Document:

Indenture dated as of September 20, 2006 for 8.25% Senior Unsecured Notes

 Exhibit 4.30 
 LYONDELL CHEMICAL COMPANY, 
 the SUBSIDIARY GUARANTORS party hereto 
 and 
 THE BANK OF NEW YORK, 
 as Trustee 
  

 INDENTURE 
 Dated as of
September 20, 2006 
  

 8 1/4% Senior Notes Due 2016 

 TABLE OF CONTENTS 
  

					
	 ARTICLE 1 Definitions And Other Provisions Of General Application
	  	1
			
	 Section 1.01.
	 	 Definitions
	  	1
	 Section 1.02.
	 	 Other Definitions
	  	23
	 Section 1.03.
	 	 Rules of Construction
	  	23
	 Section 1.04.
	 	 Incorporation by Reference of TIA
	  	24
	 Section 1.05.
	 	 Conflict with TIA
	  	24
	 Section 1.06.
	 	 Compliance Certificates and Opinions
	  	24
	 Section 1.07.
	 	 Form of Documents Delivered to Trustee
	  	25
	 Section 1.08.
	 	 Acts of Noteholders; Record Dates
	  	25
	 Section 1.09.
	 	 Notices, Etc., to Trustee and Company
	  	27
	 Section 1.10.
	 	 Notices to Holders; Waivers
	  	27
	 Section 1.11.
	 	 Effect of Headings and Table of Contents
	  	27
	 Section 1.12.
	 	 Successors and Assigns
	  	27
	 Section 1.13.
	 	 Separability Clause
	  	27
	 Section 1.14.
	 	 Benefits of Indenture
	  	27
	 Section 1.15.
	 	 Governing Law
	  	27
	 Section 1.16.
	 	 Legal Holidays
	  	28
	 Section 1.17.
	 	 No Personal Liability of Directors, Officers, Employees, Incorporators and Stockholders
	  	28
	 Section 1.18.
	 	 Exhibits and Schedules
	  	28
	 Section 1.19.
	 	 Counterparts
	  	28
		
	 ARTICLE 2 Note Forms
	  	28
			
	 Section 2.01.
	 	 Forms Generally
	  	28
	 Section 2.02.
	 	 Form of Trustee’s Certificate of Authentication
	  	29
	 Section 2.03.
	 	 [Reserved]
	  	29
		
	 ARTICLE 3 The Notes
	  	29
			
	 Section 3.01.
	 	 Title and Terms
	  	29
	 Section 3.02.
	 	 Denominations
	  	30
	 Section 3.03.
	 	 Execution, Authentication and Delivery and Dating
	  	30
	 Section 3.04.
	 	 Temporary Notes
	  	30
	 Section 3.05.
	 	 Registration, Registration of Transfer and Exchange
	  	31
	 Section 3.06.
	 	 Mutilated, Destroyed, Lost and Stolen Notes
	  	31
	 Section 3.07.
	 	 Payment of Interest Rights Preserved
	  	32
	 Section 3.08.
	 	 Persons Deemed Owners
	  	32
	 Section 3.09.
	 	 Cancellation
	  	33
	 Section 3.10.
	 	 Computation of Interest
	  	33
	 Section 3.11.
	 	 [Reserved]
	  	33
	 Section 3.12.
	 	 CUSIP Numbers
	  	33
	 Section 3.13.
	 	 Book-entry Provisions for Global Notes
	  	33
		
	 ARTICLE 4 Covenants
	  	34
			
	 Section 4.01.
	 	 Payment of Principal, Premium and Interest
	  	34
	 Section 4.02.
	 	 Maintenance of Office or Agency
	  	34
	 Section 4.03.
	 	 Money for Payments to Be Held in Trust
	  	35
	 Section 4.04.
	 	 SEC Reports
	  	35
	 Section 4.05.
	 	 Certificates to Trustee
	  	36
	 Section 4.06.
	 	 Limitation on Indebtedness
	  	36

  

 i 

					
	 Section 4.07.
	 	 Limitation on Restricted Payments
	  	39
	 Section 4.08.
	 	 Limitation on Dividend and other Payment Restrictions Affecting Restricted Subsidiaries and Joint Ventures
	  	44
	 Section 4.09.
	 	 Limitation on Sales of Assets
	  	47
	 Section 4.10.
	 	 Limitation on Affiliate Transactions
	  	48
	 Section 4.11.
	 	 Limitation on Liens
	  	50
	 Section 4.12.
	 	 [Reserved.]
	  	50
	 Section 4.13.
	 	 No Amendment to Subordination Provisions
	  	50
	 Section 4.14.
	 	 Repurchase of Notes upon a Change in Control
	  	50
	 Section 4.15.
	 	 Limitation on Sale and Leaseback Transactions
	  	51
	 Section 4.16.
	 	 Limitation on Line of Business
	  	51
	 Section 4.17.
	 	 Limitation on Accounts Receivable Facilities
	  	51
	 Section 4.18.
	 	 Limited Applicability of Covenants when Notes are Rated Investment-Grade
	  	51
	 Section 4.19.
	 	 Existence
	  	51
	 Section 4.20.
	 	 Payment of Taxes and Other Claims
	  	52
	 Section 4.21.
	 	 Maintenance of Properties and insurance
	  	52
	 Section 4.22.
	 	 Limitation on Issuance of Guarantees by Restricted Subsidiaries
	  	52
	 Section 4.23.
	 	 Payments for Consents
	  	53
		
	 ARTICLE 5 Consolidation, Merger or Sale of Assets
	  	53
			
	 Section 5.01.
	 	 Consolidation, Merger or Sale of Assets by the Company
	  	53
	 Section 5.02.
	 	 Successor Company Substituted
	  	54
	 Section 5.03.
	 	 Consolidation, Merger or Sale of Assets by a Subsidiary Guarantor
	  	54
	 Section 5.04.
	 	 Opinion of Counsel to Trustee
	  	55
		
	 ARTICLE 6 Remedies
	  	55
			
	 Section 6.01.
	 	 Events of Default
	  	55
	 Section 6.02.
	 	 Acceleration
	  	56
	 Section 6.03.
	 	 Other Remedies
	  	56
	 Section 6.04.
	 	 Waiver of Past Defaults
	  	56
	 Section 6.05.
	 	 Control by Majority
	  	56
	 Section 6.06.
	 	 Limitation on Suits
	  	57
	 Section 6.07.
	 	 Rights of Holders to Receive Payment
	  	57
	 Section 6.08.
	 	 Collection Suit by Trustee
	  	57
	 Section 6.09.
	 	 Trustee May File Proofs of Claim
	  	57
	 Section 6.10.
	 	 Priorities
	  	58
	 Section 6.11.
	 	 Undertaking for Costs
	  	58
	 Section 6.12.
	 	 Restoration of Rights and Remedies
	  	58
	 Section 6.13.
	 	 Rights and Remedies Cumulative
	  	58
	 Section 6.14.
	 	 Waiver of Stay, Extension or Usury Laws
	  	58
		
	 ARTICLE 7 The Trustee
	  	59
			
	 Section 7.01.
	 	 Certain Duties and Responsibilities
	  	59
	 Section 7.02.
	 	 Notice of Defaults
	  	59
	 Section 7.03.
	 	 Certain Rights of Trustee
	  	60
	 Section 7.04.
	 	 Not Responsible for Recitals or Issuance of Notes
	  	61
	 Section 7.05.
	 	 Trustee’s Disclaimer
	  	61
	 Section 7.06.
	 	 May Hold Notes
	  	61
	 Section 7.07.
	 	 Money Held in Trust
	  	61
	 Section 7.08.
	 	 Compensation and Reimbursement
	  	61
	 Section 7.09.
	 	 Conflicting Interests
	  	61
	 Section 7.10.
	 	 Corporate Trustee Required; Eligibility
	  	62
	 Section 7.11.
	 	 Resignation and Removal; Appointment of Successor
	  	62

  

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	 Section 7.12.
	 	 Acceptance of Appointment by Successor
	  	63
	 Section 7.13.
	 	 Merger, Conversion, Consolidation or Succession to Business
	  	63
	 Section 7.14.
	 	 Preferential Collection of Claims Against the Company
	  	63
	 Section 7.15.
	 	 Appointment of Authenticating Agent
	  	63
		
	 ARTICLE 8 Holders’ List and Reports by Trustee and the Company
	  	64
			
	 Section 8.01.
	 	 The Company to Furnish Trustee Names and Addresses of Holders; Stock
	  	
		 	 Exchange Listing
	  	64
	 Section 8.02.
	 	 Preservation of Information; Communications to Holders
	  	64
	 Section 8.03.
	 	 Reports by Trustee
	  	64
		
	ARTICLE 9 Amendment, Supplement or Waiver	  	64
			
	 Section 9.01.
	 	 Without Consent of the Holders
	  	64
	 Section 9.02.
	 	 With Consent of Holders
	  	65
	 Section 9.03.
	 	 Execution of Amendments, Supplements or Waivers
	  	66
	 Section 9.04.
	 	 Revocation and Effect of Consents
	  	66
	 Section 9.05.
	 	 Conformity with TIA
	  	67
	 Section 9.06.
	 	 Notation on or Exchange of Notes
	  	67
		
	 ARTICLE 10 Redemption of Notes
	  	67
			
	 Section 10.01.
	 	 Right of Redemption
	  	67
	 Section 10.02.
	 	 Applicability of Article
	  	68
	 Section 10.03.
	 	 Election to Redeem; Notice to Trustee
	  	68
	 Section 10.04.
	 	 Selection by Trustee of Notes to Be Redeemed
	  	68
	 Section 10.05.
	 	 Notice of Redemption
	  	68
	 Section 10.06.
	 	 Deposit of Redemption Price
	  	69
	 Section 10.07.
	 	 Notes Payable on Redemption Date
	  	69
	 Section 10.08.
	 	 Notes Redeemed in Part
	  	69
		
	 ARTICLE 11 Satisfaction and Discharge
	  	70
			
	 Section 11.01.
	 	 Satisfaction and Discharge of Indenture
	  	70
	 Section 11.02.
	 	 Application of Trust Money
	  	71
		 	 ARTICLE 12 Defeasance and Covenant Defeasance
	  	71
	 Section 12.01.
	 	 Option of the Company to Effect Defeasance or Covenant Defeasance
	  	71
	 Section 12.02.
	 	 Legal Defeasance and Discharge
	  	71
	 Section 12.03.
	 	 Covenant Defeasance
	  	71
	 Section 12.04.
	 	 Conditions to Legal or Covenant Defeasance
	  	72
	 Section 12.05.
	 	 Deposited Money and Government Securities to Be Held in Trust; Other Miscellaneous Provisions
	  	
		 		  	73
	 Section 12.06.
	 	 Repayment to Company
	  	73
	 Section 12.07.
	 	 Reinstatement
	  	73
		
	 ARTICLE 13 Subsidiary Guarantees
	  	73
			
	 Section 13.01.
	 	 The Guarantees
	  	73
	 Section 13.02.
	 	 Guarantee Unconditional
	  	74
	 Section 13.03.
	 	 Discharge; Reinstatement
	  	74
	 Section 13.04.
	 	 Waiver by the Subsidiary Guarantors
	  	74
	 Section 13.05.
	 	 Subrogation and Contribution
	  	75
	 Section 13.06.
	 	 Stay of Acceleration
	  	75
	 Section 13.07.
	 	 Limits of Guarantees
	  	75
	 Section 13.08.
	 	 Execution and Delivery of Note Guarantee
	  	75
		
	 EXHIBIT A – Form of Note
	  	
	 EXHIBIT B – Form of Supplemental Indenture
	  	

  

 iii 

 INDENTURE, dated as of September 20, 2006 (as amended, supplemented or otherwise modified from time
to time, the “Indenture”), among LYONDELL CHEMICAL COMPANY, a Delaware corporation (as further defined below, the “Company”), the Subsidiary Guarantors party hereto and THE BANK OF NEW YORK, a New York banking
corporation, as trustee (the “Trustee”). 
 RECITALS OF THE COMPANY 
 The Company and the Subsidiary Guarantors have duly authorized the execution and delivery of this Indenture to provide for the issuance of
(i) initially, $900,000,000 aggregate principal amount of 8 1/4% Senior Notes due 2016 of the Company
(the “Original Notes”) and (ii) if and when issued, additional 8 1/4% Senior Notes due
2016 of the Company (the “Additional Notes”) issuable as provided in this Indenture, in each case, guaranteed to the extent provided herein and in the Notes by the Subsidiary Guarantors. All things necessary to make the Original
Notes, when duly issued, executed and delivered by the Company and authenticated and delivered by the Trustee hereunder, the valid obligation of the Company, and to make this Indenture a valid agreement of the Company and the Subsidiary Guarantors
as of the date hereof, in accordance with the terms of the Original Notes and this Indenture, have been done. 
 NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 
 For and in consideration of the premises and the purchase of the Notes (as defined herein) by the
Holders (as defined herein) thereof, it is mutually agreed, for the equal and ratable benefit of all Holders, as follows: 
 ARTICLE 1

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION 
 Section 1.01. Definitions 
 “Accounts Receivable Subsidiary” means any Wholly Owned Subsidiary of the Company (i) which is formed solely for the purpose of, and which engages in no activities other than activities in
connection with, financing accounts receivable of the Company and/or its Restricted Subsidiaries, (ii) which is designated by the Company as an Accounts Receivables Subsidiary pursuant to an Officer’s Certificate delivered to the Trustee,
(iii) no portion of Indebtedness or any other obligation (contingent or otherwise) of which is at any time recourse to or obligates the Company or any Restricted Subsidiary in any way, or subjects any property or asset of the Company or any
Restricted Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to (a) representations, warranties and covenants (or any indemnity with respect to such representations, warranties and
covenants) entered into in the ordinary course of business in connection with the sale (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable to such Accounts
Receivable Subsidiary or (b) any guarantee of any such accounts receivable financing by the Company or any Restricted Subsidiary that is permitted to be incurred pursuant to Section 4.06, (iv) with which neither the Company nor
any Restricted Subsidiary of the Company has any contract, agreement, arrangement or understanding other than contracts, agreements, arrangements and understandings entered into in the ordinary course of business in connection with the sale
(including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable in accordance with Section 4.17 and fees payable in the ordinary course of business in connection
with servicing accounts receivable and (v) with respect to which neither the Company nor any Restricted Subsidiary of the Company has any obligation (a) to subscribe for additional shares of Capital Stock or other Equity Interests therein
or make any additional capital contribution or similar payment or transfer thereto other than in connection with the sale (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts
receivable to such Accounts Receivable Subsidiary in accordance with Section 4.17 or (b) to maintain or preserve the solvency, any balance sheet term, financial condition, level of income or results of operations thereof.

  

 1 

 “Acquired Debt” means (i) with respect to any Person that becomes a Restricted
Subsidiary after the Issue Date, Indebtedness of such Person existing at the time such Person becomes a Restricted Subsidiary and (ii) with respect to the Company or any Restricted Subsidiary, any Indebtedness of a Person, other than the
Company or a Restricted Subsidiary, existing at the time such Person is merged with or into the Company or a Restricted Subsidiary, or Indebtedness expressly assumed by the Company or any Restricted Subsidiary in connection with the acquisition of
an asset or assets from another Person, but excluding in each case Indebtedness which is extinguished, retired or repaid substantially simultaneously in connection with such Person becoming a Restricted Subsidiary or such merger or acquisition, as
the case may be. 
 “Acquired Disqualified Stock” means (i) with respect to any Person that becomes a Restricted
Subsidiary after the Issue Date, Disqualified Stock of such Person existing at the time such Person becomes a Restricted Subsidiary and (ii) with respect to the Company or any Restricted Subsidiary, any Disqualified Stock of a Person, other
than the Company or a Restricted Subsidiary, existing at the time such Person is merged with or into the Company or a Restricted Subsidiary, but excluding in each case Disqualified Stock which is extinguished, retired or repaid substantially
simultaneously in connection with such Person becoming a Restricted Subsidiary or such merger, as the case may be. 
 “Acquired
Preferred Stock” means (i) with respect to any Person that becomes a Restricted Subsidiary after the Issue Date, Preferred Stock of such Person existing at the time such Person becomes a Restricted Subsidiary and (ii) with respect
to the Company or any Restricted Subsidiary, any Preferred Stock of a Person, other than the Company or a Restricted Subsidiary, existing at the time such Person is merged with or into the Company or a Restricted Subsidiary, but excluding in each
case Preferred Stock which is extinguished, retired or repaid substantially simultaneously in connection with such Person becoming a Restricted Subsidiary or such merger, as the case may be. 
 “Acquiring Person” means a Person other than a Subject Assets Transferee which acquires (i) all or a portion of the Subject Assets
or (ii) an interest in a Subject Assets Transferee in connection with a Major Asset Sale. 
 “Additional Assets” means
(i) Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Restricted Subsidiary from any Person other than the Company or an Affiliate of the Company,
(ii) Capital Stock constituting a minority interest in any Person that at such time is a Restricted Subsidiary, (iii) any controlling interest or joint venture interest in another business, to the extent otherwise permitted by this
Indenture (other than otherwise permitted by clause (d)(ii) of the definition of “Permitted Investments”) or (iv) any other asset (other than current assets) to be owned by the Company or any Restricted Subsidiary used or useful in a
Permitted Business. 
 “Additional Notes” means any notes issued under this Indenture in addition to the Original Notes
having the same terms in all respects as the Original Notes (or in all respects except payment of interest (i) scheduled and paid prior to the date of issuance of such notes or (ii) payable on the first Interest Payment Date following such
date of issuance). 
 “Adjusted Consolidated Cash Flow” means, for any period, the sum of Consolidated Cash Flow of the
Company for such period plus the aggregate Distributable Joint Venture Cash Flow of the Company and its Restricted Subsidiaries, determined on a consolidated basis, for such period. 
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”),
as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise. 
  

 2 

 “Asset Sale” means (i) the sale, lease, conveyance or other disposition (other than
(I) the creation of a Lien and the exercise by any Person in whose favor a Lien is granted of any rights in respect thereof and (II) the disposition pursuant to a condemnation, appropriation or similar taking) of any assets other than the
disposition or lease of inventory, equipment, cash, Cash Equivalents or other assets in the ordinary course of business consistent with past practices (provided that the sale, conveyance or other disposition of all or substantially all the
assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by the provisions of Section 4.14 and/or the provisions of Section 5.01 and not by the provisions of Section 4.09),
(ii) the sale by the Company or any of its Restricted Subsidiaries of Equity Interests of any of the Company’s Restricted Subsidiaries, Unrestricted Subsidiaries or Joint Ventures (other than directors’ qualifying shares) and
(iii) the issuance by any of the Company’s Restricted Subsidiaries of Equity Interests of such Restricted Subsidiary (other than directors’ qualifying shares), in the case of clause (i), (ii) or (iii), whether in a single
transaction or a series of related transactions (a) that have a fair market value in excess of $50 million or (b) for Net Proceeds in excess of $50 million. Notwithstanding the foregoing, the following will not be deemed to be an Asset
Sale: (a) a transfer of assets by the Company to a Restricted Subsidiary or by a Restricted Subsidiary to the Company or to another Restricted Subsidiary; (b) an issuance of Equity Interests by a Restricted Subsidiary to the Company or to
another Restricted Subsidiary; (c) the making of a Permitted Investment and/or a Restricted Payment that is permitted by Section 4.07; (d) an issuance of Preferred Stock by a Finance Subsidiary that is permitted by
Section 4.06; (e) sales (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable to an Accounts Receivable Subsidiary in connection with any Receivables
Facility permitted by Section 4.17; (f) Sale and Leaseback Transactions; (g) an Asset Swap effected in compliance with Section 4.09, other than clause (a)(ii) thereof; and (h) the sale, lease, conveyance of
other disposition of any asset that is a Restricted Investment or described in clause (g) of the definition of “Permitted Investments”. 
 “Asset Sale Lien” means a Lien on the Subject Assets (including as a Lien for this purpose contractual rights with respect to the operation of the Subject Assets) arising in connection with a Major
Asset Sale in favor of the Acquiring Person (or an Affiliate thereof) which Lien does not secure any Indebtedness. 
 “Asset
Swap” means the substantially concurrent trade or exchange by the Company or any Restricted Subsidiary of property for Additional Assets owned or held by another Person. 
 “Attributable Debt” in respect of a Sale and Leaseback Transaction that is treated as a capital lease in accordance with GAAP means, at
the time of determination, the present value (discounted at the rate of interest implicit in such transaction, determined in accordance with GAAP) of the obligation of the lessee for net rental payments during the remaining term of the lease
included in such Sale and Leaseback Transaction (including any period for which such lease has been extended or may, at the option of the lessor, be extended). 
 “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 7.15 to act on behalf of the Trustee to authenticate Notes of one or more series. 
 “Board of Directors” means, as to any Person, the board of directors of such Person or any committee thereof duly authorized to act on
behalf of such board of directors. Unless stated otherwise, as used in this Indenture, “Board of Directors” means the board of directors of the Company. 
 “Board Resolution” means, with respect to any Person, a copy of a resolution certified by the Secretary or an Assistant Secretary of such Person to have been duly adopted by the board of directors (or
any committee thereof) of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee. Unless the context otherwise requires, “Board Resolution” refers to a Board Resolution of the
Company. 
 “Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in The City of New
York or Houston, Texas are authorized by law to close. 
  

 3 

 “Capital Lease Obligation” means, at the time any determination thereof is to be made,
the amount of the liability in respect of a capital lease that would at such time be required to be capitalized on a balance sheet in accordance with GAAP. 
 “Capital Stock” means (i) in the case of a corporation, corporate stock, (ii) in the case of an association or a business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) of corporate stock, (iii) in the case of a partnership, partnership interests (whether general or limited) and (iv) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person. 
 “Cash Equivalents” means
(a) United States dollars, (b) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided that the full faith and credit of the United States is
pledged in support thereof) having maturities of not more than one year from the date of acquisition, (c) demand deposits, time deposits and certificates of deposit with maturities of one year or less from the date of acquisition, bankers’
acceptances with maturities not exceeding one year from the date of acquisition and overnight bank deposits, in each case with any bank or trust company organized or licensed under the laws of the United States or any State thereof having capital,
surplus and undivided profits in excess of $500 million, (d) repurchase obligations with a term of not more than seven days for underlying securities of the type described in clauses (b) and (c) above entered into with any financial
institution meeting the qualifications specified in clause (c) above, (e) commercial paper rated at least P-l or A-1 by Moody’s or S&P, respectively, and in each case maturing within six months after the date of acquisition,
(f) any fund investing exclusively in investments of the type described in clauses (a) through (e) above and (g) in the case of a Foreign Subsidiary, substantially similar investments denominated in foreign currencies (including
similarly capitalized foreign banks). 
 “Change of Control” means the occurrence of any of the following: (i) the
sale, transfer, conveyance or other disposition, in one or a series of related transactions, of all or substantially all the assets of the Company and its Subsidiaries taken as a whole, or of any permitted holding company and its Subsidiaries taken
as a whole, to any Person or group (as such term is used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than to a Person or group who, before such transaction, held a majority of the voting power of the voting stock of the Company or
such permitted holding company, as the case may be; (ii) the acquisition by any Person or group (as defined above) of a direct or indirect interest in more than 50% of the voting power of the voting stock of the Company or of any permitted
holding company, by way of merger or consolidation or otherwise, other than the acquisition of all outstanding shares of common stock of the Company by a permitted holding company; (iii) the first day on which at least half of the members of
the board of directors of the Company or of any permitted holding company are not Continuing Directors; or (iv) a “change of control” under any of the Company’s Existing Senior Secured Notes or Existing Senior Subordinated Notes
outstanding at such time. For purposes of this definition, the term “permitted holding company” shall mean an entity formed by the Company or another permitted holding company that owns all the Capital Stock of the Company or such other
permitted holding company, provided that the Persons who own, immediately before the formation of the holding company so formed, all of the common stock of the Company or such other holding company shall beneficially own, immediately after
such formation, all the common stock of the holding company so formed. 
 “Code” means the Internal Revenue Code of 1986, as
amended. 
 “Company” means Lyondell Chemical Company, a Delaware corporation, and any successor in interest thereto.

