Document:

exv4w1

 

EXHIBIT 4.1

WARRANT AGREEMENT

Dated as of                     , 2005

by and between

DANIELSON HOLDING CORPORATION

and

AMERICAN STOCK TRANSFER & TRUST COMPANY

as Warrant Agent

 

 

      WARRANT AGREEMENT (the “Agreement”) dated as of                     , 2005, between DANIELSON HOLDING
CORPORATION, a Delaware corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY,
as Warrant Agent (the “Warrant Agent”).

      WHEREAS, the Company proposes to issue at no charge certain non-transferable warrants (the
“Warrants”) on or about                     , 2005 (the “Record Date”) to the holders of shares of its
common stock, par value $.01 per share (the “Common Stock”), and the right to subscribe for and
purchase                     shares of Common Stock for every Warrant held (each such share of Common Stock
issuable upon the exercise of Warrants a “Warrant Share”) at an exercise price of $                     per
share.

      WHEREAS, the Warrants will be represented by the certificates for the Company’s Common Stock
and will not be separately transferable; and

      WHEREAS, the Company desires the Warrant Agent to act on behalf of the Company and the Warrant
Agent is willing so to act, in connection with the issuance of the Warrants and other matters as
provided herein;

      NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereto agree as follows:

      SECTION 1. APPOINTMENT OF WARRANT AGENT. The Company hereby appoints the Warrant Agent to act
as agent for the Company in accordance with the instructions set forth hereinafter in this
Agreement, and the Warrant Agent hereby accepts such appointment.

      SECTION 2. REPRESENTATION BY COMMON STOCK CERTIFICATES. The Warrants will be evidenced by the
certificates for the Common Stock and the registered holders of the Common Stock shall also be the
registered holders of the associated Warrants. The transfer of any certificates representing
shares of Common Stock in respect of which Warrants have been issued shall also constitute the
transfer of the Warrants associated with such shares of Common Stock. Warrants may not be
transferred separately from the underlying share upon which they are issued.

      SECTION 3. DISTRIBUTION OF WARRANTS. On the Record Date, Warrants shall be deemed to be
issued to all holders of Common Stock as of such date for each share of Common Stock then
outstanding.

      SECTION 4. TERMS OF WARRANTS; EXERCISE OF WARRANTS. Each Warrant entitles the holder to
purchase                     shares of Common Stock at an “Exercise Price” of $                     per share (the “Basic
Subscription Privilege”). Additionally, there is an oversubscription privilege with respect to
unsubscribed shares (the “Oversubscription Privilege”). No fractional shares will be issued.
Reference is hereby made to the Shelf Registration Statement relating to the registration of shares
of Common Stock filed with the Securities and Exchange Commission under the Securities Act of 1933,
as amended, on or about                     , 2005 and the prospectus supplement to be filed with the
Securities and Exchange Commission under the Securities Act of 1933 on or about                     , 2005
(collectively the “Prospectus”) for a complete description of the Basic Subscription Privilege and
Oversubscription Privilege, the

 

 

Rights Offering, and the terms of the exercise of the Warrants. A copy of the Prospectus has
been provided to the Warrant Agent, receipt of which is hereby acknowledged. The Rights Offering
and the exercise of the Warrants will be conducted in the manner and upon the terms set forth in
the Prospectus, which is incorporated herein by reference and made part hereof as if set forth in
full herein.

      Each Warrant not exercised prior to the expiration date set forth in the Prospectus, shall
become void and all rights thereunder and all rights in respect thereof under this Agreement shall
cease as of such time.

      A Warrant may be exercised upon surrender to the Company at the principal corporate trust
office of the Warrant Agent referred to in Section 12 (the “Warrant Agent Office”) of an exercise
form to exercise the Warrants duly filled in and signed, together with the shares of Common Stock,
by physical delivery of certificates evidencing Common Stock or transfer of Common Stock through
DTC, as applicable, evidencing the Warrants to be exercised (the “Tendered Shares”) and upon
payment to the Warrant Agent for the account of the Company of the Exercise Price for each Warrant
Share then exercised. Payment of the aggregate Exercise Price shall be made in U.S. dollars by (i)
check or bank draft drawn upon a U.S. bank or postal, telegraphic or express money order payable to
the Warrant Agent or (ii) wire transfer of immediately available funds directed to American Stock
Transfer & Trust Company, c/o Chase Manhattan Bank, ABA No.                     , Credit Account No.
                    ,.

