the period (treated as one accounting period) from January 1, 2004 to the end of the most recent fiscal quarter ending at least 45 days prior to the date of such
Restricted Payment (or, in case such Consolidated Net Income shall be a deficit, minus 100% of such deficit); plus 
  
 (B) 100% of the aggregate Net Cash Proceeds received by Koppers Inc. from the issuance or sale of its Capital Stock (other than
Disqualified Stock) subsequent to October 15, 2003 and on or prior to the Issue Date and by the Company from the issuance or sale of its Capital Stock (other than Disqualified Stock) subsequent to the Issue Date (other than, in each case, an
issuance or sale to a Subsidiary of the Company and other than an issuance or sale to an employee stock ownership plan or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees) and 100% of any cash
capital contribution received by Koppers Inc. from its shareholders after October 15, 2003 and on or prior to the Issue Date and by the Company from its shareholders subsequent to the Issue Date; plus 
  
 (C) the amount by which Indebtedness of the Company or any
of its Restricted Subsidiaries is reduced on the Company’s balance sheet upon the conversion or exchange subsequent to the Issue Date of any Indebtedness of the Company or any of its Restricted Subsidiaries convertible or exchangeable for
Capital Stock (other than Disqualified Stock) of the Company (less the amount of any cash, or the fair value of any other property, distributed by the Company upon such conversion or exchange); provided, however, that the foregoing
amount shall not exceed the Net Cash Proceeds received by the Company or any such Restricted Subsidiary from the sale of such Indebtedness (excluding Net Cash Proceeds from sales to a Subsidiary of the Company or to an employee stock ownership plan
or to a trust established by the Company or any of its Subsidiaries for the benefit of their employees); plus 
  
 (D) an amount equal to the sum of (i) the net reduction in the Investments (other than Permitted Investments) made by the Company or any
of its Restricted Subsidiaries in any Person resulting from repurchases, repayments or redemptions of such Investments by such Person, proceeds realized on the sale of such Investment and proceeds representing the return of capital, in each case
received by the Company or any of its Restricted Subsidiaries, and (ii) to the extent such Person is an Unrestricted Subsidiary, the portion (proportionate to the Company’s equity interest in such Subsidiary) of the fair market value of the net
assets of such Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary of the Company; 

  

 44 

 
provided, however, that the foregoing sum shall not exceed, in the case of any such Person or Unrestricted Subsidiary, the amount of
Investments (excluding Permitted Investments) previously made (and treated as a Restricted Payment) by the Company or any Restricted Subsidiary in such Person or Unrestricted Subsidiary. 
  
 (b) The provisions of Section 4.04(a) shall not prohibit: 
  
 (1) any Restricted Payment made out of the Net Cash Proceeds of the substantially concurrent sale of, or
made by exchange for, 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 to a trust established by the Company or any of its
Subsidiaries for the benefit of their employees) or a substantially concurrent cash capital contribution received by the Company from its shareholders; 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 or such cash capital contribution (to the extent so used for such Restricted Payment) shall be excluded from the calculation of amounts under Section
4.04(a)(3)(B); 
  
 (2) 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 which is permitted to be Incurred
pursuant to Section 4.03; 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; 
  
 (3) dividends paid within 60 days after the date of
declaration thereof if at such date of declaration such dividend would have complied with this Section 4.04; provided, however, that such dividend shall be included in the calculation of the amount of Restricted Payments; 

 
 (4) so long as no Default has occurred and is continuing,
the repurchase or other acquisition of shares of Capital Stock of the Company or any of its Subsidiaries from employees, former employees, directors or former directors of the Company or any of its Subsidiaries (or permitted transferees of such
employees, former employees, directors or former directors), pursuant to the terms of the agreements (including employment agreements) or plans (or amendments thereto) approved by the Board of Directors under which such individuals purchase or sell
or are granted the option to purchase or sell, shares of such Capital Stock; provided, however, that the aggregate amount of such repurchases and other acquisitions (excluding amounts representing cancellation of Indebtedness) in any
calendar year shall not exceed $3.0 million; provided further, however, that such repurchases and other acquisitions shall be excluded in the calculation of the amount of Restricted Payments; 
  

 45 

 (5) payments of dividends on Disqualified Stock permitted to be issued pursuant to
Section 4.03; provided, however, that such dividends shall be excluded in the calculation of the amount of Restricted Payments; 
  
 (6) repurchases and other acquisitions of Capital Stock deemed to occur upon exercise of stock options or to satisfy federal income tax
obligations of option holders upon exercise of stock options if such Capital Stock represents a portion of the exercise price of such options; provided, however, that such Restricted Payments shall be excluded in the calculation of the
amount of Restricted Payments; 
  
 (7) cash
payments in lieu of the issuance of fractional shares in connection with the exercise of warrants, options or other securities convertible into or exchangeable for Capital Stock of the Company; provided, however, that any such cash
payment shall not be for the purpose of evading the limitation of this Section 4.04 (as determined in good faith by the Board of Directors); provided further, however, that such payments shall be excluded in the calculation of
the amount of Restricted Payments; 
  
 (8) in the
event of a Change of Control, and if no Default shall have occurred and be continuing, the payment, purchase, redemption, defeasance or other acquisition or retirement of Subordinated Obligations and Preferred Stock of the Company at a purchase
price not greater than 101% of the principal amount of such Subordinated Obligations or Preferred Stock, plus any accrued and unpaid interest or dividends thereon; provided, however, that prior to such payment, purchase, redemption,
defeasance or other acquisition or retirement, the Company (or a third party to the extent permitted by this Indenture) has (A) made a Change of Control Offer with respect to the Securities as a result of such Change of Control and has repurchased
all Securities validly tendered and not withdrawn in connection with such Change of Control Offer or (B) delivered a notice of optional redemption with respect to the Securities and has repurchased all the Securities; provided further,
however, that such repurchase and other acquisitions shall be included in the calculation of the amount of Restricted Payments; 
  
 (9) payments of intercompany subordinated Indebtedness, the Incurrence of which was permitted under Section 4.03(b)(3); provided,
however, that no Default has occurred and is continuing or would otherwise result therefrom; provided further, however, that such payments shall be excluded in the calculation of the amount of Restricted Payments;

  
 (10) the declaration and payment of one or
more dividends in an amount not to exceed the Net Cash Proceeds received by the Company from the sale of the Initial Securities on the Issue Date; provided, however, that such amount will be excluded in the calculation of the amount of
Restricted Payments; or 
  
 (11) Restricted
Payments in an amount which, when taken together with all other Restricted Payments made pursuant to this clause (11) and then outstanding, 

  

 46 

 
does not exceed $12.5 million; provided, however, that (A) at the time of each such Restricted Payment, no Default shall have occurred and be
continuing (or result therefrom) and (B) such Restricted Payments shall be excluded in the calculation of the amount of Restricted Payments. 
  
 (c) Any dividends or share repurchases made prior to the Issue Date in an amount equal to the net cash proceeds of the offering of the Koppers Inc.
Existing Notes, not to exceed $79.8 million in the aggregate, shall be excluded in the calculation of the amount of Restricted Payments made since October 15, 2003. 
  
 SECTION 4.05 Limitation on Restrictions on Distributions from Restricted Subsidiaries . The Company shall not, and
shall not permit any Restricted Subsidiary of the Company to, create or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary of the Company to (a) pay dividends
or make any other distributions on its Capital Stock to the Company or a Restricted Subsidiary of the Company or pay any Indebtedness owed to the Company, (b) make any loans or advances to the Company or (c) transfer any of its property or assets to
the Company, except: 
  
 (1) with respect to clauses (a), (b) and
(c), 
  
 (A) any encumbrance or restriction
pursuant to an agreement in effect at or entered into on the Issue Date, including the Existing Credit Agreement and the Koppers Inc. Existing Indenture; 
  
 (B) any encumbrance or restriction with respect to a Restricted Subsidiary of the Company 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, 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 acquired by the Company) and outstanding on such date; 
  
 (C) any encumbrance or restriction pursuant to an (i) an
agreement relating to any Indebtedness permitted to be Incurred pursuant to Section 4.03 or (ii) an agreement effecting a Refinancing of Indebtedness Incurred pursuant to an agreement referred to in Section 4.05(1)(A) or 4.05(1)(B) or this clause
(C) or contained in any amendment to an agreement referred to in Section 4.05(1)(A) or 4.05(1)(B) or this clause (C); provided, however, that the encumbrances and restrictions with respect to such Restricted Subsidiary of Koppers Inc.
contained in any such agreement or amendment are not materially more restrictive, taken as a whole, than encumbrances and restrictions with respect to such Restricted Subsidiary contained in agreements described in Section 4.05(1)(A) or 4.05(1)(B);

  

 47 

 (D) any encumbrance or restriction with respect to a Restricted Subsidiary of the Company
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; 
  
 (E) any encumbrance or restriction existing under
Indebtedness of Foreign Subsidiaries permitted to be Incurred pursuant to Section 4.03; and 
  
 (F) any encumbrance or restriction existing under Non-Recourse Securitization Entity Indebtedness or other contractual requirements of a
Securitization Entity in connection with a Qualified Securitization Transaction; provided, however, that such restrictions apply only to such Securitization Entity; 
  
 (2) with respect to clause (c) only, 
  
 (A) any encumbrance or restriction consisting of customary nonassignment provisions in leases governing
leasehold interests to the extent such provisions restrict the transfer of the lease or the property leased thereunder; 
  
 (B) any encumbrance or restriction 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; 
  
 (C) any encumbrance or restriction pursuant to purchase money obligations for property acquired in the ordinary course of business that
impose restrictions on the property so acquired; 
  
 (D) any encumbrance or restriction on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business; and 
  
 (E) any encumbrance or restriction contained in customary provisions in joint venture agreements or other
similar agreements entered into in the ordinary course of business. 
  
 SECTION 4.06 Limitation on Sales of Assets and Subsidiary Stock. 
  
 (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, consummate any Asset Disposition unless: 
  
 (1) the Company or such Restricted Subsidiary receives consideration at the time of such Asset Disposition
at least equal to the fair market value (including as to the value of all non-cash consideration), as determined in good faith by the Board of Directors (or, in the case of any such Asset Disposition for aggregate consideration of less than $5.0
million, as determined in good faith by the Company’s chief financial officer), of the shares and assets subject to such Asset Disposition; 
  

 48 

 (2) at least 80% of the consideration thereof received by the Company or such Restricted
Subsidiary is in the form of cash or cash equivalents; and 
  
 (3) 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) 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 of a Subsidiary of the Company (in each case other than Indebtedness owed to the Company or an Affiliate of the Company) within one
year from the later of the date of such Asset Disposition or the receipt of such Net Available Cash; 
  
 (B) to the extent the Company or the relevant Restricted Subsidiary elects, to acquire Additional Assets within one year from the later of
the date of such Asset Disposition or the receipt of such Net Available Cash; and 
  
 (C) to the extent of the balance of such Net Available Cash after application in accordance with clauses (A) and (B), to make an offer to
the Holders of the Securities (and to holders of other Senior Indebtedness of the Company or Indebtedness of a Restricted Subsidiary of the Company designated by the Company) to purchase Securities (and such other Senior Indebtedness of the Company
or Indebtedness of a Restricted Subsidiary of the Company) pursuant to and subject to the conditions contained in this Indenture; 
  
 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 permanently 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 4.06, if at the time
the Company would be required to make the offer required pursuant to Section 4.06(a)(3)(C) the Company does not have access to the applicable Net Available Cash as a result of a restriction permitted by Section 4.05, then the Company shall have no
obligation to make the offer to the holders of Securities as described in such clause (a)(3)(C) until such time as and to the extent such restriction no longer applies and, as a result of such lapse of such restriction, there is at least $10.0
million in Net Available Cash from all Asset Dispositions that has not been applied in accordance with this Section 4.06 as a result of the application of this paragraph. 
  
 Notwithstanding the foregoing provisions of this Section 4.06, the Company and the Restricted Subsidiaries will not be
required to apply any Net Available Cash in 

  

 49 

 
accordance with this Section 4.06(a) except to the extent that the aggregate Net Available Cash from all Asset Dispositions which is not applied in
accordance with this Section 4.06(a) exceeds $10.0 million. Pending application of Net Available Cash pursuant to Section 4.06(a), such Net Available Cash shall be invested in Temporary Cash Investments. 
  
 For the purposes of this Section 4.06, the following are deemed to be cash or
cash equivalents: 
  
 (1) the assumption of
Indebtedness of the Company (other than obligations in respect of Disqualified Stock of the Company) or any Restricted Subsidiary of the Company and the release of the Company or such Restricted Subsidiary from all liability on such Indebtedness in
connection with such Asset Disposition; and 
  
 (2) securities received by the Company or any Restricted Subsidiary from the transferee that are promptly converted by the Company or such Restricted Subsidiary into cash, to the extent of the cash received in that conversion. 

 
 Notwithstanding the foregoing, the 80% limitation set forth in Section
4.06(a)(2) shall be deemed satisfied with respect to any Asset Disposition in which the cash or cash equivalents portion of the consideration received therefrom, determined in accordance with the immediately preceding paragraph on an after-tax
basis, is equal to or greater than what the after-tax proceeds would have been had such Asset Disposition complied with the aforementioned 80% limitation. 
  
 The requirement of Section 4.06(a)(3)(B) shall be deemed to be satisfied if an agreement (including a lease, whether a capital lease or an operating
lease) committing to make the acquisitions or expenditures referred to therein is entered into by the Company or a Restricted Subsidiary within the time period specified in such clause and such Net Available Cash is subsequently applied in
accordance with such agreement within six months following the date of such agreement. 
  