 “Company Request,” “Company Order” and “Company Consent” mean, respectively, a written
request, order or consent signed in the name of the Company by an Officer of the Company. 
 “Consolidated Cash Flow” means,
with respect to any Person for any period, the Consolidated Net Income of such Person for such period (less the Net Income of any Joint Venture to the extent included therein pursuant to clause (i) of the definition of “Consolidated Net
Income”), plus in each case, without duplication 
  

 4 

 (i) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period (including any provision for taxes on the Net Income of any Joint Venture that is a pass-through entity for federal income tax purposes, to the extent such taxes are paid or payable by such Person or any of its
Restricted Subsidiaries), to the extent that such provision for taxes was included in computing such Consolidated Net Income, plus 
 (ii) the Fixed Charges of such Person and its Restricted Subsidiaries for such period, to the extent that such Fixed Charges were deducted in computing such Consolidated Net Income, plus 
 (iii) depreciation and amortization (including amortization of goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation and amortization were deducted in computing such Consolidated Net Income, plus 
 (iv) any non-cash charges reducing Consolidated Net Income for such period (other than accounting accruals in the ordinary course of
business), including asset write downs (other than write downs of current assets) and other charges which are not cash costs, minus 
 (v) any non-cash items increasing Consolidated Net Income for such period, 
 in each case, on a consolidated
basis and determined in accordance with GAAP. 
 Notwithstanding the foregoing, the provision for taxes on the income or profits of, and the
depreciation and amortization of, a Restricted Subsidiary of the referent Person shall be added to Consolidated Net Income to compute Consolidated Cash Flow only to the extent (and in the same proportion) that the Net Income of such Restricted
Subsidiary was included in calculating the Consolidated Net Income of such Person. 
 “Consolidated Leverage Ratio” means,
with respect to any Person for any period, the ratio of (i) the aggregate principal amount of Indebtedness and Disqualified Stock of such Person and its Restricted Subsidiaries, together with the liquidation value of the Preferred Stock of any
Restricted Subsidiary of such Person (except to the extent held by such Person or any of its Restricted Subsidiaries) as of the date of determination (the “Calculation Date”) to (ii) Adjusted Consolidated Cash Flow of such
Person and its Restricted Subsidiaries for the period of four consecutive fiscal quarters most recently ended for which earnings have been publicly disclosed, calculated on a pro forma basis giving effect to the transaction requiring such
calculation and any incurrence of Indebtedness, Disqualified Stock or Preferred Stock in connection therewith. 
 In addition, for purposes
of making the computation referred to above, 
 (1) acquisitions that have been made by the Company or any of its Restricted Subsidiaries,
including through mergers or consolidations and including any related financing transactions, during the four-quarter reference period or subsequent to such reference period and on or before the Calculation Date shall be deemed to have occurred on
the first day of the four-quarter reference period, and the Adjusted Consolidated Cash Flow for such reference period will be calculated giving pro forma effect to any expense and cost reductions that have occurred or, in the reasonable judgment of
the chief financial officer of the Company, are reasonably expected to occur (regardless of whether those operating improvements or cost savings could then be reflected in pro forma financial statements prepared in accordance with Regulation
S-X under the Securities Act or any other regulation or policy of the SEC related thereto); 
 (2) the Adjusted Consolidated Cash Flow
attributable to operations or businesses disposed of before the Calculation Date shall be excluded; and 
  

 5 

 (3) if since the beginning of the four-quarter reference period any Person was designated as an
Unrestricted Subsidiary or redesignated as or otherwise became a Restricted Subsidiary, such event shall be deemed to have occurred on the first day of the four-quarter reference period. 
 “Consolidated Net Income” means, with respect to any Person for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that 
 (i) the Net Income of any Person that is not a Restricted Subsidiary will not be included, except that: 
 (a) Net
Income (but not loss) of such Person shall be included only to the extent of the amount of dividends or distributions paid in cash (but not by means of a loan) to the referent Person or a Restricted Subsidiary thereof, and 
 (b) Net loss (but not gain) of such Person shall be included to the extent such loss has been funded with cash from the Company or a
Restricted Subsidiary; 
 (ii) the Net Income (but not loss) of any Restricted Subsidiary shall be excluded to the extent that
the declaration or payment of dividends or similar distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior governmental approval (that has not been obtained) or, directly or
indirectly, by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary or its stockholders; 
 (iii) the Net Income of any Person acquired in a pooling of interests transaction for any period before the date of such acquisition shall
be excluded; 
 (iv) the cumulative effect of a change in accounting principles shall be excluded; and 
 (v) the aggregate amount of premiums and other costs charged in connection with any refinancing or prepayment of Indebtedness of such
Person and its Restricted Subsidiaries shall be excluded. 
 “Consolidated Net Tangible Assets” means, as of any date, the
total amount of assets (less applicable reserves and other properly deductible items) of the Company and its Restricted Subsidiaries, on a consolidated basis, as of such date, determined in accordance with GAAP, after deducting therefrom
(i) all current liabilities (excluding any thereof which are by their terms extendible or renewable at the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed and excluding
current maturities of long term debt), and (ii) all goodwill, trade names, trademarks, patents, purchased technology, unamortized debt discount and other like intangible assets. 
 “Consolidated Net Worth” means, with respect to any Person as of any date, the sum of (i) the consolidated equity of the common
stockholders of such Person and its Restricted Subsidiaries as of such date plus (ii) the respective amounts reported on such Person’s balance sheet as of such date with respect to any series of Preferred Stock (other than Disqualified
Stock), less all write-ups (other than write-ups resulting from foreign currency translations and write-ups of tangible assets of a going concern business made in accordance with GAAP as a result of the acquisition of such business) subsequent to
the date of the Indenture in the book value of any asset owned by such Person or a Restricted Subsidiary of such Person, and excluding the cumulative effect of a change in accounting principles, all as determined in accordance with GAAP. 

“Continuing Directors” means, with respect to a specified entity as of any date of determination, any member of the board of
directors of such specified entity who (i) was a member of the board of directors of the Company on the date of the Indenture or (ii) was nominated for election or elected to the 

  

 6 

 
board of directors of such specified entity with the approval of a majority of the Continuing Directors who were members of such board of directors at the
time of such nomination or election or any successor Continuing Directors appointed by such Continuing Directors (or their successors). 
 “Corporate Trust Office” means the principal office of the Trustee, at which at any particular time its corporate trust business shall be administered, which office on the Issue Date is located at 101 Barclay Street, Floor
21 West, New York, New York 10286, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such
successor Trustee may designate from time to time by notice to the Holders and the Company). 
 “De Minimis Guaranteed
Amount” means a principal amount of Indebtedness that does not exceed $30 million. 
 “Default” means any event
that is or with the passage of time or the giving of notice or both would be an Event of Default. 
 “Depositary” means The
Depository Trust Company, its nominees and successors. 
 “Disqualified Stock” means any Capital Stock that, by its terms
(or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option
of the holder thereof, in whole or in part, on or before the date on which the Notes mature; provided that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require
such Person to repurchase or redeem such Capital Stock upon the occurrence of an “asset sale” or a “change of control” occurring before the date on which the Notes mature shall not constitute Disqualified Stock if the “asset
sale” or “change of control” provisions applicable to such Capital Stock are no more favorable to the holders of such Capital Stock than the provisions contained in Section 4.09 of the Existing Senior Subordinated Note Indenture
or Section 4.14 hereof and such Capital Stock specifically provides that such Person will not repurchase or redeem any such stock pursuant to such provision before the Company’s repurchase of such Notes as are required pursuant to
such covenants. 
 “Distributable Joint Venture Cash Flow” means, with respect to any Person for any period, in the case of
each Joint Venture that is not a Restricted Subsidiary of the referent Person, the sum of: 
 (I) the amount of dividends or distributions
paid in cash (but not by means of a loan) by such Joint Venture to the referent Person or a Restricted Subsidiary thereof, minus 
 (II) the aggregate amount of all Investments made by the Company or any of its Restricted Subsidiaries in such Joint Venture during such period pursuant to Section 4.07(b)(viii), 
 in each case determined on a consolidated basis and in accordance with GAAP. 
 “Equistar” means Equistar Chemicals, LP and its successors. 
 “Equistar Assumed Debt” means the 7.55% Notes Due 2026 issued by the Company pursuant to an Indenture dated as of January 29, 1996
between the Company and Texas Commerce Bank National Association, as Trustee, as supplemented by the First Supplemental Indenture dated as of February 15, 1996 and the Second Supplemental Indenture dated as of December 1, 1997, outstanding
as of the Issue Date and with respect to which the Company is a guarantor, as may be amended from time to time, provided that any such amendment does not increase the principal amount thereof or interest rate applicable thereto or shorten the
Weighted Average Life to Maturity or Stated Maturity thereof or add any Restricted Subsidiary as an obligor with respect thereto. 
  

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 “Equity Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock). 
 “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 “Existing ARCO Chemical Debt” means the 10.25%
Debentures Due 2010 and the 9.8% Debentures Due 2020 issued pursuant to the Indenture dated June 15, 1988 between the Company (as successor to ARCO Chemical Company) and The Bank of New York, as Trustee. 
 “Existing Credit Facility” means that certain Credit Agreement dated as of August 16, 2006 among the Company and JPMorgan Chase
Bank, N.A., as administrative agent, and the other agents and lenders that are parties thereto, including any related notes, instruments and agreements executed in connection therewith, as amended, restated, modified, extended, renewed, refunded,
replaced or refinanced, in whole or in part, from time to time, after the Issue Date (other than with the proceeds of the Original Notes issued on the Issue Date), whether or not with the same lenders or agents. 
 “Existing Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries in existence, and considered Indebtedness of
the Company or any of its Restricted Subsidiaries, on the Issue Date, until such amounts are repaid, including all reimbursement obligations with respect to letters of credit outstanding as of the date of this Indenture. 
 “Existing Senior Secured Notes” means the Company’s 9.625% Senior Secured Notes, Series A, Due 2007, its 9.5% Senior Secured Notes
due 2008, its 11.125% Senior Secured Notes due 2012 and its 10.5% Senior Secured Notes due 2013. 
 “Existing Senior Subordinated
Note Indenture” means the indenture among the Company, the Subsidiary Guarantors party thereto and The Bank of New York, as trustee, pursuant to which the Company issued the Existing Senior Subordinated Notes. 
 “Existing Senior Subordinated Notes” means the 10.875% Senior Subordinated Notes Due 2009 issued by the Company pursuant to the Existing
Senior Subordinated Note Indenture. 
 “Finance Subsidiary” means a Restricted Subsidiary of the Company, all the Capital
Stock of which (other than Preferred Stock) is owned by the Company that does not engage in any activity other than: (i) holding of Indebtedness of the Company; (ii) the issuance of Capital Stock; and (iii) any activity necessary,
incidental or related to the foregoing. 
 “Fixed Charge Coverage Ratio” means with respect to any Person for any period,
the ratio of the Adjusted Consolidated Cash Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that the Company or any of its Restricted Subsidiaries incurs, assumes or redeems any Indebtedness
(other than revolving credit borrowings) or issues or redeems Preferred Stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated but before the date on which the event for which the calculation
of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect to such incurrence, assumption or redemption of Indebtedness, or such
issuance or redemption of Preferred Stock, as if the same had occurred at the beginning of the applicable four-quarter reference period. 
 In addition, for purposes of making the computation referred to above, 
 (i) acquisitions that have been made by the
Company or any of its Restricted Subsidiaries, including through mergers or consolidations and including any related financing transactions, during the four-quarter reference period or subsequent to such reference period and on or before the
Calculation Date shall be deemed to have occurred on the first day of the four-quarter reference period, and the Adjusted Consolidated Cash Flow for such reference period will 

  

 8 

 
be calculated giving pro forma effect to any expense and cost reductions that have occurred or, in the reasonable judgment of the chief financial
officer of the Company, are reasonably expected to occur (regardless of whether those operating improvements or cost savings could then be reflected in pro forma financial statements prepared in accordance with Regulation S-X under the
Securities Act or any other regulation or policy of the SEC related thereto); 
 (ii) the Adjusted Consolidated Cash Flow and
Fixed Charges attributable to assets, operations or businesses disposed of before the Calculation Date shall be excluded, but, in the case of such Fixed Charges, only to the extent that the obligations giving rise to such Fixed Charges will not be
obligations of the referent Person or any of its Restricted Subsidiaries following the Calculation Date; 
 (iii) if since the
beginning of the four-quarter reference period any Person was designated as an Unrestricted Subsidiary or redesignated as or otherwise became a Restricted Subsidiary, such event shall be deemed to have occurred on the first day of the four-quarter
reference period; and 
 (iv) if any Indebtedness to be incurred bears a floating rate of interest, the interest expense on
such Indebtedness will be calculated as if the rate in effect on the Calculation Date had been the applicable rate for the entire period (taking into account any Hedging Obligation applicable to such Indebtedness if such Hedging Obligation has a
remaining term as at the Calculation Date in excess of 12 months). 
 “Fixed Charges” means, with respect to any Person for
any period, the sum, without duplication, of 
 (i) the consolidated interest expense of such Person and its Restricted
Subsidiaries for such period, whether paid or accrued (including, without limitation, amortization of original issue discount, non-cash interest payments, the interest component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, commissions, discounts and other fees and charges incurred in respect of letters of credit or bankers’ acceptance financings and net payments or receipts (if any) pursuant to Hedging
Obligations), 
 (ii) the consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized
during such period, 
 (iii) any interest expense on Indebtedness of another Person (other than Non-Recourse Debt of a Joint
Venture or an Unrestricted Subsidiary secured by a Limited Recourse Stock Pledge) that is Guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries (whether or
not such Guarantee or Lien is called upon), and 
 (iv) the product of (a) all dividend payments (other than any payments
to the referent Person or any of its Restricted Subsidiaries) on any series of Preferred Stock of such Person and its Restricted Subsidiaries (other than dividends payable solely in Equity Interests of such Person (other than Disqualified Stock of
such Person)), times (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate of such Person, expressed as a decimal, in each case, on a
consolidated basis and in accordance with GAAP; 
 provided that (i) interest payments by Equistar on the Equistar Assumed Debt and
(ii) interest payments on Indebtedness of a Joint Venture shall, in each case, not be deemed Fixed Charges of the Company as of any date of determination when such Indebtedness is not considered Indebtedness of the Company or any Restricted
Subsidiary of the Company. 
  

 9 

 “Foreign Subsidiary” means any Restricted Subsidiary that has 50% or more of its assets
located outside the United States or any territory thereof. 
 “GAAP” means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such
other entity as have been approved by a significant segment of the accounting profession, as in effect on the Issue Date. 
 “General
Partner” means a Restricted Subsidiary of the Company or any of its Restricted Subsidiaries that has no assets and conducts no operations other than its ownership of a general partnership interest in a Joint Venture. 
 “Guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or
Disqualified Stock 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 Disqualified Stock of such other Person (including those arising by virtue of partnership arrangements (other than, in the case of the Company or a Restricted Subsidiary of the Company, with respect to the
obligations of a Joint Venture, solely by virtue of a Restricted Subsidiary of the Company being the General Partner of such Joint Venture if, as of the date of determination, no payment on such Indebtedness or obligation has been made by such
General Partner of such Joint Venture and such arrangement would not be classified and accounted for, in accordance with GAAP, as a liability on a consolidated balance sheet of the Company)) or (ii) entered into for purposes of assuring in any
other manner the obligee of such Indebtedness or Disqualified Stock of the payment thereof or to protect such obligee against loss in respect thereof in whole or in part (including by agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, to maintain financial statement conditions or otherwise); provided that the term “Guarantee” shall not include (a) endorsements for collection or deposit in the ordinary course of business, (b) a
contractual commitment by one Person to make an investment in another Person that is reasonably expected to constitute a Permitted Investment or (c) any Lien. The term “Guarantee” used as a verb and the term “Guaranteed”
used as an adjective have corresponding meanings. 
 “Hedging Obligations” means, with respect to any Person, the
obligations of such Person under (i) interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, (ii) forward foreign exchange contracts or currency swap agreements, (iii) other agreements or
arrangements designed to protect such Person against fluctuations in interest rates or currency values and (iv) commodity price protection agreements or commodity price hedging agreements designed to manage fluctuations in prices or costs of
raw materials, manufactured products or related commodities. 
 “Holder” or “Noteholder” means the Person
in whose name a Note is registered on the Registrar’s books. 
 “Indebtedness” means, with respect to any Person, any
indebtedness of such Person, whether or not contingent, in respect of borrowed money or evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) or banker’s acceptances
or representing Capital Lease Obligations or the balance deferred and unpaid of the purchase price of any property or representing net Hedging Obligations, except any such balance that constitutes an accrued expense or a trade payable, if and to the
extent any of the foregoing indebtedness (other than letters of credit and Hedging Obligations) would appear as a liability on a balance sheet of such Person prepared in accordance with GAAP, as well as all indebtedness of others secured by a Lien
on any asset of such Person whether or not such indebtedness is assumed by such Person (provided that, for purposes of determining the amount of any Indebtedness of the type described in this clause, if recourse with respect to such
Indebtedness is limited to such asset, the amount of such Indebtedness shall be limited to the lesser of the fair market value of such asset or the amount of such Indebtedness) and, to the extent not otherwise included, the Guarantee by such Person
of any indebtedness of the types described above of any other Person; provided that Indebtedness shall not include (i) any Limited Recourse Stock Pledge or any non- 

  

 10 

 
recourse guarantee given solely to support such pledge or (ii) any Indebtedness which has been defeased in accordance with GAAP or defeased pursuant to
the deposit of cash or U.S. government obligations (in an amount sufficient to satisfy all such Indebtedness at the Stated Maturity thereof or redemption, as applicable, and all payments of interest and premium, if any) in a trust or account created
or pledged for the sole benefit of the holders of such Indebtedness, and subject to no other Liens, and the other applicable terms of the instrument governing such Indebtedness or (iii) Indebtedness for which irrevocable notice of redemption
has been duly given and for which redemption money in the necessary amount has been irrevocably deposited with the applicable trustee or paying agent in trust for the holders of such Indebtedness. 
 The Equistar Assumed Debt shall not constitute Indebtedness of the Company as of any date of determination if the Company has not made any principal or
interest payments on such Indebtedness after the Issue Date; provided that, the payment by the Company of any principal or interest thereon shall be deemed to be an incurrence of such Indebtedness on the day of such payment. The amount of any
Indebtedness outstanding as of any date shall be (i) the accreted value thereof, in the case of any Indebtedness that does not require current payments of interest and (ii) the principal amount thereof, together with any interest thereon
that is more than 30 days past due, in the case of any other Indebtedness. 
 “Interest Payment Date” means, when used with
respect to any Note and any installment of interest thereon, the date specified in such Note as the fixed date on which such installment of interest is due and payable, as set forth in such Note. 
 “Investment Grade” means a rating of BBB- or higher by S&P or Baa3 or higher by Moody’s or the equivalent of such ratings by
S&P or Moody’s. In the event that the Company shall select any other Rating Agency pursuant to the provisions of the definition thereof, the equivalent of such ratings by such Rating Agency shall be used. 
 “Investments” means, with respect to any Person, all investments by such Person in another Person (including an Affiliate of such
Person) in the form of direct or indirect loans, advances or extensions of credit to such other Person (including any Guarantee by such Person of the Indebtedness or Disqualified Stock of such other Person) or capital contributions or purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other securities of such other Person, together with all items that are or would be classified as investments of such investing Person on a balance sheet prepared in
accordance with GAAP; provided that (x) trade credit and accounts receivable in the ordinary course of business, (y) commissions, loans, advances, fees and compensation paid in the ordinary course of business to officers, directors
and employees and (z) reimbursement obligations in respect of letters of credit and tender, bid, performance, government contract, surety and appeal bonds, in each case solely with respect to obligations of the Company or any of its Restricted
Subsidiaries shall not be considered Investments. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company such that, after giving
effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company, the Company shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value of the Equity
Interests of such Restricted Subsidiary not sold or disposed of in an amount determined as provided in Section 4.07(a). 
 “Issue Date” means the date on which the Original Notes are originally issued. 
 “Joint Venture”
means any joint venture between the Company or any Restricted Subsidiary and any other Person (including any Unrestricted Subsidiary), whether or not such joint venture is a Subsidiary of the Company or any Restricted Subsidiary. 
 “Joint Venture Subsidiary” means a Subsidiary of the Company or any of its Subsidiaries that has no assets and conducts no operations
other than its ownership of Equity Interests of a Joint Venture. 
 “LCR” means LYONDELL-CITGO Refining LP. 
  

 11 

 “LCR Acquisition” means the acquisition, directly or indirectly, by the Company of the
41.25% equity interest in LCR which, immediately prior to such acquisition, was not owned by it. 
 “Lien” means, with
respect to any asset, any mortgage, lien, pledge, charge, security interest (other than, in the case of a Receivables Facilities, security interests under the Uniform Commercial Code arising solely by virtue of the application of Article 9
thereof to sales of accounts) or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, and any lease in the
nature thereof) or the assignment or conveyance of any right to receive income therefrom. 
 “Limited Recourse Stock Pledge”
means the pledge of the Equity Interests in any Joint Venture (that is not a Restricted Subsidiary) or any Unrestricted Subsidiary to secure Non-Recourse Debt of such Joint Venture or Unrestricted Subsidiary, which pledge is made by a Restricted
Subsidiary of the Company, the activities of which are limited to making and managing Investments, and owning Equity Interests, in such Joint Venture or Unrestricted Subsidiary, but only for so long as its activities are so limited. 
 “Lyondell TDI” means Lyondell Chimie France TDI SCA, a French limited partnership and a wholly-owned Subsidiary of the Company.

 “Major Asset Sale” means an Asset Sale designated by the Company by prior notice to the Trustee as a Major Asset Sale, so
long as in connection therewith 
 (i) the Company receives Net Proceeds in an aggregate amount not less than $1,000,000,000
(which shall be deemed Net Proceeds of such Major Asset Sale for purposes of Section 4.09), 
 (ii) at the time of
such Major Asset Sale and after giving effect thereto, no Default shall exist, 
 (iii) the sum of the gross cash proceeds
received by the Company in respect of such Major Asset Sale plus the value of the interest of the Company in the Subject Assets Transferee (if any) after giving effect to such Major Asset Sale is not less than the value (as conclusively determined
by the Board of Directors of the Company) of the portion of the Subject Assets transferred by the Company in connection with such Major Asset Sale, and 
 (iv) the Company directly or indirectly is the operator of the Subject Assets in which it or a Subject Assets Transferee retains an interest. For purposes of clause (i) of this definition, (x) a transaction
that produces substantially the same economic result as a sale of a partial interest in an asset, as might be achieved, for instance, through contractual arrangements allocating future revenues and costs attributable to the asset, shall be deemed an
Asset Sale even though there may be no change in title to the asset or in the ownership of the Person that has title to the asset and (y) a subsequent related transaction with the same Acquiring Person (or an Affiliate thereof) contemplated by
the terms of the initial Major Asset Sale with such Acquiring Person shall, for purposes of determining the applicability of and compliance with this definition, be deemed a single cumulative transaction. 
 “Millennium” means Millennium Chemicals Inc. and its successors. 
 “Moody’s” means Moody’s Investors Service, Inc., and its successors. 
 “Net Income” means, with respect to any Person, the net income (loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of Preferred Stock dividends, excluding, however, 
  

 12 

 (i) any gain or loss, together with any related provision for taxes on such gain or loss, realized in
connection with (a) any asset sale not in the ordinary course of business or any disposition pursuant to a Sale and Leaseback Transaction or (b) the disposition of any securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted Subsidiaries, 
 (ii) any extraordinary gain or loss, together
with any related provision for taxes on such extraordinary gain or loss, 
 (iii) any non-cash restructuring charges or asset impairment
charges (other than write-downs of current assets), provided that if any such charge represents a cash payment in any future period, such cash payment shall be included in such period, 
 (iv) any restructuring charges paid in cash during such period, up to a maximum amount of $50 million for any period of four consecutive fiscal quarters,
and 
 (v) in the case of the Company, the payment of $176,250,000 to reflect its share of the payment made by LCR to terminate the prior
crude supply agreement in connection with the LCR Acquisition. 
 “Net Proceeds” means the aggregate cash proceeds
(excluding any proceeds deemed to be “cash” pursuant to Section 4.09) received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash received upon the sale or
other disposition of any non-cash consideration received in any Asset Sale), net of (i) the direct costs relating to such Asset Sale (including, without limitation, legal, accounting and investment banking fees and sales commissions) and any
relocation expenses incurred as a result thereof, taxes paid or payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements), (ii) amounts required to be paid to holders of
minority interests in Restricted Subsidiaries as a result of such Asset Sale, (iii) amounts required to be applied to the repayment of Indebtedness (other than Indebtedness under the Existing Credit Facility, the Existing Senior Secured Notes
or the Existing ARCO Chemical Debt) secured by a Lien on any asset sold in such Asset Sale and (iv) any reserves for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP and any reserve for future
liabilities established in accordance with GAAP, provided that the reversal of any such reserve that reduced Net Proceeds when issued shall be deemed a receipt of Net Proceeds in the amount of such proceeds on such day. 
 “Non-Recourse Debt” means Indebtedness as to which the lenders have been notified in writing that they will not have any recourse to the
stock or assets (in each case, other than the stock of a Joint Venture or an Unrestricted Subsidiary or of a Joint Venture Subsidiary that has no assets and conducts no operations other than the holding, directly or indirectly, of Equity Interests
of such Joint Venture pledged by the Company or any of its Restricted Subsidiaries to secure debt of such Joint Venture or Unrestricted Subsidiary) of the Company or any of its Restricted Subsidiaries. 
 “Notes” means the Original Notes and any Additional Notes. 
 “Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable
under the documentation governing any Indebtedness and in all cases whether direct or indirect, absolute or contingent, now outstanding or hereafter created, assumed or incurred and including, without limitation, interest accruing subsequent to the
filing of a petition in bankruptcy or the commencement of any insolvency, reorganization or similar proceedings at the rate provided in the relevant documentation, whether or not an allowed claim, and any obligation to redeem or defease any of the
foregoing. 
 “Officer” means, with respect to the Company, any Subsidiary Guarantor or any other obligor on the Notes, the
Chairman of the Board, the President, the Chief Executive Officer, the Chief Financial Officer, the Secretary, the Treasurer, any Assistant Secretary or Assistant Treasurer or any Vice President of such Person. 
  

 13 

 “Officer’s Certificate” means, with respect to the Company or any other obligor on
the Notes, a certificate signed by an Officer of such Person. 
 “Opinion of Counsel” means a written opinion from legal
counsel. The counsel may be an employee of or counsel to the Company or the Trustee. 
 “Original Notes” means the
Company’s 8 1/4% Senior Notes Due 2016, issued on the Issue Date (and any Notes issued in respect thereof
pursuant to Section 3.04, 3.05, 3.06, 3.13, or 10.08). 
 “Outstanding” when
used with respect to Notes means, as of the date of determination, all Notes theretofore authenticated and delivered under this Indenture, except: 
 (i) Notes theretofore canceled by the Trustee or delivered to the Trustee for cancellation; 
 (ii) Notes for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent in trust for the Holders of such Notes, provided that, if such Notes are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or provision therefor reasonably satisfactory to the Trustee has been made; 
 (iii) Notes paid pursuant to Section 3.06; and 
 (iv) Notes in exchange for or in
lieu of which other Notes have been authenticated and delivered pursuant to this Indenture. 
 A Note does not cease to be Outstanding
because the Company or any Affiliate of the Company holds the Note, provided that, in determining whether the Holders of the requisite amount of Outstanding Notes have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Notes owned by the Company or any Affiliate of 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 request,
demand, authorization, direction, notice, consent or waiver, only Notes which a Responsible Officer of the Trustee actually knows are so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the reasonable satisfaction of the Trustee the pledgee’s right to act with respect to such Notes and that the pledgee is not the Company or an Affiliate of such Company. 
 “Paying Agent” means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Notes on
behalf of the Company. 
 “Payment Default” means any failure to pay any scheduled installment of interest or principal on
any Indebtedness within the grace period provided for such payment in the documentation governing such Indebtedness. 
 “PBGC
Settlement” means the settlement agreement between the Company and the Pension Benefit Guaranty Corporation (or any successor entity) as amended, modified, restated or replaced from time to time. 
 “Permitted Business” means the petrochemical, chemical and petroleum refining businesses and any business reasonably related,
incidental, complementary or ancillary thereto. 
  