      The Exercise Price for all Warrants which have been exercised and the related Tendered Shares
shall be held in escrow in a separate account by the Warrant Agent.

      Warrant Agent shall notify the Company by telephone before the close of business on each
business day during the period commencing five (5) business days after the mailing of the
Prospectus and ending at the expiration date (a “Daily Notice”), which notice shall thereafter be
confirmed in writing, of (i) number of Warrants which have been exercised pursuant to both the
Basic Subscription Privilege and the Oversubscription Privilege on the day covered by such daily
notice, and (ii) the number of Warrants which have been exercised pursuant to both the Basic
Subscription Privilege and the Oversubscription Privilege for which defective exercises have been
received on the day covered by such daily notice, and (iii) the cumulative total of the information
set forth in clauses (i) through (ii) above. At or before 5:00 p.m., New York City time, on the
first trading day following the expiration date, Warrant Agent shall certify in writing to the
Company the cumulative total through the expiration date of all the information set forth in
clauses (i) through (ii) above and the number of shares of Common Stock to be outstanding after
giving effect to such exercises. Warrant Agent shall also maintain and update a listing of holders
who have fully or partially exercised their Warrants, holders who have transferred their Common
Stock and their transferees, and holders who have not exercised their Warrants. Warrant Agent
shall provide the Company or its designees with such information compiled by Warrant Agent pursuant
to this paragraph as any of them shall request.

      The Company may request each of its shareholders to provide the Company additional information
regarding its ownership of Common Stock if, as a result of such exercises, there would be a risk
that they would become a “5% Stockholder,” as such term is defined in Article Fifth of the
Company’s Certificate of Incorporation. If any person would be at risk of becoming

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a 5% Stockholder as a result of such person’s exercise of Warrants, the number of Warrants
exercised by such person may, at the sole discretion of the Company and its tax counsel, be
automatically, and without any further action by such person, reduced to the number of Warrants
which would cause such person’s ownership of Common Stock to be less than 5% or such number in
excess of 5% as the Company and its tax counsel shall determine in their sole discretion. In the
event that the Warrant Agent receives a phone call or correspondence from a holder of Common Stock
notifying the Warrant Agent that upon exercise of their Warrants such holder would own more than
4.5% of the outstanding Common Stock of the Company, the Warrant Agent will promptly (i) notify the
Company upon receipt of such notice, and (ii) forward the information regarding such holder of
Common Stock to the Company. The Company will notify the Warrant Agent of the number of Warrants
deemed exercised by each such person.

      The Warrant Agent shall hold all Tendered Shares and monies received in connection with the
exercise of Warrants in a segregated escrow account on behalf of the Company until after the
expiration date. Further, the Warrant Agent shall forward all information received from Warrant
holders (solely with regard to information pertaining to the Warrant holders risk of becoming a 5%
Stockholder, as discussed above) to the Company as soon as reasonably practicable but in no event
later than the close of business on the second day following the expiration date. As soon as
reasonably practicable, but no later than the close of business on the seventh business day
following the expiration date, the Warrant Agent shall promptly return certificates representing
the Tendered Shares to the holders of those shares, pursuant to the written instruction of such
holders. Not later than the close of business on the fifth business day following the expiration
date, the Company shall give notice to the Warrant Agent of the shares of Common Stock to be issued
upon exercise of Warrants, the Exercise Price for such Warrants shall be delivered to the Company
and the Company shall issue and cause to be delivered with all reasonable dispatch to the Warrant
holders, pursuant to the written instruction of such holders, a certificate or certificates for the
number of full Warrant Shares issuable upon the exercise of such Warrants together with cash as
provided in Section 8 hereof. Such certificate or certificates shall be deemed to have been issued
and the holder thereof shall be deemed to have become a holder of record of such Warrant Shares as
of the closing of the rights offering. The Warrant Agent shall promptly return to the holders the
Exercise Price (without interest or deduction) for any Warrants which the Company shall have
determined may not be exercised, as provided above. In addition, if the Board of Directors of the
Company determines at any time that the exercise of any Warrants will cause an unreasonable risk of
an “ownership change” or an unintentional result on the “ownership change percentage,” the Board of
Directors may terminate such Warrants, and the Exercise Price for any such Warrants which have been
received by the Warrant Agent shall be promptly returned to the holders of such Warrants, without
interest or deduction.