 (b) In the event of an Asset Disposition that requires the purchase of Securities (and other Senior Indebtedness of the Company or Indebtedness of a Restricted Subsidiary of the Company) pursuant to Section
4.06(a)(3)(C), the Company shall purchase Securities tendered pursuant to an offer by the Company or such Restricted Subsidiary for the Securities (and such other Senior Indebtedness of the Company or Indebtedness of such Restricted Subsidiary) (the
“Offer”) at a purchase price of 100% of their Accreted Value (or, if other than the Securities, 100% of their principal amount or, in the event such other Senior Indebtedness of the Company or Indebtedness of such Restricted
Subsidiary was issued with significant original issue discount, 100% of the accreted value thereof) without premium, plus accrued but unpaid interest (or, in respect of such other Senior Indebtedness of the Company or Indebtedness of such Restricted
Subsidiary, such lesser price, if any, as may be provided for by the terms of such Senior Indebtedness or Indebtedness) in accordance with the procedures (including prorating in the event of oversubscription) set forth in Section 4.06(d);
provided, however, that the procedures for making an offer to holders of other Indebtedness will be as 

  

 50 

 
provided for by the terms of such Indebtedness. If the aggregate purchase price of the Indebtedness tendered pursuant to the Offer exceeds the Net Available
Cash allotted to their purchase, the Company shall select the Indebtedness to be purchased on a pro rata basis but in round denominations, which in the case of the Securities will be denominations of $1,000 principal amount at maturity or
multiples thereof. The Company shall not be required to make such an Offer if the Net Available Cash available therefor is less than $10.0 million (which lesser amount shall be carried forward for purposes of determining whether such an Offer is
required with respect to the Net Available Cash from any subsequent Asset Disposition). Upon completion of such an Offer, Net Available Cash shall be deemed to be reduced by the aggregate amount of such Offer. 
  
 (c) (1) Promptly, and in any event within 10 days after the Company becomes
obligated to make an Offer, the Company shall deliver to the Trustee and send, by first-class mail to each Holder, a written notice stating that the Holder may elect to have his Securities purchased by the Company either in whole or in part (subject
to prorating as described in Section 4.06(c) in the event the Offer is oversubscribed) in integral multiples of $1,000 of principal amount at maturity, 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 such information concerning the business of the Company which the Company in good faith believes will enable such Holders to make an
informed decision (which at a minimum will include (A) the most recently filed Annual Report on Form 10-K (including audited consolidated financial statements) of the Company, the most recent subsequently filed Quarterly Report on Form 10-Q and any
Current Report on Form 8-K of the Company filed subsequent to such Quarterly Report, other than Current Reports describing Asset Dispositions otherwise described in the offering materials (or corresponding successor reports), (B) a description of
material developments in the Company’s business subsequent to the date of the latest of such Reports and (C) if material, appropriate pro forma financial information) and all instructions and materials necessary to tender Securities
pursuant to the Offer, together with the information contained 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 (A) the amount of the Offer
(the “Offer Amount”), including information as to any other Indebtedness included in the Offer, (B) the allocation of the Net Available Cash from the Asset Dispositions pursuant to which such Offer is being made and (C) the
compliance of such allocation with the provisions of Section 4.06(a) and (c). 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) in Temporary Cash Investments, maturing on the last day prior to the Purchase Date or on the Purchase Date if funds are immediately available by open of business, an amount equal to the Offer Amount to be held for payment in accordance
with the provisions of this Section. If the Offer includes other Indebtedness, the deposit described in the preceding sentence may be made with any other paying agent pursuant to arrangements satisfactory to the Trustee. 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 Securities or portions thereof which have been 

  

 51 

 
properly tendered to and are to be accepted by the Company. The Trustee shall, on the Purchase Date, mail or deliver payment (or cause the delivery of
payment) to each tendering Holder in the amount of the purchase price. In the event that the aggregate purchase price of the Securities delivered by the Company to the Trustee is less than the Offer Amount applicable to the Securities, the Trustee
shall deliver the excess to the Company as promptly as practicable after the expiration of the Offer Period for application in accordance with this Section 4.06. 
  
 (3) Holders electing to have a Security purchased shall be required to surrender the Security, 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. Holders 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 telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount at maturity of the Security which was delivered for purchase by the Holder and a statement that such Holder is
withdrawing his election to have such Security purchased. Holders whose Securities are purchased only in part shall be issued new Securities equal in principal amount at maturity to the unpurchased portion of the Securities surrendered. 

 
 (4) At the time the Company delivers Securities to the Trustee which are
to be accepted for purchase, the Company shall also deliver an Officers’ Certificate stating that such Securities are to be accepted by the Company pursuant to and in accordance with the terms of this Section. A Security 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 Holder. 
  
 (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 Securities pursuant to this Section 4.06. To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 4.06, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.06 by virtue of its compliance with such securities laws or regulations. 
  
 (e) Notwithstanding the foregoing, to the extent that any or all of the Net
Available Cash from Asset Dispositions is prohibited or delayed by applicable non-U.S. law from being repatriated to the United States, the portion of such Net Available Cash so affected shall not be required to be applied as set forth in this
Section 4.06 (other than to repay Indebtedness of the Subsidiary making such Asset Disposition as contemplated in Section 4.06(a)(3)(A)) at the time provided above but the applicable Subsidiary shall be entitled to retain such Net Available Cash for
so long as the applicable local law will not permit repatriation to the United States, and once such repatriation of any of such affected Net Available Cash is permitted under the applicable local law, such repatriation shall be promptly effected
and such repatriated Net Available Cash shall be applied in the manner described in Section 4.06(a); provided, however, that to the extent that the Company has determined in good faith that repatriation of any or all of such Net
Available Cash would have a material adverse tax consequence, the applicable Subsidiary shall be entitled to retain such Net Available Cash for so long as such material adverse tax consequence would continue. 
  

 52 

 SECTION 4.07 Limitation on Affiliate Transactions. 
  
 (a) The Company shall not, and shall not permit any Restricted Subsidiary of
the Company to, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property, employee compensation arrangements or the rendering of any service) with, or for the benefit of, any Affiliate of the
Company (an “Affiliate Transaction”) unless: 
  
 (1) the terms of the Affiliate Transaction are no less favorable to the Company or such Restricted Subsidiary than those that could be obtained at the time of the Affiliate Transaction in arm’s-length dealings
with a Person who is not an Affiliate; 
  
 (2) if
such Affiliate Transaction involves an amount in excess of $5.0 million, the terms of the Affiliate Transaction are set forth in writing and a majority of the non-employee directors of the Company disinterested with respect to such Affiliate
Transaction have determined in good faith that the criteria set forth in clause (1) are satisfied and have approved the relevant Affiliate Transaction as evidenced by a resolution of the Board of Directors of the Company; and 
  
 (3) if such Affiliate Transaction involves an amount in
excess of $10.0 million, the Board of Directors of the Company shall also have received a written opinion from an Independent Qualified Party to the effect that such Affiliate Transaction is fair, from a financial standpoint, to the Company and its
Restricted Subsidiaries or is not less favorable to the Company and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time in an arm’s-length transaction with a Person who was not an Affiliate. 
  
 (b) The provisions of Section 4.07(a) shall not prohibit: 
  
 (1) any Investment (other than a Permitted Investment) or
other Restricted Payment, in each case permitted to be made pursuant to Section 4.04 (but only to the extent included in the calculation of the amount of Restricted Payments made pursuant to Section 4.04(a)(3)); 
  
 (2) any issuance of securities, or other payments, 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 of the Company; 
  
 (3) loans or advances to employees in the ordinary course of
business in accordance with the past practices of the Company or its Restricted Subsidiaries, but in any event not to exceed $2.0 million in the aggregate outstanding at any one time; 
  

 53 

 (4) the payment of reasonable fees to directors of the Company and its Restricted
Subsidiaries who are not employees of the Company or its Restricted Subsidiaries; 
  
 (5) any transaction with a Restricted Subsidiary of the Company or joint venture or similar entity which would constitute an Affiliate
Transaction solely because the Company or a Restricted Subsidiary owns an equity interest in or otherwise controls such Restricted Subsidiary, joint venture or similar entity; 
  
 (6) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the Company; 
  
 (7) any agreement as in effect on the Issue Date and
described in the Offering Circular or identified in an exhibit to this Indenture or any renewals or extensions of any such agreement (so long as such renewals or extensions are not less favorable to the Company or the Restricted Subsidiaries) and
the transactions evidenced thereby; 
  
 (8) (A)
the payment by the Company or any of its Restricted Subsidiaries of management, advisory or consulting fees to Saratoga Management Company LLC or its Affiliates in an amount not to exceed $600,000 in any year and (B) the payment of financial
advisory, financing, underwriting or placement services fees or fees in respect of other investment banking activities, including in connection with acquisitions or divestitures, to Saratoga Management Company LLC or its Affiliates, which payments
described in this clause (B) are approved by a majority of the disinterested members of the Board of Directors of the Company; 
  
 (9) the sale to an Affiliate of the Company of Indebtedness (including Disqualified Stock) of the Company in connection with an offering
of such Indebtedness in a market transaction and on terms substantially identical to those of other purchasers in such market transaction; and 
  
 (10) transactions effected as part of a Qualified Securitization Transaction. 
  
 SECTION 4.08 Limitation on the Sale or Issuance of Common Stock of
Restricted Subsidiaries. The Company: 
  
 (1)
shall not, and shall not permit any Restricted Subsidiary (other than a Securitization Entity) to, sell, lease, transfer or otherwise dispose of any Common Stock of any Restricted Subsidiary to any Person (other than the Company or a Restricted
Subsidiary of the Company), and 
  
 (2) shall not
permit any Restricted Subsidiary of the Company (other than a Securitization Entity) to issue any of its Common Stock (other than, if necessary, shares of its Common Stock constituting directors’ or other legally required qualifying shares) to
any Person (other than to the Company or a Restricted Subsidiary), unless, 
  

 54 

 (A) immediately after giving effect to such issuance, sale or other disposition, and to
any substantially concurrent redemption of such Common Stock from members of management, directors or employees of the Company and its Restricted Subsidiaries, (A) the Company is the beneficial owner of either (x) at least 80% or (y) less than 50%
of the Common Stock of such Restricted Subsidiary and (B) any Investment in such Person remaining after giving effect thereto is treated as a new Investment by the Company and such Investment would be permitted to be made under Section 4.04 if made
on the date of such issuance, sale or other disposition; and 
  
 (B) the Net Available Cash from such issuance, sale or other disposition is applied in the manner and to the extent required by Section 4.06. 
  
 Notwithstanding the foregoing, this Section 4.08 shall not apply to issuances, sales or other dispositions of any Common
Stock of any Restricted Subsidiary that has a fair market value at the time of such disposition of less then $1.0 million. 
  
 SECTION 4.09 Change of Control. 
  
 (a) Upon the occurrence of a Change of Control, each Holder shall have the right to require that the Company repurchase such Holder’s Securities at a
purchase price in cash equal to 101% of the Accreted Value thereof on the date of purchase plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest
due on the relevant interest payment date), in accordance with the terms contemplated in Section 4.09(b). 
  
 (b) Within 30 days following any Change of Control, the Company shall mail a notice to each Holder with a copy to the Trustee (the “Change of
Control Offer”) stating: 
  
 (1) that a
Change of Control has occurred and that such Holder has the right to require the Company to purchase such Holder’s Securities at a purchase price in cash equal to 101% of the Accreted Value thereof on the date of purchase, plus accrued and
unpaid interest, if any, to the date of purchase (subject to the right of Holders of 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 (including, to the extent
reasonably available, information with respect to pro forma historical income, cash flow and capitalization, in each case after giving effect to such Change of Control); 
  
 (3) the purchase date (which shall be no earlier than 30 days nor later than 60 days from the date such
notice is mailed); and 
  

 55 

 (4) the instructions, as determined by the Company, consistent with this Section 4.09,
that a Holder must follow in order to have its Securities purchased. 
  
 (c) Holders electing to have a Security purchased shall be required to surrender the Security, 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. Holders 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 setting forth the name of the Holder,
the principal amount at maturity of the Security which was delivered for purchase by the Holder and a statement that such Holder is withdrawing his election to have such Security purchased. 
  
 (d) On the purchase date, all Securities purchased by the Company under this
Section shall be delivered by the Company to the Trustee for cancellation, and the Company shall pay the purchase price plus accrued and unpaid interest, if any, to the Holders entitled thereto. 
  
 (e) Notwithstanding the foregoing provisions of this Section, the Company
shall not be required to make a Change of Control Offer following 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 this Section
applicable to a Change of Control Offer made by the Company and purchases all Securities 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 Securities pursuant to this Section 4.09. To the extent that the provisions of any securities laws or regulations conflict with provisions of this Section 4.09, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.09 by virtue of its compliance with such securities laws or regulations. 
  
 SECTION 4.10 Limitation on Liens. 
  
 (a) The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, Incur or permit to exist any Lien (the “Initial Lien”) of any nature whatsoever on any of its properties (including Capital Stock of a Restricted Subsidiary of the Company), whether owned at the
Issue Date or thereafter acquired, other than Permitted Liens, without effectively providing that the Securities shall be secured equally and ratably with (or prior to) the obligation so secured for so long as such obligation is so secured.

  
 (b) Any Lien created for the benefit of the holders of the
Securities pursuant to the preceding sentence shall provide by its terms that such Lien shall be automatically and unconditionally released and discharged upon the release and discharge of the Initial Lien. 
  

 56 

 SECTION 4.11 Limitation on Sale/Leaseback Transactions. The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, enter into any Sale/Leaseback Transaction with respect to any property unless: 
  
 (1) the Company or such Restricted Subsidiary would be entitled to (A) Incur Indebtedness in an amount equal to the Attributable Debt with
respect to such Sale/Leaseback Transaction pursuant to Section 4.03 and (B) create a Lien on such property securing such Attributable Debt without equally and ratably securing the Securities pursuant to Section 4.10(a); 
  
 (2) the net proceeds received by the Company or any
Restricted Subsidiary in connection with such Sale/Leaseback Transaction are at least equal to the fair market value (as determined by the Board of Directors of the Company) of such property; and 
  
 (3) the Company applies the proceeds of such transaction in
compliance with Section 4.06. 
  