 14 

 “Permitted Equistar Revolving Credit Amount” means an amount equal to the sum of
(i) the aggregate principal amount of committed financings of Equistar under all revolving credit facilities of Equistar plus (ii) the maximum amount that a third party may advance under all Receivables Facilities of any Accounts
Receivable Subsidiaries of Equistar. 
 “Permitted Investments” means: 
 (a) any Investment in the Company or in a Restricted Subsidiary of the Company that is engaged in a Permitted Business; 
 (b) any Investment in Cash Equivalents; 
 (c) any Investment by the Company or any Subsidiary of the Company in a Person, if as a result of such Investment: (i) such Person becomes a Restricted Subsidiary of the Company engaged in a Permitted Business or (ii) such Person
is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all its assets to, or is liquidated into, the Company or a Restricted Subsidiary of the Company engaged in a Permitted Business; 
 (d) any non-cash consideration (other than a joint venture interest received in full or partial satisfaction of the 75% requirement in clause
(ii) of Section 4.09(a)) received as consideration in (i) an Asset Sale that was made pursuant to and in compliance with Section 4.09 or (ii) an Asset Swap deemed not to be an Asset Sale pursuant to
clause (g) of the definition of “Asset Sale”; 
 (e) Hedging Obligations entered into in the ordinary course of business and
otherwise permitted under the Indenture; 
 (f) Investments in an Accounts Receivable Subsidiary that, as conclusively determined by the
Board of Directors, are necessary or advisable to effect a Receivables Facility; 
 (g) Investments in Unrestricted Subsidiaries and Joint
Ventures in an aggregate amount, taken together with all other Investments made in reliance on this clause (g), not to exceed at any time outstanding the greater of (x) $50 million and (y) 0.5% of the Consolidated Net Tangible Assets of
the Company at the time of such Investment (after giving effect to any reductions in the amount of any such Investments as a result of the repayment or other disposition thereof for cash, the amount of such reduction not to exceed the amount of such
Investments previously made pursuant to this clause (g)); 
 (h) any Investment received by the Company or any Restricted Subsidiary as
consideration for the settlement of any litigation, arbitration or claim in bankruptcy or in partial or full satisfaction of accounts receivable owned by a financially troubled Person to the extent reasonably necessary in order to prevent or limit
any loss by the Company or any of its Restricted Subsidiaries in connection with such accounts receivable; 
 (i) Limited Recourse Stock
Pledges; and 
 (j) any Investment made in exchange for, or with the net cash proceeds from the sale of, (i) any Restricted Investment
outstanding as of the Issue Date (other than Investments in (x) Millennium, (1) up to an amount equal to the aggregate amount of distributions received by Millennium from Equistar from and after the Issue Date and (2) to the extent
the proceeds of the disposition pertain to Millennium’s ownership in Equistar, and (y) Equistar), (ii) any Permitted Investment of the type described in clause (g) above or (iii) any Restricted Investment made after the
Issue Date that is permitted by Section 4.07(a), 4.07(b)(iv), 4.07(b)(x) or 4.07(b)(xi), provided such Investment occurs within 365 days after such sale. The amount of any Investment outstanding pursuant to
this clause (j) made in exchange for, or with the net cash proceeds from the sale of, an Investment outstanding under clause (g) above or Section 4.07(b)(x) shall be deducted from the amount otherwise available under clause
(g) above or Section 4.07(b)(x), as the case may be. 
  

 15 

 “Permitted Liens” means: 
 (i) Liens in favor of the Company or any Subsidiary Guarantor; 
 (ii) Liens securing the Notes and the Subsidiary Guarantees; 
 (iii) Liens on property of a Person existing at the time such Person is merged into or consolidated with the Company or any Restricted
Subsidiary of the Company or becomes a Subsidiary of the Company; provided that such Liens were in existence before the contemplation of such merger, consolidation or acquisition and do not extend to any assets of the Company or its
Restricted Subsidiaries other than those of the Person merged into or consolidated with the Company or that becomes a Restricted Subsidiary of the Company; but including in any event Liens on property acquired after such date required to be pledged
pursuant to the terms of the agreements related thereto; 
 (iv) Liens on property (together with general intangibles,
improvements and proceeds related to such property) existing at the time of acquisition thereof by the Company or any Restricted Subsidiary of the Company; provided that such Liens were in existence before the contemplation of such
acquisition; 
 (v) Liens (including the interest of a lessor under a capital lease) on any asset (together with general
intangibles, improvements and proceeds related to such asset) existing at the time of acquisition thereof or incurred within 180 days of the time of acquisition or completion of design, construction, installation or improvement thereof, whichever is
later, to secure or provide for the payment of all or any part of the purchase price (or design, construction, installation or improvement price) thereof; 
 (vi) Liens incurred or assumed in connection with the issuance of revenue bonds the interest on which is exempt from federal income taxation pursuant to Section 103(b) of the Code; 
 (vii) Liens imposed by law, such as laborers’ or other employees’, carriers’, warehousemen’s, mechanics’,
materialmen’s and vendors’ Liens and Liens imposed by law on pipelines or pipeline facilities; 
 (viii) Liens
arising by reason of deposits necessary to qualify the Company or any Restricted Subsidiary to conduct business, maintain self insurance or comply with any law and Liens securing the PBGC Settlement; 
 (ix) Liens to secure the performance of statutory obligations, tender, bid, performance, government contract, surety or appeal bonds or
other obligations of a like nature incurred in the ordinary course of business; 
 (x) Liens existing on the Issue Date;

 (xi) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested
in good faith by appropriate proceedings, prejudgment Liens that are being contested in good faith by appropriate proceedings and Liens arising out of judgments or awards against the Company or any Restricted Subsidiary with respect to which the
Company or such Restricted Subsidiary at the time shall be prosecuting an appeal or proceedings for review and with respect to which it shall have secured a stay of execution pending such appeal or proceedings for review; provided that in
each case any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor; 
  

 16 

 (xii) easements, rights-of-way, restrictions, irregularities of title and other similar
charges or encumbrances, not interfering in any material respect with the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries; 
 (xiii) Liens securing reimbursement obligations with respect to commercial letters of credit obtained in the ordinary course of business
which encumber documents and other property or assets relating to such letters of credit and products and proceeds thereof; 
 (xiv) Liens securing assets under construction arising from progress or partial payments by a customer of the Company or its Restricted Subsidiaries relating to such property or assets; 
 (xv) licenses or leases by the Company or any of its Restricted Subsidiaries as licensor or lessor in the ordinary course of business and
otherwise permitted by the Indenture for patents, copyrights, trademarks, tradenames and other intellectual property; 
 (xvi)
leases or subleases by the Company or any of its Restricted Subsidiaries as lessor or sublessor in the ordinary course of business and otherwise permitted by the Indenture; 
 (xvii) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with
the importation of goods; 
 (xviii) Liens resulting from the deposit of funds or evidences of Indebtedness in trust for the
purpose of defeasing or redeeming Indebtedness of the Company or any of its Restricted Subsidiaries (which defeasance or redemption is otherwise permitted under the Indenture); 
 (xix) Liens resulting from any Limited Recourse Stock Pledge; 
 (xx) Liens on equipment of the Company or any Restricted Subsidiary arising as a result of a sale and leaseback with respect to such
equipment; provided that the proceeds from such sale and leaseback are applied pursuant to Section 4.09; 
 (xxi) Asset Sale Liens; 
 (xxii) customary Liens for the fees, costs and expenses of trustees and escrow agents
pursuant to any indenture, escrow agreement or similar agreement establishing a trust or an escrow arrangement, and Liens pursuant to merger agreements, stock purchase agreements, asset sale agreements, option agreements and similar agreements in
respect of the disposition of property or assets of the Company or any Restricted Subsidiary, to the extent such dispositions are permitted hereunder; 
 (xxiii) Liens securing Hedging Obligations otherwise permitted by this Indenture; 
 (xxiv)
other Liens on assets of the Company or any Restricted Subsidiary of the Company securing Indebtedness that is permitted by the terms of this Indenture to be outstanding having an aggregate principal amount at any one time outstanding not to exceed
the greater of (y) $100 million and (z) 1.0% of the Company’s Consolidated Net Tangible Assets at the time each determination is made; 
 (xxv) Liens to secure a Permitted Refinancing (other than a refinancing of Indebtedness secured by a Lien described in clause (xxvi) below) incurred to refinance Indebtedness that was secured by a Lien permitted
under the Indenture and that was incurred in accordance with the provisions of the Indenture; provided that such Liens do not extend to or cover any property or assets of the Company or any Restricted Subsidiary other than assets or property
securing the Indebtedness so refinanced (together with any assets acquired thereafter which are required to be pledged pursuant to the terms of such Indebtedness); 
  

 17 

 (xxvi) Liens securing Indebtedness incurred under the Existing Credit Facility incurred
under Section 4.06(b)(i), and securing any Guarantee thereof by any Restricted Subsidiary; 
 (xxvii) Liens
securing Indebtedness of any Foreign Subsidiary which Indebtedness is permitted by this Indenture; 
 (xxviii) Liens securing
Acquired Debt permitted to be incurred under the indenture and Liens securing Indebtedness included under Section 4.06(b)(xiv), provided that such Liens were in existence prior to the contemplation of the incurrence of such
Indebtedness under this Indenture, and provided further such Liens do not extend to or cover any property or assets not subject to such Lien at the time of incurrence other than any assets acquired thereafter which are required to be pledged
pursuant to the terms of such Indebtedness; and 
 (xxix) Liens securing the Existing Senior Secured Notes, and securing any
Guarantee thereof by a Subsidiary Guarantor; and 
 (xxx) from and after the first date when the Notes are rated Investment
Grade, Liens on any asset of the Company and its Restricted Subsidiaries other than any manufacturing facility located in the United States. 
 “Permitted Refinancing” means any Indebtedness of the Company or any of its Subsidiaries or Preferred Stock of a Finance Subsidiary issued in exchange for, or the net proceeds of which are used within 45 days solely to
extend, refinance, renew, replace, defease or refund, other Indebtedness of the Company or any of its Restricted Subsidiaries; provided that: 
 (i) the principal amount (or liquidation preference in the case of Preferred Stock) of such Permitted Refinancing (or if such Permitted Refinancing is issued at a discount, the initial issuance price of such Permitted
Refinancing) does not exceed the principal amount of the Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded (plus the amount of any premiums paid and reasonable expenses incurred in connection therewith); 
 (ii) such Permitted Refinancing or, in the case of Preferred Stock of a Finance Subsidiary, the Indebtedness issued to such Finance
Subsidiary, has a Stated Maturity date later than the Stated Maturity date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; 
 (iii) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated by its terms in right of payment to the Notes or the Subsidiary Guarantees, such Permitted Refinancing, or, in the case of Preferred Stock, the Indebtedness issued to such Finance Subsidiary, has a Stated Maturity date later
than the Stated Maturity date of, and is subordinated in right of payment to, the Notes on subordination terms at least as favorable to the Holders of Notes as those contained in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded (provided that in the case of a Permitted Refinancing of the Existing Senior Subordinated Notes pursuant to Section 4.07(b)(v), such Permitted Refinancing need not comply with
such subordination requirements); 
 (iv) such Indebtedness is incurred by the Company or a Subsidiary Guarantor (or such
Preferred Stock is issued by a Finance Subsidiary) if the Company or a Subsidiary Guarantor is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded; and 
  

 18 

 (v) such Indebtedness is incurred by the Company or a Restricted Subsidiary (or such
Preferred Stock is issued by a Finance Subsidiary) if a Restricted Subsidiary that is not a Subsidiary Guarantor is the obligor on the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded. 
 “Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity. 
 “Place of
Payment” means a city or any political subdivision thereof referred to in Article 3 and initially designated under Section 4.02. 
 “Predecessor Notes” of any particular Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purposes of this definition,
any Note authenticated and delivered under Section 3.06 in lieu of a mutilated, destroyed, lost or stolen Note shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Note. 
 “Preferred Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however
designated, whether voting or nonvoting) of preferred or preference stock of such Person which is outstanding or issued on or after the date of the Indenture. 
 “Principal” of a Note means the principal of the Note plus the premium, if any, payable on the Note which is due or overdue or is to become due at the relevant time. 
 “Qualified Equity Interests” shall mean all Equity Interests of a Person other than Disqualified Stock of such Person. 
 “Rating Agency” means (i) S&P or (ii) Moody’s or (iii) if neither S&P nor Moody’s shall exist, a
nationally recognized securities rating agency or agencies, as the case may be, selected by the Company, which shall be substituted for S&P or Moody’s or both, as the case may be. 
 “Receivables Facility” means one or more receivables financing facilities or arrangements, as amended from time to time, pursuant to
which the Company or any of its Restricted Subsidiaries sells (including a sale in exchange for a promissory note of or an Equity Interest in an Accounts Receivable Subsidiary) its accounts receivable to an Accounts Receivable Subsidiary.

 “Receivables Fees” means distributions or payments made directly or by means of discounts with respect to any
participation interests issued or sold in connection with, and other fees paid to a Person that is not the Company or a Restricted Subsidiary in connection with, any Receivables Facility. 
 “Redemption Date” when used with respect to any Note to be redeemed or purchased means the date fixed or such redemption or purchase by
or pursuant to this Indenture and the Notes. 
 “Redemption Price” when used with respect to any Note to be redeemed or
purchased means the price at which it is to be redeemed or purchased pursuant to this Indenture and the Notes. 
 “Regular Record
Date” for the interest payable on any Interest Payment Date means the date specified for that purpose in Section 3.01. 
 “Responsible Officer” when used with respect to the Trustee means any officer in the corporate trust department of the Trustee, including any vice president, assistant vice president, assistant secretary, assistant
treasurer, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture. 
  

 19 

 “Restricted Investment” means an Investment other than a Permitted Investment.

 “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.
Unless the context otherwise requires, references to a “Restricted Subsidiary” refer to a Restricted Subsidiary of the Company. 
 “Rhodia” means Rhodia S.A., a French company and the successor in interest to Rhone-Poulenc Chemie S.A. under the TDI Agreements. 
 “Rhodia TDI Plant” means the manufacturing facilities for the production of toluene diisocyanate, currently owned by Rhodia and located at Pont-de-Claix, France. 
 “Sale and Leaseback Transaction” means, with respect to any Person, any arrangement with a lender or an investor providing for the
leasing by such Person of any property or asset of such Person which has been or is being sold or transferred by such Person to such lender or investor if such arrangement is accounted for as a capitalized lease by such Person under GAAP.

 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Senior Indebtedness” has the meaning assigned to such term in the Existing Senior Subordinated Note Indenture. 
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “significant subsidiary” as defined in Article
1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Act, as such Regulation is in effect on the Issue Date; provided that in no event shall “Significant Subsidiary” include any Subsidiary that (i) would otherwise
be a Significant Subsidiary solely by virtue of the size of a loss it has incurred and (ii) is not a “Significant Subsidiary” under the Existing Senior Secured Notes or the Existing Senior Subordinated Notes outstanding at such time.

 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 3.07. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors. 
 “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which such payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness (or any later date established by any amendment to such original documentation)
and shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal before the date originally scheduled for the payment thereof. 
 “Subject Assets” means, with respect to any Major Asset Sale, the assets that are the subject of such Major Asset Sale. 
 “Subject Assets Transferee” means any Restricted Subsidiary or Joint Venture that becomes the owner of Subject Assets in connection with
a Major Asset Sale. 
 “Subsidiary” means, with respect to any Person, (i) any corporation, association or other
business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at 

  

 20 

 
the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and
(ii) any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or one or more Subsidiaries of such
Person (or any combination thereof). 
 “Subsidiary Guarantee” means a Guarantee by a Subsidiary Guarantor of the
Company’ obligations with respect to the Notes. 
 “Subsidiary Guarantor” means (i) LRC Holdings GP LLC, LRC
Holdings LP LLC, LRP Holdings LP LLC, Lyondell (Pelican) Petrochemical L.P.1, Inc., Lyondell Chemical Delaware Company, Lyondell Chemical Nederland, Ltd., Lyondell Chemical Properties, L.P., Lyondell Chemical Technology Management, Inc., Lyondell
Chemical Technology, L.P., Lyondell Chimie France Corporation, Lyondell France, Inc., Lyondell LP3 GP, LLC, Lyondell LP3 Partners, LP, Lyondell LP4 Inc., Lyondell Petrochemical L.P. Inc., Lyondell Refining Company LP, Lyondell Refining GP, LLC,
Lyondell Refining LP, LLC, Lyondell Refining Partners, LP, POSM Delaware, Inc., POSM II Properties Partnership, L.P., LYONDELL-CITGO Refining LP, Lyondell Chemical Technology 1 Inc., Lyondell Chemical Technology 2 Inc., Lyondell Chemical Technology
3 Inc., Lyondell Chemical Technology 4 Inc., Lyondell Chemical Technology 5 Inc., Lyondell Chemical Technology 6 Inc., Lyondell Chemical Technology 7 Inc., Lyondell Chemical Technology 8 Inc., Lyondell Houston Refinery Inc. and Lyondell Houston
Refinery A Inc. and (ii) any other Subsidiary that executes a Subsidiary Guarantee in accordance with the provisions of the Indenture, in each case, until the Subsidiary Guarantee of such Person is released in accordance with the provisions of
the Indenture. 
 “TDI Agreements” means (i) the Share Purchase Agreement dated as of January 23, 1995 between
Lyondell Chemical Europe Inc. and Rhone-Poulenc Chemie S.A., as such agreement may be amended, supplemented or otherwise modified from time to time, (ii) the Processing Agreement dated as of January 23, 1995 between Lyondell Chemie TDI SCA
and Rhone-Poulenc Chemie S.A., as such agreement may be amended, supplemented or otherwise modified from time to time, and (iii) the TDI License. 
 “TDI Assets” means (i) all rights of Lyondell Chemical Europe Inc., Lyondell Chemie TDI SCA, Lyondell Chemical Technology, L.P. and their respective successors under the TDI Agreements and
(ii) all of Lyondell TDI’s customer lists relating to the Rhodia TDI Plant. 
 “TDI License” means the TDI
Technology Agreement dated as of January 23, 1995 between Lyondell Chemical Technology, L.P. and Rhone-Poulenc Chemie S.A., as such agreement may be amended, supplemented or otherwise modified from time to time. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. sections 77aaa-77bbbb) as in effect on the date of this Indenture, except as
provided by Section 9.04. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph
of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. 
 “Unrestricted Subsidiary” means (i) any Subsidiary of the Company that is designated by the Board of Directors of the Company as an
Unrestricted Subsidiary pursuant to a Board Resolution, (ii) any Subsidiary of an Unrestricted Subsidiary and (iii) any Accounts Receivable Subsidiary. The Board of Directors may designate any Subsidiary of the Company (including any newly
acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless at the time of such designation such Subsidiary or any of its Subsidiaries owns any Equity Interest or Indebtedness of, or holds any Lien on any property of, the Company or
any other Subsidiary of the Company that is not a Subsidiary of the Subsidiary to be so designated; provided that 
 (a) any Guarantee
(other than as a guarantor of the Equistar Assumed Debt so long as the Equistar Assumed Debt is not considered Indebtedness of the Company pursuant to the definition 

  

 21 

 
thereof) by the Company or any Restricted Subsidiary of any Indebtedness of the Subsidiary being so designated shall be deemed an
“Incurrence” of such Indebtedness and an “Investment” by the Company or such Restricted Subsidiary (or both, if applicable) at the time of such designation, 
 (b) either (i) the Subsidiary to be so designated has total assets of $1,000 or less or (ii) if such Subsidiary has assets greater than $1,000,
such designation would be permitted under Section 407, and 
 (c) if applicable, the Investment and the incurrence of Indebtedness
referred to in clause (a) of this proviso would be permitted under Section 4.06 and Section 4.07. 
 Any such
designation by the Board of Directors pursuant to clause (i) above shall be evidenced to the Trustee by filing with the Trustee a certified copy of the resolution of the Board of Directors giving effect to such designation and an Officer’s
Certificate certifying that such designation complied with the foregoing conditions and was permitted by Section 4.06 and Section 4.07. 
 If at any time the Company or any Restricted Subsidiary Guarantees any Indebtedness of such Unrestricted Subsidiary (other than a Limited Recourse Stock Pledge or a non-recourse guarantee given solely to support such
pledge) or makes any other Investment in such Unrestricted Subsidiary and such incurrence of Indebtedness or Investment would not be permitted under Section 4.06 and Section 4.07, it shall thereafter cease to be an
Unrestricted Subsidiary for purposes of the Indenture and any Indebtedness of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the Company as of such date (and, if such Indebtedness is not permitted to be incurred as of
such date under Section 4.06, the Company shall be in default of such covenant). The Board of Directors may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation shall be
deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such designation shall be permitted only if (i) such Indebtedness is permitted under
Section 4.06 and (ii) no Default or Event of Default would be in existence following such designation. As of the Issue Date, each of Millennium and Equistar and each Subsidiary thereof is an Unrestricted Subsidiary, and after the
Issue Date each of Millennium and Equistar and each Subsidiary thereof will continue to be an Unrestricted Subsidiary until the Board of Directors designates it a Restricted Subsidiary in accordance with the provisions of this Indenture. 

“U.S. Dollar Equivalent” means, with respect to any monetary amount in a currency other than the U.S. dollar, at or as of any time
for the determination thereof, the amount of U.S. dollars obtained by converting such foreign currency involved in such computations into U.S. dollars at the spot rate for the purchase of U.S. dollars with the applicable foreign currency as quoted
by Reuters (or, if Reuters ceases to provide such spot quotations, by any other reputable service as is providing such spot quotations, as selected by the Company) at approximately 11:00 a.m. (New York City time) on the date not more than two
Business Days prior to such determination. Whenever the definitions under this Section 1.01 or the provisions of Articles 4, 5 or 6 refer to an amount in U.S. dollars, that amount shall be deemed to refer to the
U.S.-Dollar Equivalent of the amount denominated in any other currency or currency unit, including composite currencies. 
 “U.S.
Government Obligations” means direct obligations (or certificates representing an ownership interest in such obligations) of the United States of America (including any agency or instrumentality thereof) for the payment of which the full
faith and credit of the United States of America is pledged and which are not callable at the issuer’s option. 
 “Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (i) the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking
fund, serial maturity or other required payments of principal, including payment at final maturity, in respect thereof, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such
payment, by (ii) the then outstanding principal amount of such Indebtedness. 
  

 22 

 “Wholly Owned Restricted Subsidiary” of any Person means a Restricted Subsidiary of such
Person all the outstanding Equity Interests of which (other than directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly Owned Restricted Subsidiaries of such Person or by such Person and one or more
Wholly Owned Restricted Subsidiaries of such Person. 
 “Wholly Owned Subsidiary” of any Person means a Subsidiary of such
Person all the outstanding Equity Interests of which (other than directors’ qualifying shares) 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. 
 Section1.02. Other Definitions. 
  

			
	Term	  	Defined in
Section
	 Acceleration Notice
	  	6.02
		  	 
	 Act
	  	1.08
		  	 
	 Affiliate Transaction
	  	4.10
		  	 
	 Agent members
	  	3.13
		  	 
	 Asset Sale Offer
	  	4.09
		  	 
	 Authentication Order
	  	3.03
		  	 
	 Change of Control Payment
	  	4.14
		  	 
	 Change of Control Payment Date
	  	4.14
		  	 
	 Covenant Defeasance
	  	12.03
		  	 
	 Defaulted Interest
	  	3.07
		  	 
	 DTC
	  	2.03
		  	 
	 Event of Default
	  	6.01
		  	 
	 Excess Proceeds
	  	4.09
		  	 
	 Expiration Date
	  	1.08
		  	 
	 Global Notes
	  	2.01
		  	 
	 incur
	  	4.06
		  	 
	 Legal Defeasance
	  	12.02
		  	 
	 Physical Notes
	  	2.01
		  	 
	 Place of Payment
	  	3.01
		  	 
	 Register
	  	3.05
		  	 
	 Registrar
	  	3.05
		  	 
	 Regular Record Date
	  	3.01
		  	 
	 Restricted Payment
	  	4.07
		  	 
	 Subordinated Debt
	  	4.07
		  	 

 Section 1.03. Rules of Construction. For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires: 
 (a) the terms defined in this Indenture have the meanings assigned
to them in this Indenture; 
 (b) “or” is not exclusive; 
 (c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP and, unless expressly provided
otherwise, all determinations and computations made pursuant to any provision hereof shall be made in accordance with GAAP; provided that references to any Person and its Restricted Subsidiaries on a consolidated basis, and any calculations
of amounts with respect to any Person and its Restricted Subsidiaries on a consolidated basis, shall refer to such Person and all its Restricted Subsidiaries, whether or not such Restricted Subsidiaries would be accounted for as consolidated
subsidiaries on such Person’s financial statements prepared in accordance with GAAP; 
  

 23 

 (d) the words “herein,” “hereof’ and “hereunder” and
other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; 
 (e) all
references to “$” or “dollars” shall refer to the lawful currency of the United States of America; 
 (f)
the words “include,” “included” and “including” as used herein shall be deemed in each case to be followed by the phrase “without limitation,” if not expressly followed by such phrase or
the phrase “but not limited to”; 
 (g) words in the singular include the plural, and words in the plural include the
singular; and 
 (h) any reference to a Section or Article refers to such Section or Article of this Indenture unless otherwise indicated.