      Except as provided in this Agreement or in the Prospectus, the holders of any Warrants shall
be free to exercise all or any portion of their Warrants.

      The Warrant Agent shall keep copies of this Agreement and any notices given or received
hereunder available for inspection by the holders of the Warrants during normal business hours at
its office. The Company shall supply the Warrant Agent from time to time with such numbers of
copies of this Agreement as the Warrant Agent may request.

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      SECTION 5. PAYMENT OF TAXES. The Company will pay all documentary stamp taxes attributable to
the initial issuance of Warrant Shares upon the exercise of warrants; provided, however, that the
Company shall not be required to pay any tax or taxes which may be payable in respect of any
transfer involved in the issue of any certificates for Warrant Shares in a name other than that of
the registered holder of a Common Stock certificate evidencing Warrants surrendered upon the
exercise of a Warrant, and the Company shall not be required to issue or deliver such Common Stock
certificates evidencing the Warrants unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

      SECTION 6. RESERVATION OF WARRANT SHARES. From and after the Record Date, the Company will
reserve and keep available, free from preemptive rights, out of the aggregate of its authorized but
unissued Common Stock, for the purpose of enabling it to satisfy any obligation to issue Warrant
Shares upon exercise of such Warrants, the maximum number of shares of Common Stock which may then
be deliverable upon the exercise of all outstanding Warrants.

      The Company covenants that all Warrant Shares which may be issued upon exercise of Warrants
will be, upon payment of the Exercise Price and issuance thereof, fully paid, nonassessable, free
of preemptive rights and free from all taxes, liens, charges and security interests with respect to
the issue thereof.

      SECTION 7. OBTAINING STOCK EXCHANGE LISTINGS. The Company shall also from time to time take
all reasonable actions necessary so that the Warrant Shares, immediately upon their issuance upon
the exercise of Warrants, will be listed on the American Stock Exchange or such other principal
securities exchanges, interdealer quotation systems and markets within the United States of
America, if any, on which other shares of Common Stock are then listed or quoted.

      SECTION 8. FRACTIONAL INTERESTS. The Company shall not be required to issue fractional
Warrant Shares on the exercise of Warrants. If more than one Warrant shall be presented for
exercise in full at the same time by the same holder, the number of full Warrant Shares which shall
be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of
Warrant Shares purchasable on exercise of the Warrants so presented. If any fraction of a Warrant
Share would, except for the provisions of this Section 8, be issuable on the exercise of any
Warrants (or specified portion thereof), the Company shall notify the Warrant Agent in writing of
the amount to be paid in lieu of the fraction of a Warrant Share and concurrently pay or provide to
the Warrant Agent for repayment to the Warrant holder an amount in cash equal to the product of (i)
such fraction of a Warrant Share and (ii) the difference of the current market price of a share of
Common Stock over the Exercise Price.

      SECTION 9. MERGER, CONSOLIDATION OR CHANGE OF NAME OF WARRANT AGENT. Any corporation into
which the Warrant Agent may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Warrant Agent shall
be a party, or any corporation succeeding to all or substantially all of the corporate trust or
agency business of the Warrant

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Agent, shall be the successor to the Warrant Agent hereunder without the execution or filing
of any paper or any further act on the part of any of the parties hereto.

      SECTION 10. WARRANT AGENT. The Warrant Agent undertakes the duties and obligations imposed by
this Agreement upon the following terms and conditions, by all of which the Company and the holders
of Warrants, by their acceptance thereof, shall be bound:

            (a) The statements contained herein shall be taken as statements of the Company. The Warrant
Agent assumes no responsibility for the correctness of any of the same except such as describe the
Warrant Agent or action taken or to be taken by it. The Warrant Agent assumes no responsibility
with respect to the distribution of the Common Stock certificates evidencing the Warrants except as
herein otherwise provided.

            (b) The Warrant Agent shall not be responsible for any failure of the Company to comply with
any of the covenants contained in this Agreement to be complied with by the Company.