 SECTION 4.12 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 in the course of the performance by the signers of their duties as Officers of the
Company they would normally have knowledge of any Default and whether or not the signers know of any Default that occurred during such period. If they do, 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 TIA § 314(a)(4). 
  
 SECTION 4.13 Further Instruments and Acts. Upon request of the Trustee, the Company shall, and shall cause each Restricted Subsidiary to, 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 4.14 Calculation of Original Issue Discount. The Company shall provide to the Trustee on a timely basis such
information as the Trustee requires to enable the Trustee to prepare and file any form required to be submitted by the Company with the Internal Revenue Service and the Holders of the Notes relating to original issue discount, including, without
limitation, Form 1099-OID or any successor form. 
  
 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, in one transaction or a series of transactions, directly or indirectly, all or substantially all its assets (determined on a consolidated basis for the Company and its
Restricted Subsidiaries) to, any Person, unless: 
  

 57 

 (1) the resulting, surviving or transferee Person (the “Successor
Company”) shall be a Person 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 satisfactory to the Trustee, all the obligations of the Company under the Securities and this Indenture; 
  
 (2) immediately after giving pro forma effect to such transaction (and treating any Indebtedness
which becomes an obligation of the Successor Company or any Subsidiary as a result of such transaction as having been Incurred by such Successor Company or such Subsidiary at the time of such transaction), no Default shall have occurred and be
continuing; 
  
 (3) immediately after giving
pro forma effect to such transaction, the Successor Company would be able to Incur an additional $1.00 of Indebtedness pursuant to Section 4.03(a); 
  
 (4) 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; and 
  
 (5) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the Holders will not recognize income, gain
or loss for Federal income tax purposes as a result of such transaction 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 transaction had not occurred;

  
 provided, however, that clause (3) will not be applicable to (A)
a Restricted Subsidiary of the Company consolidating with, merging into or transferring all or part of its properties and assets to the Company or (B) the Company merging with an Affiliate of the Company solely for the purpose and with the sole
effect of reincorporating the Company in another jurisdiction. 
  
 For purposes of this Section 5.01, the sale, lease, conveyance, assignment, transfer or other disposition of all or substantially all of the properties and assets of one or more Subsidiaries of the Company, which properties and assets, if
held by the Company instead of such Subsidiaries, would constitute all or substantially all of the properties and assets of the Company on a consolidated basis, shall be deemed to be the transfer of all or substantially all of the properties and
assets of the Company. 
  
 The Successor Company shall be the
successor to the Company and shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture, and the predecessor Company, except in the case of a lease, shall be released from the obligation to
pay the principal of and interest on the Securities. 
  

 58 

 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 Security when the same becomes due and payable,
and such default continues for a period of 30 days; 
  
 (2) the Company (A) defaults in the payment of the principal of any Security when the same becomes due and payable at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration of acceleration or otherwise;

  
 (3) the Company fails to comply with Section
5.01; 
  
 (4) the Company fails to comply with
Section 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10 or 4.11 (other than a failure to purchase Securities when required under Section 4.06 or 4.09) and such failure continues for 30 days after the notice specified below; 
  
 (5) the Company fails to comply with any of its agreements
in the Securities, this Indenture (other than those referred to in clause (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 is accelerated by the holders thereof because of a default and the total amount of such Indebtedness unpaid or accelerated exceeds $10.0 million, or its foreign currency equivalent at the time; 
  
 (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; 
  
 (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; 
  

 59 

 (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; 
  
 (9) any judgment or decree for the payment of money in excess of $10.0 million or its foreign currency equivalent at the time (excluding
the amount of any insurance proceeds or indemnification claims available to the obligor from insurance carriers and indemnitors who in the reasonable judgment of the Board of Directors of the Company are creditworthy and who have not disclaimed
their liability with respect thereto) is entered against the Company or any Significant Subsidiary, remains outstanding for a period of 60 consecutive days following the entry of such judgment or decree and is not discharged, waived or the execution
thereof stayed within 10 days after notice. 
  
 The foregoing will
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 clauses (4), (5) or
(9) is not an Event of Default until the Trustee or the holders of at least 25% in principal amount at maturity of the outstanding Securities 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 of Default under clause (6) and any event which with the giving of notice or the lapse of time would become an Event of Default under clause (4), (5) 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 Holders of at least 25% in principal 

  

 60 

 
amount at maturity of the Securities by notice to the Company and the Trustee, may declare the Accreted Value of and accrued but unpaid interest on all the
Securities to be due and payable. Upon such a declaration, such Accreted Value 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 Accreted Value of
and interest on all the Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Securityholders. The Holders of a majority in principal amount at
maturity of the outstanding Securities 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 Accreted Value 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 Accreted Value of or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture. 
  
 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in
the proceeding. A delay or omission by the Trustee or any Securityholder 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 at maturity of the outstanding Securities by notice to the Trustee may waive an existing Default and its consequences except
(a) a Default in the payment of the Accreted Value of or interest on a Security (b) a Default arising from the failure to redeem or purchase any Security when required pursuant to this Indenture or (c) a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Securityholder affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. 
  
 SECTION 6.05 Control by Majority. The Holders of a majority in
principal amount at maturity of the outstanding Securities 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 Securityholders 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. 
  

 61 

 SECTION 6.06 Limitation on Suits. Except to enforce the right to receive payment of Accreted
Value, premium (if any) or interest when due, no Securityholder may pursue any remedy with respect to this Indenture or the Securities unless: 
  
 (1) the Holder gives to the Trustee written notice stating that an Event of Default is continuing; 
  
 (2) the Holders of at least 25% in principal amount at
maturity of the outstanding Securities make a written request to the Trustee to pursue the remedy; 
  
 (3) such Holder or Holders offer to the Trustee security or indemnity satisfactory to it 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 Holders of a majority in principal amount at maturity of the outstanding Securities do not give the Trustee a direction
inconsistent with the request during such 60-day period. 
  
 A
Securityholder may not use this Indenture to prejudice the rights of another Securityholder or to obtain a preference or priority over another Securityholder. 
  

SECTION 6.07 Rights of Holders to Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of Accreted Value and interest on the Securities held by such Holder, on or after the respective due dates expressed in the Securities, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of such Holder. 
  
 SECTION 6.08 Collection Suit by Trustee. If an Event of Default specified in Section 6.01(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 Securityholders allowed in any judicial proceedings relative to the Company, its creditors or its property and, unless prohibited by law or applicable regulations, may vote on behalf of
the Holders in any election of a trustee in bankruptcy or other Person performing similar functions, and any Custodian in any such judicial proceeding is hereby authorized by each Holder to make payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and its counsel, and any other
amounts due the Trustee under Section 7.07. 
  

 62 

 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; 
  
 SECOND: to Securityholders for amounts due and unpaid on the Securities for Accreted Value and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities for Accreted Value and interest, respectively; and 
  
 THIRD: to the Company. 
  
 The Trustee may fix a record date and payment date for any payment to Securityholders pursuant to this Section. At least 15 days before such record date,
the Company shall mail to each Securityholder and the Trustee a notice that states the record date, the payment date and amount to be paid. 
  
 SECTION 6.11 Undertaking for Costs. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee
for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in principal amount at maturity of the Securities. 
  
 SECTION 6.12 Waiver of Stay or Extension Laws. The Company (to the extent it may lawfully do so) shall not at any time insist upon, or plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent
that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such
power as though no such law had been enacted. 
  

 63 

 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 their exercise as a prudent Person would exercise or use under the circumstances in the conduct of such Person’s own affairs. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (1) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
  
 (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. 
  

 64 

 (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. Subject to the provisions of Section
7.01: 
  
 (a) the Trustee may conclusively rely
and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
  
 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
  
 (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate; 
  
 (d) the Trustee may consult with counsel of its selection
and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
  
 (e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; 
  
 (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, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be 

  

 65 

 
entitled to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no
liability or additional liability of any kind by reason of such inquiry or investigation; 
  
 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 
  
 (h) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good
faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture; provided, however, that the Trustee’s conduct does not constitute willful misconduct or
negligence; 
  
 (i) in no event shall the Trustee
be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action; 
  
 (j) the
Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee
at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture; 
  
 (k) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder; and 
  
 (l) the Trustee may request that the Company deliver a certificate setting forth the names of individuals
and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture. 
  
 SECTION 7.03 Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and
may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Registrar, co-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, the Securities or any offering materials relating to the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement of the Company in the Indenture or in any document issued in connection with the sale of the Securities or in the Securities other than the
Trustee’s certificate of authentication. 
  

 66 

 SECTION 7.05 Notice of Defaults. If a Default occurs and is continuing and if it is actually known
to a Trust Officer of the Trustee, the Trustee shall mail to each Securityholder notice of the Default within 90 days after it occurs. Except in the case of a Default in payment of Accreted Value of or interest on any Security (including payments
pursuant to the mandatory redemption provisions of such Security, if any), the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of
Securityholders. 
  
 SECTION 7.06 Reports by Trustee to
Holders. As promptly as practicable after each May 15 beginning with the May 15 following the date of this Indenture, and in any event prior to July 15 in each year, the Trustee shall mail to each Securityholder a brief report dated as of May 15
that complies with TIA § 313(a). The Trustee also shall comply with TIA § 313(b). 
  
 A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each stock exchange (if any) on which the Securities are listed. The Company agrees to notify promptly the Trustee
whenever the Securities become listed on any stock exchange and of any delisting thereof. 
  
 SECTION 7.07 Compensation and Indemnity. The Company agrees: 
  
 (1) to pay to the Trustee from time to time such compensation as the Company and the Trustee shall from time to time agree in writing for
all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
  
 (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or bad faith; and 
  
 (3) to indemnify each of the Trustee or any predecessor Trustee and their agents for, and to hold them harmless against, any and all loss,
damage, claims, liability or expense, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee), arising out of or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim (whether asserted by the Company, or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, or in
connection with enforcing the provisions of this Section, except to the extent that such loss, damage, claim, liability or expense is due to its own negligence or bad faith. 
  

 67 

 The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. The Company shall defend the claim and the Trustee may have separate counsel and the Company shall pay the fees and expenses of such counsel. The
Company need not reimburse any expense or indemnify against any loss, liability or expense incurred by the Trustee through the Trustee’s own willful misconduct, negligence or bad faith. 
  
 To secure the Company’s payment obligations in this Section, the Trustee
shall have a lien prior to the Securities on all money or property held or collected by the Trustee other than money or property held in trust to pay Accreted Value and interest on particular Securities. 
  
 The Company’s payment obligations pursuant to this Section shall survive
the discharge of this Indenture. 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 at maturity of the outstanding Securities 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 at maturity of the
outstanding Securities and such Holders 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 Securityholders. 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 (at the Company’s expense) or the Holders of 10% in principal amount at maturity of the Securities may petition any court of
competent jurisdiction for the appointment of a successor Trustee. 
  

 68 

 If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Notwithstanding the resignation, removal or replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee. 
  
 SECTION 7.09 Successor Trustee by Merger. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation or banking association, the resulting, surviving or transferee corporation without any further act shall be the
successor Trustee. 
  
 In case at the time such successor or
successors by merger, conversion or consolidation to the Trustee shall succeed to the trusts created by this Indenture any of the Securities shall have been authenticated but not delivered, any such successor to the Trustee may adopt the certificate
of authentication of any predecessor trustee, and deliver such Securities so authenticated; and in case at that time any of the Securities shall not have been authenticated, any successor to the Trustee may authenticate such Securities either in the
name of any predecessor hereunder or in the name of the successor to the Trustee; and in all such cases such certificates shall have the full force which it is anywhere in the Securities or in this Indenture provided that the certificate of the
Trustee shall have. 
  
 SECTION 7.10 Eligibility;
Disqualification. The Trustee shall at all times satisfy the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition.
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. 
  

 69 

 Article 8 
  
 Discharge of Indenture; Defeasance 
  
 SECTION 8.01 Discharge of Liability on Securities; Defeasance. 
  
 (a) When (1) the Company delivers to the Trustee all outstanding Securities (other than Securities replaced pursuant to
Section 2.07) for cancellation or (2) all outstanding Securities have become due and payable, whether at maturity or on a redemption date 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 sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon to maturity or such redemption date (other than Securities replaced pursuant to Section 2.07), 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 (1) all its obligations under the Securities and this Indenture
(“legal defeasance option”) or (2) its obligations under Sections 4.02, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11 and the operation of Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9) (but, in the case of Sections
6.01(7) and (8), with respect only to Significant Subsidiaries) and the limitations contained in Sections 5.01(3) (“covenant defeasance option”). The Company may exercise its legal defeasance option notwithstanding its prior
exercise of its covenant defeasance option. 
  
 If the Company
exercises its legal defeasance option, payment of the Securities may not be accelerated because of an Event of Default with respect thereto. If the Company exercises its covenant defeasance option, payment of the Securities may not be accelerated
because of an Event of Default specified in Sections 6.01(4), 6.01(6), 6.01(7), 6.01(8) and 6.01(9), (but, in the case of Sections 6.01(7) and (8), with respect only to Significant Subsidiaries) or because of the failure of the Company to comply
with Section 5.01(3). 
  