 Section 1.04. Incorporation by Reference of TIA. Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. This Indenture is subject to the mandatory provisions of the TIA, which are incorporated by reference in and made a part of this Indenture. Any terms incorporated by reference in this
Indenture that are defined by the TIA, defined by any TIA reference to another statute or defined by SEC rule under the TIA, have the meanings so assigned to them therein. The following TIA terms have the following meanings: 
 “indenture securities” means the Notes. 
 “indenture security holder” means a Holder or Noteholders. 
 “indenture to be
qualified” means this Indenture. 
 “indenture trustee” or “institutional trustee” means the
Trustee. 
 “obligor” on the indenture securities means the Company, any Subsidiary Guarantor and any other obligor on the
indenture securities. 
 Section 1.05. Conflict with TIA. If any provision hereof limits, qualifies or conflicts with a provision of
the TIA that is required under the TIA to be a part of and govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the latter
provision shall be deemed (a) to apply to this Indenture as so modified or (b) to be excluded, as the case may be. 
 Section 1.06.
Compliance Certificates and Opinions. Upon any application or request by the Company or by any other obligor upon the Notes to the Trustee to take any action under any provision of this Indenture, the Company or such other obligor upon the
Notes, as the case may be, shall furnish to the Trustee such certificates and opinions as may be required under the TIA. Each such certificate or opinion shall be given in the form of one or more Officer’s Certificates, if to be given by an
Officer, or an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the TIA and any other requirements set forth in this Indenture. Notwithstanding the foregoing, in the case of any such request or application as
to which the furnishing of any Officer’s Certificate or Opinion of Counsel is specifically required by any provision of this Indenture relating to such particular request or application, no additional certificate or opinion need be furnished.

 Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (except for
certificates provided for in Section 4.05) shall include: 
 (a) a statement that the individual signing such certificate or
opinion has read such covenant or condition and the definitions herein relating thereto; 
  

 24 

 (b) 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; 
 (c) a statement that, in the opinion of such individual, he or
she made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
 (d) a statement as to whether, in the opinion of such individual, such condition or covenant has been complied with. 
 Section 1.07. Form of Documents Delivered to Trustee. 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 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 may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such Officer knows 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 to the effect that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows 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 1.08. Acts of Noteholders; Record Dates. (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing; and, except as herein
otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee, and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 7.01) conclusive in favor of the Trustee, the Company and any other obligor upon the Notes, if made in the manner provided in this Section 1.08. 

(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution
or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by
an officer of a corporation or a member of a partnership or other entity, on behalf of such corporation or partnership or other entity, such certificate or affidavit shall also constitute sufficient proof of such Person’s authority. The fact
and date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner that the Trustee deems sufficient. 
 (c) The ownership of Notes shall be proved by the Register. 
  

 25 

 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder
of any Note shall bind the Holder of every Note issued upon the transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done or suffered to be done by the Trustee, the Company or any other obligor on the Notes in reliance
thereon, whether or not notation of such action is made upon such Note. 
 (e) (i) The Company may set any day as a record date for the
purpose of determining the Holders of Outstanding Notes entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by
Holders, provided that the Company may not set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in
Section 1.08(e)(ii). If any record date is set pursuant to this paragraph, the Holders of Outstanding Notes on such record date (or their duly designated proxies), and no other Holders, shall be entitled to take the relevant action,
whether or not such Persons remain Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of
Outstanding Notes on such record date. Nothing in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record
date previously set shall automatically and with no action by any Person be canceled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Notes on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder in the manner set forth in Section 1.10. 
 (ii) The
Trustee may set any day as a record date for the purpose of determining the Holders of Outstanding Notes entitled to join in the giving or making of (w) any Notice of Default, (x) any declaration of acceleration referred to in
Section 6.02, (y) any request to institute proceedings referred to in Section 6.06(b) or (z) any direction referred to in Section 6.05, in each case with respect to Notes. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Notes on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record date;
provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Notes on such record date. Nothing in this paragraph shall be
construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person
be canceled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Notes on the date such action is taken. Promptly after any record date
is set pursuant to this paragraph, the Trustee, at the expense of the Company, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder in the
manner set forth in Section 1.10. 
 (iii) With respect to any record date set pursuant to this Section 1.08, the
party hereto that sets such record dates may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the Company or the Trustee (whichever such party is not setting a record date pursuant to this Section l.08(e)) in writing, and to each Holder in the manner set forth in
Section 1.10, on or prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the party hereto that set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the
180th day after the applicable record date. 
 (iv) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder
with regard to any particular Note may do so with regard to all or any part of the principal amount of such Note or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such
principal amount. 
  

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 Section 1.09. Notices, Etc., to Trustee and Company. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with, 
 (a) the Trustee by any Holder or by the Company or any other obligor upon the Notes shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at the Corporate
Trust Office (telephone: (212) 815-6286; facsimile: (212) 815-5915), or at any other address furnished in writing to the Company by the Trustee, or 
 (b) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder if in writing and delivered in person or mailed, first-class postage prepaid, to the Company at One Houston Center, Suite
700, 1221 McKinney, Houston, Texas 77010, Attention: General Counsel (facsimile: (713) 309-2143), with copies to Baker Botts L.L.P. at 910 Louisiana, Houston, Texas 77002, Attention: Stephen A. Massad, Esq. (facsimile: (713) 229-1522), or
at any other address previously furnished in writing to the Trustee by the Company. 
 Section 1.10. Notices to Holders; Waivers.
Where this Indenture provides for notice to Holders of any event, such notice shall be deemed to have been given upon the mailing by first class mail, postage prepaid, of such notices to Holders at their registered addresses as recorded in the
Register, not later than the latest date, and not earlier than the earliest date, prescribed herein for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. 
 Where this Indenture
provides for notice in 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. 
 In case, by reason of the suspension of regular mail service, or by reason of any other cause, it shall be impossible to mail notice of any event as required by any provision of this Indenture, then such notification as shall be made with
the approval of the Trustee (such approval not to be unreasonably withheld) shall constitute a sufficient notification for every purpose hereunder. 
 Section 1.11. Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
 Section 1.12. Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its respective successors and
assigns, whether so expressed or not. 
 Section 1.13. Separability Clause. In case any provision in this Indenture or in the Notes
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 1.14 Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any Paying Agent and
the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 1.15. Governing Law. THIS
INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PRINCIPLES OF CONFLICT OF LAWS TO THE EXTENT THAT THE APPLICATION OF THE LAW
OF ANOTHER 

  

 27 

 
JURISDICTION WOULD BE REQUIRED THEREBY. TO THE EXTENT PERMITTED BY LAW, THE TRUSTEE, THE COMPANY, THE SUBSIDIARY GUARANTORS, ANY OTHER OBLIGORS IN RESPECT OF
THE NOTES AND (BY THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS, AGREE TO SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE CITY OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES. 
 Section 1.16. Legal Holidays. In any case where any Interest Payment
Date, Redemption Date or Stated Maturity of any Note shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of the Notes) payment of interest or principal and premium (if any) need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated Maturity. 
 Section 1.17. No Personal Liability of Directors, Officers, Employees, Incorporators and Stockholders. No director, officer, employee, incorporator, shareholder or other holder of Equity Interests of the
Company or the Subsidiary Guarantors, as such, shall have any liability for any obligations of the Company or the Subsidiary Guarantors under the Notes, the Subsidiary Guarantees, the Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 
 Section 1.18. Exhibits and Schedules. All exhibits and schedules attached hereto are by this reference made a part hereof with the same effect as
if herein set forth in full. 
 Section 1.19. Counterparts. This Indenture may be executed in any number of counterparts, each of
which shall be an original; but such counterparts shall together constitute but one and the same instrument. 
 ARTICLE 2 
 NOTE FORMS 
 Section 2.01. Forms Generally. The Notes and the Trustee’s certificate of authentication relating thereto shall be in fully registered form and in substantially the forms set forth, or referenced, in Exhibit A annexed hereto and
in this Article 2. The Notes may have such appropriate insertions, omissions, substitutions, notations, legends, endorsements, identifications and other variations as are required or permitted by law, stock exchange rule or depository rule or
usage, the certificate of incorporation, bylaws or other similar governing instruments of the Company, agreements to which the Company is subject, if any, or other customary usage, or as may consistently herewith be determined by the Officers of the
Company executing such Notes, as evidenced by such execution (provided always that any such notation, legend, endorsement, identification or variation is in a form acceptable to the Company). Each Note shall be dated the date of its authentication.

 Original Notes and any Additional Notes shall be issued initially in the form of one or more permanent global Notes in substantially the
form set forth in Exhibit A (the “Global Notes”), registered in the name of the nominee of the Depositary, deposited with the Trustee, as custodian for the Depositary or its nominee, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The aggregate principal amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depositary or its nominee, as provided in
Section 3.13. 
 Original Notes and any Additional Notes issued pursuant to Section 3.05 and Section 3.13
in exchange for or upon transfer of beneficial interests in the Global Notes shall be in the form of permanent certificated Notes in substantially the form set forth in Exhibit A (the “Physical Notes”), as hereinafter provided.

  

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 Section 2.02. Form of Trustee’s Certificate of Authentication . The Trustee’s
certificate of authentication shall be in substantially the following form: 
 This is one of the Notes referred to in the within-mentioned
Indenture. 
  

					
	 	 	THE BANK OF NEW YORK,
		 	                As Trustee
	Dated:                         	 		 	
		 	By:	 	  

		 		 	Authorized Signatory

 If an appointment of an Authenticating Agent is made pursuant to Section 7.15, the
Notes may have endorsed thereon, in lieu of the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form: 
 This is one of the Notes referred to in the within-mentioned Indenture. 
  

					
	 	 	THE BANK OF NEW YORK,
		 	                As Trustee
			
		 	By	 	  

		 		 	As Authenticating Agent
			
		 	By	 	  

		 		 	Authorized Signatory

 Dated: 
 Section 2.03. [Reserved] 
 ARTICLE 3 
 THE NOTES 
 Section 3.01. Title and Terms. The aggregate
principal amount of Notes that may be authenticated and delivered and Outstanding under this Indenture is initially limited to $900,000,000, but may be increased, subject to compliance with the covenants contained in Article 4 below and the
conditions set forth in Section 3.03, and except as may be limited by applicable law. The Original Notes will be issued in an aggregate principal amount of $900,000,000. All the Original Notes shall vote and consent together on all
matters as one class, and none of the Original Notes will have the right to vote or consent as a class separate from one another on any matter. Subject to the conditions set forth in Section 3.03 and the covenants contained in Article
4 below, the Company may issue Additional Notes hereunder. Additional Notes shall vote (or consent) as a class with the other Notes and otherwise be treated as Notes for all purposes of this Indenture. 
 The Notes shall be known and designated as the “8 1/4% Senior Notes, Due 2016” of the Company. The final Stated Maturity of the Notes shall be September 15, 2016. Interest on the Outstanding principal amount of Notes will accrue at the rate of
8 1/4% per annum and will be payable semiannually in arrears on March 15 and September 15 in each
year, commencing on March 15, 2007, to Holders of record at the close of business on the immediately preceding March 1 and September 1, respectively (each such March 1 and September 1 a “Regular Record
Date”). Interest on the Original Notes will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from September 20, 2006, and interest on any Additional Notes will
accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid on such Additional Notes, from 

  

 29 

 
the date of issuance of such Additional Notes; provided that if any Note is surrendered for exchange on or after a record date for an Interest Payment
Date that will occur on or after the date of such exchange, interest on the Note received in exchange thereof will accrue from the date of such Interest Payment Date. The Company will pay interest on overdue principal and, to the extent lawful, on
overdue installments of interest at a rate of 1% per annum in excess of the interest rate referred to above. 
 The principal of, and
premium, if any, and interest on the Notes shall be payable at the Corporate Trust Office or at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York (each, a “Place of
Payment”) in the manner provided in Section 4.01(b); provided, however, that, under the circumstances set forth in Section 4.01(b), payment of interest on a Note may be made by wire transfer of immediately
available funds to the account specified by the Holder of a Global Note or by check mailed to the address of the Person entitled thereto as such address shall appear in the Register. 
 Section 3.02. Denominations. The Notes shall be issuable only in registered form without coupons and only in denominations of $1,000 and any
integral multiple thereof. 
 Section 3.03.Execution, Authentication and Delivery and Dating. The Notes shall be executed on behalf of
the Company by an Officer of such Company. The signature of such Officer on the Notes may be manual or facsimile. 
 Notes bearing the manual
or facsimile signature of an individual who was at any time a proper Officer of the Company shall bind the Company, notwithstanding that such individual has ceased to hold such office prior to the authentication and delivery of such Notes or did not
hold such office at the date of such Notes. 
 At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication; and the Trustee shall authenticate and deliver (i) Original Notes for original issue in the aggregate principal amount not to exceed $900,000,000 and
(ii) Additional Notes from time to time for original issue in aggregate principal amounts specified by the Company, in each case upon a written order of the Company in the form of an Officer’s Certificate (an “Authentication
Order”), and in the case of clause (ii), upon receipt by the Trustee of an Opinion of Counsel confirming that the Holders of the Outstanding Notes will be subject to federal income tax in the same amounts, in the same manner and at the same
times as would have been the case if such Additional Notes were not issued. Such Officer’s Certificates shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be
Original Notes or Additional Notes, that, in the case of Additional Notes, the issuance of such Notes does not contravene any provision of Article 4 of this Indenture, whether the Notes are to be issued as one or more Global Notes or Physical
Notes, the name or names of the Holder or Holders and such other information as the Company may include or the Trustee may reasonably request. 
 All Notes shall be dated the date of their authentication. 
 No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
 Section 3.04. Temporary Notes.
Until definitive Notes are ready for delivery, the Company may prepare and upon receipt of an Authentication Order the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive Notes but may have
variations that the Company considers appropriate for temporary Notes. If temporary Notes are issued, the Company will cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes
shall be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Company in a Place of Payment, without charge to the Holder. Upon surrender 

  

 30 

 
for cancellation of any one or more temporary Notes, the Company shall execute and upon receipt of an Authentication Order the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so exchanged the temporary Notes shall in all respects be entitled to the same benefits under this Indenture as definitive Notes of the same
series and tenor. 
 Section 3.05. Registration, Registration of Transfer and Exchange. The Company shall cause to be kept at the
Corporate Trust Office of the Trustee a register (the register maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the “Register”) in
which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Notes and of transfers of Notes. The Trustee is hereby appointed “Registrar” for the purpose of registering Notes
and transfers of Notes as herein provided. 
 Upon surrender for transfer of any Note at the office or agency of the Company in a Place of
Payment, in compliance with all applicable requirements of this Indenture and applicable law, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes,
of any authorized denominations and of a like aggregate principal amount. 
 At the option of the Holder, Notes may be exchanged for other
Notes, of any authorized denominations and of a like tenor and aggregate principal amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Notes that the Holder making the exchange is entitled to receive. 
 All Notes issued upon any
registration of transfer or exchange of Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange.

 Every Note presented or surrendered for registration of transfer or exchange shall (if so required by the Company or the Registrar) be
duly endorsed, or be accompanied by a written instrument of transfer, in form satisfactory to the Company and the Registrar duly executed, by the Holder thereof or such Holder’s attorney duly authorized in writing. 
 No service charge shall be made for any registration of transfer or exchange or redemption of Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes under this Section 3.05. 
 Section 3.06. Mutilated, Destroyed, Lost and Stolen Notes. If (a) any mutilated Note is surrendered to the Trustee, or the Company and the
Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Note, and (b) there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then,
in the absence of notice to the Company or the Trustee that such Note has been acquired by a bona fide purchaser, the Company shall execute and upon receipt of an Authentication Order the Trustee shall authenticate and deliver, in exchange for or in
lieu of any such mutilated, destroyed, lost or stolen Note, a new Note of like tenor and principal amount, bearing a number not contemporaneously Outstanding. 
 In case any such mutilated, destroyed, lost or stolen Note has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Note, pay such Note. 
 Upon the issuance of any new Note under this Section 3.06, the Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
  

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 Every new Note issued pursuant to this Section 3.06 in lieu of any mutilated, destroyed, lost
or stolen Note shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and ratably with any and all other Notes duly issued hereunder. 
 The provisions of this Section 3.06 are
exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
 Section 3.07. Payment of Interest Rights Preserved. Interest on any Note that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Note (or one or more Predecessor Notes) is registered at the close of business on the Regular Record Date for such interest specified in Section 3.01. 
 Any interest on any Note that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted
Interest”) shall forthwith cease to be payable to the registered Holder on the relevant Regular Record Date by virtue of having been such Holder; and such Defaulted Interest shall be paid by the Company, as provided in 3.07(a) or
3.07(b) below: 
 (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes (or their
respective Predecessor Notes) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements reasonably satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as provided in this Section 3.07(a). Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 nor less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause
notice of the proposed payment of such Defaulted Interest, the amount thereof and the Special Record Date and payment date therefor to be mailed, first class postage prepaid, to each Holder at such Holder’s address as it appears in the
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Notes (or their respective Predecessor Notes) are registered on such Special Record Date and shall no longer be payable pursuant to the following 3.07(b). 
 (b) The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause (b), such payment shall be deemed practicable by the
Trustee. 
 Subject to the foregoing provisions of this Section 3.07, each Note delivered under this Indenture upon registration
of transfer of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Note. 
 Section 3.08. Persons Deemed Owners. Prior to due presentment of a Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Note is registered as the owner of such Note for the purpose of receiving payment of principal of (and premium, if any, on) and (subject to Section 3.07) interest on such Note and for all other purposes whatsoever, whether or not such
Note be overdue, and none of the Company, the Subsidiary Guarantors, the Trustee or any agent of the Company, the Subsidiary Guarantors or the Trustee shall be affected by notice to the contrary. 
  

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 Section 3.09. Cancellation. All Notes surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already canceled, shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any
Notes previously authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Trustee. No Notes shall be authenticated in lieu of or in exchange for
any Notes canceled as provided in this Section 3.09, except as expressly permitted by this Indenture. All canceled Notes held by the Trustee shall be disposed of in accordance with the Trustee’s customary procedures. 
 Section 3.10. Computation of Interest. Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. 

Section 3.11. [Reserved] 
 Section 3.12 CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” or “CINS” numbers (if then generally in use) in addition to serial numbers, and, if so, the Trustee shall use such
“CUSIP” or “CINS” numbers in addition to serial numbers in notices of redemption, repurchase or other notices to Holders as a convenience to Holders; provided that any such notice may state that no representation is
made as to the correctness of such “CUSIP” or “CINS” numbers either as printed on the Notes or as contained in any notice of a redemption or repurchase and that reliance may be placed only on the serial or other
identification numbers printed on the Notes, and any such redemption or repurchase shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the “CUSIP” or
“CINS” numbers. 
 Section 3.13. Book-entry Provisions for Global Notes 
 (a) Each Global Note initially shall (i) be registered in the name of the Depositary for such Global Notes or the nominee of such Depositary, and
(ii) be delivered to the Trustee as custodian for such Depositary. None of the Company or the Subsidiary Guarantors, nor any of their agents shall have any responsibility or liability for any aspect of the records relating to, or payments made
on account of beneficial ownership interests of, a Global Note, or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests. 
 Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under this Indenture with respect to any Global Note, and the Depositary may be treated by the Company, the
Subsidiary Guarantors, the Trustee and any agent of the Company, the Subsidiary Guarantors or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Subsidiary Guarantors, the Trustee or any agent of the Company, the Subsidiary Guarantors or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the
Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a beneficial owner of any Note. The registered Holder of a Global Note may grant proxies and otherwise authorize any person, including
Agent Members and persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
 (b) Interests of beneficial owners in a Global Note may be transferred in accordance with the applicable rules and procedures of the Depositary. Transfers of a Global Note shall be limited to transfers of such Global
Note in whole, but not in part, to the Depositary, its successors or their respective nominees, except that Physical Notes shall be transferred to all beneficial owners in exchange for their beneficial interests in a Global Note in the event that
(A) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for the applicable Global Note and a successor depositary is not appointed by the Company within 90 days or (B) an Event of Default has
occurred and is continuing and the Registrar has received a request from the Depositary. In addition, beneficial interests in a Global 

  

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Note may be exchanged for Physical Notes upon request but only upon at least 20 days’ prior written notice given to the Trustee by or on behalf of the
Depository in accordance with customary procedures. In connection with any transfer or exchange of a portion of the beneficial interest in any Global Note to beneficial owners for Physical Notes pursuant to this Section 3.13(b), the
Registrar shall record on its books and records (and make a notation on the Global Note of) the date and a decrease in the principal amount of such Global Note in an amount equal to the beneficial interest in the Global Note being transferred, and
the Company shall execute, and the Trustee shall authenticate and deliver, one or more Physical Notes of like tenor and principal amount of authorized denominations. In connection with a transfer of an entire Global Note to beneficial owners
pursuant to this paragraph (b), the applicable Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the
Depositary in exchange for its beneficial interest in the applicable Global Note, an equal aggregate principal amount at maturity of Physical Notes of authorized denominations. 
 (c) Any beneficial interest in one of the Global Notes that is transferred to a person who takes delivery in the form of an interest in another Global
Note will, upon transfer, cease to be an interest in such Global Note and become an interest in the other Global Note and, accordingly, will thereafter be subject to all procedures applicable to beneficial interests in such other Global Note for as
long as it remains such an interest. 
 (d) The Company, the Subsidiary Guarantors, any other obligor upon the Notes or the Trustee, in the
discretion of any of them, may treat as the Act of a Holder any instrument or writing of any Person that is identified by the Depositary as the owner of a beneficial interest in the Global Note, provided that the fact and date of the execution of
such instrument or writing is proved in accordance with Section 1.08(b). 
 ARTICLE 4 
 COVENANTS 
 Section 4.01.
Payment of Principal, Premium and Interest. (a) The Company will duly and punctually pay the principal of (and premium, if any) and interest on the Notes in accordance with the terms of the Notes and this Indenture. An installment of
principal (and premium, if any) or interest shall be considered paid on the date it is due if the Trustee or Paying Agent or Paying Agents hold on that date money designated for and sufficient to pay the installment. 
 (b) Payments (including principal, premium, if any, and interest) in respect of the Notes represented by the Global Notes, the Holder of which has given
wire transfer instructions on or prior to the relevant record date, shall be made by wire transfer of immediately available funds to the accounts specified by the Global Note Holder. With respect to Physical Notes, the Company will make all payments
of principal, premium, if any, and interest at the office or agency maintained by the Company in The City of New York referred to in Section 4.02 or, at the option of the Company, by mailing a check to each such Holder’s registered
address. 
 Section 4.02. Maintenance of Office or Agency. The Company will maintain in the Borough of Manhattan, The City of New York
an office or agency where Notes may be presented or surrendered for payment, where Notes may be surrendered for transfer or exchange and where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and of any change in the location, of such office or agency. If at any time the Company shall fail to maintain such office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. The Company hereby designates the Corporate Trust Office as an initial Place of Payment and as such office
of the Company in the Borough of Manhattan, The City of New York, and appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands so long as such Corporate Trust Office remains a Place of Payment. 

 

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 Section 4.03. Money for Payments to Be Held in Trust. If the Company shall at any time act as its
own Paying Agent, it will, on or before each due date of the principal of (and premium, if any) or interest on, any of the Notes, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure so to act. 
 If the Company is not acting as its own Paying Agent, it will, prior to each due date of the principal of (and premium, if any) or interest on, any
Notes, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 
 If the Company is not acting
as its own Paying Agent, the Company will cause any Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this
Section 4.03, that such Paying Agent will: 
 (a) hold all sums held by it for the payment of principal of (and premium, if any)
or interest on Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided; 
 (b) give the Trustee notice of any default by the Company (or any other obligor upon the Notes) in the making of any such payment of principal (and premium, if any) or interest; 
 (c) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by such Paying Agent; and 
 (d) acknowledge, accept and agree to comply in all respects with the provisions of this Indenture and TIA
relating to the duties, rights and liabilities of such Paying Agent. 
 The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.

 Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (and
premium, if any) or interest on any Note and remaining unclaimed for two years after such principal (and premium, if any) or interest has become due and payable shall be paid in the appropriate proportion to the Company upon a Company Request, or
(if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent
with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. 
 Section 4.04. SEC
Reports. (a) Whether or not required by the rules and regulations of the SEC, so long as any Notes issued hereunder are outstanding, the Company will furnish to the Trustee, promptly after filing with the SEC, (i) all quarterly and annual
financial information that would be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to file such Forms, including a “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and, with respect to the annual information only, a report thereon by the Company’s certified independent accountants and (ii) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports. In addition, whether or not required by the rules and regulations of the SEC, the Company will file a copy of all such information and reports with the SEC for public availability and make such
information available to securities analysts and prospective investors upon request. 
  