            (c) The Warrant Agent may consult at any time with counsel satisfactory to it (who may be
counsel for the Company) and the Warrant Agent shall incur no liability or responsibility to the
Company or to any holder of any Warrant in respect of any action taken, suffered or omitted by it
hereunder in good faith and in accordance with the opinion or the advice of such counsel.

            (d) The Warrant Agent shall incur no liability or responsibility to the Company or to any
holder of any Warrant for any action taken in reliance on any Common Stock certificates evidencing
the Warrants, notice, resolution, waiver, consent, order, certificate, or other paper, document or
instrument believed by it to be genuine and to have been signed, sent or presented by the proper
party or parties. The Warrant Agent shall not be bound by any notice or demand, or any waiver,
modification, termination or revision of this Agreement or any of the terms hereof, unless
evidenced by a writing between the Company and the Warrant Agent.

            (e) The Company agrees to pay to the Warrant Agent                      plus reasonable
out-of-pocket expenses, including postage, envelopes and printing expenses. Company agrees to
indemnify the Warrant Agent and save it harmless against any and all liabilities, including
judgments, costs and reasonable counsel fees, for anything done or omitted by the Warrant Agent in
the execution, delivery and performance of its responsibilities under this Agreement, provided that
such indemnification does not extend to liabilities, judgments, costs and reasonable counsel fees,
that result from the negligence, misconduct or bad faith of the Warrant Agent, or its employees,
officers, directors, agents or independent contractors.

            (f) The Warrant Agent, shall be under no obligation to institute any action, suit or legal
proceeding or to take any other action likely to involve expense unless the Company or one or more
registered holders of Warrant certificates shall furnish the Warrant Agent with reasonable security
and indemnity for any costs and expenses which may be incurred, but this provision shall not affect
the power of the Warrant Agent to take such action as it may consider proper, whether with or
without any such security or indemnity. All rights of action under this Agreement or under any of
the Warrants may be enforced by the Warrant Agent without the

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possession of any of the Common Stock certificates evidencing the Warrants or the production
thereof at any trial or other proceeding relative thereto, and any such action, suit or proceeding
instituted by the Warrant Agent shall be brought in its name as Warrant Agent and any recovery of
judgment shall be for the ratable benefit of the registered holders of the Warrants, as their
respective rights or interests may appear.

            (g) Except as required by law, the Warrant Agent, and any stockholder, director, officer or
employee of the Warrant Agent, may buy, sell or deal in any of the Warrants or other securities of
the Company or become pecuniarily interested in any transaction in which the Company may be
interested, or contract with or lend money to the Company or otherwise act as fully and freely as
though it were not Warrant Agent under this Agreement. Nothing herein shall preclude the Warrant
Agent from acting in any other capacity for the Company or for any other legal entity.

            (h) The Warrant Agent shall act hereunder solely as agent for the Company, and its duties
shall be determined solely by the express provisions hereof.

            (i) The Warrant Agent shall not at any time be under any duty or responsibility to any holder
of any Warrants to make or cause to be made any adjustment of the number of the Warrant Shares or
other securities or property deliverable as provided in this Agreement, or to determine whether any
facts exist which may require any of such adjustments, or with respect to the nature or extent of
any such adjustments, when made, or with respect to the method employed in making the same. The
Warrant Agent shall not be accountable with respect to the validity or value or the kind or amount
of any Warrant Shares or of any securities or property which may at any time be issued or delivered
upon the exercise of any Warrants or with respect to whether any such Warrant Shares or other
securities will when issued be validly issued and fully paid and nonassessable, and makes no
representation with respect thereto.

      SECTION 11. CHANGE OF WARRANT AGENT. If the Warrant Agent shall become incapable of acting as
Warrant Agent or shall resign as provided below, the Company shall appoint a successor to such
Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30)
days after it has been notified in writing of such incapacity by the Warrant Agent or by the
registered holders of a majority of Warrants, then the registered holder of any Warrants may apply
to any court of competent jurisdiction for the appointment of a successor to the Warrant Agent.
Pending appointment of a successor to such Warrant Agent, either by the Company or by such a court,
the duties of the Warrant Agent shall be carried out by the Company. The registered holders of a
majority of the unexercised Warrants shall be entitled at any time to remove the Warrant Agent and
appoint a successor to such Warrant Agent. Such successor to the Warrant Agent need not be
approved by the Company or the former Warrant Agent. After appointment the successor to the
Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it
had been originally named as Warrant Agent without further act or deed; but the former Warrant
Agent shall deliver and transfer to the successor to the Warrant Agent any property at the time
held by it hereunder and execute and deliver any further assurance, conveyance, act or deed
necessary for the purpose. Failure to give any notice provided for in this Section 11, however, or
any defect therein, shall not affect the legality or validity of the appointment of a successor to
the Warrant Agent.