 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 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 7.07 and 7.08 and in this
Article 8 shall survive until the Securities 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:

  

 70 

 (1) the Company irrevocably deposits in trust with the Trustee money or U.S. Government
Obligations for the payment of aggregate Accreted Value of and interest on the Securities 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 Securities 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 Sections 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; 
  
 (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 (A) the
Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) since the date of this Indenture there has been a change in the applicable Federal income tax law, in either case to the effect that, and based
thereon such Opinion of Counsel shall confirm that, the Securityholders will not recognize income, gain or loss for Federal income tax purposes as a result of such 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 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 Securityholders will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such covenant defeasance had not occurred; 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 Securities 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 Securities at a future date in accordance with Article 3. 
  

 71 

 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 Securities. 
  
 SECTION 8.04 Repayment to Company. The
Trustee and the Paying Agent shall promptly turn over to the Company upon request any excess money or securities held by them at any time. 
  
 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the
payment of Accreted Value or interest that remains unclaimed for two years, and, thereafter, Securityholders 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. 
  
 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 Securities 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 Accreted Value of any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent. 
  
 Article 9 
  
 Amendments 
  
 SECTION 9.01 Without Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without notice to or consent of any
Securityholder: 
  
 (1) to cure any ambiguity,
omission, defect or inconsistency; 
  
 (2) to
comply with Article 5; 
  
 (3) to provide for
uncertificated Securities in addition to or in place of certificated Securities; provided, however, that the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code or in a manner such that
the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; 
  

 72 

 (4) to add Guarantees with respect to the Securities or to secure the Securities;

  
 (5) to add to the covenants of the Company or
any of its Restricted Subsidiaries for the benefit of the Holders or to surrender any right or power herein conferred upon the Company or any of its Restricted Subsidiaries; 
  
 (6) to make any change that does not adversely affect the rights of any Securityholder; 
  
 (7) to comply with any requirements of the SEC in connection
with qualification, or maintenance the qualification of, this Indenture under the TIA; or 
  
 (8) to make any amendment to the provisions of this Indenture relating to the form, authentication, transfer and legending of the
Securities; provided, however, that (a) compliance with this Indenture as so amended would not result in Securities being transferred in violation of the Securities Act or any other applicable securities law and (b) such
amendment does not materially affect the rights of Holders to transfer Securities. 
  
 After an amendment under this Section becomes effective, the Company shall mail to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect
therein, shall not impair or affect the validity of an amendment under this Section. 
  
 SECTION 9.02 With Consent of Holders. The Company and the Trustee may amend this Indenture or the Securities without notice to any Securityholder but with the written consent of the Holders of at least a
majority in principal amount at maturity of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange for the Securities). However, without the consent of each Securityholder affected thereby, an
amendment or waiver may not: 
  
 (1) reduce the
principal amount at maturity of Securities whose Holders must consent to an amendment; 
  
 (2) reduce the rate of or extend the time for payment of interest on any Security; 
  
 (3) reduce the principal amount at maturity or Accreted
Value of or change the Stated Maturity of any Security; 
  

 73 

 (4) change the calculation of Accreted Value so as to reduce the Accreted Value at any
time or change the provisions applicable to the redemption of any Security contained in Article 3 hereto or paragraph 5 of the Securities; 
  
 (5) make any Security payable in money other than that stated in the Security; 
  
 (6) impair the right of any Holder to receive payment of
principal amount or Accreted Value of and interest on such Holder’s Securities on or after the due dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Securities; 
  
 (7) make any changes in the ranking or priority of any
Security that would adversely affect the Securityholders; or 
  
 (8) make any change in Section 6.04 or 6.07 or the second sentence of this Section. 
  
 It shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof. 
  
 After an amendment under this Section becomes effective, the Company shall mail to Securityholders a notice briefly describing such amendment. The failure to give such notice to all Securityholders, or any defect therein, shall not impair
or affect the validity of an amendment under this Section. 
  
 SECTION 9.03 Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect. 
  
 SECTION 9.04 Revocation and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a
Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security.
However, any such Holder or subsequent Holder may revoke the consent or waiver as to such Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.
After an amendment or waiver becomes effective, it shall bind every Securityholder. An amendment or waiver becomes effective upon the execution of such amendment or waiver by the Trustee. 
  
 The Company shall be entitled to, but shall not be obligated to, fix a record date for the purpose of determining the
Securityholders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Inden-ture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those
Persons who were Securityholders 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 

  

 74 

 
previously given or to take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than 120 days after such record date. 
  
 SECTION 9.05 Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee shall be entitled to require the Holder of the Security to deliver it to the Trustee. The Trustee shall be entitled to
place an appropriate notation on the Security regarding the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall execute and the Trustee shall
authenticate a new Security that reflects the changed terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment. 
  
 SECTION 9.06 Trustee To Sign Amendments. The Trustee shall sign any amendment authorized pursuant to this Article 9
if, in the Trustee’s sole discretion, the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee shall be entitled to, 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. 
  
 SECTION 9.07
Payment for Consent. Neither the Company nor any Affiliate of the Company shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this Indenture or the Securities unless such consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the time frame set forth in solicitation
documents relating to such consent, waiver or agreement. 
  
 Article 10 
  
 Miscellaneous 
  
 SECTION 10.01 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 10.02 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:

  
 KI Holdings Inc. 
 436 Seventh Avenue 
 Pittsburgh, Pennsylvania 15219-1900 
 Attention: Vice President, Law and Human Resources 
  

 75 

 with a copy to: 
  

Cahill Gordon & Reindel LLP 
 80 Pine Street 
 New York, New York 10005 
 Attention: Richard Farley, Esq. 
  
 if to the Trustee: 
  
 The Bank of New York 
 101 Barclay Street, Floor 8 West 
 New York, New York 10286 
 Attention: Corporate Finance Unit 
  
 The Company or the Trustee by notice to the others may designate additional or different addresses for subsequent notices or communications. 

 
 Any notice or communication mailed to a Securityholder shall be mailed to
the Securityholder at the Securityholder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed. 
  
 Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders. If a notice or communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 SECTION 10.03 Communication by Holders with Other Holders. Securityholders may communicate pursuant to TIA §
312(b) with other Securityholders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
  
 SECTION 10.04 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. 
  

 76 

 SECTION 10.05 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 10.06 When Securities Disregarded. In determining whether the
Holders of the required principal amount at maturity of Securities have concurred in any direction, waiver or consent, Securities owned by the Company or by any Person directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the
Trustee knows are so owned shall be so disregarded. Also, subject to the foregoing, only Securities outstanding at the time shall be considered in any such determination. 
  
 SECTION 10.07 Rules by Trustee, Paying Agent and Registrar. The Trustee may make reasonable rules for action by or a
meeting of Securityholders. The Registrar and the Paying Agent may make reasonable rules for their functions. 
  
 SECTION 10.08 Legal Holidays. 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 10.09 Governing Law. This Indenture and the Securities shall be governed by, and construed in accordance with, the laws of the State of New
York. 
  
 SECTION 10.10 No Recourse Against Others. A
director, officer, employee or stockholder, as such, of the Company or any Subsidiary shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation. By accepting a Security, each Securityholder shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Securities. 
  

 77 

 SECTION 10.11 Successors. All agreements of the Company in this Indenture and the Securities shall
bind its successors. All agreements of the Trustee in this Indenture shall bind its successors. 
  
 SECTION 10.12 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 10.13 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. 
  

 78 

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

			
	KI HOLDINGS INC.
		
	By	 	 /s/ Brian H. McCurrie

	Name:	 	Brian H. McCurrie
	Title:	 	Vice President and Chief Financial Officer

  

 79 

			
	
	THE BANK OF NEW YORK
		
	By	 	 /s/ Joseph Lloret

	Name:	 	Joseph Lloret
	Title:	 	Assistant Treasurer

  

 80 

 Rule 144A/REGULATION S/IAI APPENDIX 
  
 PROVISIONS RELATING TO INITIAL SECURITIES, 
 PRIVATE EXCHANGE SECURITIES AND EXCHANGE SECURITIES 
  

	1.	Definitions 

  
 1.1 Definitions 
  
 For the purposes of this Appendix the following terms shall have the meanings indicated below: 
  
 “Applicable Procedures” means, with respect to any transfer or
transaction involving a Temporary Regulation S Global Security or beneficial interest therein, the rules and procedures of the Depository for such a Temporary Regulation S Global Security, to the extent applicable to such transaction and as in
effect from time to time. 
  
 “Definitive Security”
means a certificated Initial Security or Exchange Security or Private Exchange Security bearing, if required, the appropriate restricted securities legend set forth in Section 2.3(e). 
  
 “Depository” means The Depository Trust Company, its nominees and their respective successors. 
  
 “Distribution Compliance Period”, with respect to any Securities,
means the period of 40 consecutive days beginning on and including the later of (i) the day on which such Securities are first offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in reliance on Regulation
S and (ii) the issue date with respect to such Securities. 
  
 “Exchange Securities” means (1) the 9 7/8% Senior Discount Notes Due 2014 issued pursuant to
the Indenture in connection with a Registered Exchange Offer pursuant to a Registration Rights Agreement and (2) Additional Securities, if any, offered and sold by the Company pursuant to a registration statement filed with the Commission under the
Securities Act. 
  
 “IAI” means an institutional
“accredited investor,” as defined in Rule 501(a) (1), (2), (3) or (7) of Regulation D under the Securities Act. 
  
 “Initial Purchasers” means (1) with respect to the Initial Securities issued on the Issue Date, Credit Suisse First Boston LLC, Deutsche Bank
Securities Inc., UBS Securities LLC, and NatCity Investments, Inc. and (2) with respect to each issuance of Additional Securities, the Persons purchasing or underwriting such Additional Securities under the related Purchase Agreement. 

 “Initial Securities” means (1) $203,000,000 stated aggregate principal amount at maturity of
9 7/8% Senior Discount Notes Due 2014 issued on the Issue Date and (2) Additional Securities, if any, offered and
sold by the Company in a transaction exempt from the registration requirements of the Securities Act. 
  
 “Private Exchange” means the offer by the Company, pursuant to a Registration Rights Agreement, to the Initial Purchasers to issue and deliver
to each such Initial Purchaser, in exchange for the Initial Securities held by such Initial Purchaser as part of the initial distribution of such Initial Securities, a like stated aggregate principal amount at maturity of Private Exchange
Securities. 
  
 “Private Exchange Securities” means any
9 7/8% Senior Discount Notes Due 2014 issued in connection with a Private Exchange. 
  
 “Purchase Agreement” means (1) with respect to the Initial
Securities issued on the Issue Date, the Purchase Agreement dated November 15, 2004, among the Company and the Initial Purchasers and (2) with respect to each issuance of Additional Securities, the purchase agreement or underwriting agreement among
the Company and the Persons purchasing or underwriting such Additional Securities. 
  
 “QIB” means a “qualified institutional buyer” as defined in Rule 144A. 
  
 “Registered Exchange Offer” means the offer by the Company, pursuant to a Registration Rights Agreement, to certain Holders of Initial
Securities, to issue and deliver to such Holders, in exchange for the Initial Securities, a like stated aggregate principal amount at maturity of Exchange Securities registered under the Securities Act. 
  
 “Registration Rights Agreement” means (1) with respect to the
Initial Securities issued on the Issue Date, the Registration Rights Agreement dated November 18, 2004 between the Company and the Initial Purchasers and (2) with respect to each issuance of Additional Securities issued in a transaction exempt from
the registration requirements of the Securities Act, the registration rights agreement, if any, among the Company and the Persons purchasing such Additional Securities under the related Purchase Agreement. 
  
 “Rule 144A Securities” means all Securities offered and sold to
QIBs in reliance on Rule 144A. 
  
 “Securities” means
the Initial Securities, the Exchange Securities and the Private Exchange Securities, treated as a single class under the Indenture. 
  

 2 

 “Securities Act” means the Securities Act of 1933. 
  
 “Securities Custodian” means the custodian with respect to a Global
Security (as appointed by the Depository), or any successor Person thereto, and shall initially be the Trustee. 
  
 “Shelf Registration Statement” means the registration statement issued by the Company in connection with the offer and sale of Initial
Securities or Private Exchange Securities pursuant to a Registration Rights Agreement. 
  
 “Transfer Restricted Securities” means Securities that bear or are required to bear a legend relating to restrictions on transfer relating to the Securities Act set forth in Section 2.3(e). 
  
 1.2 Other Definitions 
  

			
	 Term

	  	 Defined in
 Section:

	 Agent Members
	  	2.1(b)
	 Global Securities
	  	2.1(a)
	 IAI Global Security
	  	2.1(a)
	 Permanent Regulation S Global Security
	  	2.1(a)
	 Regulation S
	  	2.1(a)
	 Regulation S Global Security
	  	2.1(a)
	 Rule 144A
	  	2.1(a)
	 Rule 144A Global Security
	  	2.1(a)
	 Temporary Regulation S Global Security
	  	2.1(a)

  

	2.	The Securities 

  
 2.1 (a) Form and Dating. The Initial Securities will be offered and sold by the Company pursuant to a Purchase Agreement. The Initial Securities
will be resold initially only to (i) QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) and (ii) Persons other than U.S. Persons (as defined in Regulation S) in reliance on Regulation S under the Securities Act
(“Regulation S”). Initial Securities may thereafter be transferred to, among others, QIBs, IAIs and purchasers in reliance on Regulation S, subject to the restrictions on transfer set forth herein. Initial Securities initially resold
pursuant to Rule 144A shall be issued initially in the form of one or more permanent global Securities in definitive, fully registered form (collectively, the “Rule 144A Global Security”); Initial Securities initially resold to IAIs shall
be issued initially in the form of one or more permanent global Securities in definitive, fully registered form (collectively, the “IAI Global Security”); and Initial Securities initially resold pursuant to Regulation S shall be issued
initially in the form of one or more temporary 

  

 3 

 
global securities in fully registered form (collectively, the “Temporary Regulation S Global Security”), in each case without interest coupons and
with the global securities legend and the applicable restricted securities legend set forth in Exhibit 1 hereto, which shall be deposited on behalf of the purchasers of the Initial Securities represented thereby with the Securities Custodian and
registered in the name of the Depository or a nominee of the Depository, duly executed by the Company and authenticated by the Trustee as provided in this Indenture. Except as set forth in this Section 2.1(a), beneficial ownership interests in the
Temporary Regulation S Global Security will not be exchangeable for interests in the Rule 144A Global Security, the IAI Global Security, a permanent global security (the “Permanent Regulation S Global Security”, and together with the
Temporary Regulation S Global Security, the “Regulation S Global Security”) or any other Security prior to the expiration of the Distribution Compliance Period and then, after the expiration of the Distribution Compliance Period, may be
exchanged for interests in a Rule 144A Global Security, an IAI Global Security or the Permanent Regulation S Global Security only upon certification in form reasonably satisfactory to the Trustee that (i) beneficial ownership interests in such
Temporary Regulation S Global Security are owned either by non-U.S. persons or U.S. persons who purchased such interests in a transaction that did not require registration under the Securities Act and (ii) in the case of an exchange for an IAI
Global Security, certification that the interest in the Temporary Regulation S Global Security is being transferred to an institutional “accredited investor” under the Securities Act that is an institutional accredited investor acquiring
the securities for its own account or for the account of an institutional accredited investor. 
  