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 (b) The Company shall post on its website, promptly after filing with the SEC, copies of all such
information and reports provided to the Trustee pursuant to Section 4.04(a). 
 (c) All obligors on the Notes will comply with
Section 314(a) of the TIA. 
 (d) The Company intends to file the information and reports referred to in Section 4.04(a)
with the SEC in electronic form using the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system. The Company shall notify the Trustee of each such filing. The Trustee is hereby authorized and directed to access the
EDGAR system for purposes of retrieving the reports so filed. Compliance with the foregoing shall constitute delivery by the Company of such reports to the Trustee in compliance with this Section 4.04. The Trustee shall have no duty to
search for or obtain any electronic or other filings that the Company makes with the SEC, regardless of whether such filings are periodic, supplemental or otherwise. Delivery of such reports, information and documents to the Trustee pursuant to this
Section 4.04 is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates). 
 Section 4.05. Certificates to Trustee. (a) The Company will deliver to the Trustee within 120 days after the end of each fiscal year of the Company a certificate from the principal executive, financial or
accounting officer of the Company stating that such officer has conducted or supervised a review of the activities of the Company and its Restricted Subsidiaries and the Company’s and its Restricted Subsidiaries’ performance under this
Indenture and that, based upon such review, to the best of such officer’s knowledge, the Company has fulfilled all obligations thereunder or, if there has been a default in the fulfillment of any such obligation (determined without regard to
any period of grace or requirement of notice provided in this Indenture), specifying each such default and the nature and status thereof. 
 (b) The Company will deliver to the Trustee, as soon as possible and in any event within 30 days after the Company becomes aware of an Event of Default or a Default, an Officer’s Certificate setting forth the details of such Event of
Default or Default, and the action which the Company proposes to take or has taken with respect thereto. 
 Section 4.06. Limitation on
Indebtedness. (a) On or after the Issue Date: 
 (i) the Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, Guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including
Acquired Debt); 
 (ii) the Company will not, and will not permit any of its Restricted Subsidiaries to, issue any
Disqualified Stock (including Acquired Disqualified Stock); 
 (iii) and the Company will not permit any of its Restricted
Subsidiaries that are not Subsidiary Guarantors to issue any shares of Preferred Stock (including Acquired Preferred Stock); 
 provided, however,
that the Company and the Subsidiary Guarantors may incur Indebtedness (including Acquired Debt) and the Company and the Subsidiary Guarantors may issue shares of Disqualified Stock (including Acquired Disqualified Stock) if the Fixed Charge Coverage
Ratio for the Company’s most recently ended four full fiscal quarters for which earnings have been publicly disclosed immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock is issued would
have been at least 2.0 to 1, determined on a pro forma basis (including a pro forma application of the 

  

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net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock had been issued, as the case may be, at the beginning
of such four-quarter period. Letters of credit and bankers’ acceptances shall be deemed to have an aggregate principal amount of Indebtedness equal to the maximum amount available thereunder. 
 (b) The foregoing provisions will not apply to: 
 (i) the incurrence by the Company of Indebtedness pursuant to the Existing Credit Facility (and by its Subsidiaries of Guarantees thereof) in an aggregate principal amount at any time outstanding not to exceed an
amount equal to the greater of (i) $3.6 billion and (ii) 38.0% of Consolidated Net Tangible Assets of the Company determined as of the date of the incurrence of such Indebtedness after giving pro forma effect to such incurrence and
the application of the proceeds therefrom; 
 (ii) the incurrence by the Company and the Subsidiary Guarantors of Indebtedness
represented by the Notes (other than Additional Notes) and the Subsidiary Guarantees thereof; 
 (iii) the incurrence by the
Company and its Restricted Subsidiaries of Existing Indebtedness (other than Indebtedness of the type described in clause (i), (ii) or (iv) through (xii) of this covenant); 
 (iv) the incurrence by the Company or any of its Restricted Subsidiaries of any Permitted Refinancing in exchange for, or the net proceeds
of which are used to extend, refinance, renew, replace, defease or refund, Indebtedness that was permitted to be incurred under the Fixed Charge Coverage Ratio test set forth above or clause (ii) or (iii) above or (xiii) below or this
clause (iv); 
 (v) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness between
or among the Company and any of its Restricted Subsidiaries; provided, however, that (i) if the Company or any Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness is expressly subordinated to the prior payment in
full in cash of all Obligations with respect to the Notes or the Subsidiary Guarantee, as the case may be, and (ii) (A) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person
other than the Company or a Restricted Subsidiary and (B) any sale or other transfer of any such Indebtedness to a Person that is not either the Company or a Restricted Subsidiary shall be deemed, in each case, to constitute an incurrence of
such Indebtedness by the Company or such Restricted Subsidiary, as the case may be; 
 (vi) the incurrence by the Company or
any Restricted Subsidiary of Hedging Obligations that are incurred for the purpose of (A) fixing or hedging interest rate or currency risk with respect to any fixed or floating rate Indebtedness that is permitted by the Indenture to be
outstanding or any receivable or liability the payment of which is determined by reference to a foreign currency; provided that the notional principal amount of any such Hedging Obligation does not exceed the principal amount of the
Indebtedness to which such Hedging Obligation relates or (B) managing fluctuations in the price or cost of raw materials, manufactured products or related commodities; provided that such obligations are entered into in the ordinary
course of business to hedge or mitigate risks to which the Company or any Restricted Subsidiary is exposed in the conduct of its business or the management of its liabilities (as determined by the Company’s or such Restricted Subsidiary’s
principal financial officer in the exercise of his or her good faith business judgment); 
 (vii) the issuance by any of the
Company’s Restricted Subsidiaries of shares of Preferred Stock to the Company or a Wholly Owned Restricted Subsidiary of the Company; provided that (A) any subsequent issuance or transfer of Equity Interests that results in such
Preferred Stock being held by a Person other than the Company or a Wholly Owned Restricted Subsidiary of the Company or (B) the transfer or other disposition by the Company or a Wholly 

  

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Owned Restricted Subsidiary of the Company of any such shares to a Person other than the Company or a Wholly Owned Restricted Subsidiary of the Company shall
be deemed, in each case, to constitute an issuance of such Preferred Stock by such Subsidiary on such date that is not permitted by this clause (vii); 
 (viii) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by tender, bid, performance, government contract, surety or appeal bonds, standby letters of credit and warranty
and contractual service obligations of like nature, trade letters of credit or documentary letters of credit, in each case to the extent incurred in the ordinary course of business of the Company or such Restricted Subsidiary and the incurrence by
the Company of Indebtedness represented by letters of credit incurred in connection with the PBGC Settlement; 
 (ix) the
incurrence by the Company or any Restricted Subsidiary of Indebtedness or the issuance by any Restricted Subsidiary of Preferred Stock in an aggregate principal amount (or accreted value or liquidation preference, as applicable) at any time
outstanding and incurred or issued in reliance on this clause (ix) not to exceed the greater of (i) $200.0 million and (ii) 2.0% of Consolidated Net Tangible Assets of the Company at the date of such incurrence or issuance, as the
case may be; 
 (x) the issuance by any Finance Subsidiary of Preferred Stock with an aggregate liquidation preference not
exceeding the amount of Indebtedness of the Company held by such Finance Subsidiary; provided that the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which earnings have been publicly
disclosed immediately preceding the date on which such Preferred Stock is issued would have been at least 2.0 to 1, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom) as if such Preferred
Stock had been issued at the beginning of such four-quarter period; 
 (xi) the incurrence of Indebtedness or issuance of
Preferred Stock by Foreign Subsidiaries in an aggregate principal amount (or accreted value or liquidation preference, as applicable) at any time outstanding and incurred in reliance upon this clause (xi) not to exceed $200.0 million;

 (xii) the Guarantee by any Restricted Subsidiary of Indebtedness of the Company or a Restricted Subsidiary that was
permitted to be incurred by another provision of this covenant; 
 (xiii) the incurrence or issuance, as the case may be, by
the Company or any Restricted Subsidiary of Acquired Debt, Acquired Preferred Stock or Acquired Disqualified Stock (including, without limitation, Indebtedness, Disqualified Stock or Preferred Stock of Equistar or Millennium or any Subsidiary
thereof existing at the time such Person first becomes a Restricted Subsidiary); provided that immediately after giving effect to such incurrence, the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal
quarters for which earnings have been publicly disclosed immediately preceding the date of such incurrence, determined on a pro forma basis (including a pro forma application of the net proceeds therefrom) as if such Acquired Debt,
Acquired Preferred Stock or Acquired Disqualified Stock had been issued at the beginning of such four-quarter period, would be (i) at least 2.0 to 1 or (ii) in the case of Equistar or Millennium or any Subsidiary thereof (or any Restricted
Subsidiary into which any of such Persons is merged, consolidated or liquidated), (x) at least 2.0 to 1 or (y) equal to or greater than it would have been immediately preceding such incurrence; 
 (xiv) with respect to Equistar or Millennium or any Subsidiary thereof (or any Restricted Subsidiary into which any of such Persons is
merged, consolidated or liquidated), the incurrence by such Person of Indebtedness under any revolving credit facility in an aggregate principal amount at any time outstanding not to exceed the aggregate principal amount of committed financing under
all revolving credit facilities of such Person as in effect on the Issue Date (or, in the case of Equistar, an amount equal to the Permitted Equistar Revolving Credit 

  

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Amount as of such date); provided that the amount that may be incurred under this clause (xiv) by Equistar and Millennium or any Subsidiary
thereof, in the aggregate, may be increased by an amount not to exceed $200.0 million; and 
 (xv) the incurrence by the
Company or any Restricted Subsidiary of Indebtedness represented by Capital Lease Obligations, mortgage financings or purchase money obligations, in each case incurred for the purpose of financing all or any part of the purchase price or cost of
design, construction, installation or improvement of property, plant or equipment used in the business of the Company or any Restricted Subsidiary, in an aggregate principal amount, including all Permitted Refinancings incurred to refinance, renew,
replace, defease or refund any Indebtedness incurred pursuant to this clause (xv), not to exceed $100.0 million at any time outstanding. 
 (c) For purposes of determining compliance with this covenant, in the event that an item of Indebtedness or Preferred Stock meets the criteria of more than one of the categories of permitted Indebtedness described in clauses
(i) through (xv) above or is entitled to be incurred pursuant to Section 4.06(a), the Company shall, in its sole discretion, classify such item of Indebtedness or Preferred Stock in any manner that complies with this covenant
and such Indebtedness or Preferred Stock will be treated as having been incurred pursuant to the clauses or Section 4.06(a), as the case may be, designated by the Company. The amount of Indebtedness issued at a price which is less than
the principal amount thereof shall be equal to the amount of the liability in respect thereof determined in accordance with GAAP. 
 (d)
Accrual of interest, accretion or amortization of original issue discount, the payment of interest on any Indebtedness in the form of additional Indebtedness with the same terms, the accumulation of dividends on Disqualified Stock or Preferred Stock
(to the extent not paid), and the payment of dividends on Disqualified Stock or Preferred Stock in the form of additional shares of the same class of Disqualified Stock or Preferred Stock will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Stock or Preferred Stock for purposes of this Section 4.06. 
 (e) For purposes of determining
compliance with any U.S. dollar-denominated restriction on the incurrence of Indebtedness, the U.S. Dollar-Equivalent principal amount of Indebtedness denominated in a foreign currency shall be calculated based on the relevant currency exchange
rate in effect on the date such Indebtedness was incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit Indebtedness; provided, however, that if such Indebtedness is incurred to refinance other
Indebtedness denominated in a foreign currency, and such refinancing would cause the applicable U.S. dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such
U.S. dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness (including any additional Indebtedness incurred to pay interest or premiums required by the instruments
governing such Indebtedness being refinanced and fees and other transactional expenses incurred in connection therewith) does not exceed the principal amount of such Indebtedness being refinanced. Notwithstanding any other provision of this
covenant, the maximum amount of Indebtedness that the Company or any Restricted Subsidiary may incur pursuant to this covenant shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rates of currencies. The principal
amount of any Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such
refinancing Indebtedness is denominated that is in effect on the date of such refinancing. 
 Section 4.07. Limitation on Restricted
Payments. (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly: 
 (i) declare or pay any dividend or make any distribution on account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests (other than (x) dividends or distributions payable in Qualified Equity Interests of
the Company and (y) dividends or distributions payable to the Company or any Restricted Subsidiary of the Company); 
  

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 (ii) purchase, redeem or otherwise acquire or retire for value any Equity Interests of
the Company, any of its Restricted Subsidiaries or any Affiliate of the Company (other than any such Equity Interests owned by the Company or any of its Restricted Subsidiaries), excluding any such purchase, redemption or other acquisition that
constitutes a Permitted Investment; 
 (iii) make any principal payment on, or purchase, redeem, defease or otherwise acquire
or retire for value, prior to the Stated Maturity thereof, any Indebtedness (“Subordinated Debt”) of the Company or any Restricted Subsidiary that is subordinated by its terms to the Notes or the Subsidiary Guarantees, as applicable
(other than Indebtedness owed to the Company or any Restricted Subsidiary), excluding the purchase, redemption, defeasance or other acquisition or retirement of Subordinated Debt purchased in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of purchase, redemption, defeasance or other acquisition or retirement; or 
 (iv) make any Restricted Investment (all such payments and other actions set forth in clauses (i) through (iv) above being
collectively referred to as “Restricted Payments”); 
 unless, at the time of and after giving effect to such Restricted Payment (the amount
of any such Restricted Payment, if other than cash, shall be the fair market value (as conclusively evidenced by a Board Resolution) of the asset(s) proposed to be transferred by the Company or such Restricted Subsidiary, as the case may be,
pursuant to such Restricted Payment): 
 (A) no Default or Event of Default shall have occurred and be continuing after giving effect thereto;

 (B) the Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted
Payment had been made at the beginning of the most recently ended four full fiscal quarters for which earnings have been publicly disclosed immediately preceding the date of such Restricted Payment, have been permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.06(a); and 
 (C) such Restricted
Payment, together with the aggregate of all other Restricted Payments made by the Company and its Restricted Subsidiaries on or after the Issue Date (excluding Restricted Payments permitted by Section 4.07(b)(ii) (to the extent paid to
the Company or any of its Restricted Subsidiaries or to the extent such distributions are deducted as a minority interest in calculating Consolidated Net Income), Section 4.07(b)(iii), Section 4.07(b)(iv),
Section 4.07(b)(v), Section 4.07(b)(ix), Section 4.07(b)(xiii), Section 4.07(b)(xv) and Section 4.07(b)(xvi), and 50% of any Restricted Payments permitted by
Section 4.07(b)(vii)) is less than or equal to the sum, without duplication, of: 
 (i) 50% of the Consolidated
Net Income of the Company for the period (taken as one accounting period) beginning on July 1, 2006 to the end of the Company’s most recently ended fiscal quarter for which earnings have been publicly disclosed at the time of such
Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit), plus 
 (ii) 100% of the aggregate net cash proceeds, or the fair market value of property other than cash (including Capital Stock of Persons engaged in a Permitted Business or property used or useful in a Permitted Business), received by the
Company or any of its Restricted Subsidiaries from the issue or sale (other than to a Subsidiary or Joint Venture of the Company) after the Issue Date of Qualified Equity Interests of the Company or of debt securities or Disqualified Stock of the
Company or any of its Restricted Subsidiaries that have been converted into or exchanged for such Qualified Equity Interests of the Company, plus 
  

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 (iii) the amount (to the extent not included in calculating Consolidated Net Income)
equal to (A) the net reduction in Restricted Investments (other than a Restricted Investment permitted to be made pursuant to Sections 4.07(b)(vii) or 4.09(b)(x)) that was made after the Issue Date resulting from repurchases,
repayments, liquidations, redemptions or reductions of such Restricted Investments by such Person, (B) proceeds realized on the sale of such Restricted Investments (to the extent not included in item (j) of the definition of
“Permitted Investments”), dividends, distributions and proceeds representing the return of capital with respect to such Restricted Investments, less the cost of disposition, if any, and (C) the release of any Guarantee that had been a
Restricted Payment made under this Section 4.09(a) (except to the extent any amounts are paid under such Guarantee), plus 
 (iv) the amount by which Indebtedness of the Company or its Restricted Subsidiaries is reduced on the Company’s balance sheet upon the conversion or exchange (other than by a Subsidiary of the Company) subsequent
to the Issue Date of any Indebtedness of the Company or its Restricted Subsidiaries convertible into or exchangeable for Qualified Equity Interests of the Company (less the amount of cash, or the fair market value of any other property, distributed
by the Company upon such conversion or exchange), plus 
 (v) in the event the Company or any Restricted Subsidiary
makes any Investment in a Person that, as a result of or in connection with such Investment, becomes a Restricted Subsidiary or is merged or consolidated with the Company or a Restricted Subsidiary, an amount equal to the Company’s or any
Restricted Subsidiary’s Investment in such Person prior to the time it became a Restricted Subsidiary or the time of such merger or consolidation, up to the amount of such Investment previously made before such time and after the Issue Date by
the Company or any Restricted Subsidiary in such Person as a Restricted Investment pursuant to this Section 4.09(a), plus 
 (vi) an amount equal to the sum of (A) (x) the net reduction in Investments in Unrestricted Subsidiaries resulting from repurchases, repayments, liquidations, redemptions or reductions of such Restricted
Investments by such person and (y) proceeds realized on the sale of such Restricted Investments, dividends, distributions and proceeds representing the return of capital with respect to such Restricted Investments (to the extent not included in
calculating Consolidated Net Income), in each case to the Company or any Restricted Subsidiary from Unrestricted Subsidiaries and (B) the portion (proportionate to the Company’s equity interest in such Subsidiary) of the fair market value
of the net assets of an Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary; provided, however, that the foregoing sum shall not exceed, in the case of any Unrestricted Subsidiary, the amount
of Restricted Investments (other than Restricted Investments permitted to be made pursuant to Sections 4.07(b)(vii) or 4.07(b)(x) below) previously made after the Issue Date by the Company or any Restricted Subsidiary in such
Unrestricted Subsidiary and, to the extent necessary to avoid duplication, shall exclude Investments outstanding under clause (j) of the definition of “Permitted Investments”. 
 (b) If, other than with respect to payments made under Section 4.07(b)(i) and Section 4.07(b)(xiii) below, no Default or Event of
Default shall have occurred and be continuing after giving effect to such Restricted Payment, the foregoing provisions will not prohibit the following Restricted Payments: 
 (i) the payment of any dividend or the consummation of any irrevocable redemption within 60 days after the date of declaration of the
dividend or giving of the redemption notice, as the case may be, if at said date of declaration or notice such payment would have complied with the provisions of the Indenture; 
 (ii) dividends or distributions by any Restricted Subsidiary of the Company payable (x) to all holders of a class of Capital Stock of
such Restricted Subsidiary on a pro rata basis or on a basis that is more favorable to the Company, or (y) to all holders of a class of Preferred Stock of a Restricted Subsidiary that is not a Subsidiary Guarantor issued after the Issue
Date in compliance with Section 4.06; 
  

 41 

 (iii) the payment of cash dividends on any series of Disqualified Stock issued after the
Issue Date in accordance with the Fixed Charge Coverage Ratio test set forth under Section 4.06(a); 
 (iv)
Restricted Payments in exchange for, or out of the net cash proceeds from the sale (other than to a Subsidiary or Joint Venture of the Company) of, Qualified Equity Interests of the Company (so long as such Restricted Payments occur within 90 days
after such sale); provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment shall be excluded from clause (C)(ii) of Section 4.07(a); 
 (v) the defeasance, redemption or repurchase of Subordinated Debt with the net cash proceeds from an incurrence of Permitted Refinancing
or in exchange for Qualified Equity Interests of the Company, or out of the net cash proceeds from the sale (other than to a Subsidiary or Joint Venture of the Company) of Qualified Equity Interests of the Company (so long as such redemption,
repurchase, retirement or other acquisition occurs within 90 days after such sale); provided that the amount of any such net cash proceeds that are utilized for any such redemption, repurchase, retirement or other acquisition shall be
excluded from clause (C)(ii) of Section 4.07(a); 
 (vi) the repurchase, redemption or other acquisition or
retirement for value of (x) any Equity Interests of the Company or any Subsidiary of the Company held by any member of the Company’s (or any of its Subsidiaries’) management pursuant to any management equity subscription agreement or
stock option agreement or (y) any Equity Interests of the Company that are or are intended to be used to satisfy issuances of Equity Interests upon exercise of employee or director stock options or upon exercise or satisfaction of other similar
instruments outstanding under employee or director benefit plans of the Company or any Subsidiary of the Company; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests shall not exceed
$25.0 million in any fiscal year of the Company; 
 (vii) Restricted Investments in any Joint Venture made during any fiscal
year of the Company or within 45 days after the end of such fiscal year in amounts that, together with all other Restricted Investments made in such Joint Venture in respect of such fiscal year in reliance on this clause (vii) during such
fiscal year or within 45 days after the end of such fiscal year, do not exceed the amount of dividends or distributions previously paid in respect of such fiscal year to the Company or any Restricted Subsidiary by such Joint Venture; 
 (viii) the payment of dividends on the Company’s common stock at a rate not to exceed $0.90 per share per annum (such $0.90 amount to
be appropriately adjusted to reflect any stock split, reverse stock split, stock dividend or similar transactions made after the Issue Date so that the aggregate amount of dividends payable after such transaction is the same as the amount payable
immediately before such transaction); 
 (ix) distributions or payments of Receivables Fees; 
 (x) Investments in any Joint Venture or Unrestricted Subsidiary organized to construct, own and/or operate one or more plants engaged in a
Permitted Business in an aggregate amount that, together with all other Investments made pursuant to this Section 4.07(b)(x), does not exceed $100.0 million at any time outstanding (after giving effect to any net reduction or proceeds
realized on any Investments made pursuant to this Section 4.07(b)(x), as set forth in Section 4.07(a)(iii), in an amount not to exceed the amount of such Investments previously made pursuant to this
Section 4.07(b)(x); 
  

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 (xi) (A) the transfer of the TDI Assets to a newly formed Joint Venture or
Unrestricted Subsidiary or (B) the designation of any Restricted Subsidiary that has no assets or liabilities other than all or a portion of the TDI Assets as an Unrestricted Subsidiary, in each case, in connection with the incurrence of
Indebtedness by such Joint Venture or Unrestricted Subsidiary or Rhodia or a wholly-owned subsidiary of Rhodia to improve the Rhodia TDI Plant; 
 (xii) the repurchase of any Subordinated Debt at a purchase price not greater than 101% of the principal amount thereof in the event of (x) a Change of Control pursuant to a provision no more favorable to the
holders thereof than the provisions of Section 4.14 or (y) an Asset Sale pursuant to a provision no more favorable to the holders thereof than the provisions of Section 4.09; provided that, in each case, before
such repurchase, the Company has made a Change of Control Offer or Asset Sale Offer, as applicable, and repurchased all Notes that were validly tendered for payment in connection with such Change of Control Offer or Asset Sale Offer; 
 (xiii) distributions by any Restricted Subsidiary or Joint Venture of chemicals to a holder of Capital Stock of such Restricted Subsidiary
or Joint Venture if such distributions are made pursuant to a provision in a joint venture agreement or other arrangement entered into in connection with the establishment of such Joint Venture or Restricted Subsidiary that requires such holder to
pay a price for such chemicals equal to that which would be paid in a comparable transaction negotiated on an arm’s-length basis (or pursuant to a provision that imposes a substantially equivalent requirement); 
 (xiv) any other Restricted Payment that, together with all other Restricted Payments made pursuant to this
Section 4.07(b)(xiv) on or after the Issue Date, does not exceed $200 million at any time outstanding (after giving effect to any dividends, return of capital and subsequent reduction in the amount of any Investments made pursuant to
this Section 4.07(b)(xiv) as a result of the repayment or other disposition thereof, as set forth in clause (C)(iii) of Section 4.07(a), in an amount not to exceed the amount of such Investments previously made pursuant to
this Section 4.07(b)(xiv); 
 (xv) dividends or distributions by any Joint Venture (other than Equistar) to all
holders of a class of Capital Stock of such Joint Venture permitted by Section 4.07(b)(ii)(x) above; provided that after giving effect to such dividends or distributions and any related transactions, the Joint Venture making such
dividends or distributions to such holders is contractually entitled to receive, and receives within 180 days before or after the date of such dividends or distributions, directly or indirectly, an equivalent or larger cash payment from each such
holder (other than from a holder that is the Company or any Restricted Subsidiary) or from an Affiliate of such holder, which cash payment has not been previously applied pursuant to this Section 4.07(b)(xv) to offset any other dividend
or distribution by such Joint Venture to such holder and (y) such dividends or distributions do not exceed such holders’ pro rata share of the Joint Venture’s cash flows from operating activities, minus any non-cash charge to
the extent that it represents an accrual of or reserve for cash expenditures in any future period or amortization of a prepaid cash expense in any future period; and 
 (xvi) Restricted Payments of the type described in Section 4.07(a)(ii) and Section 4.07(a)(iii) in an aggregate
amount not to exceed $500 million; provided that after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the most recently ended four-full-fiscal-quarter period for which earnings have been
publicly disclosed immediately preceding the date of such Restricted Payment, the Company’s Consolidated Leverage Ratio would have been less than 2.5 to 1.0. 
 (c) The Board of Directors may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if such designation would not cause a Default. For purposes of making such determination, all outstanding Investments
by the Company and its Restricted Subsidiaries in the Subsidiary so designated will be deemed to be Restricted Payments at the time of such designation and will 

  

 43 

 
reduce the amount available for Restricted Payments under Section 4.07(a) (except to the extent such Investments were repaid in cash, and, in the
case of a Joint Venture (and any Subsidiary of a Joint Venture) designated as an Unrestricted Subsidiary on the first day that it is a Subsidiary of the Company, except to the extent that such Investments were made after the Issue Date). All such
outstanding Investments (except as provided in the parenthetical included in the preceding sentence) will be deemed to constitute Investments in an amount equal to the fair market value of such Investments at the time of such designation (as
conclusively determined by the Board of Directors). Such designation will only be permitted if any such Restricted Payment would be permitted at such time and if such Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary. In the case of any designation by the Company of a Person as an Unrestricted Subsidiary on the first day that such Person is a Subsidiary of the Company in accordance with the provisions of the Indenture, such designation shall be deemed
to have occurred for all purposes of the Indenture simultaneously with, and automatically upon, such Person becoming a Subsidiary. 
 Section
4.08. Limitation on Dividend and other Payment Restrictions Affecting Restricted Subsidiaries and Joint Ventures. (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise
cause or suffer to exist or become effective any consensual restriction on the ability of any Restricted Subsidiary to: 
 (i)
(A) pay dividends or make any other distributions to the Company or any of its Restricted Subsidiaries (1) on its Capital Stock, or (2) with respect to any other interest or participation in, or measured by, its profits, or
(B) pay any Indebtedness owed to the Company or any of its Restricted Subsidiaries; 
 (ii) make loans or advances to the
Company or any of its Restricted Subsidiaries; or 
 (iii) transfer any of its properties or assets to the Company or any of
its Restricted Subsidiaries; 
 except for such restrictions existing under or by reason of: 
 (a) existing agreements as in effect on the Issue Date and as amended, modified, extended, renewed, refunded, refinanced, restated or
replaced from time to time; provided that any such agreement and related documentation as so amended, modified, extended, renewed, refunded, refinanced, restated or replaced is not materially more restrictive, taken as a whole, as to the
matters enumerated above than such agreement and related documentation as in effect on the Issue Date (as conclusively evidenced by a resolution of the Board of Directors); 
 (b) Indebtedness permitted by this Indenture to be incurred containing restrictions on the ability of Restricted Subsidiaries to
consummate transactions of the types described in clause (i), (ii) or (iii) above not materially more restrictive, taken as a whole, than those contained in this Indenture and the Existing Credit Facility; 
 (c) this Indenture; 
 (d) applicable law; 
 (e) restrictions with respect to a Person or assets acquired by the Company or any of its
Restricted Subsidiaries existing at the time of such acquisition, including through merger, consolidation, amalgamation or liquidation, (except to the extent such restrictions were put in place in connection with or in contemplation of such
acquisition), which restrictions are not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, or the assets, so acquired, and as amended, modified, extended, renewed,
refunded, refinanced, restated or replaced from time to time; provided that any such restriction as so amended, modified, 

  

