Document:

EXHIBIT 10.1  

CONSULTING
AGREEMENT 

        This
Consulting Agreement dated January 30, 2004 ("Agreement") is by and between, ENVIRONMENTAL REMEDIATION HOLDING CORPORATION, a Colorado corporation ("Company") and RICHARD A.
STANFORD, an individual ("Consultant"). 

W
I T N E S S E T H: 

        WHEREAS,
Consultant desires to provide certain consulting services to the Company; and 

        WHEREAS,
the Company and Consultant desire to set forth in writing the terms and conditions of their agreement; 

        NOW,
THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, the parties hereto agree as follows: 

        1.    Engagement.    Subject to the terms and provisions of this Agreement, the Company hereby affirms the engagement
of Consultant, as an independent contractor, to provide general legal services. 

        2.    Compensation.    For legal services performed by Consultant for the Company through the date hereof in the
aggregate amount of $30,000, the Company will issue to Consultant 100,000 shares of common stock of the Company pursuant to an S-8 Registration Statement. 

        3.    Status Reports.    At the Company's written request, Consultant shall prepare and submit to the Company a
written status report describing the status of any sales of the Company Common Stock sold hereby. 

        4.    Term.    The term of this Agreement shall commence on the date herein and shall continue in full force and
effect for a period of six months. 

        5.    Miscellaneous.    

        (a)    Assignment.    All of the terms, provisions and conditions of this Agreement shall be binding upon and shall
inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. This Agreement shall not be assigned or transferred by either party, nor shall
any interest herein be assigned, transferred, pledged or hypothecated by either party without the prior written consent of the other party. 

        (b)    Applicable Law.    This Agreement shall be construed in accordance with and governed by the laws of the State
of Texas. 

        (c)    Entire Agreement, Amendments and Waivers.    This Agreement constitutes the entire agreement of the parties
hereto and expressly supersedes all prior and contemporaneous understandings and commitments, whether written or oral, with respect to the subject matter hereof. No variations, modifications, changes
or extensions of this Agreement or any other terms hereof shall be binding upon any party hereto unless set forth in a document duly executed by such party or an authorized agent or such party. 

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. 

	 	 	ENVIRONMENTALREMEDIATION HOLDING CORPORATION
	

 	
 	
By:	

/s/  CHUDE MBA      
 Chude Mba, President
	

 	
 	
RICHARD A. STANFORD
	

 	
 	
By:	

/s/  RICHARD A. STANFORD      
 Richard A. StanfordExhibit 4.7

 

AMC ENTERTAINMENT INC.

 

8% SENIOR SUBORDINATED NOTES DUE 2014

 

 

INDENTURE

 

DATED AS OF FEBRUARY 24, 2004

 

 

HSBC BANK USA

 

TRUSTEE

 

 

INDENTURE dated as of
February 24, 2004, between AMC Entertainment Inc., a Delaware corporation
(the “Company”), and HSBC Bank USA, a New York banking corporation, as Trustee
(the “Trustee”).  Each party agrees as
follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Company’s 8% Senior Subordinated Notes due 2014,
to be issued, from time to time, in one or more series as in this Indenture
provided (the “Initial Securities”) and, if and when issued pursuant to a
registered exchange of the Initial Securities, the Company’s  8% Senior
Subordinated Notes due 2014 (the “Exchange Securities”) and if and when issued
pursuant to a private exchange of Initial Securities, the Company’s 8% Senior
Subordinated Notes due 2014 (the “Private Exchange Securities” and, together
with the Initial Securities and the Exchange Securities, the “Securities”):

 

ARTICLE I

 

Definitions and Incorporation by Reference

 

Section 1.01.        Definitions.

 

“9 1/2% Notes due 2009” means
the Company’s 9 1/2% Senior Subordinated Notes due 2009.

 

“9 1/2% Notes due 2011” means
the Company’s 9 1/2% Senior Subordinated Notes due 2011.

 

“9 7/8% Notes due 2012” means
the Company’s 9 7/8% Senior Subordinated Notes due 2012.

 

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

 

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

 

“Apollo” means: (i) Apollo
Management IV, L.P., a Delaware limited partnership, in its capacity as
investment manager to the Apollo IV Holders; (ii) Apollo Management V, L.P., a
Delaware limited partnership, in its capacity as investment manager to the
Apollo V Holders; and (iii) their Affiliates.

 

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“Apollo Group” means: (i)
Apollo; (ii) the Apollo Holders; (iii) any Affiliate of Apollo (including the
Apollo Holders); and (iv) any Person with whom Apollo or any Apollo Holder may
be deemed as part of a “group” within the meaning of Section 13(d)(3) of
the Exchange Act.

 

“Apollo Holders” means: (i)
Apollo Investment Fund IV, L.P., a Delaware limited partnership (“AIF IV”), and
Apollo Overseas Partners IV, L.P., a Cayman Islands exempted limited
partnership (“AOP IV” (collectively with AIF IV, referred to as the “Apollo IV
Holders”)) and any other partnership or entity affiliated with and managed by
Apollo to which either AIF IV or AOP IV assigns any of their respective interests
in or to the Preferred Stock; and (ii) Apollo Investment Fund V, L.P., a
Delaware limited partnership (“AIF V”) and Apollo Overseas Partners V, L.P., a
Cayman Islands exempted limited partnership (“AOP V” (collectively with AIF V,
referred to as the “Apollo V Holders”)) and any other partnership or entity
affiliated with and managed by Apollo to which either AIF V or AOP V assigns
any of their respective interests in or to the Preferred Stock.

 

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

 

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

 

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

 

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

 

“Capital Lease Obligation” of
any Person means any obligations of such Person and its Subsidiaries on a
consolidated basis under any capital lease or financing lease of a real or
personal property which, in accordance with GAAP, has been recorded as a
capitalized lease obligation (together with Indebtedness in the form of
operating leases entered into by the Company or its Subsidiaries after May 21,
1998 and required to be reflected on a consolidated balance sheet pursuant to
EITF 97-10 or any subsequent pronouncement having similar effect).

 

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

 

“Cash Equivalents” means: (i)
United States dollars; (ii) securities issued or directly and fully guaranteed
or insured by the United States government or any agency or instrumentality;
(iii) certificates of deposit and eurodollar time deposits with maturities of
six months or less from the date of acquisition, bankers’ acceptances with
maturities not exceeding six months and overnight bank deposits, in each case
with any United States domestic commercial bank having capital and surplus in
excess of $500 million and a Keefe Bank Watch Rating of “B” or better; (iv)
repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (ii) and (iii) above entered into
with any financial institution

 

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meeting the
qualifications specified in clause (iii) above; (v) commercial paper having one
of the two highest rating categories obtainable from Moody’s or S&P in each
case maturing within six months after the date of acquisition; (vi) readily
marketable direct obligations issued by any State of the United States of
America or any political subdivision thereof having one of the two highest
rating categories obtainable from Moody’s or S&P; and (vii) investments in
money market funds which invest at least 95% of their assets in securities of
the types described in clauses (i) through (vi) of this definition.

 

“Change of Control” means the
occurrence of, after the date of the Indenture, either of the following events:
(a) any Person (other than a Permitted Holder) or any Persons (other than any
Permitted Holders) acting together that would constitute a group (for purposes
of Section 13(d) of the Exchange Act, or any successor provision thereto) (a
“Group”), together with any Affiliates thereof (other than any Permitted
Holders) shall beneficially own (as defined in Rule 13d-3 under the Exchange
Act, or any successor provision thereto) at least 50% of the aggregate voting
power of all classes of Capital Stock of the Company entitled to vote generally
in the election of directors (the determination of aggregate voting power to
recognize that the Company’s Class B Stock, par value 66 2/3 cents per share,
currently has ten votes per share and the Company’s Common Stock, par value 66
2/3 cents per share, currently has one vote per share); or (b) any Person
(other than a Permitted Holder) or Group (other than any Permitted Holders)
together with any Affiliates thereof (other than any Permitted Holders) shall
succeed in having a sufficient number of its nominees who are not management
nominees elected to the Board of Directors of the Company such that such
nominees when added to any existing director remaining on the Board of
Directors of the Company after such election who is an Affiliate (other than
any Permitted Holder) of such Group, will constitute a majority of the Board of
Directors of the Company.

 

“Closing Date” means the date
on which the Original Securities are originally issued under the Indenture.

 

“Company” means the Person
named as the “Company” in the first paragraph of this Indenture, until a
successor Person shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter 
“Company” shall mean such successor Person.  To the extent necessary to comply with the requirements of the
provisions of Trust Indenture Act Sections 310 through 317 as they are
applicable to the Company, the term “Company” shall include any other obligor
with respect to the Securities for the purposes of complying with such
provisions.

 

“Consolidated EBITDA” means,
with respect to any Person for any period, the Consolidated Net Income (Loss)
of such Person for such period increased (to the extent deducted in determining
Consolidated Net Income (Loss)) by the sum of: 
(i) all income taxes of such Person and its Subsidiaries paid or accrued
in accordance with GAAP for such period (other than income taxes attributable
to extraordinary, unusual or nonrecurring gains or losses); (ii) Consolidated Interest
Expense of such Person and its Subsidiaries for such period; (iii) depreciation
expense of such Person and its Subsidiaries for such period; (iv) amortization
expense of such Person and its Subsidiaries for such period including
amortization of capitalized debt issuance costs; and (v) any other non-cash
charges of such Person and its Subsidiaries for such period (including non-cash
expenses recognized in accordance with Financial Accounting Standard Number
106), all determined on a consolidated basis in accordance with GAAP; provided,
however, that, for purposes of this definition, all transactions
involving the acquisition of any Person or motion picture theatre by another
Person shall be accounted for on a “pooling of interests” basis and not as a purchase;
provided, further, that, solely with respect to calculations of the
Consolidated EBITDA Ratio: (i) Consolidated EBITDA shall include the effects of

 

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incremental contributions
the Company reasonably believes in good faith could have been achieved during
the relevant period as a result of a Theatre Completion had such Theatre
Completion occurred as of the beginning of the relevant period; provided,
however, that such incremental contributions were identified and quantified in
good faith in an Officers’ Certificate delivered to the Trustee at the time of
any calculation of the Consolidated EBITDA Ratio; (ii) Consolidated EBITDA
shall be calculated on a pro forma basis after giving effect to any motion
picture theatre or screen that was permanently or indefinitely closed for
business at any time on or subsequent to the first day of such period as if
such theatre or screen was closed for the entire period; and (iii) all
preopening expense and theatre closure expense which reduced (or increased)
Consolidated Net Income (or Loss) during any applicable period shall be added
to Consolidated EBITDA.

 

“Consolidated EBITDA Ratio”
of any Person means, for any period, the ratio of Consolidated EBITDA to
Consolidated Interest Expense for such period (other than any non-cash
Consolidated Interest Expense attributable to any amortization or write-off of
deferred financing costs); provided that, in making such computation, (A) the
Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a pro forma basis and bearing a floating interest rate shall be
computed as if the rate in effect on the date of computation had been the
applicable rate for the entire period and (B) with respect to any Indebtedness
which bears, at the option of such Person, a fixed or floating rate of
interest, such Person shall apply, at its option, either the fixed or floating
rate.

 

“Consolidated Interest Expense”
of any Person means, without duplication, for any period, as applied to any
Person, (A) the sum of (a) the aggregate of the interest expense on
Indebtedness of such Person and its consolidated Subsidiaries for such period,
on a consolidated basis, including, without limitation: (i) amortization of
debt discount; (ii) the net cost under Interest Rate Protection Agreements
(including amortization of discounts); (iii) the interest portion of any
deferred payment obligation; and (iv) accrued interest, plus (b) the interest
component of the Capital Lease Obligations paid, accrued and/or scheduled to be
paid or accrued by such Person and its consolidated Subsidiaries during such
period, minus (B) the cash interest income (exclusive of deferred financing
fees) of such Person and its consolidated subsidiaries during such period, in
each case as determined in accordance with GAAP consistently applied.

 

“Consolidated Net Income (Loss)”
of any Person means, for any period, the consolidated net income (loss) of such
Person and its consolidated Subsidiaries for such period as determined in
accordance with GAAP, adjusted, to the extent included in calculating such net
income (loss), by excluding all extraordinary gains or losses (net of
reasonable fees and expenses relating to the transaction giving rise thereto)
of such Person and its Subsidiaries.

 

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

 

“Corporate Trust Office”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date of
execution of this Indenture is located at 452 Fifth Avenue, New York, New York
10018, Attn:  Issuer Services.

 

“Credit Facility” means that
certain Amended and Restated Credit Agreement, dated as of April 10, 1997,
as amended, among the Company, The Bank of Nova Scotia, as administrative
agent, Bank of America National Trust and Savings Association, as document
agent, and the various other financial institutions thereto, as the same may be
amended from time to time,

 

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together with any
extension, revisions, refinancing or replacement thereof by a lender or
syndicate of lenders.

 

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

 

“Debt Rating” means the
rating assigned to the Securities by Moody’s or S&P, as the case may be.

 

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

 

“Designated Senior Indebtedness”
means: (i) all Senior Indebtedness under the Credit Facility; and (ii) any
other Senior Indebtedness: (a) which at the time of determination exceeds $30
million in aggregate principal amount, (b) which is specifically designated in
the instrument evidencing such Senior Indebtedness as “Designated Senior
Indebtedness” by the Company and (c) as to which the Trustee has been given
written notice of such designation.  The
“authorized representative” of Designated Senior Indebtedness shall be the
agent under the Credit Facility (initially, The Bank of Nova Scotia) or other representative,
designated in writing by the Company to the Trustee, of the holders of any
class or issue of Designated Senior Indebtedness.

 

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

 

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

 

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

 

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

 

“Guaranteed Indebtedness” of
any Person means, without duplication, all Indebtedness of any other Person referred
to in the definition of Indebtedness and all dividends of other Persons for the
payment of which, in either case, such Person is directly or indirectly
responsible or liable as obligor, guarantor or otherwise.

 

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

 

6

 

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

 

“Indebtedness” means, with
respect to any Person, without duplication: (i) all indebtedness of such Person
for borrowed money or for the deferred purchase price of property or services,
excluding any trade payables and other accrued current liabilities Incurred in
the ordinary course of business, but including, without limitation, all
obligations of such Person in connection with any letters of credit and
acceptances issued under letter of credit facilities, acceptance facilities or
other similar facilities, now or hereafter outstanding; (ii) all obligations of
such Person evidenced by bonds, notes, debentures or other similar instruments;
(iii) all indebtedness created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person
(even if the rights and remedies of the seller or lender under such agreement
in the event of default are limited to repossession or sale of such property),
but excluding trade accounts payable arising in the ordinary course of
business; (iv) every obligation of such Person issued or contracted for as
payment in consideration of the purchase by such Person or a Subsidiary of such
Person of the Capital Stock or substantially all of the assets of another
Person or in consideration for the merger or consolidation with respect to
which such Person or a Subsidiary of such Person was a party; (v) all indebtedness
referred to in clauses (i) through (iv) above of other Persons and all
dividends of other Persons, the payment of which is secured by (or for which
the holder of such indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien upon or in property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such indebtedness; (vi) all
Guaranteed Indebtedness of such Person; (vii) all obligations under Interest
Rate Protection Agreements of such Person; (viii) all Currency Hedging
Obligations of such Person; (ix) all Capital Lease Obligations of such Person;
and (x) any amendment, supplement, modification, deferral, renewal, extension
or refunding of any liability of the types 
referred to in clauses (i) through (ix) above.

 

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

 

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

 

7

 

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

 

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

 

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

 

“Non-Payment Default” means
any event of default with respect to any Designated Senior Indebtedness (other
than a Payment Default) pursuant to which the Maturity thereof may be
accelerated.

 

“Non-Recourse Indebtedness”
means Indebtedness as to which: (i) none of the Company or any of its
Subsidiaries (a) provides credit support (including any undertaking, agreement
or instrument which would constitute Indebtedness) or (b) is directly or
indirectly liable; and (ii) no default with respect to such Indebtedness
(including any rights which the holders thereof may have to take enforcement
action against the relevant Unrestricted Subsidiary or its assets) would permit
(upon notice, lapse of time or both) any holder of any other Indebtedness of
the Company or its Subsidiaries (other than Non-Recourse Indebtedness) to
declare a default on such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity.