 Beneficial interests in Temporary Regulation S Global Securities or IAI Global Securities may be exchanged for interests in Rule 144A Global Securities if (1) such exchange occurs in connection with a transfer of
Securities in compliance with Rule 144A and (2) the transferor of the beneficial interest in the Temporary Regulation S Global Security or the IAI Global Security, as applicable, first delivers to the Trustee a written certificate (in a form
satisfactory to the Trustee) to the effect that the beneficial interest in the Temporary Regulation S Global Security or the IAI Global Security, as applicable, is being transferred to a Person (a) who the transferor reasonably believes to be a QIB,
(b) purchasing for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A, and (c) in accordance with all applicable securities laws of the States of the United States and other jurisdictions. 
  
 Beneficial interests in Temporary Regulation S Global Securities and Rule
144A Global Securities may be exchanged for an interest in IAI Global Securities if (1) such exchange occurs in connection with a transfer of the securities in compliance with an exemption under the Securities Act and (2) the transferor of the
Regulation S Global Security or Rule 144A Global Security, as applicable, first delivers to the trustee a written certificate (substantially in the form of Exhibit 2) to the effect that (A) the Regulation S Global Security or Rule 144A Global
Security, as applicable, is being transferred (a) to an “accredited investor” within the meaning of 501(a) (1), (2), (3) or (7) under the Securities Act that is an institutional 

  

 4 

 
investor acquiring the securities for its own account or for the account of such an institutional accredited investor, in each case in a minimum principal
amount at maturity of 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 and (B) in accordance with all applicable securities laws of the
States of the United States and other jurisdictions. 
  
 Beneficial interests in a Rule 144A Global Security or an IAI Global Security may be transferred to a Person who takes delivery in the form of an interest in a Regulation S Global Security, whether before or after the expiration of the
Distribution Compliance Period, only if the transferor first delivers to the Trustee a written certificate (in the form provided in the Indenture) to the effect that such transfer is being made in accordance with Rule 903 or 904 of Regulation S or
Rule 144 (if applicable). 
  
 The Rule 144A Global Security, the
IAI Global Security, the Temporary Regulation S Global Security and the Permanent Regulation S Global Security are collectively referred to herein as “Global Securities”. The stated aggregate principal amount at maturity of the Global
Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depository or its nominee as hereinafter provided. 
  
 (b) Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Security deposited with or on behalf of
the Depository. 
  
 The Company shall execute and the Trustee
shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or more Global Securities that (a) shall be registered in the name of the Depository for such Global Security or Global Securities or the nominee of such
Depository and (b) shall be delivered by the Trustee to such Depository or pursuant to such Depository’s instructions or held by the Trustee as custodian for the Depository. 
  
 Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with
respect to any Global Security held on their behalf by the Depository or by the Trustee as the custodian of the Depository or under such Global Security, and the Company, the Trustee and any agent of the Company or the Trustee shall be entitled to
treat the Depository as the absolute owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices of such Depository governing the exercise of the rights of a holder of a
beneficial interest in any Global Security. 
  
 (c) Definitive
Securities. Except as provided in this Section 2.1 or Section 2.3 or 2.4, owners of beneficial interests in Global Securities shall not be entitled to receive physical delivery of Definitive Securities. 
  

 5 

 2.2 Authentication 
  
 The Trustee shall authenticate and deliver: (1) on the Issue Date, a stated aggregate principal amount at maturity of
$203,000,000 9 7/8% Senior Discount Notes Due 2014 (such stated aggregate principal amount at maturity of such
Securities issued on the Issue Date subject to increase pursuant to this Indenture and the Securities), (2) any Additional Securities for an original issue in a stated aggregate principal amount at maturity specified in the written order of the
Company pursuant to Section 2.02 of the Indenture and (3) Exchange Securities or Private Exchange Securities for issue only in a Registered Exchange Offer or a Private Exchange, respectively, pursuant to a Registration Rights Agreement, for a like
principal amount at maturity of Initial Securities, in each case upon a written order of the Company signed by two Officers or by an Officer and either an Assistant Treasurer or an Assistant Secretary of the Company. Such order shall specify the
amount of the Securities to be authenticated and the date on which the original issue of Securities is to be authenticated and, in the case of any issuance of Additional Securities pursuant to Section 2.13 of the Indenture, shall certify that such
issuance is in compliance with Section 4.03 of the Indenture. 
  
 2.3 Transfer and Exchange 
  
 (a) Transfer and
Exchange of Definitive Securities. When Definitive Securities are presented to the Registrar with a request: 
  

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

  

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

  
 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 Securities 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 Holder thereof or its attorney duly authorized in writing; and 
  
 (ii) if such Definitive Securities are required to bear a restricted securities legend, they are being transferred or exchanged pursuant
to an effective registration statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below, and are accompanied by the following additional information and documents, as applicable: 
  
 (A) if such Definitive Securities are being delivered to the
Registrar by a Holder for registration in the name of such Holder, without transfer, a certification from such Holder to that effect; or 
  

 6 

 (B) if such Definitive Securities are being transferred to the Company, a certification
to that effect; or 
  
 (C) if such Definitive
Securities are being transferred (x) pursuant to an exemption from registration in accordance with Rule 144A, Regulation S or Rule 144 under the Securities Act; or (y) in reliance upon another exemption from the requirements of the Securities Act:
(i) a certification to that effect (in the form set forth on the reverse of the Security) and (ii) if the Company so requests, an opinion of counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth
in the legend set forth in Section 2.3(e)(i). 
  
 (b)
Restrictions on Transfer of a Definitive Security for a Beneficial Interest in a Global Security. A Definitive Security may not be exchanged for a beneficial interest in a Rule 144A Global Security, an IAI Global Security or a Permanent
Regulation S Global Security except upon satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive Security, duly endorsed or accompanied by appropriate instruments of transfer, in form satisfactory to the
Trustee, together with: 
  
 (i) certification, in
the form set forth on the reverse of the Security, that such Definitive Security is either (A) being transferred to a QIB in accordance with Rule 144A, (B) being transferred to an IAI or (C) being transferred after expiration of the Distribution
Compliance Period by a Person who initially purchased such Security in reliance on Regulation S to a buyer who elects to hold its interest in such Security in the form of a beneficial interest in the Permanent Regulation S Global Security; and

  
 (ii) written instructions directing the
Trustee to make, or to direct the Securities Custodian to make, an adjustment on its books and records with respect to such Rule 144A Global Security (in the case of a transfer pursuant to clause (b)(i)(A)), IAI Global Security (in the case of a
transfer pursuant to clause (b)(1)(B)) or Permanent Regulation S Global Security (in the case of a transfer pursuant to clause (b)(i)(C)) to reflect an increase in the stated aggregate principal amount at maturity of the Securities represented by
the Rule 144A Global Security, IAI Global Security or Permanent Regulation S Global Security, as applicable, such instructions to contain information regarding the Depository account to be credited with such increase, 
  
 then the Trustee shall cancel such Definitive Security and cause, or direct the Securities
Custodian to cause, in accordance with the standing instructions and procedures existing between the Depository and the Securities Custodian, the aggregate principal amount at maturity of 

  

 7 

 
Securities represented by the Rule 144A Global Security, IAI Global Security or Permanent Regulation S Global Security, as applicable, to be increased by the
stated aggregate principal amount at maturity of the Definitive Security to be exchanged and shall credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security, IAI
Global Security or Permanent Regulation S Global Security, as applicable, equal to the principal amount at maturity of the Definitive Security so canceled. If no Rule 144A Global Securities, IAI Global Securities or Permanent Regulation S Global
Securities, as applicable, are then outstanding, the Company shall issue and the Trustee shall authenticate, upon written order of the Company in the form of an Officers’ Certificate of the Company, a new Rule 144A Global Security, IAI Global
Security or Permanent Regulation S Global Security, as applicable, in the appropriate principal amount at maturity. 
  
 (c) Transfer and Exchange of Global Securities. 
  
 (i) The transfer and exchange of Global Securities or beneficial interests therein shall be effected through the Depository, in accordance with this
Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depository therefor. A transferor of a beneficial interest in a Global Security shall deliver to the Registrar a written order given in
accordance with the Depository’s procedures containing information regarding the participant account of the Depository to be credited with a beneficial interest in the Global Security. The Registrar shall, in accordance with such instructions,
instruct the Depository to credit to the account of the Person specified in such instructions a beneficial interest in the Global Security and to debit the account of the Person making the transfer the beneficial interest in the Global Security
being transferred. 
  
 (ii) If the proposed transfer is a transfer
of a beneficial interest in one Global Security to a beneficial interest in another Global Security, the Registrar shall reflect on its books and records the date and an increase in the principal amount at maturity of the Global Security to which
such interest is being transferred in an amount equal to the principal amount at maturity 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 at
maturity of the Global Security 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 Security may not be transferred as a whole except by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such successor Depository. 
  
 (iv) In the event that a Global Security is exchanged for Definitive
Securities pursuant to Section 2.4 of this Appendix, prior to the consummation of a Registered Exchange Offer or the effectiveness of a Shelf Registration Statement with respect to such Securities, such Securities may be exchanged only in accordance
with such procedures as are 

  

 8 

 
substantially consistent with the provisions of this Section 2.3 (including the certification requirements set forth on the reverse of the Securities
intended to ensure that such transfers comply with Rule 144A, Regulation S or another applicable exemption 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 Temporary Regulation S Global
Securities. During the Distribution Compliance Period, beneficial ownership interests in Temporary Regulation S Global Securities may only be sold, pledged or transferred in accordance with the Applicable Procedures and only (i) to the Company,
(ii) in an offshore transaction in accordance with Regulation S (other than a transaction resulting in an exchange for an interest in a Permanent Regulation S Global Security) or (iii) 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. 
  
 (e) Legend. 
  
 (i) Except as permitted by the following paragraphs (ii), (iii) and (iv), each Security certificate evidencing the Global Securities (and all Securities
issued in exchange therefor or in substitution thereof), in the case of Securities offered otherwise than in reliance on Regulation S, shall bear a legend in substantially the following form: 
  
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 
  
 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) TO AN “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
SECURITIES FOR 

  

 9 

 
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT AT MATURITY OF 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, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (V) PURSUANT TO EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI),
IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A)
ABOVE. 
  
 Each certificate evidencing a Security offered in
reliance on Regulation S shall, in addition to the foregoing, bear a legend in substantially the following form: 
  
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT. 
  
 Each Definitive Security shall also bear the following additional legend: 
  
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  
 (ii) Upon any sale or transfer of a Transfer Restricted Security (including any Transfer Restricted Security represented by a Global Security) pursuant to
Rule 144 under the Securities Act, the Registrar shall permit the transferee thereof to exchange such Transfer 

  

 10 

 
Restricted Security for a certificated Security that does not bear the legend set forth above and rescind any restriction on the transfer of such Transfer
Restricted Security, if the transferor thereof certifies in writing to the Registrar that such sale or transfer was made in reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Security). 
  
 (iii) After a transfer of any Initial Securities or Private Exchange
Securities pursuant to and during the period of the effectiveness of a Shelf Registration Statement with respect to such Initial Securities or Private Exchange Securities, as the case may be, all requirements pertaining to legends on such Initial
Security or such Private Exchange Security will cease to apply, the requirements requiring any such Initial Security or such Private Exchange Security issued to certain Holders be issued in global form will cease to apply, and a certificated Initial
Security or Private Exchange Security or an Initial Security or Private Exchange Security in global form, in each case without restrictive transfer legends, will be available to the transferee of the Holder of such Initial Securities or Private
Exchange Securities upon exchange of such transferring Holder’s certificated Initial Security or Private Exchange Security or directions to transfer such Holder’s interest in the Global Security, as applicable. 
  
 (iv) Upon the consummation of a Registered Exchange Offer with respect to the
Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Securities that do not exchange their
Initial Securities, and Exchange Securities in certificated or global form, in each case without the restricted securities legend set forth in Exhibit 1 hereto will be available to Holders that exchange such Initial Securities in such Registered
Exchange Offer. 
  
 (v) Upon the consummation of a Private
Exchange with respect to the Initial Securities, all requirements pertaining to such Initial Securities that Initial Securities issued to certain Holders be issued in global form will still apply with respect to Holders of such Initial Securities
that do not exchange their Initial Securities, and Private Exchange Securities in global form with the global securities legend and the applicable restricted securities legend set forth in Exhibit 1 hereto will be available to Holders that exchange
such Initial Securities in such Private Exchange. 
  