 44 

 
extended, renewed, refunded, refinanced, restated or replaced is not materially more restrictive, taken as a whole, as to the matters enunciated above than
such restrictions existing at the time of such acquisition; 
 (f) customary provisions in leases, licenses and other
agreements entered into in the ordinary course of business restricting the subletting, assignment or transfer of any property that is subject to such lease, license or agreement or the assignment of any such agreement; 
 (g) construction loans and purchase money obligations (including Capital Lease Obligations) for property acquired in the ordinary course
of business that impose restrictions of the nature described in clause (iii) above on the property so constructed or acquired; 
 (h) in the case of clause (iii) above, restrictions regarding Liens on property of a Restricted Subsidiary to the extent such restrictions restrict the transfer of the property subject to such Liens; 
 (i) a Permitted Refinancing, provided that the restrictions contained in the agreements governing such Permitted Refinancing are
not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced (as conclusively evidenced by a Board Resolution); 
 (j) customary restrictions on a Finance Subsidiary imposed in such Finance Subsidiary’s organizational documents or by the terms of
its Preferred Stock; 
 (k) any restriction with respect to shares of Capital Stock of a Restricted Subsidiary imposed
pursuant to an agreement entered into for the sale or disposition of such shares of Capital Stock or any restriction with respect to the assets of a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or disposition of
such assets or all or substantially all the Capital Stock of such Restricted Subsidiary pending the closing of such sale or disposition; 
 (1) in the case of any Restricted Subsidiary that is a Joint Venture, customary restrictions on such Restricted Subsidiary contained in its joint venture agreement, which restrictions arc consistent with the past
practice of the Company and its Restricted Subsidiaries (as conclusively evidenced by a Board Resolution); 
 (m) restrictions
with respect to Equistar or Millennium or the property or assets thereof or a Subsidiary of Equistar or Millennium or the property or assets thereof, in each case, existing at the time Equistar or Millennium or any Subsidiary of Equistar or
Millennium first becomes a Restricted Subsidiary or at the time such assets are acquired by the Company or any Restricted Subsidiary (except to the extent such restrictions were put in place in connection with or in contemplation of Equistar’s
or Millennium’s or such Subsidiary’s becoming a Restricted Subsidiary or such asset acquisition), which restrictions are not applicable to any Person, or the properties or assets of any Person, other than Equistar or Millennium or the
property or assets thereof or a Subsidiary of Equistar or Millennium or the property or assets thereof together with restrictions with respect to such Person or assets not materially more restrictive, taken as a whole, than such existing
restrictions existing by reason of any Indebtedness incurred by such Persons after the Issue Date in compliance with the Indenture, and as amended, modified, extended, renewed, refunded, refinanced, restated or replaced from time to time; provided
that any such restrictions as so amended, modified, extended, renewed, refunded, refinanced, restated or replaced are not materially more restrictive, taken as a whole, as to the matters enunciated above than such existing restrictions; 

 

 45 

 (n) the Existing Credit Facility and related documentation as the same is in effect on
the Issue Date and as amended, modified, extended, renewed, refunded, refinanced, restated or replaced from time to time; provided that the Existing Credit Facility and related documentation as so amended, modified, extended, reviewed,
refunded, refinanced, restated or replaced is not materially more restrictive, taken as a whole, as to the matters enumerated above than the Existing Credit Facility and related documentation as in effect on the Issue Date (as conclusively evidenced
by a Board Resolution); and 
 (o) any such restrictions under an agreement governing Indebtedness of a Foreign Subsidiary
permitted under Section 4.06. 
 For purposes of determining compliance with this covenant, in the event that a
restriction meets the criteria of more than one of the categories of permitted restrictions described in clauses (a) through (o) above, the Company shall, in its sole discretion, classify such restriction in any manner that complies with
this covenant, and such restriction will be treated as existing pursuant to the clauses designated by the Company. For purposes of this covenant, (x) the priority of any Preferred Stock in receiving dividends or liquidating distributions prior
to dividends or liquidating distributions being paid on common stock and (y) the subordination of (including the application of any standstill requirements to) loans or advances made to the Company or any Restricted Subsidiary to other
Indebtedness incurred by the Company or any Restricted Subsidiary, shall not be deemed to constitute such an encumbrance or restriction. 
 (b) The Company will use best efforts (consistent with its contractual obligations and fiduciary duties to any Joint Venture, in each case, as in effect on the Issue Date) not to permit any of its Joint Ventures that are not Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any consensual restriction on the ability of such Joint Venture to: 
 (i) (A) pay dividends or make any other distributions to the Company or any of its Restricted Subsidiaries (1) on its Capital Stock
or (2) with respect to any other interest or participation in, or measured by, its profits or (B) pay any Indebtedness owed to the Company or any of its Restricted Subsidiaries; 
 (ii) make loans or advances to the Company or any of its Restricted Subsidiaries; or 
 (iii) transfer any of its properties or assets to the Company or any of its Restricted Subsidiaries; 
 except for such restrictions existing under or by reason of: 
 (a) such Joint Venture’s joint venture agreement or its credit facility (provided that in each case such restrictions are consistent with the past practice of the Company); 
 (b) in the case of any Joint Venture existing on the Issue Date, its existing agreements as in effect on the date of the Indenture and as amended,
modified, extended, restated or replaced from time to time; provided that no such amendment, modification, extension, restatement or replacement results in agreements that are materially more restrictive, taken as a whole, as to the matters
enumerated above than the existing agreements as in effect on the date of the Indenture (as conclusively evidenced by a Board Resolution); and 
 (c) the restrictions described in clauses (d), (e), (f), (g), (h), (j), (k) and (n) of Section 4.08(a) (assuming that references in clauses (h) and (k) to a Restricted Subsidiary were references to a Joint
Venture). 
  

 46 

 Section 4.09. Limitation on Sales of Assets. (a) The Company will not, and will not permit
any of its Restricted Subsidiaries to, consummate an Asset Sale unless: 
 (i) the Company and/or the Restricted Subsidiary,
as the case may be, receives consideration in respect of such Asset Sale at least equal to the fair market value (as determined as of the date of contractually agreeing to such Asset Sale and as conclusively determined in good faith by the senior
management of the Company (and which in the case of an Asset Sale with a fair market value in excess of $100.0 million shall be conclusively evidenced by a resolution of the Board of Directors set forth in an Officer’s Certificate delivered to
the Trustee)) of the assets or Equity Interests issued or sold or otherwise disposed of; and 
 (ii) either: 
 (A) at least 75% of the consideration received in the Asset Sale by the Company and/or such Restricted Subsidiary is in the form of
(I) cash or Cash Equivalents or (II) a controlling interest or a joint venture interest (to the extent otherwise permitted by the Indenture) in a business engaged in a Permitted Business or long-term property or assets that are used or useful
in a Permitted Business (“Permitted Consideration”); or 
 (B) after giving effect to such Asset Sale, the
aggregate fair market values of all forms of consideration other than Permitted Consideration received for all Asset Sales since the Issue Date does not exceed in the aggregate $100.0 million. For purposes of this Section 4.09(a)(ii)(B),
the fair market value of the consideration other than Permitted Consideration received in connection with each Asset Sale shall be determined as of the date of contractually agreeing to such Asset Sale. 
 For purposes of this provision, each of the following will be deemed to be cash: (w) the amount of any liabilities (as shown on the
Company’s or such Restricted Subsidiary’s most recent balance sheet) of the Company or any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or any guarantee thereof)
that are assumed by the transferee of any such assets pursuant to a customary novation agreement that releases the Company or such Restricted Subsidiary from further liability, (x) the amount of any securities, notes or other obligations
received by the Company or any such Restricted Subsidiary from such transferee that are converted within 180 days by the Company or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received),
(y) the amount of any accounts receivable of a business retained by the Company or any Restricted Subsidiary, as the case may be, following the sale of such business (other than such accounts receivable that (i) are past due more than 90
days or (ii) have a payment date greater than 120 days from the date of invoice creating such accounts receivable) and (z) the amount of any Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of
such Asset Sale, if the Company and its Restricted Subsidiaries are immediately released from all Guarantees, if applicable, of payment or other obligations with respect to such Indebtedness and such Indebtedness is no longer a liability of the
Company or any of its Restricted Subsidiaries. 
 Notwithstanding the foregoing, the 75% limitation referred to above shall be
deemed satisfied with respect to any Asset Sale in which the cash or Cash Equivalents portion of the consideration received therefrom, determined in accordance with the foregoing provision on an after-tax basis, is equal to or greater than what the
after-tax cash or Cash Equivalent proceeds would have been had such Asset Sale complied with the aforementioned 75% limitation. 
 (b) Within
360 days after the receipt of any Net Proceeds from an Asset Sale, the Company may apply such Net Proceeds, at its option: 
 (i) to (A) repay Indebtedness under the Existing Credit Facility, and any secured Indebtedness (and to correspondingly reduce commitments with respect thereto in the case of revolving borrowings) of the Company or a Subsidiary
Guarantor, (B) repay Indebtedness 

  

 47 

 
incurred to acquire assets if such Indebtedness is repaid with the proceeds from an Asset Sale of any such assets, provided such Asset Sale is within
180 days of the incurrence of such Indebtedness or (C) repay Indebtedness (and to correspondingly reduce commitments with respect thereto in the case of revolving borrowings) of any Restricted Subsidiary that is not a Subsidiary Guarantor; or

 (ii) to acquire Additional Assets (to the extent otherwise permitted by the Indenture) or to make a capital expenditure, in
each case, in a Permitted Business (or enter into a binding commitment for any such acquisition or expenditure); provided that such binding commitment shall be treated as a permitted application of Net Proceeds from the date of such
commitment until and only until the earlier of (x) the date on which such expenditure or acquisition is consummated and (y) the 180th day following the expiration of the aforementioned 360-day period. If the acquisition or expenditure
contemplated by such binding commitment is not consummated on or before such 180th day and the Company shall not have applied such Net Proceeds pursuant to clause (i) above on or before such 180th day, such commitment shall be deemed not to
have been a permitted application of Net Proceeds at any time. 
 Pending the final application of any such Net Proceeds, the Company or any
Restricted Subsidiary may temporarily reduce the revolving Indebtedness under the Existing Credit Facility or otherwise invest such Net Proceeds in any manner that is not prohibited by the Indenture. Any Net Proceeds from Asset Sales that are not
applied or invested as provided in the first sentence of this Section 4.09(b) will be deemed to constitute “Excess Proceeds.” 
 (c) If on the 361st day after an Asset Sale (or, at the Company’s option, any earlier date), the aggregate amount of Excess Proceeds under the Indenture exceeds $75.0 million, the Company will be required to make
an offer to all Holders of Notes (an “Asset Sale Offer”) to purchase the maximum principal amount of Notes and, (x) if the Company is required to do so under the terms of any other Indebtedness ranking pari passu with
such Notes, such other Indebtedness, and (y) if the Company elects to do so, any Existing ARCO Chemical Debt, on a pro rata basis with the Notes, that may be purchased out of the Excess Proceeds, at an offer price in cash in an amount
equal to 100% of the principal amount thereof plus accrued and unpaid interest thereon to the date of purchase, in accordance with the procedures set forth herein. 
 To the extent that the aggregate amount of Notes (and any other pari passu Indebtedness subject to such Asset Sale Offer) tendered pursuant to such Asset Sale Offer is less than the Excess Proceeds, the Company
may, subject to the other terms of the Indenture, use any remaining Excess Proceeds for any purpose not prohibited by this Indenture. 
 If
the aggregate principal amount of Notes surrendered by Holders thereof in connection with an Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall select the Notes to be purchased on a pro rata basis. 
 Upon completion of the offer to purchase made under the Indenture, the amount of Excess Proceeds shall be reset at zero. 
 (d) The Company will comply with the requirements of Rule l4e-1 under the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with any Asset Sale Offer. 
 Section 4.10. Limitation on Affiliate
Transactions. (a) The Company will not, and will not permit any of its Restricted Subsidiaries to, sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or
make any contract, agreement, understanding, loan, advance or Guarantee with, or for the benefit of, any Affiliate of the Company (each of the foregoing, an “Affiliate Transaction”), unless: 
  

 48 

 (i) such Affiliate Transaction is on a basis no less favorable to the Company and its
Restricted Subsidiaries than could be obtained in a comparable transaction on an arm’s-length basis with a Person who is not an Affiliate of the Company, or, if no such comparable transaction with a Person who is not an Affiliate of the Company
is available, on terms that are fair from a financial point of view to the Company or such Restricted Subsidiary; and 
 (ii)
the Company delivers to the Trustee (A) with respect to any Affiliate Transaction involving aggregate net consideration in excess of $25 million, a Board Resolution set forth in an Officer’s Certificate certifying that such Affiliate
Transaction complies with clause (i) above and that such Affiliate Transaction has been approved by a majority of the members of the Board of Directors and (B) with respect to any Affiliate Transaction involving aggregate net consideration
in excess of $50 million, a Board Resolution set forth in an Officer’s Certificate certifying that such Affiliate Transaction complies with clause (i) above and that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors, if any, or if there are no such disinterested members, then the Company shall have received a written opinion from an independent investment banking, accounting or appraisal firm of nationally
recognized standing that the terms of such Affiliate Transaction are not materially less favorable to the Company or the applicable Restricted Subsidiary than those that might reasonably have been obtained in a comparable transaction on an
arm’s length basis with a Person who is not an Affiliate of the Company or that such terms are fair to the Company or the applicable Restricted Subsidiary from a financial point of view. 
 (b) Notwithstanding the foregoing, the following shall not be deemed to be Affiliate Transactions and therefore not subject to the requirements of
Section 4.10(a): 
 (i) transactions or payments pursuant to any employment arrangements or employee, officer or
director benefit plans or arrangements entered into by the Company or any of its Restricted Subsidiaries in the ordinary course of business; 
 (ii) transactions between or among the Company and/or its Restricted Subsidiaries; 
 (iii)
any Restricted Payment permitted by Section 4.07 and any Permitted Investment; 
 (iv) customary loans, advances,
fees and compensation paid to, and indemnity provided on behalf of, officers, directors, employees or consultants of the Company or any of its Restricted Subsidiaries; 
 (v) transactions entered into between or among the Company or any of its Restricted Subsidiaries and any Joint Venture, or other Affiliate
that would otherwise be subject to this covenant solely because the Company or a Restricted Subsidiary owns any Capital Stock of or otherwise controls such Person, on a basis no less favorable to the Company or such Restricted Subsidiary than could
be obtained in a comparable transaction on an arm’s-length basis with a Person who is not an Affiliate of the Company, or, if no such comparable transaction with a Person who is not an Affiliate of the Company is available, on terms that are
fair from a financial point of view to the Company or such Restricted Subsidiary; 
 (vi) sales (including a sale in exchange
for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable and the provision of billing, collection and other services in connection therewith, in each case, to an Accounts Receivable Subsidiary in
connection with any Receivables Facility; 
 (vii) transactions pursuant to any contract or agreement in effect on the date of
the Indenture as the same may be amended, modified or replaced from time to time so long as any such contract or agreement as so amended, modified or replaced is, taken as a whole, no less favorable to the Company and its Restricted Subsidiaries
than the contract or agreement as in effect on the date of the Indenture (as conclusively evidenced by a Board Resolution); 
  

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 (viii) transactions effected pursuant to the terms of an agreement that was entered into,
alone or as part of a series of agreements, pursuant to or in accordance with this Section 4.10; 
 (ix)
transactions entered into by a Person prior to the time such Person becomes a Subsidiary or is merged or consolidated into the Company or a Subsidiary (provided such transaction is not entered into in contemplation of such event); 

(x) dividends and distributions to the Company and its Restricted Subsidiaries by any Unrestricted Subsidiary or Joint Venture;

 (xi) tax, administrative, cost-sharing and similar agreements between the Company or any Restricted Subsidiary and any
permitted holding company referenced in the definition of “Change of Control” on terms that are fair from a financial point of view to the Company or such Restricted Subsidiary; and 
 (xii) transactions with any customer, client, supplier, distributor or any other purchase or sale of goods or services, in each case in
the ordinary course of business and otherwise in compliance with the terms of this Indenture, which when taken together with other transactions with the same Person are, in the reasonable determination of the Board of Directors of the Company or the
senior management of the Company, fair to the Company and its Restricted Subsidiaries or are on terms not less favorable than might have been obtained in a comparable transaction at such time on an arm’s length basis from a Person who is not an
Affiliate. 
 Section 4.11. Limitation on Liens. The Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume or suffer to exist any Lien (except Permitted Liens) on any asset now owned or hereafter acquired, or any income or profits therefrom, securing any Indebtedness, unless all payments due under this
Indenture and the Notes or the Subsidiary Guarantees are secured on an equal and ratable basis with the Indebtedness so secured (or, if such Indebtedness is subordinated by its terms to the Notes or the Subsidiary Guarantees, prior to the
Indebtedness so secured) until such time as such Indebtedness is no longer so secured. 
 Section 4.12. [Reserved.] 
 Section 4.13. No Amendment to Subordination Provisions. The Company will not amend, modify or alter the Existing Senior Subordinated Note
Indenture in any way that would amend the subordination provisions of the Existing Senior Subordinated Note Indenture or any of the defined terms used therein in a manner that would be adverse to the holders of the Notes. 
 Section 4.14. Repurchase of Notes upon a Change in Control. (a) Upon the occurrence of a Change of Control, each Holder will have the right to
require the Company to repurchase all or any part (equal to $1,000 or an integral multiple thereof) of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) at an offer price in cash equal to
101% of the aggregate principal amount thereof plus accrued and unpaid interest thereon to the date of purchase (the “Change of Control Payment”) on a date that is not more than 90 days after the occurrence of such Change of Control
(the “Change of Control Payment Date”). Within 30 days following any Change of Control, the Company will mail, or at the Company’s request the Trustee will mail, a notice to each Holder offering to repurchase the Notes held by
such Holder pursuant to the procedures specified in such notice. 
 (b) The Company will comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control. 
  

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 (c) On the Change of Control Payment Date, the Company will, to the extent lawful, (1) accept for
payment all Notes or portions thereof properly tendered and not withdrawn pursuant to the Change of Control Offer, (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof so
tendered, and (3) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions thereof being purchased by the Company. 

The Paying Agent will promptly mail to each Holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder a Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such Note will be in a principal amount of $1,000
or an integral multiple thereof. 
 (d) The Company will not be required to make a Change of Control Offer upon a Change of Control if a
third party makes the Change of Control Offer at the same or a higher purchase price, at the same times and otherwise in substantial compliance with the requirements applicable to a Change of Control Offer made by the Company and purchases all Notes
validly tendered and not withdrawn under such Change of Control Offer. 
 Section 4.15. Limitation on Sale and Leaseback Transactions.
The Company will not, and will not permit any of its Restricted Subsidiaries to, enter into any Sale and Leaseback Transaction; provided that the Company or any Restricted Subsidiary may enter into a Sale and Leaseback Transaction if: (a) the
Company or such Restricted Subsidiary, as the case may be, could have (i) incurred Indebtedness in an amount equal to the Attributable Debt relating to such Sale and Leaseback Transaction pursuant to Section 4.06 (whether or not
such covenant has ceased to be otherwise in effect pursuant to Section 4.18) (in which case it shall be deemed to have been incurred thereunder) and (ii) incurred a Lien to secure such Indebtedness pursuant to
Section 4.11 without securing the Notes; and (b) the gross cash proceeds of such Sale and Leaseback Transaction are at least equal to the fair market value (as conclusively determined by the Board of Directors) of the property that
is the subject of such Sale and Leaseback Transaction. 
 Section 4.16. Limitation on Line of Business. The Company will not, and will
not permit any of its Restricted Subsidiaries to, engage in any business other than Permitted Businesses, except to such extent as would not be material to the Company and its Subsidiaries taken as a whole. 
 Section 4.17. Limitation on Accounts Receivable Facilities. The Company may, and any of its Restricted Subsidiaries may, sell (including a sale in
exchange for a promissory note of or an Equity Interest in such Accounts Receivable Subsidiary) at any time and from time to time, accounts receivable to any Accounts Receivable Subsidiary; provided that the aggregate consideration received in each
such sale is at least equal to the aggregate fair market value of the receivables sold. 
 Section 4.18. Limited Applicability of
Covenants when Notes are Rated Investment-Grade. Notwithstanding the foregoing, the Company’s and its Restricted Subsidiaries’ obligations to comply with the provisions of Sections 4.06, 4.07, 4.08, 4.09,
4.10, 4.16, 4.17 and 4.22 will terminate and cease to have any further effect from and after the first date when the Notes are rated Investment Grade. 
 Section 4.19. Existence. Subject to Articles 4 and 5 of this Indenture, the Company will do or cause to be done all things necessary
to preserve and keep in full force and effect its existence and the existence of each of its Restricted Subsidiaries in accordance with the respective organizational documents of the Company and each such Subsidiary and the rights (whether pursuant
to charter, partnership certificate, agreement, statute or otherwise), material licenses and franchises of the Company and each such Subsidiary; provided that the Company shall not be required by this Section 4.19 to preserve any such
right, license or franchise, or the existence of any Restricted Subsidiary, if the Company shall determine that the maintenance or preservation thereof is no longer desirable in the conduct of the business of the Company and its Restricted
Subsidiaries taken as a whole. 
  

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 Section 4.20. Payment of Taxes and Other Claims. The Company will pay or discharge and shall cause
each of its Restricted Subsidiaries to 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 (i) the Company or any
such Subsidiary, (ii) the income or profits of any such Subsidiary which is a corporation or (iii) the property of the Company or any such Subsidiary and (b) all material lawful claims for labor materials and supplies that, if unpaid,
might by law become a lien upon the property of the Company or any such Subsidiary; provided 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 the amount,
applicability or validity of which is being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP. 
 Section 4.21. Maintenance of Properties and Insurance. The Company will cause all material assets necessary in the conduct of its business or the
business of any of its Restricted Subsidiaries, to be maintained and kept in good condition, repair and working order (ordinary wear and tear excepted) and will cause to be made all necessary repairs, renewals and replacements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in connection therewith may be properly conducted at all times; provided that nothing in this Section 4.21 shall prevent the Company or any such Subsidiary from
discontinuing the use, operation or maintenance of any of such assets or disposing or abandoning of any of them, if such discontinuance, disposal or abandonment is, in the judgment of the Company, desirable in the conduct of the business of the
Company or such Subsidiary. 
 The Company will maintain, and will cause each of its Restricted Subsidiaries to maintain (either in the
Company’s name or in such Subsidiary’s own name) insurance on all their respective properties consistent with the insurance maintained on the Issue Date or otherwise in at least such amounts (with no materially greater risk retention) and
against at least such risks as are usually maintained, retained or insured against in the same general area by companies of established repute owning similar properties in such area and engaged in the same or a similar business, in either case, to
the extent available to the Company and its Restricted Subsidiaries on commercially reasonable terms. 
 Section 4.22. Limitation on
Issuance of Guarantees by Restricted Subsidiaries. (a) The Company will not permit any Restricted Subsidiary (other than a Foreign Subsidiary or a Restricted Subsidiary that is already a Subsidiary Guarantor) to Guarantee the payment of any
other Indebtedness of the Company or any other Subsidiary Guarantor in excess of a De Minimis Guaranteed Amount, unless such Restricted Subsidiary, within 10 business days of the date of entering into such Guarantee, executes and delivers a
supplemental indenture to the Indenture providing for the Guarantee of the payment of the notes issued thereunder by such Restricted Subsidiary. If the Notes are (A) pari passu with the Guaranteed Indebtedness, then the Subsidiary Guarantee
shall be pari passu with, or senior to, the guarantee of such Guaranteed Indebtedness or (B) senior to the Guaranteed Indebtedness, then the Subsidiary Guarantee shall be senior to the guarantee of such Guaranteed Indebtedness at least to the
extent that the Notes are senior to such Guaranteed Indebtedness. 
 (b) Notwithstanding the foregoing, the Subsidiary Guarantee of a
Subsidiary Guarantor will be released: 
 (i) in connection with any sale or other disposition of all or substantially all of
the assets of such Subsidiary Guarantor (including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary, if the sale or other disposition
complies with the applicable provisions of the Indenture; 
 (ii) in connection with any sale or other disposition of all of
the Capital Stock of such Subsidiary Guarantor to a Person that is not (either before or after giving effect to such transaction) the Company or a Restricted Subsidiary, if the sale or other disposition complies with the applicable provisions of the
Indenture; 
  

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 (iii) if such Subsidiary Guarantor is a Restricted Subsidiary and the Company designates
such Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with the applicable provisions of the Indenture; 
 (iv)
upon satisfaction of the conditions described under Section 13.02; 
 (v) upon the liquidation or dissolution of
such Subsidiary Guarantor provided no Default or Event of Default has occurred or is continuing under the Indenture; or 
 (vi) at such time as such Subsidiary Guarantor ceases to guarantee Indebtedness of the Company or any other Subsidiary Guarantor (other than guarantees under the Notes) in excess of the De Minimis Guaranteed Amount, except to the extent all
such other guarantees were discharged or released by or as a result of payment under such guarantees. 
 Section 4.23. Payments for
Consents. Neither the Company nor any of its Subsidiaries or Affiliates will, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder of any Notes for or as an inducement to
any consent, waiver or amendment of any of the terms or provisions of the Indenture or the Notes unless such consideration is offered to be paid or agreed to be paid to all Holders of the Notes that consent, waive or agree to amend such term or
provision in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 
 ARTICLE 5 
 CONSOLIDATION, MERGER OR SALE OF ASSETS 
 Section 5.01. Consolidation, Merger or Sale of Assets by the Company. (a) The Company may not consolidate or merge with or into (whether or not
the Company is the surviving corporation), or sell, assign, transfer, conveyor otherwise dispose of all or substantially all its assets in one or more related transactions, to another corporation, Person or entity unless: 
 (i) the Company is the surviving corporation or the entity or the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, conveyance or other disposition shall have been made is a corporation organized or existing under the laws of the United States, any state thereof or the District of Columbia;

 (ii) the corporation formed by or surviving any such consolidation or merger (if other than the Company) or the corporation
to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made assumes all the Obligations of the Company under the Notes and the Indenture pursuant to a supplemental indenture in form reasonably satisfactory
to the Trustee; 
 (iii) immediately after such transaction no Default or Event of Default exists; and 
 (iv) either: 
 (A) the Company or the entity or person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made, will have
a Consolidated Net Worth immediately after the transaction equal to or greater than the Consolidated Net Worth of the Company immediately preceding the transaction, or 
 (B) except with respect to a consolidation or merger of the Company with or into a Person that has no outstanding Indebtedness, either
(I) at the time of such 

  

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transaction and after giving pro forma effect thereto as if such transaction had occurred at the beginning of the applicable four-quarter period, the
Company or the entity or Person formed by or surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made, will be permitted to incur
at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.06(a) or (II) the Fixed Charge Coverage Ratio at the time of such transaction and after giving pro forma effect
thereto as if such transaction had occurred at the beginning of the applicable four-quarter period will be equal to or greater than it was immediately before such transaction; 
 provided that this clause (iv) will terminate and cease to have any further effect from and after the first date when the Notes are rated Investment Grade. 
 The foregoing shall not prohibit the merger or consolidation of a Restricted Subsidiary of the Company with the Company; provided that, in connection with any
such merger or consolidation, no consideration (other than common stock in the surviving Person or the Company) shall be issued or distributed to the stockholders of the Company. 
 (b) The Company will not lease all or substantially all its assets to another Person. 
 Section 5.02. Successor Company Substituted. (a) Except as provided in Section 5.02(b), upon any consolidation or merger, or any
sale, assignment, transfer, conveyance or other disposition of all or substantially all the assets of the Company in accordance with Section 5.01 hereof, the successor corporation formed by such consolidation or into or with which the
Company is merged or to which such sale, assignment, transfer, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, assignment, transfer, conveyance or
other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the successor corporation), and may exercise every right and power of, the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein, and the predecessor Company shall be released from all its obligations hereunder and under the Notes. 
 (b) The sale, assignment, transfer, lease, conveyance or other disposition by the Company of all or substantially all its property or assets taken as a whole to one or more of the Company’s Subsidiaries shall not
relieve the Company from its obligations under the Indenture and the Notes. 
 Section 5.03. Consolidation, Merger or Sale of Assets by a
Subsidiary Guarantor. (a) No Subsidiary Guarantor may consolidate with or merge with or into (whether or not such Subsidiary Guarantor is the surviving Person), another corporation, Person or entity whether or not affiliated with such Subsidiary
Guarantor unless: 
 (i) the Person formed by or surviving any such consolidation or merger (if other than the Company,
another Subsidiary Guarantor or such Subsidiary Guarantor) assumes all the obligations of such Subsidiary Guarantor, pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee, under its Subsidiary Guarantee;
or 
 (ii) immediately after giving effect to such transaction, no Default or Event of Default exists and the consolidation or
merger results in such Subsidiary Guarantor no longer being a Subsidiary of the Company in compliance with this Indenture. 
 All the
Subsidiary Guarantees issued pursuant to clause (i) above shall in all respects have the same legal rank and benefit under this Indenture as the Subsidiary Guarantees theretofore and thereafter issued in accordance with the terms of this
Indenture as though all such Subsidiary Guarantees had been issued at the date of the execution hereof. 
  