 

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

 

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

 

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

 

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

 

8

 

“Payment Default” means any
default in payment (whether at stated maturity, upon scheduled installment, by
acceleration or otherwise) of principal of, premium, if any, or interest in
respect of any Senior Indebtedness beyond any applicable grace periods.

 

“Permitted Holder” means: (i)
Mr. Stanley H. Durwood’s surviving spouse and any of his lineal descendants and
their respective spouses (collectively, the “Durwood Family”) and any Affiliate
of any member of the Durwood Family; (ii) Mr. Stanley H. Durwood’s estate, or
any trust established by Mr. Stanley H. Durwood, during any period of
administration prior to the distribution of assets to beneficiaries who are
Persons described in clause (iii) below; (iii) any trust which is established
solely for the benefit of one or more members of the Durwood Family (whether or
not any member of the Durwood Family is a trustee of such trust) or solely for
the benefit of one or more charitable organizations or solely for the benefit
of a combination of members of the Durwood Family and one or more charitable
organizations; (iv) any member of the Apollo Group; and (v) any Subsidiary, any
employee stock purchase plan, stock option plan or other stock incentive plan
or program, retirement plan or automatic reinvestment plan or any substantially
similar plan of the Company or any Subsidiary or any Person holding securities
of the Company for or pursuant to the terms of any such employee benefit plan;
provided that if any lender or other Person shall foreclose on or otherwise
realize upon or exercise any remedy with respect to any security interest in or
Lien on any securities of the Company held by any Person listed in this clause
(v), then such securities shall no longer be deemed to be held by a Permitted
Holder.

 

“Permitted Indebtedness”
means the following:

 

(i) Indebtedness of the
Company under the Original Securities or upon an exchange of such Original
Securities for Exchange Securities or Private Exchange Securities, such Exchange
Securities or Private Exchange Securities;

 

(ii) Indebtedness of the
Company under the Credit Facility in an aggregate principal amount at any one
time outstanding not to exceed $425 million;

 

(iii) Indebtedness of the
Company or any of its Subsidiaries outstanding on the Closing Date;

 

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

 

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

 

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

 

(vii) Indebtedness of any
Subsidiary incurred in connection with the Guarantee of any Indebtedness of the
Company;

 

9

 

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

 

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

 

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

 

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

 

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

 

(xiii) Indebtedness of
the Company or any of its Subsidiaries to an Unrestricted Subsidiary for money
borrowed; provided that (a) such Indebtedness is subordinated in right of
payment to the Securities by incorporation by reference of and in accordance
with the provisions set forth in Schedule I hereto and (b) the Weighted
Average Life of such Indebtedness is greater than the Weighted Average Life of
the Securities;

 

(xiv) Construction
Indebtedness in an aggregate principal amount that does not exceed $100 million
at any time outstanding; and

 

(xv) Indebtedness not
otherwise permitted to be incurred pursuant to clauses (i) through (xiv) above
which, together with any other Indebtedness pursuant to this clause (xv), has
an aggregate principal amount that does not exceed $100 million at any time
outstanding.

 

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

 

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

 

“Preferred Stock” means,
collectively, the Company’s Series A Convertible Preferred Stock and Series B
Exchangeable Preferred Stock.

 

“Property” means, with
respect to any Person, any interest of such Person in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible, including
Capital Stock in, and other securities of, any other Person.  For purposes of any calculation required
pursuant to this Indenture, the value of any Property shall be its Fair Market
Value.

 

“Redeemable Capital Stock”
means any Capital Stock that, either by its terms, by the terms of any security
into which it is convertible or exchangeable or otherwise, is or upon the
happening of an event or passage of time would be required to be redeemed prior
to the final Stated Maturity of the Securities or is mandatorily redeemable at
the option of the holder thereof

 

10

 

at any time prior to such
final Stated Maturity (except for any such Capital Stock that would be required
to be redeemed or is redeemable, at the option of the holder thereof if the
issuer thereof may redeem such Capital Stock for consideration consisting
solely of Capital Stock that is not Redeemable Capital Stock) or is convertible
into or exchangeable for debt securities at any time prior to such final Stated
Maturity at the option of the thereof.

 

“Representative” means the
trustee, agent or representative expressly authorized to act in such capacity,
if any, for an issue of Senior Indebtedness.

 

“Restricted Payments Computation Period”
means the period (taken as one accounting period) from the beginning of the
first fiscal quarter commencing after January 27, 1999 to the last day of
the Company’s fiscal quarter preceding the date of the applicable proposed
Restricted Payment.

 

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

 

“SEC” means the Securities
and Exchange Commission.

 

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

 

“Senior Indebtedness” means:
(i) all obligations of the Company, now or hereafter existing, under or in
respect of the Credit Facility; and (ii) the principal of, premium, if any, and
interest on all other Indebtedness of the Company (other than the Securities,
the 9 1/2% Notes due 2009, the 9 1/2% Notes due 2011 and the 9 7/8% Notes due
2012), whether outstanding on the date of the Indenture or thereafter created,
incurred or assumed, unless, in the case of any particular Indebtedness, the
instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such Indebtedness shall not be senior in
right of payment to the Securities. 
Notwithstanding the foregoing, “Senior Indebtedness” shall not include:
(i) Indebtedness evidenced by the Securities; (ii) Indebtedness of the Company
that is expressly subordinated in right of payment to any Senior Indebtedness
of the Company, the Securities or the Indebtedness evidenced by the 9 1/2%
Notes due 2009, the 9 1/2% Notes due 2011 or the 9 7/8% Notes due 2012; (iii)
Indebtedness of the Company that by operation of law is subordinate to any
general unsecured obligations of the Company; (iv) Indebtedness of the Company
to the extent incurred in violation of any covenant of the Indenture; (v) any
liability for federal, state or local taxes or other taxes, owed or owing by
the Company; (vi) trade account payables owed or owing by the Company; (vii)
amounts owed by the Company for compensation to employees or for services
rendered to the Company; (viii) Indebtedness of the Company to any Subsidiary
or any other Affiliate of the Company; and (ix) Indebtedness which when
incurred and without respect to any election under Section 1111(b) of
Title 11 of the United States Code is without recourse to the Company or any
Subsidiary.

 

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

 

“Special Interest” means the
additional interest, if any, to be paid on the Securities as described in
Exhibit 1 to Appendix A.

 

11

 

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

 

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

 

“Theatre Completion” means
any motion picture theatre or screen which was first opened for business by the
Company or a Subsidiary of the Company during any applicable period.

 

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

 

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

 

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

 

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

 

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

 

“Unrestricted Subsidiary”
means a Subsidiary of the Company designated in writing to the Trustee: (i)
whose properties and assets, to the extent they secure Indebtedness, secure
only Non-Recourse Indebtedness; (ii) that has no Indebtedness other than
Non-Recourse Indebtedness; and (iii) that has no Subsidiaries.

 

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

 

12

 

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

 

Section 1.02.        Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in
  Section

  
	
   

  	
   

  	
   

  
	
  “Bankruptcy Order”

  	
   

  	
  6.07

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.09

  	
   

  
	
  “Change of Control Purchase Price”

  	
   

  	
  4.09

  	
   

  
	
  “covenant defeasance option”

  	
   

  	
  8.01

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Exchange Security”

  	
   

  	
  Appendix A

  	
   

  
	
  “Global Security”

  	
   

  	
  Appendix A

  	
   

  
	
  “Initial Blockage Period”

  	
   

  	
  10.03

  	
   

  
	
  “Initial Security”

  	
   

  	
  Appendix A

  	
   

  
	
  “legal defeasance option”

  	
   

  	
  8.01

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  11.08

  	
   

  
	
  “OID”

  	
   

  	
  2.01

  	
   

  
	
  “Original Securities”

  	
   

  	
  2.01

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.04

  	
   

  
	
  “Payment Blockage Period”

  	
   

  	
  10.03

  	
   

  
	
  “Permitted Junior Securities”

  	
   

  	
  10.02

  	
   

  
	
  “Private Exchange Security”

  	
   

  	
  Appendix A

  	
   

  
	
  “Registered Exchange Offer”

  	
   

  	
  Appendix A

  	
   

  
	
  “Registrar”

  	
   

  	
  2.04

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.06

  	
   

  
	
  “Shelf Registration Statement”

  	
   

  	
  Appendix A

  	
   

  
	
  “Subordinated Obligations”

  	
   

  	
  10.01

  	
   

  
	
  “Surviving Entity”

  	
   

  	
  5.01

  	
   

  
	
  “U.S. Government Obligations”

  	
   

  	
  8.02

  	
   

  

 

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

 

“Commission” means the
SEC.

 

“Indenture securities”
means the Securities.

 

“indenture Security
Holder” means a Securityholder.

 

“indenture to be
Qualified” means this Indenture.

 

13

 

“Indenture Trustee” or
“institutional Trustee” means the Trustee.

 

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

 

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

 

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

 

(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; and

 

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

 

ARTICLE II

The
Securities

 

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

 

Subject to
Section 2.03, the Trustee shall authenticate Securities for original issue
on the Closing Date in the aggregate principal amount of $300,000,000 (the “Original
Securities”).  With respect
to any Securities issued after the Closing Date (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, Original Securities pursuant to Section 2.07, 2.09 or
3.06 or Appendix A), there shall be established in or pursuant to a resolution
of the Board of Directors, and subject to Section 2.03, set forth, or
determined in the manner provided in an Officers’ Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of such
Securities:

 

14

 

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

 

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

 

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

 

(4)           if applicable, that such Securities shall be issuable
in whole or in part in the form of one or more Global Securities and, in such
case, the respective depositories for such Global Securities, the form of any
legend or legends that shall be borne by any such Global Security in addition
to or in lieu of that set forth in Exhibit 1 to Appendix A and any circumstances
in addition to or in lieu of those set forth in Section 2.3 of Appendix A
in which any such Global Security may be exchanged in whole or in part for
Securities registered, and any transfer of such Global Security in whole or in
part may be registered, in the name or names of Persons other than the
depository for such Global Security or a nominee thereof; and

 

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

 

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

 

Section 2.02.        Form
and Dating.  Provisions relating
to the Initial Securities of each series, the Private Exchange Series and the
Exchange Securities are set forth in Appendix A, which is hereby incorporated
in and expressly made part of this Indenture. 
The Initial Securities of each series, the Exchange Securities, the
Private Exchange Securities and the Trustee’s certificate of authentication
shall be substantially in the form of Exhibit 1 to Appendix A which is hereby
incorporated in and expressly made a part of this Indenture.  The Securities of each series may have notations,
legends or endorsements required by law, stock exchange rule, agreements to
which the Company is subject, if any, or usage, provided that any such
notation, legend or endorsement is in a form reasonably acceptable to the
Company.  Each Security shall be dated
the date of its authentication.  The
terms of the Securities of each series set forth in Exhibit 1 to Appendix A are
part of the terms of this Indenture.

 

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

 

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

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

Section 2.06.        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 2.07.        Replacement
Securities.  If a mutilated
security is surrendered to the Registrar or if the Holder of a Security claims
that such Security has been lost, destroyed or wrongfully taken, the Company
shall issue and the Trustee shall authenticate a replacement Security if the
requirements of Section 8-405 of the Uniform Commercial Code are met and
the Holder satisfies any other reasonable requirements of the Trustee.  If required by the Trustee or the Company,
such Holder shall furnish an indemnity bond sufficient in the judgment of the
Company and the Trustee to protect the Company, the Trustee, the Paying Agent,
the Registrar and any co-registrar from any loss which any of them may suffer
if a Security is replaced.  The Company
and the Trustee may charge the Holder for their expenses in replacing a
Security.

 

Every replacement
Security is an additional obligation of Company.

 

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

 

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

 

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

 

Section 2.09.        Temporary
Securities.  Until definitive
Securities are ready for delivery, the Company may prepare and the Trustee
shall authenticate temporary Securities. 
Temporary Securities shall be substantially in the form of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities.  Without
unreasonable delay, the Company shall prepare and the Trustee shall
authenticate 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 (subject to the record retention requirements of the Exchange Act)
all Securities surrendered for registration of transfer, exchange, payment or
cancellation and deliver cancelled Securities to the Company upon a written
direction of the Company.  Except as
expressly permitted herein, the Company may not issue new Securities to replace
Securities it has redeemed, paid or delivered to the Trustee for cancellation.

 

17

 

Section 2.11.        Defaulted
Interest.  If the Company
defaults in a payment of interest on the Securities, the Company shall pay the
defaulted interest (plus interest on such defaulted interest at the rate borne
by the Securities to the extent lawful) in any lawful manner.  The Company 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 in notices of redemption as a convenience
to Holders; provided, however, that neither the Company nor the Trustee shall
have any responsibility for any defect in the “CUSIP” number that appears on
any Security, check, advice of payment or redemption notice, and any such
notice may state that no representation is made as to the correctness of such
numbers either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers.

 

ARTICLE III

Redemption

 

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

 

The Company shall give
each notice to the Trustee provided for in this Section at least 45 days
before the redemption date unless the Trustee consents to a shorter
period.  Such notice shall be
accompanied by an Officers’ Certificate and an Opinion of Counsel from the
Company to the effect that such redemption will comply with the conditions
herein.

 

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

 

18

 

The notice shall identify
the Securities (or portion thereof) to be redeemed (including CUSIP numbers if
any) 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, or if a Security is to be redeemed in part only, the identification
and principal amounts of the particular Securities (or portion thereof) to be
redeemed;

 

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

 

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

 

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

 

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

 

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

 

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

 

19

 

ARTICLE IV

Covenants

 

Section 4.01.        Payment
of Securities.  The Company
shall promptly pay the principal of and interest on the Securities, in
immediately available funds, 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 and the
Trustee or the Paying Agent, as the case may be, is not prohibited from paying
such money to the Securityholders on that date pursuant to the terms of this
Indenture.

 

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

 

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

 

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

 

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

 

(b)           all
material lawful claims for labor, materials and supplies, which, if unpaid,
might by law become a Lien upon the property of the Company or any Subsidiary
that could produce a material adverse effect on the consolidated financial
condition of the Company; provided, however, that the Company
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity
is being contested in good faith by appropriate proceedings.

 

Section 4.04.        Maintenance
of Properties.  The Company will
cause all Properties owned by the Company or any Subsidiary or used or held for
use in the conduct of its business or the business of any Subsidiary to be
maintained and kept in good condition, repair and working order and supplied
with all necessary equipment and will cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in
connection therewith may be properly and advantageously conducted at all times,
except, in every case, as and to the extent that the Company may be prevented
by fire, strikes, lockouts, acts of God, inability to obtain labor or
materials, governmental restrictions, enemy action, civil commotion or
unavoidable casualty or similar causes beyond the control of the Company; provided,
however,
that nothing in this Section shall prevent the Company from discontinuing
the maintenance of any such Properties if such discontinuance is, in the
judgment of the Company, desirable in the conduct of

 

20

 

its business or
the business of any Subsidiary and not disadvantageous in any material respect
to the Holders.

 

Section 4.05.        Limitation
on Consolidated Indebtedness. 
The Company will not, and will not permit any of its Subsidiaries to
Incur any Indebtedness (excluding Permitted Indebtedness) unless after giving
effect to such event on a pro forma basis the Company’s Consolidated EBITDA
Ratio for the four (4) full fiscal quarters immediately preceding such event,
taken as one period calculated on the assumption that such Indebtedness had been
incurred on the first day of such four-quarter period, is greater than or equal
to 2.0:1.