 (f)
Cancellation or Adjustment of Global Security. At such time as all beneficial interests in a Global Security have either been exchanged for Definitive Securities, redeemed, purchased or canceled, such Global Security shall be returned to the
Depository for cancellation or retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a Global Security is exchanged for Definitive Securities, redeemed, purchased or canceled, the principal
amount at maturity of Securities represented by such Global Security shall be reduced and an adjustment shall be made on the books and records of the Trustee (if it is then the Securities Custodian for such Global Security) with respect to such
Global Security, by the Trustee or the Securities Custodian, to reflect such reduction. 
  

 11 

 (g) No Obligation of the Trustee. 
  
 (i) The Trustee shall have no responsibility or obligation to any beneficial owner of a Global Security, a member of, or a
participant in the Depository or other Person with respect to the accuracy of the records of the Depository or its nominee or of any participant or member thereof, with respect to any ownership interest in the Securities or with respect to the
delivery to any participant, member, beneficial owner or other Person (other than the Depository) of any notice (including any notice of redemption) or the payment of any amount, under or with respect to such Securities. All notices and
communications to be given to the Holders and all payments to be made to Holders under the Securities shall be given or made only to or upon the order of the registered Holders (which shall be the Depository or its nominee in the case of a Global
Security). The rights of beneficial owners in any Global Security shall be exercised only through the Depository subject to the applicable rules and procedures of the Depository. The Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its members, participants and any beneficial owners. 
  
 (ii) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depository participants, members or beneficial owners in any Global Security) other than to require delivery of
such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Indenture, and to examine the same to determine substantial compliance as to form with the express
requirements hereof. 
  
 2.4 Certificated Securities

  
 (a) A Global Security deposited with the Depository or with
the Trustee as Securities Custodian for the Depository pursuant to Section 2.1 shall be transferred to the beneficial owners thereof in the form of Definitive Securities in an aggregate principal amount at maturity equal to the principal amount at
maturity of such Global Security, in exchange for such Global Security, only if such transfer complies with Section 2.3 hereof and (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global
Security and the Depository fails to appoint a successor depositary or if at any time such Depository ceases to be a “clearing agency” registered under the Exchange Act and, in either case, a successor Depository 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 Definitive Securities under this
Indenture. 
  
 (b) Any Global Security that is transferable to the
beneficial owners thereof pursuant to this Section 2.4 shall be surrendered by the Depository to the Trustee 

  

 12 

 
located at its principal corporate trust office in the Borough of Manhattan, The City of New York, to be so transferred, in whole or from time to time in
part, without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such Global Security, an equal stated aggregate principal amount at maturity of Definitive Securities of authorized denominations. Any
portion of a Global Security transferred pursuant to this Section 2.4 shall be executed, authenticated and delivered only in denominations of $1,000 principal amount at maturity and any integral multiple thereof and registered in such names as the
Depository shall direct. Any Definitive Security delivered in exchange for an interest in the Transfer Restricted Security shall, except as otherwise provided by Section 2.3(e) hereof, bear the applicable restricted securities legend and definitive
note legend set forth in Exhibit 1 hereto. 
  
 (c) Subject to the
provisions of Section 2.4(b) hereof, the registered Holder of a Global Security shall be entitled to grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any
action which a Holder is entitled to take under this Indenture or the Securities. 
  
 (d) In the event of the occurrence of one of the events specified in Section 2.4(a) hereof, the Company shall promptly make available to the Trustee a reasonable supply of Definitive Securities in definitive, fully
registered form without interest coupons. In the event that the Definitive Securities are not issued to each such beneficial owner promptly after the Registrar has received a request from the Holder of a Global Security to issue such Certificated
Security, the Company expressly acknowledges, with respect to the right of any Holder to pursue a remedy pursuant to Article 6 of the Indenture, the right of any beneficial holder of Securities to pursue such remedy with respect to the portion of
the Global Security that represents such beneficial holder’s Securities as if such Certificated Securities had been issued. 
  

 13 

 EXHIBIT 1 to Rule 144A/REGULATION S APPENDIX 
  
 [FORM OF FACE OF INITIAL SECURITY] 
  

[Global Securities Legend] 
  
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK,
NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  
 [[FOR REGULATION S GLOBAL SECURITY ONLY] UNTIL 40 DAYS AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE SECURITIES
ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.] 
  
 [Restricted Securities Legend for Securities Offered Otherwise than in 
 Reliance on Regulation S] 
  
 THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 

 THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO THE COMPANY, (II) WITHIN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (III) TO AN “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 SECURITIES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT AT MATURITY OF 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, (IV) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (V) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
(IF AVAILABLE) OR (VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE. 
  
 [Restricted Securities Legend for Securities Offered in Reliance on Regulation S.] 
  
 THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT. 
  
 [Temporary Regulation S Global Security Legend] 
  
 EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOT BE 

  

 2 

 
EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL SECURITY OR ANY OTHER SECURITY REPRESENTING AN INTEREST IN THE SECURITIES REPRESENTED HEREBY
WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER, UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S UNDER THE SECURITIES ACT) AND THEN ONLY UPON
CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER THE SECURITIES
ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION IN
ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE
OF THE UNITED STATES. HOLDERS OF INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY WILL NOTIFY ANY PURCHASER OF THIS SECURITY OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE. 
  
 AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL
INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE SECURITIES IN COMPLIANCE WITH RULE 144A AND (2) THE
TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR
REASONABLY BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A, AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. 
  
 AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL SECURITY MAY BE EXCHANGED FOR
INTERESTS IN AN IAI GLOBAL SECURITY ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF 

  

 3 

 
THE SECURITIES IN COMPLIANCE WITH AN EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR OF THE REGULATION S GLOBAL SECURITY FIRST DELIVERS TO THE
TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL SECURITY IS BEING TRANSFERRED (A) TO AN “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 SECURITIES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT AT MATURITY OF 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 AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER
JURISDICTIONS. 
  
 BENEFICIAL INTERESTS IN A RULE 144A GLOBAL
SECURITY OR AN IAI GLOBAL SECURITY MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL SECURITY, WHETHER BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE
TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S OR RULE 144 (IF AVAILABLE). 
  
 [Definitive Securities Legend] 
  
 IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR AND
TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS. 
  
 [OID Legend] 
  
 THIS SECURITY HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR PURPOSES OF SECTIONS 1271 ET SEQ. OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED. THE ISSUE DATE OF THIS SECURITY IS NOVEMBER 18, 2004. FOR INFORMATION REGARDING THE ISSUE PRICE, THE YIELD TO MATURITY AND THE AMOUNT OF OID PER $1,000 OF PRINCIPAL AMOUNT AT MATURITY, PLEASE CONTACT THE COMPANY AT KI HOLDINGS INC., 436
SEVENTH AVENUE, PITTSBURGH, PENNSYLVANIA 15219-1800, ATTENTION: CORPORATE SECRETARY. 
  

 4 

			
	 No.
                        
	 	$                         

  
 9 7/8% Senior Discount Notes Due 2014 
  
 KI Holdings Inc., a Pennsylvania corporation, promises to pay to
                    , or registered assigns, the principal sum of
                         Dollars on November 15, 2014. 
  
 Interest Payment Dates: May 15 and November 15. 
  
 Record Dates: May 1 and November 1. 
  
 Additional provisions of this Security are set forth on the other side of
this Security. 
  
 Dated: 
  

			
	 KI HOLDINGS INC.

		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

	
	 TRUSTEE’S CERTIFICATE OF

	 AUTHENTICATION

	
	 THE BANK OF NEW YORK,

	 as Trustee, certifies

	 that this is one of

	 the Securities referred

	 to in the Indenture.

  

			
	 By
	 	  

	 	 	 Authorized Signatory

 [FORM OF REVERSE SIDE OF INITIAL SECURITY] 
  
 9 7/8% Senior Discount Note Due 2014 
  
 1. Interest

  
 KI Holdings Inc., a Pennsylvania 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 Accreted Value of this Security at the rate per annum shown above. No cash
interest will accrue on the Securities prior to November 15, 2009; provided, however, that interest may be paid in cash under the circumstances specified below. The Accreted Value of each Security will increase from the date of
issuance until November 15, 2009, at a rate of 9 7/8% per annum, reflecting the accrual of non-cash interest,
such that the Accreted Value will equal the stated principal amount at maturity on November 15, 2009. Cash interest on the Securities will accrue at the rate of 9 7/8% per annum from November 15, 2009, or from the most recent date thereafter to which interest has been paid or provided for, and will be payable semiannually in arrears on May 15
and November 15 of each year, commencing on May 15, 2010. The Company shall make each interest payment to the Holders of record of the Securities on the immediately preceding May 1 and November 1. The Company shall pay interest on overdue principal
at 1.0% per annum in excess of the above rate and will pay interest on overdue installments of interest at such higher rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If a Registration
Default (as defined in the Registration Rights Agreement applicable to this Security) occurs, additional interest will accrue on this Security at a rate of 0.50% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day
period that occurs after the date on which such Registration default occurs up to a maximum additional interest rate of 1.5%) from and including the date on which any such Registration Default shall occur to but excluding the date on which all
Registration Defaults have been cured. 
  
 All
Additional Interest that accrues on this Security prior to November 15, 2009 shall be added to the Accreted Value of this Security; provided, however, that the Company, at its option, may elect to pay any such Additional Interest in
cash, and all Additional Interest that accrues after November 15, 2009 shall be payable in cash to the Holder of this Security on each scheduled interest payment date (except as provided in Section 2.11 of the Indenture). 
  
 “Accreted Value” means, as of any date (the “Specified
Date”), the amount provided below for each $1,000 principal amount at maturity of Securities: 
  
 (1) if the Specified Date occurs on one of the following dates (each, a “Semi-Annual Accrual Date”), the Accreted Value will
equal the amount set forth below for such Semi-Annual Accrual Date: 
  

				
	 Semi-Annual
 Accrual Date

	  	Accreted Value

	 Issue Date
	  	$	618.08
	 May 15, 2005
	  	$	648.08
	 November 15, 2005
	  	$	680.08
	 May 15, 2006
	  	$	713.66

				
	 November 15, 2006
	  	$	748.89
	 May 15, 2007
	  	$	785.87
	 November 15, 2007
	  	$	824.67
	 May 15, 2008
	  	$	865.39
	 November 15, 2008
	  	$	908.11
	 May 15, 2009
	  	$	952.95
	 November 15, 2009
	  	$	1,000.00

  
 (2) if
the Specified Date occurs between two Semi-Annual Accrual Dates, the Accreted Value will equal to the sum of (A) the Accreted Value for the Semi-Annual Accrual Date immediately preceding such Specified Date and (B) an amount equal to the product of
(x) the Accreted Value for the immediately following Semi-Annual Accrual Date less the Accreted Value for the immediately preceding Semi-Annual Accrual Date multiplied by (y) a fraction, the numerator of which is the number of days elapsed from the
immediately preceding Semi-Annual Accrual Date to the Specified Date, using a 360-day year of 12 30-day months, and the denominator of which is 180 (or, if the Semi-Annual Accrual Date immediately preceding the Specified Date is the Issue Date, the
denominator of which is the number of days from and including the Issue Date to and excluding the next Semi-Annual Accrual Date); or 
  
 (3) if the Specified Date occurs after the last Semi-Annual Accrual Date, the Accreted Value will equal $1,000. 
  
 Notwithstanding the foregoing, if Additional Interest accrues on the
Securities prior to November 15, 2009 as a result of a Registration Default under the Registration Rights Agreement, subject to the Company’s option to pay Additional Interest on the Notes in cash, such Additional Interest will be added to the
Accreted Value, and the Accreted Value as of any Specified Date will equal the sum of (A) the Accreted Value, as calculated above, as of the date such Additional Interest began to accrue, plus (B) the amount of interest that would otherwise accrue
on the Accreted Value from time to time on a daily basis at a rate of interest per annum borne by the Securities plus the rate of such Additional Interest as applicable from time to time, compounded semi-annually on each Semi-Annual Accrual Date
from the date such Additional Interest began to accrete through the Specified Date, computed on the basis of a 360-day year of twelve 30-day months. If such an event were to occur, the Accreted Value on and after the last Semi-Annual Accrual Date
would exceed $1,000. 
  
 All references in this Security, in any
context, to Accreted Value or any interest or other amount payable on or with respect to the Securities shall be deemed to include any Additional Interest pursuant to a Registration Rights Agreement. 
  
 2. Method of Payment 
  
 The Company shall pay interest on the Securities (except defaulted interest) to the Persons who are registered holders of
Securities at the close of business on the May 1 or November 1 next preceding the interest payment date even if Securities are canceled after the record date and on or before the interest payment date. Holders must surrender Securities to a Paying
Agent to collect payments of Accreted Value. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and 

  

 2 

 
private debts. Payments in respect of the Securities represented by a Global Security (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by the Depository. The Company will make all payments in respect of a certificated Security (including principal, premium and interest) by mailing a check to the registered address of
each Holder thereof; provided, however, that payments on a certificated Security will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire
transfer by giving written notice to the Trustee or the Paying Agent to such effect designating such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its
discretion). 
  
 If the Company elects to pay Additional Interest
in cash, it shall notify the Trustee in writing of such election not less than 30 days immediately preceding the relevant interest payment date. 
  
 3. Paying Agent and Registrar 
  
 Initially, The Bank of New York, a New York banking corporation (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 Securities under an Indenture dated as of November 18, 2004 (the “Indenture”), between the
Company and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of
the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the
Act for a statement of those terms. 
  