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 (b) The requirements of clause (i) of Section 5.03(a) will not apply in the case of a
consolidation with or merger with or into the Company or another Subsidiary Guarantor. 
 Section 5.04. Opinion of Counsel to Trustee.
The Trustee, subject to the provisions of Sections 7.01 and 7.03, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, conveyance, sale, transfer, lease, exchange or other disposition referred
to in Section 5.01 or 5.03 complies with the applicable provisions of this Indenture. 
 ARTICLE 6 
 REMEDIES 
 Section 6.01.
Events of Default. Each of the following constitutes an “Event of Default”: 
 (a) a default in the payment of
interest on the Notes when due, which has continued for 30 days; 
 (b) a default in the payment when due of principal of or premium on, any
Note when due at its Stated Maturity, upon optional redemption, upon required repurchase, upon declaration or otherwise; 
 (c) the failure
by the Company to comply with its obligations under Article 5, Section 4.09 or Section 4.14; 
 (d) the
Company or any Subsidiary Guarantor defaults in the performance of or breaches any other covenant or agreement in this Indenture or under the Notes (other than (a), (b) or (c) above) and such default or breach continues for a period of 60
consecutive days after written notice by the Trustee or the Holders of 25% or more in aggregate principal amount of the Notes; 
 (e) any
default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Significant Subsidiaries (or any Indebtedness for
money borrowed Guaranteed by the Company or any of its Significant Subsidiaries if the Company or a Significant Subsidiary does not perform its payment obligations under such Guarantee within any grace period provided for in the documentation
governing such Guarantee) and, whether such Indebtedness or Guarantee exists on the date of the indenture or is thereafter created, which default (a) constitutes a Payment Default or (b) results in the acceleration of such Indebtedness
before its Stated Maturity, and in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or that has been so accelerated, aggregates
$50 million or more; provided, however, that if any such Payment Default is cured or waived or any such acceleration rescinded, or such Indebtedness is repaid, within a period of 10 days from the continuation of such Payment Default beyond
the applicable grace period or the occurrence of such acceleration, as the case may be, such Event of Default shall be automatically rescinded, so long as such rescission does not conflict with any judgment or decree and the Notes have not been
accelerated; 
 (f) failure by the Company or any of its Significant Subsidiaries to pay a final judgment or final judgments for the payment
of money aggregating in excess of $50 million (net of any amounts covered by insurance as to which the carrier has not contested coverage), which judgment or judgments are not paid, discharged or stayed for a period of 60 days; 
 (g) a court having jurisdiction in the premises enters a decree or order for (i) relief in respect of the Company or any Significant Subsidiary in
an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (ii) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any
Significant Subsidiary or for all or substantially all the property and assets of the Company or any Significant Subsidiary or (iii) the winding up or liquidation of the affairs of the Company or any Significant Subsidiary and, in each case,
such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; 
  

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 (h) the Company or any Significant Subsidiary (i) commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, (ii) consents to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Company or any Significant Subsidiary or for all or substantially all the property and assets of the Company or any Significant Subsidiary or (iii) effects any
general assignment for the benefit of creditors; and 
 (i) except as permitted by this Indenture, any Subsidiary Guarantee of any
Significant Subsidiary or any other group of Subsidiary Guarantors that together would be a Significant Subsidiary (after elimination of intercompany transactions and balances) shall be held in any judicial proceeding to be unenforceable or invalid
or shall cease for any reason to be in full force and effect or any Subsidiary Guarantor, or any Person acting on behalf of any such Subsidiary Guarantor, shall deny or disaffirm its obligations under the Subsidiary Guarantees. 
 Section 6.02. Acceleration. If an Event of Default (other than an Event of Default specified in clause (g) or (h) of
Section 6.01 that occurs with respect to the Company or any Subsidiary Guarantor) occurs and is continuing under this Indenture, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding, by
written notice to the Company (and to the Trustee if such notice is given by the Holders (the “Acceleration Notice”)), may, and the Trustee at the request of such Holders shall, declare the principal of, premium, if any, and accrued
but unpaid interest on all the Notes to be immediately due and payable. Upon a declaration of acceleration, such principal, premium, if any, and accrued interest shall be immediately due and payable. If an Event of Default specified in clause
(g) or (h) of Section 6.01 occurs with respect to the Company or any Subsidiary Guarantor, the principal of, premium, if any, and accrued interest on the Notes then Outstanding shall ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any Holder. 
 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 or interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 
 The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder 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. All remedies are cumulative to the extent
permitted by law. 
 Section 6.04. Waiver of Past Defaults. The Holders of at least a majority in principal amount of the outstanding Notes,
by written notice to the Company and to the Trustee, may waive all past defaults and rescind and annul a declaration of acceleration and its consequences under the Notes, if (i) all existing Events of Default, other than the nonpayment of the
principal of and premium, if any, and interest on such Notes that have become due solely by such declaration of acceleration, have been cured or waived and (ii) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon. 
 Section 6.05. Control by Majority. The Holders of at least a majority in
aggregate principal amount of the Outstanding Notes may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture, that may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial to the rights of Holders not joining in the giving of such
direction and may take any other action it deems proper that is not inconsistent with any such direction received from the Holders. 
  

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 Section 6.06. Limitation on Suits. A Holder may not pursue any remedy with respect to this
Indenture or the Notes unless: 
 (a) the Holder gives the Trustee written notice of a continuing Event of Default; 
 (b) the Holders of at least 25% in aggregate principal amount of Outstanding Notes make a written request to the Trustee to pursue the remedy;

 (c) such Holder or Holders offer the Trustee security or indemnity satisfactory to it against any loss, liability or expense; 

(d) the Trustee does not comply with the request within 60 days after receipt thereof and the offer of security or indemnity; and 
 (e) during such 60 day period, the Holders of at least a majority in aggregate principal amount of the Outstanding Notes do not give the Trustee a
direction inconsistent with the request. 
 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, premium, if any, and interest on the Note, on or after the respective due dates expressed in the Note, 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 the Holder. 
 Section 6.08. Collection Suit by Trustee. If
an Event of Default specified in Section 6.01(a) or (b) hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Company or any other
obligor for the whole amount of principal, premium, if any, and interest remaining unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such further amount as shall be sufficient to cover amounts due the
Trustee under Section 7.08, including the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
 Section 6.09. Trustee May File Proofs of Claim. The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.08. To the extent that the payment of any such
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.08 out of the estate in any such proceeding, shall be denied for any reason, payment of the
same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties which the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of
reorganization or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 
  

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 Section 6.10. Priorities. If the Trustee collects any money pursuant to this Article, it shall pay
out the money in the following order: 
 First: to the Trustee, its agents and attorneys for amounts due under
Section 7.08, including payment of all compensation, expense and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection; 
 Second: to Holders for amounts due and unpaid on the Notes for principal, premium, if any, and interest, ratably, without preference or priority
of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, and interest, respectively; and 
 Third: to the Company or to such party as a court of competent jurisdiction shall direct. 
 The Trustee may fix a record
date and payment date for any payment to Holders pursuant to this Section 6.10 upon five Business Days prior notice to the Company. 
 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 a 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 and expenses, 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 6.06, or a suit by Holders of
more than 10% in aggregate principal amount of the then Outstanding Notes. 
 Section 6.12. Restoration of Rights and Remedies. If the
Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture or any Note and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such
Holder, then and in every such case the Company, any other obligor upon the Notes, the Trustee and the Holders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 Section
6.13. Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by
law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy. 
 Section 6.14. Waiver of Stay, Extension or Usury Laws.
The Company covenants (to the extent that it may lawfully do so) that it will 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 or any usury or other similar law
wherever enacted, now or at any time hereafter in force, that would prohibit or forgive the Company from paying all or any portion of the principal of (or premium, if any) or interest on the Notes contemplated herein or in the Notes or 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 covenant that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 
  

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 ARTICLE 7 
 THE TRUSTEE 
 Section 7.01. Certain Duties and Responsibilities. (a)
Except during the continuance of an Event of Default, 
 (i) the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 
 (ii) 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, in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, 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). 
 (b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture,
and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
 (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to
act, or its own willful misconduct, except that (i) this paragraph does not limit the effect of Section 7.01(a); (ii) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless
it is proved that the Trustee was negligent in ascertaining the pertinent facts; and (iii) 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 6.06. 
 (d) The Trustee may refuse to perform any duty or exercise any right or power or expend or risk its own funds
or otherwise incur any financial liability unless it receives indemnity satisfactory to it against any loss, liability or expense. 
 (e)
Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of Sections 7.01 and 7.03.

 Section 7.02. Notice of Defaults. (a) Within 90 days after the occurrence of any Default, the Trustee shall transmit by mail
to all Holders, as their names and addresses appear in the Register, notice of such Default hereunder actually known to the Trustee unless such Default shall have been cured or waived; provided, however, that, except in the case of a Default in the
payment of the principal of, premium (if any) or interest on, any Note, the Trustee may withhold such notice if and so long as the board of directors, the executive committee or a trust committee of Responsible Officers of the Trustee determines
that the withholding of such notice is not opposed to the interests of the Holders. 
 (b) The Trustee shall not be required to take notice
or be deemed to have notice or knowledge of any event or of any Default (except default in the payment of monies to the Trustee which are required to be paid to the Trustee on or before a specified date or within a specified time after receipt by
the Trustee of a notice or a certificate which was in fact received), unless a Responsible Officer of the Trustee has actual knowledge thereof or unless the Trustee shall receive from the Company or a Holder at the Corporate Trust Office written
notice stating that the same has occurred and is continuing, specifying the same and referencing the Notes and this Indenture, and, in the absence of such knowledge or notice, the Trustee may conclusively assume that the same does not exist, except
as aforesaid. 
  

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 Section 7.03. Certain Rights of Trustee. Subject to the provisions of Section 7.01:

 (i) the Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper
party or parties; 
 (ii) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or a Company Order thereof, and any resolution of any Person’s board of directors (or any committee thereof) shall be sufficiently evidenced if certified by an Officer of such Person as having been duly adopted and being in full
force and effect on the date of such certificate; 
 (iii) whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon the
Officer’s Certificates of the Company; 
 (iv) the Trustee may consult with counsel of its selection and the advice of
such counsel or any Opinion of Counsel with respect to legal matters relating to this Indenture and the Notes shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon; 
 (v) in case an Event of Default occurs and is continuing, the Trustee shall be under no obligation
to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it
against any loss, liability or expense which might be incurred by it in compliance with such request or direction; 
 (vi) the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its reasonable discretion, may make further inquiry or investigation into such facts or matters, 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, upon reasonable notice to the Company and during normal business hours; 
 (vii) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder; 
 (viii) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to act hereunder; 
 (ix) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture, unless the Trustee’s conduct constitutes willful misconduct or negligence; and 
 (x) the Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture. 
  

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 Section 7.04. Not Responsible for Recitals or Issuance of Notes. The recitals contained herein and
in the Notes, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Notes and perform its obligations hereunder
and that the statements made by it in a Statement of Eligibility and Qualification on Form T-1 supplied to the Company in connection with the registration of any Notes issued hereunder will be true and accurate subject to the qualifications set
forth therein. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of the Notes or the proceeds thereof. 
 Section 7.05. Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Company’ use of the proceeds
from the Notes, it shall not be responsible for any statement in the offering memorandum for the Notes or in the Indenture or the Notes (other than its certificate of authentication), the acts of a prior Trustee hereunder, or the determination as to
which beneficial owners are entitled to receive any notices hereunder. 
 Section 7.06. May Hold Notes. The Trustee, any
Authenticating Agent, any Paying Agent, any Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Notes and, subject to Section 7.09 and Section 7.14, may
otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Registrar or such other agent. 
 Section 7.07. Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Company. 
 Section 7.08. Compensation and Reimbursement. The Company agrees: 
 (a) to pay to the Trustee from
time to time such compensation as the Company and the Trustee shall from time to time agree in writing for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust); 
 (b) to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as
may be attributable to its negligence or bad faith; and 
 (c) to indemnify the Trustee and any predecessor Trustee for, and to hold it
harmless against, any loss, damage, claims, liability or expense (including taxes, other than taxes based on the income of the Trustee) incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or
administration of this trust, including the reasonable costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other person) or liability in connection with the exercise or performance of any of its
powers or duties hereunder. 
 The Company’ payment obligations pursuant to this Section 7.08 shall survive the discharge of
this Indenture. When the Trustee incurs expenses after the occurrence of a Default specified in Section 6.01(g) or 6.01(h), the expenses are intended to constitute expenses of administration under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect. 
 Section 7.09. Conflicting Interests. If the Trustee has or shall
acquire a conflicting interest within the meaning of the TIA, within 90 days the Trustee shall either eliminate such conflicting interest, apply to the SEC for permission to continue as Trustee with such conflicting interest, or resign, to the

  

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extent and in the manner provided by, and subject to the provisions of, the TIA and this Indenture. To the extent permitted by such Act, the Trustee shall
not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Original Notes and Additional Notes, or a trustee under any other indenture between the Company and the Trustee. 
 Section 7.10. Corporate Trustee Required; Eligibility. (a) There shall at all times be one (and only one) Trustee hereunder. The Trustee shall be
a Person that is eligible pursuant to the TIA to act as such and has a combined capital and surplus of at least $100,000,000. If any such Person publishes reports of condition at least annually, pursuant to law or to the requirements of its
supervising or examining authority, then for the purposes of this Section 7.10 and to the extent permitted by the TIA, the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section 7.10, it shall resign immediately in the manner and with the effect hereinafter
specified in this Article. 
 Section 7.11. Resignation and Removal; Appointment of Successor. (a) No resignation or removal of
the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 7.12.

 (b) The Trustee may resign at any time by giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 7.12 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a
successor Trustee (and the Company shall reimburse the resigning Trustee for any reasonable out-of-pocket expenses that it incurs in connection with any such petition). 
 (c) The Trustee may be removed at any time by Act of the Holders of a majority in principal amount of the Outstanding Notes, delivered to the Trustee and to the Company. If the instrument of acceptance by a successor
Trustee required by Section 7.12 shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee being removed may petition any court of competent jurisdiction for the appointment of a
successor Trustee (and the Company shall reimburse the Trustee being removed for any reasonable out-of-pocket expenses that it incurs in connection with any such petition). 
 If at any time: 
 (i) the
Trustee shall fail to comply with Section 7.09 after written request therefor by the Company or by any Holder who has been a bona fide Holder for at least six months, or 
 (ii) the Trustee shall cease to be eligible under Section 7.10 and shall fail to resign after written request therefor by the
Company or by any such Holder, or 
 (iii) the Trustee shall become incapable of acting or shall be adjudged bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then, in any such case, (A) the Company may remove the Trustee, or (B) subject to Section 6.11, any Holder who has been a bona fide Holder for
at least six months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee or Trustees. 
 (d) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company shall promptly appoint a successor 

  

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Trustee and shall comply with the applicable requirements of Section 7.12. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Notes delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 7.12, become the successor Trustee and to that extent supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 7.12, then, subject to Section 6.11, any Holder who has been a bona fide Holder for at least six
months may, on behalf of itself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 (e) The Company shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee to all Holders in the manner provided in Section 1.10. Each notice shall
include the name of the successor Trustee and the address of its Corporate Trust Office. 
 Section 7.12. Acceptance of Appointment by
Successor. (a) In case of the appointment hereunder of a successor Trustee, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee; but, on the request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of
the retiring Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 
 (b) Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts
referred to above. 
 (c) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee
shall be qualified and eligible under this Article 7. 
 Section 7.13. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Trustee 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 Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article 7, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Notes shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to
such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor Trustee had itself authenticated such Notes. 
 Section 7.14. Preferential Collection of Claims Against the Company. If and when the Trustee shall be or become a creditor of the Company (or any
other obligor upon the Notes), the Trustee shall be subject to the provisions of the TIA regarding the collection of claims against the Company (or any such other obligor). 
 Section 7.15. Appointment of Authenticating Agent. The Trustee may appoint an Authenticating Agent acceptable to the Company to authenticate the
Notes. Any such appointment shall be evidenced by an instrument in writing signed by a Responsible Officer, a copy of which instrument shall be promptly furnished to the Company. Unless limited by the terms of such appointment, an Authenticating
Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication (or execution of a certificate of authentication) by the Trustee includes authentication (or execution of a certificate of
authentication) by such Authenticating Agent. An Authenticating Agent has the same rights as any Registrar, Paying Agent or agent for service of notices and demands. 
  

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 ARTICLE 8 
 HOLDERS’ LIST AND REPORTS BY TRUSTEE AND THE COMPANY 
 Section 8.01. The Company to Furnish Trustee Names and Addresses of Holders; Stock Exchange Listing . (a) The Company will furnish or cause to be
furnished to the Trustee 
 (i) semi-annually, not more than 15 days after each Regular Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular Record Date, and 
 (ii) at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; 

provided, however, that if and so long as the Trustee shall be the Registrar, no such list need be furnished pursuant to this Section 8.01.

 (b) The Company will promptly notify the Trustee when any Notes are listed on any stock exchange and of any delisting thereof. 

Section 8.02. Preservation of Information; Communications to Holders. (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most recent list, if any, furnished to the Trustee as provided in Section 8.01 and the names and addresses of Holders received by the Trustee in its capacity as
Registrar; provided, however, that if and so long as the Trustee shall be the Registrar, the Register shall satisfy the requirements relating to such list. None of the Company, the Trustee or any other Person shall be under any responsibility with
regard to the accuracy of such list. The Trustee may destroy any list furnished to it as provided in Section 8.01 upon receipt of a new list so furnished. 
 (b) The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Notes, and the corresponding rights and privileges of the Trustee, shall be as provided by the
TIA. 
 (c) Every Holder, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the TIA. 
 Section 8.03. Reports by Trustee. The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the TIA at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the TIA, the Trustee shall, within 60 days after each May 15, following the date of this Indenture deliver to Holders a brief report, dated as of such May 15, which
complies with the provisions of such Section 313(a). A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange, if any, upon which any Notes are listed, with the SEC and with
the Company. 
 ARTICLE 9 
 AMENDMENT, SUPPLEMENT OR WAIVER 
 Section 9.01. Without Consent of
the Holders. (a) Without the consent of any Holder, the Company, the Trustee and (if applicable) any Subsidiary Guarantor may enter into one or more indentures supplemental hereto, for any of the following purposes: 
 (i) to cure any ambiguity, omission, defect or inconsistency, 
  

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 (ii) to provide for the assumption by a successor of the obligations of the Company under
this Indenture, 
 (iii) to provide for uncertificated Notes in addition to or in place of certificated Notes; provided
that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of the Code, 
 (iv) to add Subsidiary Guarantees with respect to the Notes, to grant a Lien under this Indenture to the Trustee as security for the
Notes, to confirm and evidence the release, termination or discharge of any Subsidiary Guarantee or any such Lien with respect to or securing the Notes when such release, termination or discharge is permitted under this Indenture, 
 (v) to add to the covenants of the Company for the benefit of the Holders or to surrender any right or power conferred upon the Company,

 (vi) to provide for or confirm the issuance of Additional Notes in accordance with the terms of the Indenture, 

(vii) to make any change that does not adversely affect the rights of any Holder under the Notes or this Indenture, 
 (viii) to comply with any requirement of the SEC in connection with the qualification of this Indenture under the TIA or otherwise, or

 (ix) to conform any provision of this Indenture to the “Description of Notes” included in the prospectus dated
September 15, 2006. 
 Section 9.02. With Consent of Holders. (a) Subject to Section 6.07, the Company, the
Trustee and (if applicable) any Subsidiary Guarantor may amend or supplement this Indenture or the Notes with the written consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes, and any past Default
or compliance with any provisions may also be waived with the written consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes. 
 (b) Notwithstanding the provisions of this Section 9.02, without the consent of each Holder affected, an amendment or waiver, including a
waiver pursuant to Section 6.04, may not (with respect to any Notes held by a non-consenting Holder): 
 (i)
change the Stated Maturity of the principal of, or any installment of interest on, any Note, 
 (ii) reduce the principal
amount of or premium, if any, or interest on any Note, 
 (iii) reduce any amount payable on redemption of the Notes or upon
the occurrence of an Event of Default or reduce the Change of Control Payment or the amount to be paid in connection with an Asset Sale Offer, 
 (iv) change the place or currency of payment of principal of or premium, if any, or interest on any Note, 
 (v) impair the right to institute suit for the enforcement of any payment on or after the Stated Maturity (or, in the case of a redemption, on or after the Redemption Date) of any Note, 
  

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 (vi) reduce the above-stated percentage of outstanding Notes the consent of whose Holders
is necessary to modify or amend the Indenture, 
 (vii) waive a default in the payment of principal of or premium, if any, or
interest on the Notes (except as set forth in Section 6.04), 
 (viii) reduce the percentage or aggregate
principal amount of Outstanding Notes the consent of whose Holders is necessary for waiver of compliance with provisions of the Indenture or for waiver of Defaults, 
 (ix) modify or change any provision of the Indenture affecting the ranking of the Notes or the Subsidiary Guarantees in a manner adverse
to the Holders of the Notes, or 
 (x) release any Subsidiary Guarantor from any of its obligations under its Subsidiary
Guarantee or the Indenture other than in accordance with the provisions of the Indenture, or amend or modify any provision relating to such release. 
 (c) It shall not be necessary for the consent of the Holders under this Section 9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof. 
 (d) After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders of each Note affected thereby, with a copy to the Trustee, a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any supplemental indenture or the effectiveness of any such amendment, supplement or waiver. 
 Section 9.03. Execution of Amendments, Supplements or Waivers. The Trustee shall sign any amendment, supplement or waiver authorized pursuant to this Article 9 if the amendment, supplement or waiver 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 or refusing to sign such amendment, supplement or waiver, the Trustee shall be entitled to receive, and
shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel to the effect that the execution of such amendment, supplement or waiver has been duly authorized, executed and delivered by the Company and that such
amendment, supplement or waiver is a valid and binding agreement of the Company, enforceable against it in accordance with its terms (subject to customary exceptions). 
 Section 9.04. Revocation and Effect of Consents. (a) Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of that Note or any Note that evidences all or any part of the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. Subject to the following paragraph of this Section 9.04, any
such Holder or subsequent Holder may revoke the consent as to such Holder’s Note by notice to the Trustee or the Company received by the Trustee or the Company, as the case may be, before the date on which the Trustee receives an Officer’s
Certificate certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to the amendment, supplement or waiver. The Company may, but shall not be obligated to, fix a record date
for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver as set forth in Section 1.08. 
 (b) After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless it makes a change described in any of clauses (i) through (viii) of Section 9.02(b). In that case, the amendment,
supplement or waiver shall bind each Holder of a Note who has consented to it and every subsequent Holder of such Note or any Note that evidences all or any part of the same debt as the consenting Holder’s Note. 
  