 

Section 4.06.        Limitation
on Restricted Payments.  The
Company shall not, directly or indirectly:

 

(a)           declare or pay any dividend on, or make any
distribution in respect of, any shares of the Company’s or any Capital Stock
(excluding dividends or distributions payable in shares of its Capital Stock or
in options, warrants or other rights to purchase such Capital Stock, but
including dividends or distributions payable in Redeemable Capital Stock or in
options, warrants or other rights to purchase Redeemable Capital Stock (other
than dividends on such Redeemable Capital Stock payable in shares of such
Redeemable Capital Stock)) held by any Person other than the Company or any of
its Wholly-Owned Subsidiaries; or

 

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

 

(such payments or any
other actions described in (a) and (b) above are collectively referred to as “Restricted Payments”)
unless at the time of and after giving effect to the proposed Restricted
Payment (the amount of any such Restricted Payment, if other than cash, as
determined by the Board of Directors, whose determination shall be conclusive
and evidenced by a Board Resolution): 
(1) no Default or Event of Default shall have occurred and be
continuing; (2) the Company could incur $1.00 of additional Indebtedness (other
than Permitted Indebtedness) under the provisions of Section 4.05 and (3)
the aggregate amount of all Restricted Payments declared or made after
January 27, 1999 (including the proposed Restricted Payment) does not
exceed the sum of:

 

(1)           (x) Consolidated EBITDA for the Restricted Payments
Computation Period minus (y) 2.0 times Consolidated Interest Expense for the
Restricted Payments Computation Period;

 

(2)           the aggregate net proceeds, including the Fair Market
Value of property other than cash (as determined by the Board of Directors,
whose determination shall be conclusive, except that for any property whose
Fair Market Value exceeds $10.0 million such Fair Market Value shall be
confirmed by an independent appraisal obtained by the Company), received after
January 27, 1999 by the Company from the issuance or sale (other than to
any of its Subsidiaries) of shares of Capital Stock of the

 

21

 

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

 

(3)           the aggregate net proceeds, including the Fair Market
Value of property other than cash (as determined by the Board of Directors,
whose determination shall be conclusive, except that for any property whose
Fair Market Value exceeds $10.0 million such Fair Market Value shall be
confirmed by an independent appraisal obtained by the Company), received after
January 27, 1999 by the Company from debt securities that have been
converted into or exchanged for Capital Stock of the Company (other than
Redeemable Capital Stock) to the extent such debt securities were originally
sold for such net proceeds plus the aggregate cash received by the Company at
the time of such conversion; and

 

(4)           $100.0 million.

 

Notwithstanding the
foregoing limitation, the Company may: 
(a) pay dividends on its Capital Stock within sixty days of the
declaration thereof if, on the declaration date, such dividends could have been
paid in compliance with the foregoing limitation or (b) acquire, redeem or
retire Capital Stock in exchange for, or in connection with a substantially
concurrent issuance of, Capital Stock of the Company (other than Redeemable
Capital Stock).

 

Section 4.07.        Limitation
on Transactions with Affiliates. 
(a)  The Company will not, and
will not permit any of its Subsidiaries to, directly or indirectly enter into
or suffer to exist any transaction or series of related transactions
(including, without limitation, the sale, purchase, exchange or lease of
assets, property or services) with any Affiliate of the Company (other than a
Wholly-Owned Subsidiary of the Company) involving aggregate consideration in
excess of $5.0 million unless (A) such transaction or series of transactions is
on terms that are no less favorable to the Company or such Subsidiary, as the
case may be, than would be available at the time of such transaction or series
of transactions in a comparable transaction in an arm’s-length dealing with an
unaffiliated third party, (B) such transaction or series of transactions is in
the best interests of the Company and (C) with respect to a transaction or
series of transactions involving aggregate payments equal to or greater than
$50.0 million, a majority of disinterested members of the Board of Directors
determines that such transaction or series of transactions complies with
clauses (A) and (B) above, as evidenced by a Board Resolution.

 

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

 

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

 

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

 

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

 

22

 

equity interest in the Company), by any Affiliate of the Company other
than a Subsidiary); and

 

(iv)          the
payment of compensation (including amounts paid pursuant to employee benefit
plans) for the personal services of officers, directors and employees of the
Company or any of its Subsidiaries.

 

Section 4.08.        Limitation
on Senior Subordinated Indebtedness. 
The Company will not Incur any Indebtedness that is subordinate or
junior in right of payment to any Senior Indebtedness and senior in right of
payment to the Securities.

 

Section 4.09.        Change
of Control.  Upon the occurrence
of a Change of Control, the Company will be required to make an offer (a “Change of Control Offer”)
to purchase all outstanding Securities at a purchase price equal to 101% (the “Change of Control Purchase Price”)
of their principal amount 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).

 

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

 

In the event that the
Company makes a Change of Control Offer to purchase the Securities pursuant to
this Section 4.09, the Company will comply with any applicable securities
laws and regulations, including any applicable requirements of
Section 14(e) of, and Rule l4e-1 under, the Exchange Act.

 

Section 4.10.        Provision
of Financial Information. 
(a)  Whether or not the Company
is subject to the reporting requirements of the Exchange Act, or any successor
provision thereto, the Company will furnish without cost to each Holder of
Securities and file with the Commission and the Trustee: (i) within 90 days
after the end of each fiscal year of the Company (x) audited year-end
consolidated financial statements (including a balance sheet, income statement
and statement of cash flows) prepared in accordance with GAAP and (y) the
information described in Item 303 of Regulation S-K under the Securities Act,
with respect to such period; and (ii) within 45 days after the end of each of
the first three fiscal quarters of each fiscal year of the Company, (x)
unaudited quarterly consolidated financial statements (including a balance
sheet, income statement and statement of cash flows) prepared in accordance
with GAAP and (y) the information described in Item 303 of Regulation S-K under
the Securities Act, with respect to such period.  The Company may satisfy this obligation by furnishing copies of
reports filed by it under Section 13(d) or 15 of the Exchange Act.  Notwithstanding the foregoing, the Company
shall not be obligated to file such information, documents and reports with the
Commission if the Commission does not permit such filings.

 

(b)           In
addition, unless it is then subject to the reporting requirements of
Section 13(d) or 15 of the Exchange Act, the Company will furnish to any
prospective purchaser of Securities or beneficial owner of Securities in
connection with any sale thereof the information required by Rule 144A(d)(4)
under the Securities Act, until such time as the Company has either

 

23

 

exchanged the
Securities for the Exchange Securities or until such time as the Holders
thereof have disposed of such Securities pursuant to a Shelf Registration
Statement.

 

Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from any information contained
therein, including the Company’s compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers’
Certificates).

 

Section 4.11.        Statement
as to Compliance.  The Company
shall deliver to the Trustee, within 90 days after the end of each fiscal year
ending after the date hereof (the fiscal year as of the date hereof is the
52/53 week period ending on the Thursday nearest March 31), a brief
certificate of its principal executive officer, principal financial officer or
principal accounting officer stating whether, to such officer’s knowledge, the
Company is in compliance with all covenants and conditions to be complied with
by it under this Indenture; provided that the first such certificate
shall be delivered no later than June 30, 2004.  For purposes of this Section 4.11, such compliance shall be
determined without regard to any period of grace or requirement of notice under
this Indenture.

 

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

 

Section 4.12.        Waiver
of Certain Covenants.  The
Company may omit in any particular instance to comply with any covenant or
condition set forth in Sections 4.03 to 4.09 and Section 4.10(a), if
before the time for such compliance, the Holders of a majority in aggregate
principal amount of the Securities at the time outstanding shall, by written
direction of such Holders, waive such compliance in such instance with such
covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such covenant or condition shall remain in full
force and effect.

 

Section 4.13.        OID
Certificate.  The Company shall
file with the Trustee promptly after the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including
daily rates and accrual periods) accrued on outstanding Securities as of the
end of such year and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Internal Revenue Code
of 1986, as amended from time to time.

 

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

 

ARTICLE V

Successor
Company

 

Section 5.01.        Consolidation.  The Company shall not, in a single
transaction or through a series of related transactions, consolidate with or
merge with or into any other Person

 

24

 

(other than any
Wholly-Owned Subsidiary) or sell, assign, transfer, lease or otherwise dispose
of all or substantially all of its properties and assets to any Person (other
than any Wholly-Owned Subsidiary) or group of affiliated Persons unless at the
time and after giving effect thereto:

 

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

 

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

 

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

 

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

 

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

 

ARTICLE VI

Defaults
and Remedies

 

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

 

25

 

(a)           default
in the payment of any interest (including any Special Interest) on any Security
when it becomes due and payable, whether or not such payment shall be
prohibited by Article Ten, and continuance of such default for a period of
30 days;

 

(b)           default
in the payment of the principal of or premium, if any, on any Security at its
Maturity (upon acceleration, optional redemption, required purchase or
otherwise), whether not or such payment, redemption or purchase shall be
prohibited by Article Ten;

 

(c)           failure
to comply with the requirements of Article Five;

 

(d)           default
in the performance, or breach, of any covenant or warranty of the Company
contained in this Indenture (other than a default in the performance, or
breach, of a covenant or warranty which is specifically dealt with in clause
(a), (b) or (c) above) and continuance of such default or breach for a period
of 60 days after written notice shall have been given to the Company by the
Trustee or to the Company and the Trustee by the holders of at least 25% in
aggregate principal amount of the Securities then outstanding;

 

(e)           (A) one
or more defaults in the payment of principal of or premium, if any, on
Indebtedness of the Company or its Wholly-Owned Subsidiary, American
Multi-Cinema, Inc., a Missouri Corporation (“AMC”), aggregating $5.0 million or
more, when the same becomes due and payable at the stated maturity thereof, and
such default or defaults shall have continued after any applicable grace period
and shall not have been cured or waived or (B) Indebtedness of the Company or
AMC aggregating $5.0 million or more shall have been accelerated or otherwise
declared due and payable, or required to be prepaid or repurchased (other than
by regularly scheduled prepayment) prior to the stated maturity thereof;

 

(f)            any
holder of any Indebtedness in excess of $5.0 million in the aggregate of the
Company or AMC shall notify the Trustee of the intended sale or disposition of
any assets of the Company or AMC that have been pledged to or for the benefit
of such Person to secure such Indebtedness or shall commence proceedings, or
take action (including by way of set-off) to retain in satisfaction of any such
Indebtedness, or to collect on, seize, dispose of or apply, any such asset of
the Company or AMC pursuant to the terms of any agreement or instrument
evidencing any such Indebtedness of the Company or AMC or in accordance with
applicable law;

 

(g)           one or
more final judgments or orders shall be rendered against the Company or AMC for
the payment of money, either individually or in an aggregate amount, in excess
of $5.0 million and shall not be discharged and either (A) an enforcement
proceeding shall have been commenced by any creditor upon such judgment or order
or (B) there shall have been a period of 60 consecutive days during which a
stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, was not in effect;

 

(h)           the
Company or AMC pursuant to or under or within the meaning of any Bankruptcy
Law:

 

(1)           commences
a voluntary case or proceeding;

 

(2)           consents
to the entry of a Bankruptcy Order in an involuntary case or proceeding or the
commencement of any case against it;

 

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

 

26

 

(4)           makes
a general assignment for the benefit of its creditors or files a proposal or
other scheme of arrangement involving the rescheduling or composition of its
indebtedness;

 

(5)           files
a petition in bankruptcy or an answer or consent seeking reorganization or
relief; or

 

(6)           consents
to the filing of such petition in bankruptcy or the appointment of or taking
possession by a Custodian; or

 

(i)            a court
of competent jurisdiction in any involuntary case or proceeding enters a
Bankruptcy Order against the Company or AMC, and such Bankruptcy Order remains
unstayed and in effect for 60 consecutive days; or

 

(j)            a
Custodian shall be appointed out of court with respect to the Company or AMC,
or with respect to all or any substantial part of the property of the Company
or AMC.

 

“Custodian” means any receiver, interim
receiver, receiver and manager, trustee, assignee, liquidator, sequestrate or
similar official under any Bankruptcy Law or any other person with like
powers.  “Bankruptcy Order” means any court order made
in a proceeding pursuant to or within the meaning of any Bankruptcy Law,
containing an adjudication of bankruptcy or insolvency, or providing for
liquidation, winding up, dissolution or reorganization, or appointing a
Custodian of a debtor or of all or any substantial part of a debtor’s property,
or providing for the staying, arrangement, adjustment or composition of
indebtedness or other relief of a debtor.

 

Section 6.02.        Acceleration;
Rescission and Annulment.  If an
Event of Default (other than an Event of Default specified in
Section 6.01(h), (i) or (j)) occurs and is continuing, then and in every
such case the Trustee, by notice to the Company, or the Holders of not less
than 25% in principal amount of the Securities outstanding, by notice to the
Company and the Trustee, may declare the principal of all the Securities to be
due and payable; provided, however, that so long as any Indebtedness
permitted to be incurred pursuant to the Credit Facility shall be outstanding
(including letters of credit and bankers’ acceptances), no such acceleration
shall be effective until the earlier of (i) acceleration of any such
Indebtedness under the Credit Facility and (ii) five Business Days after
the giving of written notice to the Company and an authorized Representative of
the holders of Designated Senior Indebtedness of such acceleration.  If an Event of Default specified in
Section 6.01(h), (i) or (j) occurs and is continuing, then the principal
of all the Securities shall automatically become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder.  The Company will deliver to the
Trustee, within 10 days after the occurrence thereof, notice of any default or
acceleration referred to in Sections 6.01(d) and 6.01(e).

 

At any time after a
declaration of acceleration has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article provided, the Holders of a majority in principal amount of
the Securities outstanding, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if:

 

(a)           the
Company has paid or deposited, or caused to be paid or deposited, with the
Trustee a sum sufficient to pay

 

(1)           all
overdue interest (including Special Interest) on all Securities,

 

27

 

(2)           the
principal of (and premium, if any, on) any Securities that has become due
otherwise than by such declaration of acceleration and interest thereon at the
rate borne by the Securities,

 

(3)           to
the extent that payment of such interest is lawful, interest upon overdue
interest at the rate borne by the Securities, and

 

(4)           all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel;
and

 

(b)           all
Events of Default, other than the non-payment of principal of the Securities
which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 6.04.

 

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

 

Notwithstanding the
preceding paragraph, in the event of a declaration of acceleration in respect
of the Securities because an Event of Default specified in Section 6.01(e)
shall have occurred and be continuing, such declaration of acceleration shall
be automatically annulled if the Indebtedness that is the subject of such Event
of Default (1) is Indebtedness in the form of an operating lease entered into
by the Company or its Subsidiaries after May 21, 1998 and required to be
reflected on a consolidated balance sheet pursuant to EITF 97-10, or any
subsequent pronouncement having similar effect, (2) has been discharged or the
holders thereof have rescinded their declaration of acceleration in respect of
such Indebtedness, and (3) written notice of such discharge or rescission, as
the case may be, shall have been given to the Trustee by the Company and
countersigned by the holders of such Indebtedness or a trustee, fiduciary or
agent for such holders, within 30 days after such declaration of acceleration
in respect of the Securities, and no other Event of Default has occurred during
such 30 day period which has not been cured or waived during such period.

 

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

 

The Trustee may maintain
a proceeding even if it does not possess any of the Securities or does not
produce any of them in the proceeding. 
A delay or omission by the Trustee or any 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 aggregate principal amount of the Securities then outstanding
by notice to the Trustee may waive an existing Default and its consequences
except (i) a Default in the payment of the principal of or interest on a
Security, (ii) a Default arising from a failure to make or consummate a Change
of Control Offer in accordance with the provisions of Section 4.09, or
(iii) 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.

 

28

 

Section 6.05.        Control
by Majority.  The Holders of a
majority in aggregate principal amount of the Securities then outstanding may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee with respect to the Securities. 
However, the Trustee may refuse to follow any direction that conflicts with
law or this Indenture or, subject to Section 7.01, that the Trustee
determines is unduly prejudicial to the rights of other Securityholders or
would involve the Trustee in personal liability; provided, however,
that subject to Section 315 of the TIA, the Trustee may take any other
action deemed proper by the Trustee that is not inconsistent with such
direction.  Prior to taking any action
hereunder, the Trustee shall be entitled to reasonable indemnification against
all losses and expenses caused by taking or not taking such action.

 

Section 6.06.        Limitation
on Suits.  A Securityholder may
not pursue any remedy with respect to this Indenture or the Securities unless:

 

(1)           such Holder shall have previously given to
the Trustee written notice of a continuing Event of Default;

 

(2)           the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding shall have made a written
request, and such Holder of or Holders shall have offered reasonable indemnity,
to the Trustee to pursue such proceeding as trustee; and

 

(3)           the Trustee has failed to institute such
proceeding and has not received from the Holders of at least a majority in
aggregate principal amount of the Securities outstanding a direction
inconsistent with such request, within 60 days after such notice, request and
offer.