 The Securities are general
unsecured obligations of the Company, of which $203,000,000 in stated aggregate principal amount at maturity have been initially issued on the Issue Date (such stated aggregate principal amount at maturity of such Securities issued on the Issue Date
subject to increase pursuant to the Indenture and this Security). The Company shall be entitled, subject to its compliance with Section 4.03 of the Indenture, to issue an unlimited amount of Additional Securities pursuant to Section 2.13 of the
Indenture. The Initial Securities issued on the Issue Date, any Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The
Indenture contains covenants that limit the ability of the Company and its subsidiaries to incur additional indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock; make investments; issue or sell common stock of
subsidiaries; engage in transactions with affiliates; create liens on assets; transfer or sell assets or subsidiary stock; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate, merge or transfer all or
substantially all of its assets and the assets of its subsidiaries; and engage in sale/leaseback transactions. These covenants are subject to important exceptions and qualifications. 
  

 3 

 5. Optional Redemption 
  

Except as set forth below, the Company shall not be entitled to redeem the Securities. 
  
 On and after November 15, 2009, the Company shall be entitled at its option on one or more occasions to redeem all or a
portion of the Securities upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed in percentages of Accreted Value on the redemption date), plus accrued interest 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 November 15 of the years set forth below: 
  

				
	 Period

	  	Redemption
Price

	 
	 2009
	  	104.938	%
	 2010
	  	103.292	%
	 2011
	  	101.646	%
	 2012 and thereafter
	  	100.000	%

  
 In addition, prior to
November 15, 2007, the Company shall be entitled at its option on one or more occasions to redeem Securities (which includes Additional Securities, if any) in a stated aggregate principal amount at maturity not to exceed 35% of the stated aggregate
principal amount at maturity of the Securities (which includes Additional Securities, if any) originally issued under the Indenture at a redemption price (expressed as a percentage of Accreted Value as of the date of redemption) of 109.875%, plus
accrued and unpaid interest to the redemption date, with the net cash proceeds from one or more Equity Offerings; provided, however, that (1) at least 65% of such stated aggregate principal amount at maturity of Securities (which
includes Additional Securities, if any) remains outstanding immediately after the occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and (2) each such redemption occurs
within 60 days after the date of the related Equity Offering. 
  
 Notwithstanding the foregoing, the Company and its Affiliates may at any time and from time to time purchase Securities in the open market or otherwise. 
  
 6. Notice of Redemption 
  
 Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000 principal amount at maturity may be redeemed in part but only in whole multiples of $1,000 principal amount at maturity. If money sufficient to pay the redemption price of and
accrued interest on all Securities (or portions thereof) to be 

  

 4 

 
redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after
such date interest ceases to accrue on such Securities (or such portions thereof) called for redemption. 
  
 7. Put Provisions 
  
 Upon
a Change of Control, any Holder of Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder at a repurchase price equal to 101% of the Accreted Value of the Securities to be repurchased plus
accrued interest to the date of repurchase (subject to the right of holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture. 

 
 8. Denominations; Transfer; Exchange 
  
 The Securities are in registered form without coupons in denominations of
$1,000 principal amount at maturity and whole multiples of $1,000 principal amount at maturity. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment date. 
  
 9. Persons Deemed Owners 
  
 The registered Holder of this Security may be treated as the owner of it for
all purposes. 
  
 10. Unclaimed Money 
  
 If money for the payment of Accreted Value, principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the
Company and not to the Trustee for payment. 
  
 11. Discharge and
Defeasance 
  
 Subject to certain conditions set forth in the
Indenture, the Company at any time shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of Accreted Value
of and interest on the Securities to redemption or maturity, as the case may be. 
  

 5 

 12. Amendment, Waiver 
  
 Subject to certain exceptions set forth in the Indenture, (a) the Indenture and the Securities may be amended with the written consent of the Holders of
at least a majority in principal amount at maturity outstanding of the Securities and (b) any default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in principal amount at maturity outstanding
of the Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the Company and the Trustee shall be entitled to amend the Indenture or the Securities to cure any ambiguity, omission, defect or
inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Securities in addition to or in place of certificated Securities, or to add guarantees with respect to the Securities or to secure the Securities, or to
add additional covenants or surrender rights and powers conferred on the Company or to comply with any requirement of the SEC in connection with qualifying the Indenture under the Act, or to make any change that does not adversely affect the rights
of any Securityholder, or to make amendments to provisions of the Indenture relating to the form, authentication, transfer and legending of the Securities. 
  
 13. Defaults and Remedies 
  
 Under the Indenture, Events of Default include (a) default for 30 days in payment of interest on the Securities; (b) default in payment of principal on
the Securities at maturity, upon redemption pursuant to paragraph 11 of the Securities, upon acceleration or otherwise, or failure by the Company to redeem or purchase Securities when required; (c) failure by the Company to comply with other
agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; (d) certain accelerations (including failure to pay within any grace period after final maturity) of other Indebtedness of the Company if the amount
accelerated (or so unpaid) exceeds $10.0 million; (e) certain events of bankruptcy or insolvency with respect to the Company and the Significant Subsidiaries; and (f) certain judgments or decrees for the payment of money in excess of $10.0 million.
If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount at maturity of the Securities may declare all the Securities to be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 
  
 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount at maturity of the Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders. 
  
 14. Trustee Dealings with the Company 
  
 Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. 
  

 6 

 15. No Recourse Against Others 
  
 A director, officer, employee or stockholder, as such, of the Company or the Trustee shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the Securities. 
  
 16. Authentication 
  
 This Security shall not be
valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of authentication on the other side of this Security. 
  
 17. Abbreviations 
  
 Customary abbreviations may be used in the name of a Securityholder 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). 
  
 18. CUSIP Numbers 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures the Company has caused CUSIP numbers to be printed
on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholder. No representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any
notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 19. Holders’ Compliance with Registration Rights Agreement. 
  
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to the provisions of the Registration Rights Agreement applicable to this
Security, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein. 
  
 20. Governing Law. 
  
 THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  

 7 

 The Company will furnish to any Securityholder upon written request and without charge to the Security
holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
  
 KI Holdings Inc. 
 436 Seventh Avenue 
 Pittsburgh, Pennsylvania 15219-1800 
 Attention: Corporate Secretary 
  

 8 

 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to 
  
 (Print or type assignee’s name, address and zip code) 
  
 (Insert assignee’s soc. sec. or tax I.D. No.) 
  
 and irrevocably appoint
                    agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

							
	
 
	 Date:
	 	  

	 	 Your Signature:
	 	

  
 Sign exactly as your name appears on
the other side of this Security. 
  
 In connection with any transfer of any of the
Securities evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144(k) under the Securities Act after the later of the date of original issuance of such Securities and the last date, if any, on which such
Securities were owned by the Company or any Affiliate of the Company, the undersigned confirms that such Securities are being transferred in accordance with its terms: 
  
 CHECK ONE BOX BELOW 
  
 to the Company; or 
  
 pursuant to an effective registration statement under the Securities Act of 1933; or 
  
 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 
  
 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 
  
 pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933; or 

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

  

			
		
	
	  	 
	 Signature
	  	 
		
	  
 Signature
Guarantee:
	  	 
		
	
	  	

	 Signature must be guaranteed
	  	 Signature

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

 -2- 

 TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED. 
  
 The undersigned represents and warrants that it is purchasing this Security
for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, 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

 [TO BE ATTACHED TO GLOBAL SECURITIES] 
  
 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 
  
 The following increases or decreases in this Global Security have been made: 
  

									
	 Date of
 Exchange

	 	 Amount of decrease
 in Principal amount at
maturity of this
 Global Security

	 	 Amount of increase in
Principal amount at maturity
of this
 Global Security

	  	 Principal amount at
 maturity of this
Global Security
following such
decrease or increase

	  	 Signature of authorized
officer of Trustee
 or Securities
 Custodian

  

 -2- 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, check
the box: 
  
 If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal amount at maturity: $             
  

							
	 Dated:
	 	  

	 	 Your Signature:
	 	  

	 	 	 	 	 	 	 (Sign exactly as your name appears on the other side of this Security.)

							
	
	 
	 Signature Guarantee:
	 	  

	 	 	(Signature must be guaranteed)

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

 EXHIBIT A 
  

FORM OF FACE OF EXCHANGE SECURITY 
 OR
PRIVATE EXCHANGE SECURITY*/**/ 
  
 [OID Legend]*/**/ 
  
 THIS SECURITY HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR PURPOSES OF SECTIONS 1271 ET SEQ. OF THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED. THE ISSUE DATE OF THIS SECURITY IS NOVEMBER 18, 2004. FOR INFORMATION REGARDING THE ISSUE PRICE, THE YIELD TO MATURITY AND THE AMOUNT OF OID PER $1,000 OF PRINCIPAL AMOUNT AT MATURITY, PLEASE CONTACT THE COMPANY AT KI HOLDINGS INC., 436
SEVENTH AVENUE, PITTSBURGH, PENNSYLVANIA 15219-1800, ATTENTION: VICE PRESIDENT OF LAW AND HUMAN RESOURCES. 

	*/	If the Security is to be issued in global form add the Global Securities Legend from Exhibit 1 to Appendix A and the attachment from such Exhibit 1 captioned “[TO BE ATTACHED
TO GLOBAL SECURITIES] - SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY”. 

	**/	If the Security is a Private Exchange Security issued in a Private Exchange to an Initial Purchaser holding an unsold portion of its initial allotment, add the Restricted Securities
Legend from Exhibit 1 to Appendix A and replace the Assignment Form included in this Exhibit A with the Assignment Form included in such Exhibit 1. 

			
	 No.
                    
	  	 $                    

  
 9 7/8% Senior Discount Notes Due 2014 
  
 KI Holdings Inc., a Pennsylvania corporation, promises to pay to
                    , or registered assigns, the principal sum of
             Dollars on November 15, 2014. 
  
 Interest Payment Dates: May 15 and November 15. 
  
 Record Dates: May 1 and November 1. 
  
 Additional provisions of this Security are set forth on the other side of this Security. 
  
 Dated: 
  

			
	 KI HOLDINGS INC.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

			
	 TRUSTEE’S CERTIFICATE OF AUTHENTICATION

	
	 THE BANK OF NEW YORK

		
	 	 	 as Trustee, certifies that this is one of the Securities referred to in the Indenture.

		
	 By:
	 	  

	 	 	 Authorized Signatory

  

 FORM OF REVERSE SIDE OF EXCHANGE SECURITY 
 OR PRIVATE EXCHANGE SECURITY 
  
 9 7/8% Senior Discount Note Due 2014 
  
 1. Interest 
  
 KI Holdings Inc., a Pennsylvania 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 Accreted Value of at maturity this Security at the rate per annum shown above. No cash interest will accrue on the Securities prior to November
15, 2009; provided, however, that interest may be paid in cash under the circumstances specified below. The Accreted Value of each Security will increase from the date of issuance until November 15, 2009, at a rate of 9 7/8% per annum, reflecting the accrual of non-cash interest, such that the Accreted Value will equal the stated
principal amount at maturity on November 15, 2009. Cash interest on the Securities will accrue at the rate of 9 7/8% per annum from November 15, 2009, or from the most recent date thereafter to which interest has been paid or provided for, and will be payable semiannually in arrears on May 15 and November 15 of each year, commencing on May 15,
2010. The Company shall make each interest payment to the Holders of record of the Securities on the immediately preceding May 1 and November 1. The Company shall pay interest on overdue principal at 1.0% per annum in excess of the above rate and
will pay interest on overdue installments of interest at such higher rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. [If a Registration Default (as defined in the Registration Rights
Agreement applicable to this Security) occurs, additional interest will accrue on this Security at a rate of 0.50% per annum (increasing by an additional 0.25% per annum after each consecutive 90-day period that occurs after the date on which such
Registration default occurs up to a maximum additional interest rate of 1.5%) from and including the date on which any such Registration Default shall occur to but excluding the date on which all Registration Defaults have been cured.]1 
  
 All Additional Interest that accrues on this Security prior to November 15, 2009 will be added to the Accreted Value of this Security; provided,
however, that the Company, at its option, may elect to pay any such Additional Interest in cash, and all Additional Interest that accrues after November 15, 2009 shall be payable in cash to the Holder of this Security on each scheduled
interest payment date (except as provided in Section 2.11). 

	1	Insert if at the date of issuance of the Exchange Security or Private Exchange Security (as the case may be) any Registration Default has occurred with respect to
the related Initial Securities during the interest period in which such date of issuance occurs and this language is appropriate. All references to “Additional Interest” in this Form of Reverse Side of Exchange Security or Private Exchange
Security will be reviewed for relevance upon the appropriate issuance. 

 “Accreted Value” means, as of any date (the “Specified Date”), the amount
provided below for each $1,000 principal amount at maturity of Securities: 
  
 (1) if the Specified Date occurs on one of the following dates (each, a “Semi-Annual Accrual Date”), the Accreted Value will equal the amount set forth below for such Semi-Annual Accrual Date: 
  

				
	 Semi-Annual
 Accrual Date

	  	Accreted Value

	 Issue Date
	  	$	618.08
	 May 15, 2005
	  	$	648.08
	 November 15, 2005
	  	$	680.08
	 May 15, 2006
	  	$	713.66
	 November 15, 2006
	  	$	748.89
	 May 15, 2007
	  	$	785.87
	 November 15, 2007
	  	$	824.67
	 May 15, 2008
	  	$	865.39
	 November 15, 2008
	  	$	908.11
	 May 15, 2009
	  	$	952.95
	 November 15, 2009
	  	$	1,000.00

  
 (2) if
the Specified Date occurs between two Semi-Annual Accrual Dates, the Accreted Value will equal to the sum of (A) the Accreted Value for the Semi-Annual Accrual Date immediately preceding such Specified Date and (B) an amount equal to the product of
(x) the Accreted Value for the immediately following Semi-Annual Accrual Date less the Accreted Value for the immediately preceding Semi-Annual Accrual Date multiplied by (y) a fraction, the numerator of which is the number of days elapsed from the
immediately preceding Semi-Annual Accrual Date to the Specified Date, using a 360-day year of 12 30-day months, and the denominator of which is 180 (or, if the Semi-Annual Accrual Date immediately preceding the Specified Date is the Issue Date, the
denominator of which is the number of days from and including the Issue Date to and excluding the next Semi-Annual Accrual Date); or 
  
 (3) if the Specified Date occurs after the last Semi-Annual Accrual Date, the Accreted Value will equal $1,000. 
  