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      The Warrant Agent may resign at any time and be discharged from the obligations hereby created
by so notifying the Company in writing at least thirty (30) days in advance of the proposed
effective date of its resignation. If no successor Warrant Agent accepts the engagement hereunder
by such time, the Company shall act as Warrant Agent.

      SECTION 12. NOTICES. Any notice or demand authorized by this Agreement to be given or made by
the Warrant Agent or by the registered holder of any Warrants to the Company shall be sufficiently
given or made when and if deposited in the mail, first class or registered, postage prepaid,
addressed (until another address is filed in writing by the Company with the Warrant Agent), as
follows:

Danielson Holding Corporation

40 Lane Road

Fairfield, New Jersey 07004

Attention: Timothy J. Simpson, General Counsel

with a copy to:

Neal, Gerber & Eisenberg LLP

Two North LaSalle Street

Chicago, Illinois 60602

Attention: David S. Stone

      Any notice pursuant to this Agreement to be given by the Company or by the registered holder
of any Warrants to the Warrant Agent shall be sufficiently given when and if deposited in the mail,
first-class or registered, postage prepaid, addressed (until another address is filed in writing by
the Warrant Agent with the Company) to the Warrant Agent at the Warrant Agent Office as follows:

American Stock Transfer & Trust Company

59 Maiden Lane

Plaza Level

New York, New York 10038

Attention: Isaac Freilich, Vice President – Reorg Administration

      Any notice pursuant to this Agreement to be given by the Company or by the Warrant Agent to
the registered holder of any Common Stock certificate evidencing Warrants shall, unless otherwise
provided herein, be sufficiently given when and if deposited in the mail, first-class or
registered, postage prepaid, addressed to such holder at the address of such holder as shown on the
registry books of the Company.

      SECTION 13. SUPPLEMENTS AND AMENDMENTS. The Company and the Warrant Agent may from time to
time supplement or amend this Agreement without the approval of any holders of Warrants (a) at any
time and for any reason prior to the Record Date and (b) only in order to cure any ambiguity or to
correct or supplement any provision contained herein which may be defective or inconsistent with
any other provision herein, or to make any other provisions in regard to matters or questions
arising hereunder which the Company and the

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Warrant Agent may deem necessary or desirable and which shall not in any way adversely affect
the interests of the holders of Warrants after the Record Date.

      SECTION 14. SUCCESSORS. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Warrant Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

      SECTION 15. TERMINATION. This Agreement shall terminate at 5:00 p.m., New York, New York time
on                      or such later date as mutually agreeable upon extension of the Rights Offering.
Notwithstanding the foregoing, this Agreement will terminate on such earlier date upon the closing
of the Rights Offering. Notwithstanding anything to the contrary set forth in this Agreement, if
the Board of Directors of the Company determines for any reason, including that the exercise of
Warrants may create an unreasonable risk of an “ownership change” or an unintentional result on the
“ownership change percentage,” each as defined in Section 382 of the Internal Revenue Code, the
Board of Directors may cause the Company, by notice to the Warrant Agent and by the issuing of a
press release, to terminate or extend this Agreement and the Rights Offering, whether or not the
Record Date shall have occurred, shall promptly refund the Exercise Price of any Warrants which
shall have been exercised but with respect to which shares of Common Stock shall not have been
issued, and the provisions of this Agreement shall promptly terminate or extend, except the
Company’s obligations to compensate and indemnify the Warrant Agent as provided in Section 10 shall
survive termination of this Agreement.

      SECTION 16. GOVERNING LAW; JURISDICTION. This Agreement shall be deemed to be a contract made
under the laws of the State of New York and for all purposes shall be governed by and construed in
accordance with the internal laws of said State. The parties hereto irrevocably consent to the
jurisdiction of the courts of the State of New York and any federal court located in such state in
connection with any action, suit or proceeding arising out of or relating to this Agreement.