 

The foregoing limitations
on the pursuit of remedies by a Securityholder shall not apply to a suit
instituted by a Holder of Securities for the enforcement of payment of the
principal of or interest on such Security on or after the applicable due date
specified in such Security.  A
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 principal of and interest on the securities held
by such Holder, on or after the respective due dates expressed in the Securities,
or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder.

 

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

 

Section 6.09.        Trustee
May File Proofs of Claim.  The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the 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

 

29

 

authorized by each
Holder to make payments to the Trustee and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and its counsel, and any
other amounts due the Trustee under Section 7.07.

 

Section 6.10.        Priorities.  If the Trustee collects any money or
property pursuant to this Article Six, 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 holders of Senior Indebtedness to the extent
required by Article Ten;

 

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

 

FOURTH:      to the Company; and,

 

FIFTH:           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 aggregate principal amount of the Securities.

 

Section 6.12.        Waiver
of Stay or Extension Laws.  The
Company (to the extent it may lawfully do so) shall not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and shall not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as
though no such law had been enacted.

 

ARTICLE VII

Trustee

 

Section 7.01.        Duties
of Trustee.  (a)  If an Event of Default has occurred and is
continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use

 

30

 

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
(but need not confirm or investigate the accuracy of mathematical calculations
or other facts stated therein).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)           No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur financial liability in the performance of any of its
duties hereunder or in the exercise of any of its rights or powers.

 

(h)           Every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section and to the provisions of the TIA and the provisions of this
Article Seven shall apply to the Trustee in its role as Registrar, Paying
Agent and Security Custodian.

 

31

 

(i)            The
Trustee shall not be deemed to have notice of a Default or an Event of Default
unless (a) the Trustee has received written notice thereof from the Company or
any Holder or (b) a Trust Officer shall have actual knowledge thereof.

 

Section 7.02.        Rights
of Trustee.  Subject to  315(a)-(d) of the TIA:

 

(a)           The
Trustee may rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. 
The Trustee need not investigate any fact or matter stated in the
document.  The Trustee may, however, in
its discretion make such further inquiry or investigation into such facts or
matters as it may see fit and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Company, personally or by agent or attorney.

 

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

 

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

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers; provided,
however,
that the Trustee’s conduct does not constitute willful misconduct or
negligence.

 

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

 

(f)            The
permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified herein.

 

Section 7.03.        Individual
Rights of Trustee.  The Trustee
in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or its Affiliate with the
same rights it would have if it were not Trustee.  Any Paying Agent, Registrar or co-registrar may do the same with
like rights.  However, the Trustee must
comply with Sections 7.10 and 7.11.

 

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

 

Section 7.05.        Notice
of Defaults.  If a Default or
Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee shall mail to each Securityholder notice of the Default or Event of
Default within 90 days after it is known to a Trust Officer or written notice
of it is received by the Trustee. 
Except in the case of a Default or Event of Default in payment of
principal of or interest on any Security, the Trustee may withhold the notice
if and so

 

32

 

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 December 31 beginning with December 31, 2004,
and in any event prior to March 31 in each year thereafter, the Trustee
shall mail to each Securityholder a brief report dated as of December 31
each year that complies with TIA 313(a), if and to the extent required by such
subsection.  The Trustee shall also
comply with TIA 313(b) and (c).

 

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 shall
pay to the Trustee and any predecessor Trustee from time to time such
compensation for its services as shall from time to time be agreed to in
writing by the Company and the Trustee. 
The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. 
The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection,
in addition to the compensation for its services.  Such expenses shall include the reasonable compensation and
expenses, disbursements and advances of the Trustee’s agents, counsel,
accountants and experts.  The Company
shall indemnify the Trustee against any and all loss, liability or expense
(including reasonable attorneys’ fees) incurred by it in connection with the
acceptance and administration of this trust and the performance of its duties
hereunder.  The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder.  The Company shall defend the claim and the
Trustee may have separate counsel and the Company shall pay the fees and
expenses of such counsel.  The Company
need not reimburse any expenses or indemnify against any loss, liability or expense
incurred by the Trustee through the Trustee’s own willful misconduct,
negligence or bad faith.  The Company
need not pay for any settlement made by the Trustee without the Company’s
consent, such consent not to be unreasonably withheld.  All indemnifications and releases from
liability granted hereunder to the Trustee shall extend to its officers,
directors, employees, agents, successors and assigns.

 

To secure the Company’s
payment obligations in this Section, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee other than
money or property held in trust to pay principal of and interest on particular
Securities.

 

The Company’s payment
obligations pursuant to this Section shall survive the resignation or
removal of the Trustee and the discharge of this Indenture.  When the Trustee incurs expenses after the
occurrence of a Default specified in Section 6.01(h), (i) or (j) with
respect to the Company, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

 

The provisions of this
Section shall survive the termination of this Indenture.

 

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

 

33

 

(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 a majority in aggregate principal
amount of the Securities then outstanding and such Holders do not reasonably
promptly appoint a successor Trustee, or if a vacancy exists in the office of
Trustee 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 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee or the Holders of 10% in aggregate principal
amount of the Securities then outstanding may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

 

If the Trustee fails to
comply with Section 7.10, any Securityholder who has been a bona fide
Holder of a Security for at least six months may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

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

 

Section 7.09.        Successor
Trustee by Merger.  If the
Trustee consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking
association without any further act shall be the successor Trustee.  In case at the time such successor or
successors by merger, conversion or consolidation to the Trustee shall succeed
to the trusts created by this Indenture any of the Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such
Securities so authenticated; and in case at that time any of the Securities
shall not have been authenticated, any such successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
in the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities
or in this Indenture provided that the certificate of the Trustee shall have.

 

Section 7.10.        Eligibility;
Disqualification.  The Trustee
shall at all times satisfy the requirements of TIA  310(a).  The Trustee shall
have (or, in the case of a corporation included in a bank holding company
system, the related bank holding company shall have) a combined capital and
surplus of at least $50,000,000 as set forth in its (or its related bank
holding

 

34

 

company’s) most
recent published annual report of condition. 
The Trustee shall comply with TIA 310(b), subject to the penultimate
paragraph thereof; 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.

 

For purposes of this
Section 7.10 and clause (i) of the first proviso contained in TIA
Section 310(b), the Indenture dated as of March 19, 1997, as amended,
among the Company and HSBC Bank USA, as successor to The Bank of New York,
providing for the issuance of the 9 1/2% Notes due 2009, the Indenture dated as
of January 27, 1999 as amended, among the Company and HSBC Bank USA, as
successor to The Bank of New York, providing for the issuance of the 9 1/2%
Notes due 2011, and the Indenture dated as of January 16, 2002, as
amended, among the Company and HSBC Bank USA, as successor to The Bank of New
York, providing for the issuance of the 9 7/8% Notes due 2012, are hereby
deemed to be specifically described.

 

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

 

ARTICLE VIII

Discharge
of Indenture; Defeasance

 

Section 8.01.        Discharge
of Liability on Securities; Defeasance.  (a)  When (i) the Company
delivers to the Trustee all outstanding Securities (other than Securities
replaced pursuant to Section 2.07) for cancellation or (ii) all
outstanding Securities have become due and payable, whether at maturity or as a
result of the mailing of a notice of redemption pursuant to Article Three
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 (i) all of
its obligations under the Securities and this Indenture (“legal defeasance option”) or (ii) its
obligations under Section 5.01(c), Article Ten and Sections 4.02,
4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09 and 4.10(a), and the operation of
Sections 6.01 (c) through (g) (“covenant defeasance option”).  The Company may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option.

 

If the Company exercises
its legal defeasance option, payment of the Securities may not be accelerated because
of an Event of Default.  If the Company
exercises its covenant defeasance option, payment of the Securities may not be
accelerated because of an Event of Default specified in Sections 6.01(d) (with
respect to the covenants of Article Four identified in the immediately
preceding paragraph and the provisions of 5.01(c)), 6.01(c), (e), (f) or (g).

 

35

 

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

 

(c)           Notwithstanding
clauses (a) and (b) above, the Company’s obligations in Sections 2.04, 2.05,
2.06, 2.07, 2.09, 4.11, 7.07, 7.08, 8.05 and 8.06 shall survive until the
Securities have been paid in full. 
Thereafter, the Company’s obligations in Sections 7.07 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:

 

(a)           The
Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 7.10
who shall agree to comply with the provisions of this Article Eight
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities, (A) cash in U.S. Dollars in
an amount, or (B) U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment,
cash in U.S. Dollars in an amount, or (C) a combination thereof, sufficient, in
the opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, the principal of (and premium, if any) and
interest (including any Special Interest) on the outstanding Securities on the
Stated Maturity (or redemption date, if applicable) of such principal (and
premium, if any) or installment of interest; provided that the Trustee
shall have been irrevocably instructed to apply such money or the proceeds of
such U.S. Government Obligations to said payments with respect to the
Securities.  Before such a deposit, the
Company may give the Trustee, in accordance with Section 3.01 hereof, a
notice of its election to redeem all of the outstanding Securities at a future
date in accordance with Article Three which notice shall be
irrevocable.  For this purpose, “U.S. Government Obligations”
means securities that are (x) direct obligations of the United States of
America for the timely payment of which its full faith and credit is pledged or
(y) obligations of a Person controlled or supervised by and acting as an agency
or instrumentality of the United States of America the timely payment of which
is unconditionally guaranteed as a full faith and credit obligation by the
United States of America, which, in either case, are not callable or redeemable
at the option of the issuer thereof, and shall also include a depository receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act), as
custodian with respect to any such U.S. Government Obligation or a specific
payment of principal of or interest on any such U.S. Government Obligation held
by such custodian for the account of the holder of such depository receipt, provided
that (except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the U.S. Government
Obligation or the specific payment of principal of or interest on the U.S.
Government Obligation evidenced by such depository receipt;

 

(b)           No
Default or Event of Default shall have occurred and be continuing on the date
of such deposit or, insofar as Section 6.01(h), (i) or (j) is concerned,
at any time during the period ending on the 91st day after the date of such
deposit (it being understood that this condition shall not be deemed satisfied
until the expiration of such period);

 

(c)           the
deposit does not constitute a default hereunder or  under any other material agreement binding on the Company and is
not prohibited by Article Ten;

 

36

 

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

 

(e)           in the
case of the legal defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (i) the Company has received from,
or there has been published by, the Internal Revenue Service a ruling, or (ii)
since the date of this Indenture there has been a change in the applicable
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;

 

(f)            in the
case of the covenant defeasance option, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the 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

 

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

 

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 Eight.  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. 
Money and securities so held in trust are not subject to
Article Ten.

 

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 principal 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 Eight 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 Eight until such time as the
Trustee or Paying Agent is permitted to apply

 

37

 

all such money or
U.S. Government Obligations in accordance with this Article Eight; provided,
however,
that, if the Company has made any payment of interest on or principal of any
Securities because of the reinstatement of its obligations, the Company shall
be subrogated to the rights of the Holders of such Securities to receive such
payment from the money or U.S. Government Obligations held by the Trustee or
Paying Agent.

 

ARTICLE IX

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 Five;

 

(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;

 

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

 

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

 

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

 

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

 

(8)           to make any change that does not adversely
affect the rights of any Securityholder.

 

An amendment under this
Section may not make any change that adversely affects the rights under
Article Ten of any holder of Senior Indebtedness then outstanding unless the
holders of such Senior Indebtedness (or their Representative) consent to such
change.

 

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 aggregate principal amount of the Securities then outstanding
(including consents obtained in connection with a tender offer or exchange
offer for

 

38

 

the
Securities).  However, without the
consent of each Securityholder affected thereby, an amendment may not:

 

(a)           change
the Stated Maturity of the principal of, or any installment of interest
(including Special Interest) on, any Security, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or change the coin or currency in which the principal of
any Security or any premium or the interest (including Special Interest)
thereon is payable, or impair the right to institute suit for the enforcement
of any such payment after the Stated Maturity thereof (or, in the case of
redemption, on or after the redemption date); or

 

(b)           reduce
the amount of, or change the coin or currency of, or impair the right to
institute suit for the enforcement of, the Change of Control Purchase Price; or

 

(c)           reduce
the percentage in principal amount of the outstanding Securities, the consent
of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture; or

 

(d)           modify
any of the provisions of this Section or Sections 6.04, 6.07 and 4.12,
except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent
of the Holder of each Security affected thereby; or

 

(e)           modify
any of the provisions of this Indenture relating to the subordination of the
Securities in a manner adverse to any Holder.

 

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.

 

An amendment under this
Section may not make any change that adversely affects the rights under
Article Ten of any holder of Senior Indebtedness then outstanding unless
the holders of such Senior Indebtedness (or their Representative) consent to
such change.

 

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

 

39

 

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 may, 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
Indenture.  Such record date shall be a
date not more than 30 days prior to the first solicitation of holders generally
in connection therewith and no later than the date such solicitation is
completed.  If a record date is fixed,
then notwithstanding the immediately preceding paragraph or Section 316(c)
of the TIA, those Persons who were 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 previously given or to take any such
action, whether or not such Persons continue to be Holders after such record
date.  No such consent shall be valid or
effective for more than 180 days after such record date.

 

For all purposes of this
Indenture, all Initial Securities, Exchange Securities and Private Exchange
Securities shall vote together as one series of Securities under this
Indenture.

 

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

 

Section 9.06.        Trustee
To Sign Amendments.  The Trustee
shall sign any amendment authorized pursuant to this Article Nine if the
amendment does not adversely affect the rights, duties, liabilities or
immunities of the Trustee.  If it does,
the Trustee may but need not sign it. 
In signing such amendment the Trustee shall be entitled to receive
indemnity reasonably satisfactory to it and to receive, 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.  The Company shall
not, and shall not permit any Affiliate or Subsidiary of the Company to,
directly or indirectly, pay or cause to be paid any consideration, whether by
way of interest, fee or otherwise, to any Holder for or as an inducement to any
consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Securities unless such consideration is offered to be paid 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 X

Subordination

 

Section 10.01.      Agreement
To Subordinate.  The Company
covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter
set forth in this Article, the Obligations in respect of the Securities (the “Subordinated Obligations”)
are hereby expressly made subordinate and postponed to and subject in right of
payment as provided in this Article to the prior payment in full in cash
or Cash Equivalents of all Senior Indebtedness.  The Securities shall in all respects

 

40

 

rank pari passu
with the 9 1/2% Notes due 2009, the 9 1/2% Notes due 2011, the 9-7/8% Notes due
2012 and any future senior subordinated Indebtedness and senior to all existing
and future junior subordinated Indebtedness of the Company, and only Senior
Indebtedness shall rank senior to the Securities in accordance with the
provisions set forth herein.  All
provisions of this Article Ten shall be subject to Section 10.11.

 

This Article Ten
shall constitute a continuing offer to all Persons who, in reliance upon such
Article, become holders of, or continue to hold, Senior Indebtedness, and such
provisions are made for the benefit of the holders of Senior Indebtedness, and
such holders are made obligee hereunder and they or each of them may enforce
such provisions.