 Notwithstanding the foregoing, if Additional Interest accrues on the
Securities prior to November 15, 2009 as a result of a Registration Default under the Registration Rights Agreement, subject to the Company’s option to pay Additional Interest on the Securities in cash, such Additional Interest will be added to
the Accreted Value, and the Accreted Value as of any Specified Date will equal the sum of (A) the Accreted Value, as calculated above, as of the date such Additional Interest began to accrue, plus (B) the amount of interest that would otherwise
accrue on the Accreted Value from time to time on a daily basis at a rate of interest per annum borne by the Notes plus the rate of such Additional Interest as applicable from time to time, compounded semi-annually on each Semi-Annual Accrual Date
from the date such Additional Interest began to accrete through the Specified Date, computed on the basis of a 360-day year of twelve 30-day months. If such an event were to occur, the Accreted Value on and after the last Semi-Annual Accrual Date
would exceed $1,000. 
  

 -2- 

 All references in this Security, in any context, to Accreted Value or any interest or other amount
payable on or with respect to the Securities shall be deemed to include any Additional Interest pursuant to a Registration Rights Agreement. 
  
 2. Method of Payment 
  
 The Company shall pay interest on the Securities (except defaulted interest) to the Persons who are registered holders of Securities at the close of
business on the May 1 or November 1 next preceding the interest payment date even if Securities are canceled after the record date and on or before the interest payment date. Holders must surrender Securities to a Paying Agent to collect payments of
Accreted Value. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts. Payments in respect of the Securities represented by a Global Security
(including principal, premium and interest) will be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Company will make all payments in respect of a certificated Security (including
principal, premium and interest) by mailing a check to the registered address of each Holder thereof; provided, however, that payments on a certificated Security will be made by wire transfer to a U.S. dollar account maintained by the
payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect designating such account no later than 30 days immediately preceding the relevant due
date for payment (or such other date as the Trustee may accept in its discretion). 
  
 If the Company elects to pay Additional Interest in cash, it shall notify the Trustee in writing of such election not less than 30 days immediately preceding the relevant interest payment date. 
  
 3. Paying Agent and Registrar 
  
 Initially, The Bank of New York, a New York banking corporation (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 Securities under an Indenture dated as of November
18, 2004 (“Indenture”), between the Company and the Trustee. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C.
§§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Securities are subject to all such terms, and
Securityholders are referred to the Indenture and the Act for a statement of those terms. 
  

 - 3 - 

 The Securities are general unsecured obligations of the Company, of which $203,000,000 in stated
aggregate principal amount at maturity have been initially issued on the Issue Date (such stated aggregate principal amount at maturity of such Securities issued on the Issue Date subject to increase pursuant to the Indenture and this Security).
The Company shall be entitled, subject to its compliance with Section 4.03 of the Indenture, to issue an unlimited amount of Additional Securities pursuant to Section 2.13 of the Indenture. The Initial Securities issued on the Issue Date, any
Additional Securities and all Exchange Securities or Private Exchange Securities issued in exchange therefor will be treated as a single class for all purposes under the Indenture. The Indenture contains covenants that limit the ability of the
Company and its subsidiaries to incur additional indebtedness; pay dividends or distributions on, or redeem or repurchase, capital stock; make investments; issue or sell common stock of subsidiaries; engage in transactions with affiliates; create
liens on assets; transfer or sell assets or subsidiary stock; guarantee indebtedness; restrict dividends or other payments of subsidiaries; consolidate, merge or transfer all or substantially all of its assets and the assets of its subsidiaries; and
engage in sale/leaseback transactions. These covenants are subject to important exceptions and qualifications. 
  
 5. Optional Redemption 
  
 Except as set forth below, the Company shall not be entitled to redeem the Securities. 
  
 On and after November 15, 2009, the Company shall be entitled at its option on one or more occasions to redeem all or a portion of the Securities
(including Additional Securities, if any) upon not less than 30 nor more than 60 days’ notice, at the redemption prices (expressed in percentages of Accreted Value, on the redemption date) plus accrued and unpaid interest 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 November 15 of the years set forth below: 
  

			
	 Period

	  	 Redemption
 Price

	 2009
	  	104.938%
	 2010
	  	103.292%
	 2011
	  	101.646%
	 2012 and thereafter
	  	100.000%

  
 In addition, prior to
November 15, 2007, the Company shall be entitled at its option on one or more occasions to redeem Securities (which includes Additional Securities, if any) in an stated aggregate principal amount at maturity not to exceed 35% of the stated aggregate
principal amount at maturity of the Securities (which includes Additional Securities, if any) originally issued prior to such time at a redemption price (expressed as a percentage of Accreted Value as of the date at redemption) of 109.875%, plus
accrued and unpaid interest to the redemption date, if any, with the net cash proceeds from one or more Equity Offerings; provided, however, that (1) at least 65% of such stated aggregate principal amount at maturity of Securities
(which includes Additional Securities, if any) remains outstanding immediately after the 

  

 - 4 - 

 
occurrence of each such redemption (other than Securities held, directly or indirectly, by the Company or its Affiliates); and (2) each such redemption
occurs within 60 days after the date of the related Equity Offering. 
  
 Notwithstanding the foregoing, the Company and its Affiliates may at any time and from time to time purchase Securities in the open market or otherwise. 
  
 6. Notice of Redemption 
  
 Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at
his registered address. Securities in denominations larger than $1,000 principal amount at maturity may be redeemed in part but only in whole multiples of $1,000 principal amount at maturity. If money sufficient to pay the redemption price of and
accrued interest on all Securities (or portions thereof) to be redeemed on the redemption date is deposited with the Paying Agent on or before the redemption date and certain other conditions are satisfied, on and after such date interest ceases to
accrue on such Securities (or such portions thereof) called for redemption. 
  
 7.
Put Provisions 
  
 Upon a Change of Control, any Holder of
Securities will have the right to cause the Company to repurchase all or any part of the Securities of such Holder at a repurchase price equal to 101% of the Accreted Value of the Securities to be repurchased plus accrued interest to the date of
repurchase (subject to the right of holders of record on the relevant record date to receive interest due on the related interest payment date) as provided in, and subject to the terms of, the Indenture. 
  
 8. Denominations; Transfer; Exchange 
  
 The Securities are in registered form without coupons in denominations of
$1,000 principal amount at maturity and whole multiples of $1,000 principal amount at maturity. A Holder may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange any Securities selected for redemption (except, in the case of a
Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities for a period of 15 days before a selection of Securities to be redeemed or 15 days before an interest payment date. 
  
 9. Persons Deemed Owners 
  
 The registered Holder of this Security may be treated as the owner of it for
all purposes. 
  
 10. Unclaimed Money 
  
 If money for the payment of Accreted Value, principal or interest remains
unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Company at 

  

 -5- 

 
its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company
and not to the Trustee for payment. 
  
 11. Discharge and Defeasance

  
 Subject to certain conditions set forth in the Indenture, the
Company at any time shall be entitled to terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of Accreted Value of and interest
on the Securities to redemption or maturity, as the case may be. 
  
 12.
Amendment; Waiver 
  
 Subject to certain exceptions set
forth in the Indenture, (a) the Indenture and the Securities may be amended with the written consent of the Holders of at least a majority in principal amount at maturity outstanding of the Securities and (b) any default or noncompliance with any
provision may be waived with the written consent of the Holders of a majority in principal amount at maturity outstanding of the Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Securityholder, the
Company and the Trustee shall be entitled to amend the Indenture or the Securities to cure any ambiguity, omission, defect or inconsistency, or to comply with Article 5 of the Indenture, or to provide for uncertificated Securities in addition to or
in place of certificated Securities, or to add guarantees with respect to the Securities or to secure the Securities, or to add additional covenants or surrender rights and powers conferred on the Company or to comply with any requirement of the SEC
in connection with qualifying the Indenture under the Act, or to make any change that does not adversely affect the rights of any Securityholder, or to make amendments to provisions of the Indenture relating to the form, authentication, transfer and
legending of the Securities. 
  
 13. Defaults and Remedies 
  
 Under the Indenture, Events of Default include (a) default for 30 days in
payment of interest on the Securities; (b) default in payment of principal on the Securities at maturity, upon redemption pursuant to paragraph 11 of the Securities, upon acceleration or otherwise, or failure by the Company to redeem or purchase
Securities when required; (c) failure by the Company to comply with other agreements in the Indenture or the Securities, in certain cases subject to notice and lapse of time; (d) certain accelerations (including failure to pay within any grace
period after final maturity) of other Indebtedness of the Company if the amount accelerated (or so unpaid) exceeds $10.0 million; (e) certain events of bankruptcy or insolvency with respect to the Company and the Significant Subsidiaries and (f)
certain judgments or decrees for the payment of money in excess of $10.0 million. If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount at maturity of the Securities may declare all the
Securities to be due and payable immediately. Certain events of bankruptcy or insolvency are Events of Default which will result in the Securities being due and payable immediately upon the occurrence of such Events of Default. 
  

 -6- 

 Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Securities unless it receives indemnity or security satisfactory to it. Subject to certain limitations, Holders of a majority in principal amount at maturity of the Securities may direct the Trustee
in its exercise of any trust or power. The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of principal or interest) if it determines that withholding notice is in the interest of the Holders.

  
 14. Trustee Dealings with the Company 
  
 Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. 
  
 15.
No Recourse Against Others 
  
 A director, officer,
employee or stockholder, as such, of the Company or the Trustee shall not have any liability for any obligations of the Company or under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or
their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. 
  
 16. Authentication 
  
 This Security shall not be valid until an authorized signatory of the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security. 
  
 17. Abbreviations

  
 Customary abbreviations may be used in the name of a
Securityholder 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). 
  
 18. CUSIP Numbers 
  
 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be printed on the Securities and has directed the Trustee to use CUSIP numbers in notices of redemption as a convenience to Securityholder. No representation is made as to
the accuracy of such numbers either as printed on the Securities or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  

 -7- 

 19. Holders’ Compliance with Registration Rights Agreement 
  
 Each Holder of a Security, by acceptance hereof, acknowledges and agrees to
the provisions of the Registration Rights Agreement, including the obligations of the Holders with respect to a registration and the indemnification of the Company to the extent provided therein. 
  
 20. Governing Law 
  
 THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

 
 The Company will furnish to any Securityholder upon written request and
without charge to the Security holder a copy of the Indenture which has in it the text of this Security in larger type. Requests may be made to: 
  
 KI Holdings Inc. 
 436 Seventh Avenue

 Pittsburgh, Pennsylvania 15219-1800 
 Attention: Corporate Secretary 
  

 -8- 

 ASSIGNMENT FORM 
  

To assign this Security, fill in the form below: 
  
 I or we assign and transfer this Security to 
  
 (Print or type assignee’s name, address and zip code) 
  
 (Insert assignee’s soc. sec. or tax I.D. No.) 
  
 and irrevocably appoint
                     agent to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

							
	 Date:
	 	  

	 	 Your Signature:
	 	  

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

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, check
the box: 
  
 If you want to elect to have only part of this
Security purchased by the Company pursuant to Section 4.06 or 4.09 of the Indenture, state the amount in principal amount at maturity: $             
  

							
	Dated:	 	  

	 	Your Signature:	 	

	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of this Security.)

							
	Signature Guarantee:	 	  

	 	 	 (Signature must be guaranteed)

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

 EXHIBIT 2 TO RULE 144A/REGULATION S/IAI APPENDIX 
  
 Form of Transferee Letter of Representation 
  
 KI Holdings Inc. 
 436 Seventh Avenue 
 Pittsburgh, Pennsylvania 15219-1800 
  
 In care of 
  
 The Bank of New York 
 101 Barclay Street, Floor 8 West 
 New York, New York 10286 
  
 Ladies and Gentlemen: 
  
 This
certificate is delivered to request a transfer of $[            ] principal amount at maturity of the 9 7/8% Senior Discount Notes Due 2014 (the “Securities”) of KI Holdings Inc. (the “Company”). 
  
 Upon transfer, the Securities would be registered in the name of the new beneficial owner as follows: 
  

			
	Name:	  	  

	 Address:
	  	  

	 Taxpayer ID Numbers:
	  	  

  
 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 at maturity of the Securities, and we are acquiring the Securities 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 Securities, and we invest in or purchase securities similar to the Securities 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 Securities 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 Securities to offer, sell or otherwise transfer such Securities 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 Securities (or any predecessor thereto) (the 

 
“Re-sale Restriction Termination Date”) only (i) to the Company, (ii) in the United States to a person whom the seller reasonably believes is a
qualified institutional buyer in a transaction meeting the requirements of Rule 144A, (iii) 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
accredited investor purchasing for its own account or for the account of an institutional accredited investor, in each case in a minimum principal amount at maturity of the Securities of $250,000, (iv) outside the United States in a transaction
complying with the provisions of Rule 904 under the Securities Act, (v) pursuant to an exemption from registration under the Securities Act provided by Rule 144 (if available) or (vi) pursuant to an effective registration statement under the
Securities Act, in each of cases (i) through (vi) subject 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 Securities is proposed to be made pursuant to clause (iii) 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 Securities 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 Securities pursuant to clause (iii), (iv) or (v) above to require
the delivery of an opinion of counsel, certifications or other information satisfactory to the Company and the Trustee. 
  

			
	 TRANSFEREE :
  

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]