      SECTION 17. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement shall be construed to give
to any person or corporation other than the Company, the Warrant Agent and the holders of the
Warrants any legal or equitable right, remedy or claim under this Agreement; but this Agreement
shall be for the sole and exclusive benefit of the Company, the Warrant Agent and the holders of
the Warrants.

      SECTION 18. COUNTERPARTS. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

      SECTION 19. FURTHER ASSURANCES. From time to time on and after the date hereof, the Company
shall deliver or cause to be delivered to the Warrant Agent such further documents and instruments
and shall do and cause to be done such further acts as the Warrant Agent shall reasonably request
to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance
herewith or to assure itself that it is protected hereunder.

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

	 	 	 	 	 
	 	DANIELSON HOLDING CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	AMERICAN STOCK TRANSFER & 

TRUST COMPANY, as Warrant Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

9EX-4.1 SUPPLEMENTAL INDENTURE

 

Exhibit 4.1

[EXECUTION COPY]

SUPPLEMENTAL INDENTURE

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of May 19, 2005, among CONWAY
THEATERS, LLC, a South Carolina limited liability company (the “South Carolina Guaranteeing
Subsidiary”), GEORGE G. KERASOTES CORPORATION, a Delaware corporation, GKC MICHIGAN THEATRES, INC.,
a Delaware corporation, GKC THEATRES, INC., a Delaware corporation, and GKC INDIANA THEATRES, INC.,
an Indiana corporation (the “Other Guaranteeing Subsidiaries” and together with the South Carolina
Guaranteeing Subsidiary, each a “Guaranteeing Subsidiary” and collectively, the “Guaranteeing
Subsidiaries”), each a direct or indirect subsidiary of Carmike Cinemas, Inc. (or its permitted
successor), a Delaware corporation (the “Company”), the Company, the other Guarantors (as defined
in the Indenture referred to herein) and Wells Fargo Bank, National Association (successor by
merger with Wells Fargo Bank Minnesota, National Association), as trustee under the Indenture
referred to below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
"Indenture”), dated as of February 4, 2004, providing for the issuance of 7.500% Senior
Subordinated Notes due 2014 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances certain new subsidiaries of
the Company shall execute and deliver to the Trustee a supplemental indenture supplementing the
Indenture pursuant to which such new subsidiary shall unconditionally guarantee all of the
Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth
herein and in the Note Guarantee, the form of which is contained in Exhibit E to the Indenture;

     WHEREAS, the South Carolina Guaranteeing Subsidiary became a Domestic Subsidiary of the
Company on October 21, 2004;

     WHERAS, the Other Guaranteeing Subsidiaries shall become Domestic Subsidiaries of the Company
on the date of this Supplemental Indenture; and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

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

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

     2.      Agreement to Guarantee. Each Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee of the Company’s obligations under the Notes and the

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Indenture on the terms and subject to the conditions set forth in the Note Guarantee and in
the Indenture including but not limited to Article 11 thereof.

     4.      No Recourse Against Others. No past, present or future director, officer,
employee, incorporator, stockholder or agent of any Guaranteeing Subsidiary, as such, shall have
any liability for any obligations of the Company or any Guaranteeing Subsidiary under the Notes,
any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against
public policy.

     5.      NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS SUPPLEMENTAL INDENTURE.

     6.      Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

     7.      Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof.

     8.      The Trustee. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of
the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and the Company.

[SIGNATURES APPEAR ON FOLLOWING PAGES]

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

	 	 	 	 	 
	 	SIGNATURES:

 

CARMIKE CINEMAS, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	EASTWYNN THEATRES, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	WOODEN NICKEL PUB, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	MILITARY SERVICES, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 

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	 	CONWAY THEATERS, LLC

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	GEORGE G. KERASOTES CORPORATION

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	GKC MICHIGAN THEATRES, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	GKC THEATRES, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 
	 	GKC INDIANA THEATRES, INC.

 	 
	 	By:  	                                                  /s/ Martin A. Durant
 	 
	 	 	Name:  	Martin A. Durant 	 
	 	 	Title:  	Senior Vice President – Finance,
Treasurer and Chief Financial Officer 	 
	 

4

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, AS TRUSTEE

 	 
	 	By:  	/s/ Joseph P. O’Donnell
 	 
	 	 	Joseph P. O’Donnell 	 
	 	 	Vice President 	 
	 

5

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