 

Section 10.02.      Liquidation,
Dissolution, Bankruptcy.  In the
event of (a) any insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding
in connection therewith, relative to the Company or to its assets, whether
voluntary or involuntary from any source, or (b) any liquidation, dissolution or
other winding-up of the Company, whether voluntary or involuntary and whether
or not involving insolvency or bankruptcy, or (c) any assignment for the
benefit of creditors or any other marshaling of assets or liabilities of the
Company, then and in any such event:

 

(1)           the holders of Senior Indebtedness shall
receive payment in full in cash or Cash Equivalents of all amounts due on or in
respect of all Senior Indebtedness, or provision shall be made for such payment
in full in cash or Cash Equivalents to the satisfaction of the holders of
Senior Indebtedness, before the Holders of the Securities are entitled to
receive any payment or distribution of any kind or character from any source
(other than a payment or distribution in the form of equity securities or
subordinated securities of the Company or any successor obligor provided for by
a plan of reorganization or readjustment that, in the case of any such
subordinated securities, are subordinate in right of payment to all Senior
Indebtedness that may at the time be outstanding to at least the same extent as
the Securities are so subordinated as provided in this Article (such
equity securities or subordinated securities hereinafter being “Permitted
Junior Securities”)) on account of the Subordinated Obligations or on account
of the purchase or redemption or other acquisition of Securities; and

 

(2)           any payment or distribution of assets of the
Company of any kind or character from any source, whether in cash, property or
securities (other than a payment or distribution in the form of Permitted
Junior Securities), including by way of set-off or enforcement of any guarantee
or otherwise, which the Trustee or the Holders would be entitled to receive but
for the provisions of this Article shall be paid by the liquidating
trustee or agent or other person making such payment or distribution, whether a
trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly
to the holders of Senior Indebtedness or their authorized representative or
representatives or to the trustee or trustees under any indenture under which
any instruments evidencing any of such Senior Indebtedness may have been
issued, ratably according to the aggregate amounts remaining unpaid on account
of the Senior Indebtedness held or represented by each, to the extent necessary
to make payment in full in cash or Cash Equivalents of all Senior Indebtedness
of the Company remaining unpaid, after giving effect to any concurrent payment
or distribution, or provision therefor to the satisfaction of the holders of
the Senior Indebtedness, to or for the holders of such Senior Indebtedness; and

 

41

 

(3)           any taxes that have been withheld or
deducted from any payment or distribution in respect of the Securities, or any
taxes that ought to have been withheld or deducted from any such payment or
distribution that have been remitted to the relevant taxing authority, shall
not be considered to be an amount that a Holder or the Trustee is entitled to
receive for the purposes of Section 10.02(2).

 

The consolidation of the
Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the conveyance, transfer,
lease or other disposal of its properties and assets substantially as an
entirety to another Person upon the terms and conditions set forth in
Article Five shall not be deemed a dissolution, winding-up, liquidation,
reorganization, assignment for the benefit of creditors or marshaling of assets
and liabilities of the Company for the purposes of this Section if the
Person formed by such consolidation or into which the Company is merged or the
Person which acquires such assets substantially as an entirety, as the case may
be, shall, as a part of such consolidation, merger, conveyance, transfer, lease
or disposal, comply with the conditions set forth in Article Five.

 

Section 10.03.      Default
on Senior Indebtedness. 
(a)  Unless Section 10.02
shall be applicable, upon (1) the occurrence of a Payment Default and (2)
receipt by the Trustee from the Company or a holder of Senior Indebtedness of
written notice of such occurrence, no payment (other than any payments made
pursuant to the provisions contained in Section 8.02 from monies or U.S.
Government Obligations previously deposited with the Trustee) or distribution
of any assets of the Company of any kind or character from any source, whether
in cash, property or securities (other than Permitted Junior Securities), shall
be made by the Company including by way of set-off or enforcement of any
guarantee or otherwise, on account of the Subordinated Obligations or on
account of the purchase or redemption, deposit for defeasance or other
acquisition of Securities unless and until such Payment Default shall have been
cured or waived in writing or shall have ceased to exist or such Senior
Indebtedness shall have been discharged or paid in full in cash or Cash
Equivalents, after which the Company shall resume making any and all required
payments in respect of the Securities, including any missed payments.

 

(b)           Unless
Section 10.02 shall be applicable, upon (1) the occurrence of a
Non-Payment Default and (2) receipt by the Trustee from an authorized
representative of the holders of Designated Senior Indebtedness of written
notice of such occurrence, then no payment (other than any payments made
pursuant to the provisions contained in Section 8.02 from monies or U.S.
Government Obligations previously deposited with the Trustee) or distribution
of any assets of the Company of any kind or character from any source, whether
in cash, property or securities (other than Permitted Junior Securities), shall
be made by the Company including by way of set-off or enforcement of any
guarantee or otherwise, on account of the Subordinated Obligations or on
account of the purchase or redemption, deposit for defeasance or other
acquisition of Securities for a period (the “Payment Blockage Period”) commencing on the
date of receipt by the Trustee of such notice from an authorized representative
of the holders of Designated Senior Indebtedness or the Company at the
direction of such representative unless and until (subject to any blockage of
payments that may then be in effect under subsection (a) of this Section)
(w) more than 179 days shall have elapsed since receipt of such written notice
by the Trustee, (x) such Non-Payment Default shall have been cured or waived in
writing or shall have ceased to exist, (y) such Designated Senior Indebtedness
has been discharged or paid in full in cash or Cash Equivalents or (z) such
Payment Blockage Period shall have been terminated by written notice to the
Trustee from an authorized representative of the holders of Designated Senior
Indebtedness initiating such Payment Blockage Period or from the holders of at
least a majority in principal amount of such Designated Senior Indebtedness),
after which, in the case of clause (w), (x), (y) or (z), the Company shall
resume making any and all required payments in respect of the Securities,

 

42

 

including any
missed payments.  Notwithstanding any
other provision of this Indenture, in no event shall a Payment Blockage Period
extend beyond 179 days from the date of the receipt by the Trustee of the
notice referred to in clause (2) above (the “Initial Blockage Period”).  No more than one Payment Blockage Period may
be commenced during any period of 365 consecutive days.  Notwithstanding any other provision of this
Indenture, no event of default with respect to Designated Senior Indebtedness
which existed or was continuing  on the
date of the commencement of any Payment Blockage Period initiated by an
authorized representative of the holders of Designated Senior Indebtedness for
such Designated Senior Indebtedness shall be, or be made, the basis for the
commencement of a second Payment Blockage Period for such Designated Senior
Indebtedness, whether or not within the Initial Blockage Period, unless such
event of default shall have been cured or waived for a period of not less than
90 consecutive days.

 

(c)           In the
event that, notwithstanding the foregoing provisions of this Section, the
Company shall make any payment to the Trustee (which is not paid over to
Holders of Securities) prohibited by the foregoing provisions of this Section,
then and in such event such payment shall be paid over to the authorized
representatives of such Designated Senior Indebtedness initiating the Payment
Blockage Period, to be held in trust for distribution to the holders of Senior
Indebtedness or, to the extent amounts are not then due in respect of Senior
Indebtedness, prompt return to the Company, or otherwise as a court of
competent jurisdiction shall direct.

 

Section 10.04.      Payment
Permitted.  Nothing contained in
this Article or elsewhere in this Indenture or in any of the Securities
shall prevent the Company, at any time except during the pendency of any event
referred to in clause (a), (b) or (c) of Section 10.02 or under the
conditions described in Section 10.03, from making payments at any time of
principal of (and premium, if any) or interest on the Securities.

 

Section 10.05.      Subrogation.  After all Senior Indebtedness is paid in
full and until the Securities are paid in full, Securityholders shall be
subrogated (equally and ratably with the holders of all indebtedness of the
Company which by its express terms is subordinated and postponed to Senior
Indebtedness to the same extent as the Securities are subordinated and
postponed and which is entitled to like rights of subrogation) to the rights of
holders of Senior Indebtedness to receive distributions applicable to Senior
Indebtedness.  A distribution made under
this Article Ten to holders of Senior Indebtedness that otherwise would
have been made to Securityholders is not, as between the Company and
Securityholders, a payment by the Company on such Senior Indebtedness.

 

Section 10.06.      Relative
Rights.  This Article Ten
defines the relative rights of Securityholders and holders of Senior
Indebtedness.  Nothing in this Indenture
shall:

 

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

 

(2)           affect
the relative rights against the Company of Securityholders and creditors of the
Company other than the holders of Senior Indebtedness; or

 

(3)           except
as set forth in Section 6.02 prevent the Trustee or any Securityholder
from exercising its available remedies upon a Default or an Event of Default,
subject to the rights of holders of Senior Indebtedness to receive
distributions otherwise payable to Securityholders.

 

43

 

Section 10.07.      Subordination
May Not Be Impaired by Company.

 

(a)  No right of any holder of Senior
Indebtedness to enforce the subordination of the Indebtedness evidenced by the
Securities shall be impaired by any act or failure to act by the Company or by
its failure to comply with this Indenture.

 

(b)           Without
in any way limiting the generality of subsection (a) of this Section, the
holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the Holders of the Securities,
without incurring responsibility to the Holders of the Securities and without
impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior
Indebtedness, do any one or more of the following:

 

(1)           change
the manner, place or terms of payment or extend the time of payment of, or
renew or alter, the terms of Senior Indebtedness or the terms of any instrument
evidencing the same or any agreement under which Senior Indebtedness is
outstanding (including any increase in the aggregate principal amount of any
indebtedness thereunder, it being understood that any such additional
indebtedness shall not constitute Senior Indebtedness to the extent incurred in
violation of Section 4.05 of this Indenture);

 

(2)           sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Indebtedness;

 

(3)           release
any Person liable in any manner for the collection of Senior Indebtedness; and

 

(4)           exercise
or refrain from exercising any rights against the Company and/or any other
Person.

 

(c)           If the
Trustee on behalf of the Holders or any Holders should fail to file a proof of
claim in any bankruptcy, insolvency, receivership or similar proceeding
relating to the Company at least 30 days before the expiration of the time to
file such claim or claims, each holder of Senior Indebtedness (or its
representative) is hereby authorized to file an appropriate claim for and on
behalf of all or any of the Holders.

 

Section 10.08.      Rights
of Trustee and Paying Agent. 
Notwithstanding Section 10.03, the Trustee or Paying Agent may
continue to make payments on the Securities and shall not be charged with
knowledge of the existence of facts that would prohibit the making of any such
payments unless, not less than one Business Day prior to the date of such
payment, a Trust Officer receives notice satisfactory to it that payments may
not be made under this Article Ten. 
The Company, the Registrar or co-registrar, the Paying Agent, a
Representative or a holder of Senior Indebtedness may give the notice; provided,
however,
that, if an issue of Senior Indebtedness has a Representative, only the
Representative may give the notice.

 

Subject to the provisions
of the TIA, the Trustee in its individual or any other capacity may hold Senior
Indebtedness with the same rights it would have if it were not Trustee.  The Registrar and co-registrar and the
Paying Agent may do the same with like rights. 
The Trustee shall be entitled to all the rights set forth in this
Article Ten with respect to any Senior Indebtedness that may at any time
be held by it, to the same extent as any other holder of such Senior
Indebtedness; and nothing in Article Seven shall deprive the Trustee of
any of its rights as

 

44

 

such holder.  Nothing in this Article Ten shall apply
to claims of, or payments to, the Trustee under or pursuant to
Section 7.07.

 

Section 10.09.      Distribution
or Notice to Representative.

 

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

 

Section 10.10.      Article Ten
Not To Prevent Events of Default or Limit Right To Accelerate.  The failure to make a payment pursuant to
the Securities by reason of any provision in this Article Ten shall not be
construed as preventing the occurrence of a Default.  Nothing in this Article Ten shall have any effect on the
right of the Securityholders or the Trustee to accelerate the maturity of the
Securities; provided, however, that, so long as any Indebtedness permitted by
this Indenture to be incurred pursuant to the Credit Facility shall be
outstanding (including letters of credit and bankers’ acceptances), upon the
occurrence and during the continuance of an Event of Default under this
Indenture, neither the Trustee nor any Holder shall be entitled to accelerate
all or any of the Subordinated Obligations until the earlier to occur of the
fifth Business Day following receipt by the Company and by an authorized
representative of the holders of Designated Senior Indebtedness of a written
declaration of acceleration as provided in Section 6.02 and the date of
acceleration of any such Indebtedness under the Credit Facility.

 

Section 10.11.      Trust
Moneys Not Subordinated. 
Notwithstanding anything contained herein to the contrary, payments from
money or the proceeds of U.S. Government Obligations held in trust under
Article Eight by the Trustee and which were deposited in accordance with
the terms of Article Eight and not in violation of Section 10.03 for
the payment of principal of and interest on the Securities shall not be
subordinated to the prior payment of any Senior Indebtedness or subject to the
restrictions set forth in this Article Ten, and none of the
Securityholders shall be obligated to pay over any such amount to the Company
or any holder of Senior Indebtedness or any other creditor of the Company.

 

Section 10.12.      Trustee Entitled To Rely.  Upon any payment or distribution pursuant to
this Article Ten, the Trustee and the Securityholders shall be entitled to
rely (i) upon any order or decree of a court of competent jurisdiction in which
any proceedings of the nature referred to in Section 10.02 are pending,
(ii) upon a certificate of the liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or to the Securityholders or
(iii) upon the Representatives for the holders of Senior Indebtedness for the
purpose of ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other Indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this
Article Ten.  In the event that the
Trustee determines, in good faith, that evidence is required with respect to
the right of any Person as a holder of Senior Indebtedness to participate in
any payment or distribution pursuant to this Article Ten, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of such Senior Indebtedness held by such Person, the
extent to which such Person is entitled to participate in such payment or
distribution and other facts pertinent to the rights of such Person under this
Article Ten, and, if such evidence is not furnished, the Trustee may defer
any payment to such Person pending judicial determination as to the right of
such Person to receive such payment.  The
provisions of Sections 7.01 and 7.02 shall be applicable to all actions or
omissions of actions by the Trustee pursuant to this Article Ten.

 

45

 

Section 10.13.      Trustee To Effectuate
Subordination.  Each Securityholder
by accepting a Security authorizes and directs the Trustee on his behalf to
take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination between the Securityholders and the holders of
Senior Indebtedness as provided in this Article Ten and appoints the
Trustee as attorney-in-fact for any and all such purposes.

 

Section 10.14.      Trustee
Not Fiduciary for Holders of Senior Indebtedness.  The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness and shall not be liable to
any such holders if it shall mistakenly pay over or distribute to
Securityholders or the Company or any other Person, money or assets to which
any holders of Senior Indebtedness shall be entitled by virtue of this
Article Ten or otherwise.

 

Section 10.15.      Reliance
by Holders of Senior Indebtedness Subordination Provisions.  Each Securityholder by accepting a Security
acknowledges and agrees that the foregoing subordination provisions are, and
are intended to be, an inducement and a consideration to each holder of any
Senior Indebtedness, whether such Senior Indebtedness was created or acquired
before or after the issuance of the Securities, to acquire and continue to
hold, or to continue to hold, such Senior Indebtedness and such holder of such
Senior Indebtedness shall be deemed conclusively to have relied on such
subordination provisions in acquiring and continuing to hold, or in continuing
to hold, such Senior Indebtedness.

 

ARTICLE XI

Miscellaneous

 

Section 11.01.      Trust
Indenture Act Controls.  If any
provision of this Indenture limits, qualifies or conflicts with another
provision that is required to be included in this Indenture by the TIA, the
required provision shall control.

 

Section 11.02.      Notices.  Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail or sent by
facsimile (with a hard copy delivered in person or by mail promptly thereafter)
and addressed as follows:

 

if to the Company:

 

AMC Entertainment Inc.

920 Main Street 

Kansas City, Missouri  64105

Attention of:  Secretary

 

 

if to
the Trustee:

 

HSBC Bank USA

452 Fifth Avenue

New York, NY  10018

Attention of:  Issuer Services

 

The Company or the
Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications. 
Where this Indenture provides for notice in

 

46

 

any manner, such notice
may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such waiver.

 

Any notice or
communication mailed to a 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 11.03.      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 11.04.      Certificate and Opinion
as to Conditions.  Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:

 

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

 

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

 

Section 11.05.      Statements
Required in Certificate or Opinions. 
Each certificate or opinion with respect to compliance with a covenant
or condition provided for in this Indenture shall include:

 

(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.

 

In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or

 

47

 

covered by, the opinion
of, only one such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with respect to
some matters and one or more other such Persons as to other matters, and any
such Person may certify or give an opinion as to such matters in one or several
documents.

 

Any certificate or
opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous.  Any such certificate or Opinion of Counsel
may be based, insofar as it relates to factual matters, upon a certificate or
opinion of, or representations by, an officer or officers of the Company
stating that the information with respect to such factual matters is in the
possession of the Company, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.

 

Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

 

Section 11.06.      When Securities
Disregarded.  In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or 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 that 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 11.07.      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 or co- registrar may make reasonable rules for their
functions.

 

Section 11.08.      Legal
Holidays.  A “Legal Holiday” is a
Saturday, a Sunday or a day on which banking institutions are not required to
be open in the States of New York or Missouri. 
If a payment date is a Legal Holiday, payment shall be made on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for
the intervening period.  If a regular
record date is a Legal Holiday, the record date shall not be affected.

 

Section 11.09.      Governing
Law.  THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 11.10.      No
Recourse Against Others.  A
director, officer, employee or stockholder, as such, of the Company shall not
have any liability for any obligations of the Company under the 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.

 

48

 

Section 11.11.      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 11.12.      Separability
Clause.  In case any provision
in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 11.13.      Reliance
on Financial Data.  In computing
any amounts under this Indenture: (i) to the extent relevant in computing any
amounts under this Indenture the Company shall use audited financial statements
of the Company, its Subsidiaries, any Person that would become a Subsidiary in
connection with the transaction that requires the computation and any Person
from which the Company or a Subsidiary has acquired an operating business, or
is acquiring an operating business in connection with the transaction that
requires the computation (each such Person whose financial statements are
relevant in computing any particular amount, a “Relevant Person”) for the period or portions
of the period to which the computation relates for which audited financial
statements are available on the date of computation and unaudited financial
statements and other current financial data based on the books and records of
the Relevant Person or Relevant Persons, as the case may be, to the extent
audited financial statements for the period or any portion of the period to
which the computation relates are not available on the date of computation; and
(ii) the Company shall be permitted to rely in good faith on the financial
statements and other financial data derived from the books and records of any
Relevant Person that are available on the date of the computation.

 

Section 11.14.      Multiple
Originals.

 

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

 

Section 11.15.      Table
of Contents; Headings.  The
table of contents, cross-reference sheet and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not intended to be considered a part hereof and shall not modify or
restrict any of the terms or provisions hereof.

 

49

 

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

 

	
   

  	
  AMC ENTERTAINMENT INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James V.
  Beynon

  	
   

  
	
   

  	
   

  	
  Name:  James V. Beynon

  
	
   

  	
   

  	
  Title: Senior
  Vice President & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BANK USA, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Herawattee
  Alli

  	
   

  
	
   

  	
   

  	
  Name: Herawattee
  Alli

  
	
   

  	
   

  	
  Title: Corporate
  Trust Officer

  

 

 

SCHEDULE I

 

PROVISIONS FOR
INTER-COMPANY SUBORDINATED DEBT

 

1.1           Certain
Definitions.  Unless otherwise defined in this
Schedule I, terms defined in the Indenture in respect of the [   ]% Senior Subordinated Notes due 2014 dated
as of February [  ], 2004 (the “Indenture”) between
AMC Entertainment Inc. (the “Company”) and HSBC Bank USA, as trustee (the “Trustee”) and used
herein have the meanings attributed to such terms in the Indenture.  As used herein, (a) the term “Relevant Obligor”
means the obligor creating, incurring, assuming or suffering to exist any
indebtedness under clause (xiii) under the definition of Permitted Indebtedness
under the Indenture and (b) the term “Permitted Junior Securities” means equity securities
other than Redeemable Capital Stock or subordinated securities of the Relevant
Obligor or any successor obligor provided for by a plan of reorganization or
readjustment that, in the case of any such subordinated securities, are
subordinate in right of payment to all Securities and Indenture Obligations to
at least the same extent as the indebtedness evidenced by this agreement or
instrument is so subordinated as provided herein.

 

2.1           Agreement
to Subordinate.  The Relevant Obligor and the relevant
creditor who is owed such indebtedness (the “Relevant Creditor”) agree that the
indebtedness represented by this agreement or instrument (including, without
limitation, principal, interest, premium, fees, penalties, indemnities and
“post-petition interest” in bankruptcy) is subordinate and junior in right  of payment, to the  extent and in the manner provided in this Section 2, to the
prior payment in full of all Securities and Indenture Obligations of the Company.  The Relevant Obligor agrees to hold the
benefit of these provisions as incorporated in this agreement or this
instrument as trustee for and on behalf of the Trustee and the Holders and the
Relevant Obligor shall be a party to the agreement or instrument in such
capacity and shall give the Relevant Creditor (and the Relevant Obligor on its
own behalf) one dollar as valuable consideration in respect of the agreements
given to it in such capacity as trustee. 
The provisions of this Section 2 are for the benefit of the
Holders, and such Holders are hereby made obligees hereunder to the same extent
as if their names were written herein as such, and they (collectively or
singly) may proceed to enforce such provisions.

 

2.2           Liquidation;
Dissolution; Bankruptcy.  (a)  In the event of any insolvency or bankruptcy
case or proceeding, or any receivership, liquidation, reorganization or other
similar case or proceeding in connection therewith, relative to the Relevant
Obligor or to its assets, whether voluntary or involuntary from any source, or
(b) any liquidation, dissolution or other winding-up of the Relevant
Obligor,  whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy, or
(c) any assignment for the benefit of creditors or any other marshaling of
assets or liabilities of the Relevant Obligor; then, and in any such event:

 

(i)            the Trustee and the Holders shall be entitled to
receive payment in full of all Securities and Indenture Obligations before the
Relevant Creditor shall be entitled to receive any payment (other than in
Permitted Junior Securities) of principal of or interest on, or any other
amount owing in respect of, the indebtedness evidenced by this agreement or
instrument;

 

(ii)           until payment in full of all the Securities and
Indenture Obligations, any distribution of assets of any kind or character (other
than in Permitted Junior Securities) to which the Relevant Creditor would be
entitled but for this Section 2 shall be paid by the Relevant Obligor or
by any receiver, trustee in bankruptcy, liquidating trustee, agents or other
Persons making such payment or distribution to, or if received by the Relevant
Creditor shall be held for

 

I-1

 

the benefit of and shall
be forthwith paid or delivered to, the Trustee and Holders in respect of the
Securities and Indenture Obligations; and

 

(iii)          in the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Relevant Obligor of any kind or
character, whether in cash, property or securities (other than in Permitted
Junior Securities), shall be received by the Relevant Creditor before all the
Securities and Indenture Obligations are paid in full, such payment or
distribution shall be held in trust for the benefit of and shall be paid over
to the Trustee and the Holders in respect of the Securities and Indenture
Obligations, for application to the payment of all Securities and Indenture
Obligations until all Securities and Indenture Obligations shall have been paid
in full after giving effect to any concurrent payment or distribution to the
Trustee or the Holders in respect of such Securities and Indenture Obligations.

 

(b)           If the Relevant Creditor does not file proper claims
or proofs of claim in the form required in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Relevant Obligor
or its property prior to 45 days before the expiration of the time to file such
claims, then (i) upon the request of the Trustee, the Relevant Creditor shall
file such claims and proofs of claim in respect of the indebtedness evidenced
by this agreement or instrument and execute and deliver such powers of
attorney, assignments and proofs of claim as may be directed by the Trustee to
enable it to enforce any and all claims upon or in respect of the indebtedness
evidenced by this agreement or instrument and to collect and receive any and
all payments or distributions which may be payable or deliverable at any time
upon or in respect of the indebtedness evidenced by this agreement or
instrument; and (ii) whether or not the Trustee shall take the action described
in clause (i) above, the Trustee shall nevertheless be deemed to have such
powers of attorney as may be necessary to file appropriate claims and proofs of
claim and otherwise exercise the powers described above.

 

For purpose of this Section 2, “payment in full” means the receipt
on an irrevocable basis of cash or Cash Equivalents in an amount equal to the
unpaid principal amount of the indebtedness and premium, if any, and interest
thereon to the date of such payment, together with all other amounts owing with
respect to such indebtedness.

 

2.3           Securities
and Indenture Obligations.  (a) The
Relevant Obligor shall not pay any principal, interest or premium on the
indebtedness evidenced by this agreement or instrument, acquire the
indebtedness evidenced by this agreement or instrument for cash or property
other than capital stock (other than in Permitted Junior Securities) of the
Relevant Obligor, or make any loans, advances or extensions of credit to the
Relevant Creditor with respect to the indebtedness evidenced by this agreement
or instrument, or pay or acquire any obligation or liability upon which the
Relevant Creditor is the obligor, and the Relevant Creditor shall not demand,
accept or receive any payment of any principal, interest or premium on the
indebtedness evidenced by this agreement or instrument or any such cash,
property (other than capital stock (other than in Permitted Junior Securities)
of the Relevant Obligor), loans, advances or extensions of credit at any time
when:

 

(i) a default in the
payment of any Securities and Indenture Obligations has occurred, whether at
maturity or at a date fixed for prepayment or by declaration of an acceleration
or otherwise, and such default either (A) shall be continuing or (B) shall not
have been cured and shall have been waived by the Holders on the express
condition that payments on and acquisitions of the indebtedness evidenced by
this agreement or instrument by the Relevant Obligor be prohibited pursuant to
this clause (i); or

 

I-2

 

(ii) any default (other
than as described in clause (i) of this Section 2.3(a)) under any
agreement or instrument evidencing Securities and Indenture Obligations shall
have occurred and either (x) shall be continuing or (y) shall not have been
cured and shall have been waived by the Holders on the express condition that
payments on or acquisition of the indebtedness evidenced by this agreement or
instrument be prohibited pursuant to this clause (ii); or

 

(iii) any Payment Default
or Non-Payment Default shall have occurred and shall not have been cured or
waived; or

 

(iv) such payment of
principal, interest or premium on the indebtedness evidenced by this agreement
or instrument, or acquisition of the indebtedness evidenced by this agreement
or instrument for cash or property other than capital stock of the Relevant
Obligor would cause a Default or Event of Default under the Indenture.

 

(b)           If at any time when a payment on the indebtedness evidenced
by this agreement or instrument is due, the Relevant Obligor would (but for
this subsection (b)) be prohibited by Section 2.3(a) from making such
payment, the Relevant Obligor shall nonetheless be obligated to make such
payment if all of the Holders with respect to which any default shall have
occurred shall have consented thereto in writing.

 

(c)           If, notwithstanding the foregoing, any payment of any
kind or character, whether in cash, property or otherwise, shall be received by
the Relevant Creditor before all the Securities and Indenture Obligations are
paid in full, such payment shall be held in trust for the benefit of and shall
be paid over to the Trustee and the Holders in respect of the Securities and
Indenture Obligations for application to the payment of all such Securities and
Indenture Obligations until all Securities and Indenture Obligations shall have
been paid in full after giving effect to any concurrent payment or distribution
to the Trustee or the Holders in respect of such Securities and Indenture
Obligations.

 

2.4.          Subrogation.  After all Securities and Indenture
Obligations are paid in full and until the indebtedness evidenced by this
agreement or instrument is paid in full, the Relevant Creditor shall be
subrogated to the rights of the Holders. 
For purposes of this Section 2.4, a distribution made under this
Section 2 to Holders which otherwise would have been made to the Relevant
Creditor, or a payment made by the Relevant Creditor to Holders in respect of a
turnover obligation under this Section 2, is not, as between the Relevant
Obligor and such Holders, a payment by the Relevant Obligor on account of
Securities and Indenture Obligations.

 

2.5.          Relative
Rights.  This Section 2 defines the relative
rights of the Relevant Creditor on the one hand and the Holders on the other
hand.  Nothing in this Section 2
shall:

 

(a) impair, as between
the Relevant Obligor and the Relevant Creditor, the obligation of the Relevant
Obligor, which is absolute and unconditional, to pay the principal of and
interest on the indebtedness evidenced by this agreement or instrument in
accordance with its terms; or

 

(b) affect the relative
rights of the Relevant Creditor on the one hand and creditors of the Relevant
Obligor other than the Holders on the other hand; or

 

(c) affect the relative
rights of the Holders among themselves; or

 

I-3

 

(d) prevent the Relevant
Creditor from exercising its available remedies upon a default, subject to
Section 2.3 hereof and the rights of the Holders to receive cash, property
or other assets otherwise payable to the Relevant Creditor.

 

2.6.          Subordination
May Not Be Impaired.  (a) No right of the Trustee
or any Holder to enforce the subordination of indebtedness evidenced by this
agreement or instrument shall in any way be prejudiced or impaired by any act
or failure to act by the Relevant Obligor or by any act or failure to act in
good faith, by the Trustee or any Holder or by any non-compliance by the
Relevant Obligor with the terms, provisions or covenants herein, regardless of
any knowledge thereof which the Trustee or any such Holder may have or be
otherwise charged with.  Neither the
subordination of the indebtedness represented by this agreement or instrument
as herein provided nor the rights of the Trustee and the Holders with respect
hereto shall be affected by any extension, renewal or modification of the
terms, or the granting of any security in respect of, any Securities and
Indenture Obligations or any exercise or non-exercise of any right, power or
remedy with respect thereto.

 

(b)           The Relevant Creditor agrees that all indebtedness
evidenced by this agreement or instrument will be unsecured by any Lien upon or
with respect to any property of the Relevant Obligor, and that the Relevant
Creditor will not permit to subsist any Liens upon its claim in respect of or
upon the proceeds of the indebtedness represented by this agreement or
instrument.

 

(c)           The Relevant Creditor agrees not to exercise any
offset or counterclaim or similar right in respect of the indebtedness
evidenced by this agreement or instrument except to the extent payment of such
indebtedness is permitted and will not assign or otherwise dispose of this
agreement or instrument or the indebtedness which it evidences unless the
assignee or acquiror, as the case may be, agrees to be bound by the terms of
this Section 2.

 

2.7           Relevant
Creditor Entitled to Rely.  Upon any
payment or distribution pursuant to this Section 2, the Relevant Creditor
shall be entitled to rely (i) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in
Section 2.2 are pending, (ii) upon a certificate of the liquidating
trustee or agent or other person in such proceedings making such payment or
distribution to the Relevant Creditor or its representative, if any, or (iii)
upon a certificate of the Trustee for the purpose of ascertaining the persons
entitled to participate in such payment or distribution, the Holders, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Section 2.

 

2.8           Miscellaneous. 
(a) The provisions contained herein may not be amended or modified in
any respect, nor may any of the terms or provisions hereof be waived, except by
an instrument signed by the Relevant Obligor, the Relevant Creditor and the
Trustee.

 

(b)           The provisions contained herein shall be binding upon
each of the parties to this agreement or instrument and their respective
successors and assigns and shall inure to the benefit of the Trustee and each
and every Holder and their respective successors and assigns.

 

(c)           The provisions contained herein shall be governed by
and construed in accordance with the laws of the State of New York.

 

(d)           The Relevant Creditor and the Relevant Obligor each
hereby irrevocably agrees that any suits, actions or proceedings arising out of
or in connection with the provisions contained

 

I-4

 

herein may be brought in
any state or federal court sitting in The City of New York and submits to the
non-exclusive jurisdiction of each such court.

 

I-5

 

APPENDIX A

 

PROVISIONS
RELATING TO INITIAL 

SECURITIES AND EXCHANGE SECURITIES

 

1.1           Definitions

 

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

 

“Definitive
Security” means a certificated Initial Security or an Exchange
Security or Private Exchange Security bearing, if required, the restricted
securities legend set forth in Section 2.3(c).

 

“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 Closing Date with respect to such Securities.

 

“Exchange
Securities” means the 8% Senior Subordinated Notes due 2014 to be
issued pursuant to this Indenture in connection with a Registered Exchange
Offer pursuant to the Registration Agreement.

 

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

 

“Initial
Purchasers” means Citigroup Global Markets Inc., Banc of America
Securities LLC and Scotia Capital (USA) Inc.

 

“Initial
Securities” means the 8% Senior Subordinated Notes due 2014, to be
originally issued from time to time, excluding Exchange Securities and Private
Exchange Securities, in one or more series as provided for in this Indenture.

 

“New
Securities” shall have the meaning set forth in Section 1 of
the Registration Agreement.

 

“Original Securities” means Initial Securities
in the aggregate principal amount of $300,000,000 issued on February 24,
2004.

 

“Private
Exchange” means the offer by the Company, pursuant to Section 2(f)
of the Registration Agreement dated February 24, 2004, or pursuant to any
similar provision of any other Registration Agreement, to issue and deliver to
certain purchasers, in exchange for the Initial Securities held by such
purchasers as part of their initial distribution, a like aggregate principal
amount of Private Exchange Securities.

 

“Private
Exchange Securities” means those New Securities to be issued
pursuant to this Indenture in connection with a Private Exchange pursuant to a
Registration Agreement.

 

A-1

 

“Purchase
Agreement” means the Purchase Agreement dated February 19,
2004, between the Company and the Initial Purchasers relating to the Original
Securities, or any similar agreement relating to any future sale of Initial
Securities by the Company.

 

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

 

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

 

“Registration
Agreement” means the Registration Rights Agreement dated
February 24, 2004, between the Company and the Initial Purchasers relating
to the Original Securities, or any similar agreement relating to any additional
Initial Securities.

 

“Rule
144A Securities” means all Initial 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.

 

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

 

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

 

“Shelf
Registration Statement” means a registration statement issued by the
Company in connection with the offer and sale of Initial Securities or Private
Exchange Securities pursuant to a Registration Agreement.

 

“Transfer
Restricted Securities” means Definitive Securities and any other
Securities that bear or are required to bear the legend set forth in Section 2.3(c)
hereto.

 

Other Definitions

 

	
  Term

  	
   

  	
  Defined in
  Section:

  
	
   

  	
   

  	
   

  
	
  “Agent Members”

  	
   

  	
  2.1(b)

  
	
   

  	
   

  	
   

  
	
  “Global Security”

  	
   

  	
  2.1(a)

  
	
   

  	
   

  	
   

  
	
  “Regulation S”

  	
   

  	
  2.1

  
	
   

  	
   

  	
   

  
	
  “Rule 144A”

  	
   

  	
  2.1

  

 

The Securities

 

2.1           Form
and Dating

 

The Initial Securities
will be offered and sold by the Company, from time to time, pursuant to one or
more Purchase Agreements.  Unless
registered or exempt from registration

 

A-2

 

under the Securities Act,
the Initial Securities will be resold, initially only to QIBs in reliance on
Rule 144A under the Securities Act (“Rule 144A”) and in reliance on Regulation S under the
Securities Act (“Regulation S”).  Initial Securities so issued may thereafter
be transferred to, among others, QIBs, purchasers in reliance on Regulation S
and IAIs under Rule 501(a)(1), (2), (3) or (7) under the Securities Act,
subject to the restrictions on transfers set forth herein.

 

(a)           Global
Securities.  Except as
provided in Section 2.4, Securities shall be in the form of one or more
permanent global Securities in definitive, fully registered form (each a
“Global Security”) in each case without interest coupons and  with the global securities legend and,
except as otherwise provided herein, the restricted securities legend set forth
in Section 2.3(e) hereof. The Initial Securities  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.  The aggregate principal amount of the Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depository or its nominee 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) and pursuant
to an order of the Company, authenticate and deliver initially one or more
Global Securities that (a) shall be registered in the name of the Depository
for such Global Security or Global Securities or the nominee of such Depository
and (b) shall be delivered by the Trustee to such Depository or pursuant to
such Depository’s instructions or held by the Trustee as Securities Custodian.

 

Members of, or
participants in, the Depository (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the
Depository or by the Trustee as Securities Custodian or under such Global
Security, and the Depository may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depository or impair, as between the 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
Section 2.3, owners of beneficial interests in Global Securities will not
be entitled to receive physical delivery of certificated Securities.

 

2.2           Authentication.  The Trustee shall authenticate and deliver:
(1) Original Securities for original issue in an aggregate principal amount of
$175,000,000, (2) any additional Initial Securities, if and when issued
pursuant to the Indenture; and (3) the Exchange Securities for issue only in a Registered
Exchange Offer or a Private Exchange, respectively, pursuant to a Registration
Agreement, for a like principal amount of Initial Securities, in each case upon
a written order of the Company signed by two Officers or by an Officer and
either a Treasurer or an Assistant Treasurer or a Secretary or an Assistant
Secretary of the Company.  Such order
shall specify the amount of the Securities to be authenticated and the date on
which the original issue

 

A-3

 

of Securities is
to be authenticated and whether the Securities are to be Initial Securities,
Exchange Securities or Private Exchange Securities.

 

2.3           Transfer
and Exchange. (a)  Transfer and
Exchange of Definitive Securities.  When
Definitive Securities are presented to the Registrar or a co-registrar with a
request:

 

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

 

(y) to exchange such
Definitive Securities for an equal principal amount of Definitive Securities of
other authorized denominations, the Registrar or co-registrar shall register
the transfer or make the exchange as requested if its reasonable requirements
for such transaction are met; provided, however, that the Definitive Securities
surrendered for transfer or exchange:

 

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

 

(ii)           are
being transferred or exchanged pursuant to an effective registration statement
under the Securities Act or pursuant to clause (A), (B) or (C) below, and are
accompanied by the following additional information and documents, as
applicable:

 

(A)          if
such Definitive Securities are being delivered to the Registrar by a Holder for
registration in the name of such Holder, without transfer, a certification from
such Holder to that effect; or

 

(B)           if
such Definitive Securities are being transferred to the Company, a certification
to that effect; or

 

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

 

(d)           Transfer
and Exchange of Global Securities.

 

(i)            The
transfer and exchange of Global Securities or beneficial interests therein
shall be effected through the Depository, in accordance with this Indenture
(including applicable restrictions on transfer set forth herein, if any) and
the procedures of the Depository therefor. 
A transferor of a beneficial interest in a Global Security shall deliver
a written order given in accordance with the Depository’s procedures containing
information regarding the participant account of the Depository to be credited
with a beneficial interest in the Global Security and such account shall be
credited in accordance with such instructions with a beneficial interest in the
Global Security and the account of the Person making the transfer shall be
debited by an amount equal to the beneficial interest in the Global Security
being transferred.  In the case of a
transfer of a beneficial interest in a Global Security to an IAI, the
transferee must furnish a signed letter to the

 

A-4

 

Trustee containing certain representations and agreements (the form of
which letter can be obtained from the Trustee or the Company and is attached as
Exhibit B).

 

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

 

(iii)          Notwithstanding any other provisions of this
Appendix A (other than the provisions set forth in Section 2.4), a Global
Security may not be transferred as a whole except by the Depository to a
nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository or by the Depository or any such nominee
to a successor Depository or a nominee of such successor Depository.

 

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

 

(e)           Legend.

 

(i)            Except
as permitted by the following paragraphs (ii), (iii), (iv) and (v), each
certificate evidencing the Global Securities and the Definitive Securities (and
all Securities issued in exchange therefor or in substitution thereof) shall
bear a legend in substantially the following form:

 

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR
OTHER JURISDICTION.  NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, SUCH REGISTRATION.

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY), ONLY (1) TO THE COMPANY OR ANY OF ITS

 

A-5

 

SUBSIDIARIES, (2) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (3) FOR SO LONG AS THIS SECURITY
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (4)
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (5) TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN AN INSTITUTIONAL ACCREDITED INVESTOR (AS INDICATED
BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE
REVERSE OF THIS SECURITY), IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE
SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (6) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (4), (5) OR (6) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

THE
HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE
BENEFIT OF THE COMPANY THAT IT IS (A) A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A, (B) AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR”
AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT
IT IS HOLDING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR
(C) A NON-U.S. PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT.

 

Each Definitive Security will also bear the following additional
legend:

 

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

 

A-6

 

(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:

 

(A)          in
the case of any Transfer Restricted Security that is a Definitive Security, the
Registrar shall permit the Holder thereof to exchange such Transfer Restricted
Security for a Definitive Security that does not bear the legends set forth
above and rescind any restriction on the transfer of such Transfer Restricted
Security; and

 

(B)           in
the case of any Transfer Restricted Security that is represented by a Global
Security, the Registrar shall permit the beneficial owner thereof to exchange
such Transfer Restricted Security for a beneficial interest in a Global
Security that does not bear the legends set forth above and rescind any
restriction on the transfer of such Transfer Restricted Security, in either
case, if the Holder certifies in writing to the Registrar that its request for
such exchange was made in reliance on Rule 144 (such certification to be in the
form set forth on the reverse of the Initial Security).

 

(iii)          After a transfer of any Initial Securities or
Private Exchange Securities, as the case may be, during the period of the
effectiveness of a Shelf Registration Statement with respect to such Initial
Securities or Private Exchange Securities, all requirements pertaining to
restricted legends on such Initial Security or such Private Exchange Securities
will cease to apply, and a global Initial Security or Private Exchange Security
without restricted legends will be available to the transferee of the
beneficial interests in such Initial Securities or Private Exchange Securities.  Upon the occurrence of any of the
circumstances described in this paragraph, the Company will deliver an
Officers’ Certificate to the Trustee instructing the Trustee to issue
Securities without legends.

 

(iv)          Upon
the consummation of a Registered Exchange Offer with respect to the Initial
Securities pursuant to which certain Holders of such Initial Securities are
offered Exchange Securities in exchange for their Initial Securities, Exchange
Securities in global form without restrictive legends will be available to
Holders or beneficial owners that exchange such Initial Securities (or
beneficial interests therein) in such Registered Exchange Offer.  Upon the occurrence of any of the
circumstances described in this paragraph, the Company will deliver an
Officers’ Certificate to the Trustee instructing the Trustee to issue
Securities without restricted legends.

 

(v)           Upon
the consummation of a Private Exchange with respect to the Initial Securities
pursuant to which Holders of such Initial Securities are offered Private
Exchange Securities in exchange for their Initial Securities, all requirements
pertaining to such Initial Securities that Initial Securities issued to certain
Holders be issued in global form will continue to apply, and Private Exchange
Securities in global form with, to the extent required by applicable law, the
Restricted Securities Legend set forth in 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 certificated or Definitive Securities,

 

A-7

 

redeemed,
repurchased or canceled, such Global Security shall be returned by the Depository
to the Trustee for cancellation or retained and canceled by the Trustee.  At any time prior to such cancellation, if
any beneficial interest in a Global Security is exchanged for certificated or
Definitive Securities, redeemed, repurchased or canceled, the principal amount
of Securities represented by such Global Security shall be reduced and an
adjustment shall be made on the books and records of the Trustee (if it is then
the Securities Custodian for such Global Security) with respect to such Global
Security, by the Trustee or the Securities Custodian, to reflect such
reduction.

 

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

 

(i)            To
permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate certificated Securities, Definitive Securities
and Global Securities at the Registrar’s or co-registrar’s request.

 

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

 

(iii)          The Registrar or co-registrar shall not be
required to register the transfer of or exchange of any Security for a period
beginning 15 days before the mailing of a notice of redemption or an offer to
repurchase Securities or 15 days before an interest payment date.

 

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

 

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

 

(h)           No
Obligation of the Trustee.

 

(i)            The
Trustee shall have no responsibility or obligation to any beneficial owner of a
Global Security, a member of, or a participant in the Depository or any other
Person with respect to the accuracy of the records of the Depository or its
nominee or of any participant or member thereof, with respect to any ownership
interest in the Securities or with respect to the delivery to any participant,
member, beneficial owner or other Person (other than the Depository) of any
notice (including any notice of redemption or repurchase) or the payment of any
amount, under or with respect to such Securities.  All notices and communications to be given to the Holders and all
payments to be made to Holders under the Securities shall be given or made only
to the registered Holders (which shall be the Depository or its nominee in the
case of a Global Security).  The rights
of beneficial owners in any Global Security shall be exercised only through the

 

A-8

 

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

 

(b)           Any
Global Security that is transferable to the beneficial owners thereof pursuant
to this Section 2.4 shall be surrendered by the Depository to the Trustee
located in the Borough of Manhattan, The City of New York, to be so
transferred, in whole or from time to time in part, without charge (although
the Company may require payment of a sum sufficient to cover any tax or
governmental charge imposed in connection therewith), and the Trustee shall
authenticate and deliver, upon such transfer of each portion of such Global
Security, an equal aggregate principal amount of certificated Securities of
authorized denominations.  Certificated
Securities issued in exchange for any portion of a Global Security transferred
pursuant to this Section shall be executed, authenticated and delivered
only in denominations of $1,000 and any integral multiple thereof and
registered in such names as the Depository shall direct.  Any certificated Initial Security delivered
in exchange for an interest in the Global Security shall, except as otherwise
provided by Section 2.3(c), bear the restricted securities legend set
forth in Exhibit 1 hereto.

 

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

 

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

 

A-9

 

EXHIBIT 1

To APPENDIX A

 

[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.

 

[Restricted Securities Legend]

 

THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

 

THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”)
WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE
LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (1) TO THE COMPANY OR
ANY OF ITS SUBSIDIARIES, (2) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (3) FOR SO LONG AS THIS SECURITY IS
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE

 

A-10

 

BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), (4)
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED
STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT (AS
INDICATED BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER
ON THE REVERSE OF THIS SECURITY), (5) TO AN “ACCREDITED INVESTOR” WITHIN THE
MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS AN
INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF SUCH AN AN INSTITUTIONAL ACCREDITED INVESTOR (AS INDICATED
BY THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE
REVERSE OF THIS SECURITY), IN EACH CASE IN A MINIMUM PRINCIPAL AMOUNT OF THE
SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR
OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT OR (6) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND
THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
CLAUSES (4), (5) OR (6) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

THE HOLDER HEREOF, BY
PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY
THAT IT IS (A) A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A,
(B) AN INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS
SECURITY FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (C) A NON-U.S.
PERSON OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT.

 

[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.]

 

A-11

 

[FORM OF FACE OF
INITIAL SECURITY]

 

[      ] %
Senior Subordinated Notes due 2014

 

 

	
  No. R-     

  	
   

  	
  CUSIP
  No.              

  

 

 

AMC Entertainment Inc., a
Delaware corporation, promises to pay to Cede & Co., or registered assigns,
the principal sum of
[                               
] Dollars
(                      )
on
[                    ],
2014.

 

Interest Payment Dates:
[                    ]
and
[                ],
commencing
[                   ].

 

Record Dates: 
[           ] and
[               ].

 

A-12

 

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

 

	
   

  	
  AMC
  ENTERTAINMENT INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  
	
  HSBC BANK USA,

  
	
  as Trustee, certifies that

  
	
  this is one of the Securities

  
	
  referred to in the Indenture.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized Signatory

  
					

 

 

Additional provisions of this Security are set forth on the other side
of this Security.

 

A-13

 

[FORM OF REVERSE
SIDE OF INITIAL SECURITY]

 

8 % Senior Subordinated Note due 2014

 

1.               Interest.  (a).  AMC Entertainment Inc., a Delaware corporation (such corporation,
and its successors under the Indenture hereinafter referred to, being herein
called the “Company”), promises to pay interest on the principal amount of this
Security at the rate per annum shown above. 
The Company will pay interest semiannually, in arrears, on March 1
and September of each year, commencing
[                   ],
in immediately available funds. 
Interest on the Securities will accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
issuance.  Interest shall be computed on
the basis of a 360-day year of twelve 30-day months.  The Company shall pay interest on overdue principal at the rate
borne by the Securities plus 1% per annum, and it shall pay interest on overdue
installments of interest at the rate borne by the Securities to the extent
lawful.

 

(b)           Special
Interest.  The holder of this
Security is entitled to the benefits of a Registration Agreement, dated as of
February 24, 2004, between the Company and the Purchasers named therein
(the “Registration Agreement”).  The Special Interest will be payable in cash
semiannually in arrears each March 1 and September 1, in immediately
available funds.

 

2.             Method of
Payment

 

The Company will pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the February 15 or August 15 next preceding the
interest payment date even if Securities are canceled after the record date and
on or before the interest payment date. 
Holders must surrender Securities to a Paying Agent to collect principal
payments.  The Company will pay principal
and interest in money of the United States of America that at the time of
payment is legal tender for payment of public and private debts.  Payments in respect of the Securities
represented by a Global Security (including principal, premium and interest)
will be made by wire transfer of immediately available funds to the accounts
specified by The Depository Trust Company. 
The Company will make all payments in respect of a certificated Security
(including principal, premium and interest) by mailing a check to the
registered address of each Holder thereof; provided, however, that payments on
the Securities may also be made, in the case of a Holder of at least $1,000,000
aggregate principal amount of Securities, by wire transfer to a U.S. dollar
account maintained by the payee with a bank in the United States if such Holder
elects payment by wire transfer by giving written notice to the Trustee or the
Paying Agent to such effect designating such account no later than 30 days
immediately preceding the relevant due date for payment (or such other date as
the Trustee may accept in its discretion).

 

3.             Paying Agent
and Registrar

 

Initially, HSBC Bank USA, 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
February 24, 2004 (the

 

A-14

 

“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
“TIA”).  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
TIA for a statement of those terms.

 

The Securities are senior subordinated unsecured obligations of the
Company and can be issued in an initial amount of up to $300,000,000 and
additional amounts as part of the same series or new series under the Indenture
which are unlimited (subject to Sections 2.01 and 2.08 of the Indenture).  The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to, among other things, incur
additional indebtedness, pay dividends or make distributions in respect of
their capital stock, purchase or redeem capital stock, enter into transactions
with stockholders or certain affiliates, or consolidate, merge or sell all or
substantially all of the Company’s assets, other than in certain transactions
between the Company and one or more of its Wholly-Owned Subsidiaries.  These limitations are subject to significant
exceptions.

 

5.             Optional
Redemption

 

Except as set forth below, the Securities may not be redeemed prior to
March 1, 2009.  On and after that
date, the Company may redeem the Securities in whole at any time or in part
from time to time at the following redemption prices (expressed in percentages
of principal amount), plus accrued and unpaid interest, if any, to the
redemption date (subject to the right of Holders of record on the relevant
record date to receive interest due on the relevant interest payment date that
is on or prior to the date of redemption), if redeemed during the 12-month
period beginning on or after March 1 of the years set forth below:  

 

	
  Period

  	
   

  	
  Redemption
  Price

  	
   

  
	
  2009

  	
   

  	
  104.000

  	
  %

  
	
  2010

  	
   

  	
  102.667

  	
  %

  
	
  2011

  	
   

  	
  101.333

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

6.             Sinking Fund

 

The Securities are not subject to any sinking fund.

 

7.             Notice of
Redemption

 

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

 

A-15

 

8.             Subordination

 

The Securities are subordinated to Senior Indebtedness of the
Company.  To the extent provided in the
Indenture, Senior Indebtedness of the Company must be paid before the
Securities may be paid.  The Company
agrees, and each Securityholder by accepting a Security agrees, to the
subordination provisions contained in the Indenture and authorizes the Trustee
to give it effect and appoints the Trustee as attorney-in-fact for such
purpose.

 

9.             Repurchase
of Securities at the Option of Holders upon Change of Control

 

Upon a Change of Control, the Company will be required to make an
offer, subject to certain conditions specified in the Indenture, to repurchase
all or any part of the Securities of each Holder at a purchase price equal to
101% of the principal amount of Securities to be repurchased plus accrued and
unpaid interest, if any, to the date of purchase (subject to the right of
Holders of record on the relevant record date to receive interest due on the
interest payment date that is on or prior to the date of purchase) as provided
in, and subject to the terms of, the Indenture.

 

10.           Denominations;
Transfer; Exchange

 

The Securities are in
registered form without coupons in denominations of $1,000 and whole multiples
of $1,000.  A Holder may transfer or
exchange Securities in accordance with the Indenture.  Upon any transfer or exchange, the Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements or
transfer documents and to pay any taxes required by law or permitted by the
Indenture.  The Registrar need not
register the transfer of or exchange any Securities selected for redemption
(except, in the case of a Security to be redeemed in part, the portion of the
Security not to be redeemed) or to transfer or exchange any Securities for a
period of 15 days prior to a selection of Securities to be redeemed or 15 days
before an interest payment date.

 

11.           Persons
Deemed Owners

 

The registered Holder of
this Security may be treated as the owner of it for all purposes.

 

12.           Unclaimed
Money

 

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

 

13.           Discharge
and Defeasance

 

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

 

14.           Amendment,
Waiver

 

Subject to certain
exceptions set forth in the Indenture, (i) the Indenture or the Securities may
be amended without prior notice to any Securityholder but with the written
consent of the

 

A-16

 

Holders of at least a
majority in aggregate principal amount of the outstanding Securities and (ii)
any default or noncompliance with any provision may be waived with the written
consent of the Holders of at least a majority in principal amount of the
outstanding Securities.  Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder of Securities, the Company and the Trustee may amend the Indenture or
the Securities (i) to cure any ambiguity, omission, defect or inconsistency;
(ii) to comply with Article Five of the Indenture; (iii) to provide for
uncertificated Securities in addition to or in place of certificated
Securities; (iv) to make certain changes in the subordination provisions that
would limit or terminate the benefits available to any holder of Senior Indebtedness
under such provisions; (v) to add Guarantees with respect to the Securities;
(vi) to secure the Securities; (vii) to add additional covenants or to
surrender rights and powers conferred on the Company; (viii) to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA; or (ix) to make any change that does not adversely
affect the rights of any Securityholder.

 

15.           Defaults and
Remedies

 

If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Securities then outstanding, subject to
certain limitations, may declare all the Securities to be immediately due and
payable.  Certain events of bankruptcy
or insolvency are Events of Default and shall result in the Securities being
immediately due and payable upon the occurrence of such Events of Default
without any further act of the Trustee or any Holder.

 

Holders of Securities may
not enforce the Indenture or the Securities except as provided in the
Indenture.  The Trustee may refuse to
enforce the Indenture or the Securities unless it receives reasonable indemnity
or security.  Subject to certain
limitations, Holders of a majority in aggregate principal amount of the Securities
then outstanding may direct the Trustee in its exercise of any trust or power
under the Indenture.  The Holders of a
majority in aggregate principal amount of the Securities then outstanding, by
written notice to the Company and the Trustee, may rescind any declaration of
acceleration and its consequences if the rescission would not conflict with any
judgment or decree, and if all existing Events of Default have been cured or
waived except nonpayment of principal or interest that has become due solely because
of the acceleration.

 

16.           Trustee
Dealings with the Company

 

Subject to certain
limitations imposed by the TIA,  the
Trustee under the Indenture, in its individual or any other capacity, may
become the owner or pledgee of 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.

 

17.           No Recourse
Against Others

 

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

 

A-17

 

18.           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.

 

19.           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).

 

20.           Governing
Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

21.           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 Securityholders.  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.

 

The Company will furnish
to any Holder of Securities upon written request and without charge to the
Holder a copy of the Indenture which has in it the text of this Security.  Requests may be made to: Kevin M. Connor, Senor
Vice President, Secretary and General Counsel, 920 Main Street, Kansas City,
Missouri 64105-1977].

 

A-18

 

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.

  

 

A-19

 

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

 

o  (1)  to the Company; or

 

o  (2)  pursuant to an effective
registration statement under the Securities Act of 1933; or

 

o  (3)  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

 

o  (4)  outside the United States in
an offshore transaction within the meaning of Regulation S under the Securities
Act in compliance with Rule 904 under the Securities Act of 1933; or

 

o  (5)  to an institutional
“accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act of 1933) that is acquiring at least $250,000 in principal amount
of the Securities and that has furnished to the Trustee a signed letter
containing certain representations and agreements (the form of which letter can
be obtained from the Trustee or the Company); or

 

o  (6)  pursuant to another available
exemption from registration provided by Rule 144 under the Securities Act of
1933.

 

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 may require, prior to registering any such
transfer of the Securities, such legal opinions, certifications and other
information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933.

 

 

	
  Date: 

  	
   

  	
   

  	
  Your Signature: 

  	
   

  	
   

  
	
   

  	
   

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

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

  
	
   

  
	
   

  
								

 

A-20

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

 

SCHEDULE OF INCREASES OR DECREASES IN
GLOBAL SECURITY

 

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

 

	
  Date of Exchange

  	
   

  	
  Amount of
  decrease

  in Principal Amount

  of this Global

  Security

  	
   

  	
  Amount of

  increase in

  Principal Amount

  of this Global

  Security

  	
   

  	
  Principal
  amount

  of this Global

  Security

  following such

  decrease or

  increase

  	
   

  	
  Signature
  of

  authorized signatory

  of Trustee or

  Securities Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-21

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Security purchased by the Company
pursuant to Section 4.09 (Change of Control) of the Indenture, check the
box:

 

o

 

If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.09 of the Indenture, state the amount:

 

$                                                  

 

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  	
   

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

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

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

  
								

 

A-22

 

EXHIBIT
B

 

FORM OF TRANSFEREE LETTER OF
REPRESENTATION

 

AMC Entertainment Inc.

 

In care of 

[          ]

[           ]

[           ]

 

 

Ladies and Gentlemen:

 

This certificate is delivered to request a transfer of
$[        ] principal amount of the 8 %
Senior Subordinated Notes due 2014 (the “Securities”) of AMC Entertainment Inc.
(the “Company”).

 

Upon transfer, the Securities would be registered in the name of the
new beneficial owner as follows:

 

	
  Name:__________

  
	
  Address:__________

  
	
  Taxpayer ID Number:__________

  

 

The undersigned represents and warrants to you that:

 

1.  We are an institutional “accredited investor” (as defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended
(the “Securities Act”)), purchasing for our own account or for the account of
such an institutional “accredited investor” at least $250,000 principal amount
of the 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 “Resale Restriction
Termination Date”) only (a) to the Company, (b) pursuant to a registration
statement that has been declared effective under the Securities Act, (c) in a
transaction complying with the requirements of Rule 144A under the Securities
Act (“Rule 144A”), to a person we reasonably believe is a qualified
institutional buyer under Rule 144A (a “QIB”) that is purchasing for its own
account or for the account of a QIB and to whom notice is given that the
transfer is being made in reliance on Rule 144A, (d) pursuant to offers and
sales that occur outside the United States within

 

A-23

 

the meaning of Regulation S under the Securities Act, (e) to an
institutional “accredited investor” within the meaning of Rule 501(a)(1), (2),
(3) or (7) under the Securities Act that is purchasing for its own account or
for the account of such an institutional “accredited investor,” in each case in
a minimum principal amount of Securities of $250,000, or (f) pursuant to any other
available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any
applicable state securities laws.  The
foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date.  If any
resale or other transfer of the Securities is proposed to be made pursuant to
clause (e) above prior to the Resale Restriction Termination Date, the
transferor shall deliver a letter from the transferee substantially in the form
of this letter to the Company and the Trustee, which shall provide, among other
things, that the transferee is an institutional “accredited investor” within
the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act and
that it is acquiring such 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 (d),
(e) or (f) above to require the delivery of an opinion of counsel,
certifications or other information satisfactory to the Company and the
Trustee.

 

	
   

  	
  By:

  	
   

  	
   

  

 

A-24

 

TABLE OF CONTENTS

 

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
  Definitions and
  Incorporation by Reference

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.01.

  	
  Definitions

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.02.

  	
  Other Definitions

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.03.

  	
  Incorporation
  by Reference of Trust Indenture

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.04.

  	
  Rules of
  Construction

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
  The Securities

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.01.

  	
  Amount of
  Securities; Issuable in Series

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.02.

  	
  Form and
  Dating

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.03.

  	
  Execution
  and Authentication

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.04.

  	
  Registrar
  and Paying Agent

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.05.

  	
  Paying
  Agent To Hold Money in Trust

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.06.

  	
  Securityholder
  Lists

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.07.

  	
  Replacement
  Securities

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.08.

  	
  Outstanding
  Securities

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.09.

  	
  Temporary
  Securities

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.10.

  	
  Cancellation

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.11.

  	
  Defaulted
  Interest

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.12.

  	
  CUSIP
  Numbers

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
  Redemption

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.01.

  	
  Notices to
  Trustee

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.02.

  	
  Selection
  of Securities To Be Redeemed

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.03.

  	
  Notice of
  Redemption

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.04.

  	
  Effect of
  Notice of Redemption

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.05.

  	
  Deposit of
  Redemption Price

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.06.

  	
  Securities
  Redeemed in Part

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
  Covenants

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.01.

  	
  Payment of
  Securities

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.02.

  	
  Corporate
  Existence

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.03.

  	
  Payment of
  Taxes and Other Claims

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.04.

  	
  Maintenance
  of Properties

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.05.

  	
  Limitation
  on Consolidated Indebtedness

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.06.

  	
  Limitation
  on Restricted Payments

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.07.

  	
  Limitation
  on Transactions with Affiliates

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.08.

  	
  Limitation
  on Senior Subordinated Indebtedness

  	
  23

  
					

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
  Section 4.09.

  	
  Change of
  Control

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.10.

  	
  Provision
  of Financial Information

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.11.

  	
  Statement
  as to Compliance

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.12.

  	
  Waiver of
  Certain Covenants

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.13.

  	
  OID
  Certificate

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.14.

  	
  Further
  Instruments and Acts

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
  Successor
  Company

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.01.

  	
  Consolidation

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.02.

  	
  Successor
  Substituted

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
  Defaults and
  Remedies

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.01.

  	
  Events of
  Default

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.02.

  	
  Acceleration;
  Rescission and Annulment

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.03.

  	
  Other Remedies

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.04.

  	
  Waiver of
  Past Defaults

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.05.

  	
  Control by
  Majority

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.06.

  	
  Limitation
  on Suits

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.07.

  	
  Rights of
  Holders to Receive Payment

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.08.

  	
  Collection
  Suit by Trustee

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.09.

  	
  Trustee May
  File Proofs of Claim

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.10.

  	
  Priorities

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.11.

  	
  Undertaking
  for Costs

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.12.

  	
  Waiver of
  Stay or Extension Laws

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
  Trustee

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.01.

  	
  Duties of
  Trustee

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.02.

  	
  Rights of
  Trustee

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.03.

  	
  Individual
  Rights of Trustee

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.04.

  	
  Trustee’s
  Disclaimer

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.05.

  	
  Notice of
  Defaults

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.06.

  	
  Reports
  by Trustee to Holders

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.07.

  	
  Compensation
  and Indemnity

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.08.

  	
  Replacement
  of Trustee

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.09.

  	
  Successor
  Trustee by Merger

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10.

  	
  Eligibility;
  Disqualification

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11.

  	
  Preferential
  Collection of Claims Against Company

  	
  35

  
					

 

iii

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE VIII

  	
  Discharge
  of Indenture; Defeasance

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.01.

  	
  Discharge
  of Liability on Securities; Defeasance

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.02.

  	
  Conditions
  to Defeasance

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.03.

  	
  Application
  of Trust Money

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.04.

  	
  Repayment to
  Company

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.05.

  	
  Indemnity for
  Government Obligations

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.06.

  	
  Reinstatement

  	
  37

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
  Amendments

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.01.

  	
  Without
  Consent of Holders

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.02.

  	
  With
  Consent of Holders

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.03.

  	
  Compliance
  with Trust Indenture Act

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.04.

  	
  Revocation
  and Effect of Consents and Waivers

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.05.

  	
  Notation on
  or Exchange of Securities

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.06.

  	
  Trustee To
  Sign Amendments

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.07.

  	
  Payment for
  Consent

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
  Subordination

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.01.

  	
  Agreement
  To Subordinate

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.02.

  	
  Liquidation,
  Dissolution, Bankruptcy

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.03.

  	
  Default
  on Senior Indebtedness

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.04.

  	
  Payment
  Permitted

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.05.

  	
  Subrogation

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.06.

  	
  Relative
  Rights

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.07.

  	
  Subordination
  May Not Be Impaired by Company

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.08.

  	
  Rights of
  Trustee and Paying Agent

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.09.

  	
  Distribution
  or Notice to Representative

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.10.

  	
  Article Ten
  Not To Prevent Events of Default or Limit Right To Accelerate

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.11.

  	
  Trust
  Moneys Not Subordinated

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.12.

  	
  Trustee
  Entitled To Rely

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.13.

  	
  Trustee
  To Effectuate Subordination

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.14.

  	
  Trustee
  Not Fiduciary for Holders of Senior Indebtedness

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.15.

  	
  Reliance
  by Holders of Senior Indebtedness Subordination Provisions

  	
  46

  
					

 

iv

 

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE XI

  	
  Miscellaneous

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.01.

  	
  Trust
  Indenture Act Controls

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.02.

  	
  Notices

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.03.

  	
  Communication
  by Holders with Other Holders

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.04.

  	
  Certificate
  and Opinion as to Conditions

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.05.

  	
  Statements
  Required in Certificate or Opinions

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.06.

  	
  When
  Securities Disregarded

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.07.

  	
  Rules by
  Trustee, Paying Agent and Registrar

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.08.

  	
  Legal
  Holidays

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.09.

  	
  Governing
  Law

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.10.

  	
  No
  Recourse Against Others

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.11.

  	
  Successors

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.12.

  	
  Separability
  Clause

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.13.

  	
  Reliance
  on Financial Data

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.14.

  	
  Multiple
  Originals

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.15.

  	
  Table of
  Contents; Headings

  	
  49

  
					

 

v

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