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 Section 9.05. Conformity with TIA. Every amendment or supplemental indenture executed pursuant to
this Article shall conform to the requirements of the TIA as then in effect. 
 Section 9.06. Notation on or Exchange of Notes. If an
amendment, supplement or waiver changes the terms of a Note, the Trustee shall (if required by the Company and in accordance with the specific direction of the Company) request the Holder to deliver its Note to the Trustee. The Trustee shall (if
required by the Company and in accordance with the specific written direction of the Company) place an appropriate notation on the Note about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines,
the Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment,
supplement or waiver. 
 ARTICLE 10 
 REDEMPTION OF NOTES 
 Section 10.01. Right of Redemption. Except as otherwise
provided below, the Notes will not be redeemable at the option of the Company before September 15, 2011. Thereafter, the Notes will be redeemable, at the option of the Company, in whole or in part, at any time or from time to time on and prior
to maturity. Such redemption may be made upon notice mailed by first-class mail to each Holder’s registered address in accordance with Section 10.05. The Notes will be so redeemable at the following Redemption Prices (expressed as a
percentage of principal amount on the relevant Redemption Date), plus accrued and unpaid interest to the relevant Redemption Date, if redeemed during the twelve-month period commencing on September 15 of the years set forth below: 

 

				
	 Year
	  	Redemption Price	 
	 2011
	  	104.125	%
	 2012
	  	102.750	%
	 2013
	  	101.375	%
	 2014 and thereafter
	  	100.000	%

 Prior to September 15, 2009, the Company may, at its option, on any one or more occasions,
redeem up to 35% of the aggregate principal amount of the Notes (including any Additional Notes issued after the Issue Date) at a Redemption Price equal to 108.250% of the principal amount thereof, plus accrued and unpaid interest thereon to, but
not including, the Redemption Date, with all or a portion of the net proceeds of one or more sales (other than to a Subsidiary or Joint Venture of the Company) of Qualified Equity Interests of the Company; provided that at least 65% of the
aggregate principal amount of the Notes issued under this Indenture remains outstanding immediately after the occurrence of such redemption; and provided, further, that such redemption shall occur within 90 days of the date of the closing of
any such sale of Qualified Equity Interests of the Company. 
 At any time prior to September 15, 2011, the Company may also redeem, in
whole or in part, the Notes at a Redemption Price equal to 100% of the principal amount of Notes to be redeemed, plus the Applicable Premium (as defined below) as of, and accrued and unpaid interest thereon to, but not including, the Redemption
Date, subject to the rights of the Holders on the relevant record date to receive interest due on the relevant Interest Payment Date. 
 “Applicable Premium” means, with respect to any note on any Redemption Date, the excess of: 
 (1) the present value at
such Redemption Date of (i) the Redemption Price of the Note on September 15, 2011, plus (ii) all required interest payments due on the Note through September 15, 2011 (excluding accrued but unpaid interest to the Redemption
Date) discounted back to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over 
  

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 (2) the principal amount of the Note. 
 “Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such Redemption Date of United States Treasury securities with a
constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical Release is no
longer published, any publicly available source of similar market data)) most nearly equal to the period from the Redemption Date to September 15, 2011; provided, however, that if the period from the Redemption Date to September 15, 2011
is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used. 
 Section 10.02. Applicability of Article. Redemption or purchase of Notes as permitted by Section 10.01 shall be made in accordance with this Article 10. 
 Section 10.03. Election to Redeem; Notice to Trustee. In case of any redemption of the Notes at the election of the Company, the Company shall, at
least 30 days prior to the Redemption Date initially fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Notes to be redeemed. 
 Section 10.04. Selection by Trustee of Notes to Be Redeemed. In the case of any partial redemption, selection of the Notes for redemption will be
made not more than 60 days prior to the Redemption Date by the Trustee in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro rata basis,
by lot or by such method as the Trustee shall deem fair and appropriate; provided that no Notes of $1,000 or less shall be redeemed in part. 
 (a) The Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the portion of the principal amount thereof to be redeemed. On and after the
Redemption Date, interest will cease to accrue on Notes or portions thereof called for redemption. 
 (b) For all purposes of this Indenture,
unless the context otherwise requires, all provisions relating to the redemption of Notes shall relate, in the case of any Note redeemed or to be redeemed only in part, to the portion of the principal of such Note that has been or is to be redeemed.

 Section 10.05. Notice of Redemption. (a) Notice of redemption or purchase as provided in Section 10.01 shall be deemed to
have been given upon the mailing by first class mail, postage prepaid, of such notice to each Holder of Notes to be redeemed, at its registered address as recorded in the Register, not later than 30 nor more than 60 days prior to the Redemption
Date. 
 Any such notice shall state: 
 (i) the expected Redemption Date, 
 (ii) the Redemption Price, 
 (iii) if less than all Outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the respective
principal amounts) of the particular Notes to be redeemed, 
 (iv) that on the Redemption Date the Redemption Price will
become due and payable upon each such Note to be redeemed, and that, unless the Company defaults in making such redemption payment or any Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture, interest thereon
shall cease to accrue from and after said date, 
  

 68 

 (v) the place or places where such Notes are to be surrendered for payment of the
Redemption Price and the name and address of the Paying Agent or Paying Agents, 
 (vi) the CUSIP and other security
identification numbers, if any, subject to Section 3.12 hereof, and 
 (vii) the section of this Indenture
pursuant to which the Notes are to be redeemed. 
 Redemption may be subject to one or more conditions precedent. 
 (b) Notice of such redemption or purchase of Notes to be so redeemed or purchased at the election of the Company shall be given by the Company or, at the
written request of the Company delivered at least five Business Days prior to the date proposed for the mailing of such notice (unless a shorter notice shall be satisfactory to the Trustee), by the Trustee in the name and at the expense of the
Company; provided that such notice to the Trustee may be revoked by the Company by written notice delivered to the Trustee prior to the date proposed for the mailing of the notice of such redemption to the Holders. 
 (c) The notice if mailed in the manner herein provided shall be conclusively presumed to have been given, whether or not the Holder receives such notice.
In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated for redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note. 

Section 10.06. Deposit of Redemption Price. On or prior to 10:00 a.m., New York City time on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, the Company shall segregate and hold in trust as provided in Section 4.03) an amount of money sufficient to pay the Redemption Price of, and
any accrued and unpaid interest on, all the Notes or portions thereof which are to be redeemed on that date. 
 Section 10.07. Notes
Payable on Redemption Date. (a) Notice of redemption having been given as provided in this Article 10, the Notes so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price herein specified and
from and after such date (unless Company shall default in the payment of the Redemption Price or any Paying Agent is prohibited from paying the Redemption Price pursuant to the terms of this Indenture) such Notes shall cease to bear interest. Upon
surrender of such Notes for redemption in accordance with such notice, such Notes shall be paid by the Company at the Redemption Price. Installments of interest whose Interest Payment Date is on or prior to the Redemption Date shall be payable to
the Holders of such Notes registered as such on the relevant Regular Record Dates according to their terms and the provisions of Section 3.07. 
 (b) On and after any Redemption Date, if money sufficient to pay the Redemption Price of and any accrued and unpaid interest on Notes called for redemption shall have been made available in accordance with
Section 10.06, the Notes (or the portions thereof) called for redemption will cease to accrue interest and the only right of the Holders of such Notes (or portions thereof) will be to receive payment of the Redemption Price of, and
subject to the last sentence of Section 10.07(a), any accrued and unpaid interest on such Notes (or portions thereof) to the Redemption Date. If any Note (or portion thereof) called for redemption shall not be so paid upon surrender
thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate borne by the Note (or portion thereof). 
 Section 10.08. Notes Redeemed in Part. Any Note that is to be redeemed only in part shall be surrendered at a Place of Payment (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the 

  

 69 

 
Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the
Holder of such Note without service charge, a new Note or Notes, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Note so
surrendered. 
 ARTICLE 11 
 SATISFACTION AND DISCHARGE 
 Section 11.01. Satisfaction and Discharge of
Indenture. (a) This Indenture shall cease to be of further effect (except as to any surviving rights of transfer or exchange of Notes herein provided for), and the Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture, when 
 (i) either 
 (A) all Notes theretofore authenticated and delivered (other than (y) Notes that have been destroyed, lost or stolen and that have
been replaced or paid as provided in Section 3.06, and (z) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 4.03) have been delivered to the Trustee canceled or for cancellation; or 
 (B) all such Notes not theretofore delivered to the Trustee canceled or for cancellation 
 (x) have become due and
payable, or 
 (y) will become due and payable at their Stated Maturity within one year, or 
 (z) are to be called for redemption within one year under arrangements reasonably satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company, 
 (ii) the Company has irrevocably deposited or
caused to be deposited with the Trustee an amount in United States dollars, U.S. Government Obligations, or a combination thereof, sufficient to pay and discharge the entire Indebtedness on such Notes not theretofore delivered to the Trustee
canceled or for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Notes that have become due and payable), or to the Stated Maturity or Redemption Date, as the case may be; 
 (iii) the Company has paid or caused to be paid all other sums then payable hereunder by the Company; and 
 (iv) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel each to the effect that all
conditions precedent provided for in this Section 11.01 relating to the satisfaction and discharge of this Indenture have been complied with; provided that any such counsel may rely on any Officer’s Certificate as to matters
of fact (including as to compliance with the foregoing clauses (i), (ii) and (iii)); 
 (b) Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.08 and, if money shall have been deposited with the Trustee pursuant to clause (ii) of Section 11.01(a), the obligations of the
Trustee under Section 11.02, shall survive. 
  

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 Section 11.02. Application of Trust Money. Subject to the provisions of the last paragraph of
Section 4.03, all money deposited with the Trustee pursuant to Section 11.01 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest on the Notes; but such money need not be segregated
from other funds except to the extent required by law. 
 ARTICLE 12 
 DEFEASANCE AND COVENANT DEFEASANCE 
 Section 12.01. Option of the Company to Effect Defeasance or Covenant Defeasance. The Company may at its option by a Board Resolution, at any time, elect to have either Section 12.02 or Section 12.03 applied
to the Outstanding Notes upon compliance with the conditions set forth below in this Article 12. 
 Section 12.02. Legal Defeasance
and Discharge. Upon the exercise by the Company under Section 12.01 of the option applicable to this Section 12.02, the Company shall be deemed to have been discharged from any and all Obligations with respect to all
Outstanding Notes (and any Subsidiary Guarantor will be discharged from any and all Obligations in respect of its Subsidiary Guarantee) on the date which is the 123rd day after the deposit referred to in Section 12.04(a); provided
that all of the conditions set forth in Section 12.04 are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire
Indebtedness represented by the Outstanding Notes, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 12.05 hereof and the other Sections of this Indenture referred to in clauses (i) and
(ii) of this Section 12.02, and to have satisfied all its other obligations under such Notes and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (i) the rights of Holders of Outstanding Notes to receive solely from the trust fund described in Section 12.04
hereof, and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, and interest on such Notes when such payments are due, (ii) the obligations of the Company with respect to such Notes under Sections
1.06, 3.03, 3.04, 3.05, 3.06, 3.13, 4.01, 4.02, 4.03 and 12.05 hereof, and (iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder, including,
without limitation, the Trustee’s rights under Section 7.08 hereof, and the obligations of the Company in connection therewith and with this Article 12. Subject to compliance with this Article 12, the Company may
exercise its option under this Section 12.02 notwithstanding the prior exercise of its option under Section 12.03 hereof with respect to the Notes. 
 Section 12.03. Covenant Defeasance. Upon the exercise by the Company under Section 12.01 of the option applicable to this
Section 12.03, the Company shall be released from its obligations under the covenants contained in Sections 4.06 through Section 4.18, Section 4.22, and clause (iv) of Section 5.01(a)
hereof with respect to the Outstanding Notes and no Default under Section 6.01(e) or (f) shall thereafter constitute a Default or Event of Default on the date which is the 123rd day after the deposit referred to in
Section 12.04(a); provided that all of the conditions set forth in Section 12.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not Outstanding for the
purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed Outstanding for all other purposes hereunder. For this purpose, such
Covenant Defeasance means that, with respect to the Outstanding Notes, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01(c) or (d), but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. 
  

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 Section 12.04. Conditions to Legal or Covenant Defeasance. The following shall be the conditions
to application of either Section 12.02 or Section 12.03 to the Outstanding Notes: 
 (a) the Company has deposited
with the Trustee, in trust, money and/or U.S. Government Obligations that through the payment of interest and principal in respect thereof in accordance with their terms will provide money in an amount sufficient to pay (i) the principal of,
premium, if any, and accrued interest on the Notes when such payments are due in accordance with the terms of this Indenture and the Notes or (ii) in the case of Legal Defeasance, accrued interest on the Notes through a scheduled redemption
date and the principal of, and premium on the Notes on such redemption date; provided that, at the time of deposit, the Company irrevocably authorizes the Trustee to issue a timely notice of redemption and to take such other steps reasonably
requested by the Trustee to ensure that such redemption will be effectuated; 
 (b) in the case of an election under
Section 12.02, the Company has delivered to the Trustee (i) either (x) an Opinion of Counsel to the effect that Holders will not recognize income, gain or loss for Federal income tax purposes as a result of the exercise by the
Company of its option under this Article 12 and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred,
which Opinion of Counsel must be based upon (and accompanied by a copy of) a ruling of the Internal Revenue Service to the same effect unless there has been a change in applicable Federal income tax law after the date of this Indenture such that a
ruling is no longer required or (y) a ruling directed to the Trustee received from the Internal Revenue Service to the same effect as the aforementioned Opinion of Counsel and (ii) an Opinion of Counsel to the effect that, as a result of
the creation of the defeasance trust, the Company will not be required to register under the Investment Company Act of 1940 and after the passage of 123 days following the deposit, the trust fund will not be subject to the effect of Section 547
of the United States Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law or any comparable provision of applicable law; 
 (c) in the case of an election under Section 12.03, the delivery by the Company to the Trustee of (i) an Opinion of Counsel to the effect that, among other things, the Holders will not recognize income, gain or loss for
Federal income tax purposes as a result of such deposit and defeasance and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and defeasance had not
occurred and (ii) an Opinion of Counsel to the effect that, as a result of the creation of the defeasance trust, the Company will not be required to register under the Investment Company Act of 1940 and after the passage of 123 days following
the deposit, the trust fund will not be subject to the effect of Section 547 of the United States Bankruptcy Code or Section 15 of the New York Debtor and Creditor Law or any comparable provision of applicable law; 
 (d) immediately after giving effect to such deposit on a pro forma basis, no Event of Default, or event that after the giving of notice or lapse
of time or both would become an Event of Default, shall have occurred and be continuing on the date of such deposit or during the period ending on the 123rd day after the date of such deposit, and such deposit shall not result in a breach or
violation of, or constitute a default under, any other agreement or instrument to which the Company is a party or by which the Company is bound; 
 (e) if at such time the Notes are listed on a national securities exchange, the Company has delivered to the Trustee an Opinion of Counsel to the effect that the Notes will not be delisted as a result of such deposit, defeasance and
discharge; 
 (f) the Company shall have delivered to the Trustee Officer’s Certificates stating that the deposit made by the Company
pursuant to its election under Sections 12.02 or 12.03 was not made by the Company with the intent of preferring the Holders over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding
creditors of the Company or others; and 
  

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 (g) the Company shall have delivered to the Trustee Officer’s Certificates and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to either the Legal Defeasance under Section 12.02 or the Covenant Defeasance under Section 12.03 (as the case may be) have been complied with as
contemplated by this Section 12.04. 
 Section 12.05. Deposited Money and Government Securities to Be Held in Trust; Other
Miscellaneous Provisions S ubject to Section 12.06, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 12.04 in respect of the Outstanding Notes shall be
held in trust and applied by the Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect of principal of, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law. 
 The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the money or U.S. Government
Obligations deposited pursuant to Section 12.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Notes.

 Anything in this Article 12 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon
the request of the Company any money or U.S. Government Obligations held by it as provided in Section 12.04 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under Section 12.04(a) hereof), are in excess of the amount thereof which would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance. 
 Section 12.06. Repayment to Company. Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Company
on its written request or (if then held by the Company) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such
repayment, shall at the expense of the Company cause to be published once, in The New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
 Section 12.07. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Section 12.02 or 12.03, as the case may be, by
reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations of the Company under this Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 12.02 or 12.03 until such time as the Trustee or Paying Agent is permitted to apply all such amounts in accordance with Section 12.02 or 12.03 hereof, as the case may
be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Note following the reinstatement of its Obligations, the Company shall be subrogated to the rights of the Holder of such Note to
receive such payment from the amounts held by the Trustee or Paying Agent. 
 ARTICLE 13 
 SUBSIDIARY GUARANTEES 
 Section 13.01. The Guarantees. (a) Subject to the provisions of this Article 13, each Subsidiary Guarantor hereby irrevocably and unconditionally guarantees, jointly and severally, the full and punctual 
  

 73 

 
payment (whether at Stated Maturity, upon acceleration, optional redemption, upon repurchase following a Change of Control Offer or an Asset Sale Offer or
otherwise) of the principal of and premium, if any, and interest on, and all other amounts payable under, each Note provided for under this Indenture, and the full and punctual payment of all other amounts payable by the Company under this
Indenture. Upon failure by the Company to pay punctually any such amount, each Subsidiary Guarantor shall forthwith on demand pay the amount not so paid at the place and in the manner specified in this Indenture. 
 Section 13.02. Guarantee Unconditional. The obligations of the Subsidiary Guarantors hereunder shall be unconditional and absolute and, without
limiting the generality of the foregoing, shall, to the fullest extent permitted by law, not be released, discharged or otherwise affected by: 
 (a) any extension, renewal, settlement, compromise, waiver or release in respect of any obligation of the Company under this Indenture or any Note, by operation of law or otherwise; 
 (b) any modification or amendment of or supplement to this Indenture or any Note; provided that any such modification which increases the
obligations of each Subsidiary Guarantor hereunder shall not be effective as to such Subsidiary Guarantor without its consent; 
 (c) any
release, impairment, non-perfection or invalidity of any direct or indirect security for any obligation of the Company or any Subsidiary Guarantor hereunder; 
 (d) any change in the corporate existence, structure or ownership of the Company, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting the Company or its assets or any resulting release
or discharge of any obligation of the Company contained in this Indenture or any Note; 
 (e) the existence of any claim, set-off or other
rights which the Subsidiary Guarantors may have at any time against the Company, the Trustee or any other Person, whether in connection with this Indenture or any unrelated transactions, provided that nothing herein shall prevent the
assertion of any such claim by separate suit or compulsory counterclaim; 
 (f) any invalidity or unenforceability relating to or against the
Company for any reason of this Indenture or any Note, or any provision of applicable law or regulation purporting to prohibit the payment by the Company of the principal of or interest on any Note or any other amount payable by the Company under
this Indenture; or 
 (g) any other act or omission to act or delay of any kind by the Company, the Trustee or any other Person or any other
circumstance whatsoever which might, but for the provisions of this paragraph, constitute a legal or equitable discharge of or defense to such Subsidiary Guarantor’s obligations hereunder. 
 Section 13.03. Discharge; Reinstatement. The Subsidiary Guarantors’ obligations hereunder shall remain in full force and effect until the
principal of, premium, if any, and interest on the Notes and all other amounts payable by the Company under this Indenture shall have been paid in full. If at any time any payment of the principal of, premium, if any, or interest on any Note or any
other amount payable by the Company under this Indenture is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the Company or otherwise, the Subsidiary Guarantors’ obligations hereunder with
respect to such payment shall be reinstated as though such payment had been due but not made at such time. 
 Section 13.04. Waiver by the
Subsidiary Guarantors. The Subsidiary Guarantors irrevocably waive acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against the
Company or any other Person. 
  

 74 

 Section 13.05. Subrogation and Contribution. Upon making any payment with respect to any
obligation of the Company under this Article 13, the Subsidiary Guarantor making such payment shall be subrogated to the rights of the payee against the Company with respect to such obligation; provided that such Subsidiary Guarantor
shall not enforce either (i) any right to receive payment by way of subrogation against the Company or against any direct or indirect security for such obligation, or any other right to be reimbursed, indemnified or exonerated by or for the
account of the Company in respect thereof or (ii) any right to receive payment, in the nature of contribution or for any other reason, from any other Subsidiary Guarantor with respect to such payment, in each case so long as any amount payable
by the Company hereunder or under the Notes remains unpaid. 
 Section 13.06. Stay of Acceleration. If acceleration of the time for
payment of any amount payable by the Company under this Indenture or the Notes is stayed upon the insolvency, bankruptcy or reorganization of the Company, all such amounts otherwise subject to acceleration under the terms of this Indenture shall
nonetheless be payable by the Subsidiary Guarantors hereunder forthwith on demand by the Trustee or the Holders. 
 Section 13.07. Limits
of Guarantees. Notwithstanding anything to the contrary in this Article 13, each Subsidiary Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Subsidiary Guarantee
of such Guarantor not constitute a fraudulent conveyance under applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of state law. To effectuate the foregoing intention, the Trustee, the Holders
and the Subsidiary Guarantors hereby irrevocably agree that the obligations of such Subsidiary Guarantor under its Subsidiary Guarantee and this Article 13 shall be limited to the maximum amount that would not render such Subsidiary
Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of state law. 
 Section 13.08. Execution and Delivery of Note Guarantee. To evidence its Subsidiary Guarantee set forth in Section 13.01, each
Subsidiary Guarantor hereby agrees that this Indenture (or a supplemental indenture in the form of Exhibit B hereto) shall be executed on behalf of such Subsidiary Guarantor by one of its Officers. 
 The signature of an Officer of a Subsidiary Guarantor on the Indenture shall bind such Subsidiary Guarantor, notwithstanding that such individual has
ceased to hold such office prior to the authentication and delivery of any Note or did not hold such office at the date of such Note. 
 The
delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee set forth in this Indenture on behalf of the Subsidiary Guarantors. 
  

 75 

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

			
	LYONDELL CHEMICAL COMPANY
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LRC HOLDINGS GP LLC, as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL DELAWARE COMPANY, as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY MANAGEMENT, INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 1 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 2 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer

  

 Signature Page to Indenture 

			
	LYONDELL CHEMICAL TECHNOLOGY 3 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 4 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 5 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 6 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 7 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY 8 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer

  

 Signature Page to Indenture 

			
	LYONDELL LP3 GP, LLC, as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL LP4 INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL REFINING GP, LLC, as a Subsidiary Guarantor
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LRC HOLDINGS LP LLC, as a Subsidiary Guarantor
		
	By:	 	Lyondell Chemical Company, its sole member
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LRP HOLDINGS LP LLC, as a Subsidiary Guarantor
	
	By: Lyondell Chemical Company, its sole member
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL (PELICAN) PETROCHEMICAL L.P. 1, INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer

  

 Signature Page to Indenture 

			
	LYONDELL CHEMICAL NEDERLAND, LTD., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL CHIMIE FRANCE CORPORATION, as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL FRANCE, INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL PETROCHEMICAL L.P. INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	POSM DELAWARE, INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL HOUSTON REFINERY INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer

  

 Signature Page to Indenture 

			
	LYONDELL HOUSTON REFINERY A INC., as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL REFINING LP, LLC, as a Subsidiary Guarantor
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL CHEMICAL PROPERTIES, L.P., as a Subsidiary Guarantor
		
	By:	 	Lyondell Chemical Technology Management, Inc., its general partner
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL CHEMICAL TECHNOLOGY, L.P., as a Subsidiary Guarantor
		
	By:	 	Lyondell Chemical Technology Management, Inc., its general partner
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL LP3 PARTNERS, LP, as a Subsidiary Guarantor
		
	By:	 	Lyondell LP3 GP, LLC, its general partner
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer

  

 Signature Page to Indenture 

			
	LYONDELL REFINING COMPANY LP, as a Subsidiary Guarantor
		
	By:	 	LRC Holdings GP LLC, its general partner
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	LYONDELL REFINING PARTNERS, LP, as a Subsidiary Guarantor
		
	By:	 	Lyondell Refining GP, LLC, its general partner
		
	By:	 	 /s/ Francis P. McGrail

	Name:	 	Francis P. McGrail
	Title:	 	President and Treasurer
	
	POSM II PROPERTIES PARTNERSHIP, L.P., as a Subsidiary Guarantor
		
	By:	 	Lyondell Chemical Company, its general partner
		
	By:	 	 /s/ Karen A. Twitchell

	Name:	 	Karen A. Twitchell
	Title:	 	Vice President and Treasurer
	
	LYONDELL-CITGO REFINING LP, as a Subsidiary Guarantor
		
	By:	 	 /s/ William F. Thompson

	Name:	 	William F. Thompson
	Title:	 	Vice President and General Manager

  

 Signature Page to Indenture 

  

			
	
	THE BANK OF NEW YORK, as Trustee
		
	By:	 	 /s/ Robert A. Massimillo
  

	Name:	 	Robert A. Massimillo
	Title:	 	Vice President

  

 EXHIBIT A 
 [FORM OF NOTE] 
 LYONDELL CHEMICAL COMPANY 
 8 1/4% Senior Note due 2016 
  

			
	 No.                 
	  	[CUSIP/CINS] No.                 
		  	$                                     
         

 LYONDELL CHEMICAL COMPANY, a Delaware corporation (the “Company”, which term
includes any successor Persons under the Indenture hereinafter referred to), for value received promises to pay to                  or its registered assigns, the
principal sum of                  Dollars ($                ) [or such
other amount as indicated on the Schedule of Exchanges of Securities attached hereto]1, on September 15, 2016.

  

			
	Interest Rate:	  	8 1/4% per annum.
		
	Interest Payment Dates:	  	March 15 and September 15 of each year commencing March 15, 2007.
		
	Regular Record Dates:	  	March 1 and September 1 of each year.

 Reference is hereby made to the further provisions of this Note set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set forth at this place. 

	1	To be included in any Global Note. 

  

 A-1 

 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly
authorized officer. 
  

			
	LYONDELL CHEMICAL COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-2 

 (Form of Trustee’s Certificate of Authentication) 
 This is one of the 8 1/4% Senior Notes due 2016 referred to in the within-mentioned Indenture. 
  

			
	 THE BANK OF NEW YORK, as Trustee

		
	 By:
	 	  

		 	 Authorized Signatory

 Dated:
                         
  

 A-3 

 [REVERSE SIDE OF NOTE] 
 LYONDELL CHEMICAL COMPANY 
 8 1/4% Senior Note due 2016 
 (1) Principal and Interest.
The Company agrees to pay the principal of this Note on September 15, 2016. 
 The Company agrees to pay interest on the principal
amount of this Note on each Interest Payment Date, as set forth below, at the rate of 8 1/4% per annum.

 Interest will be payable semiannually (to the Holders of record of the Notes (or any predecessor Notes) at the close of business on
the Regular Record Date immediately preceding the Interest Payment Date) on each Interest Payment Date, commencing March 15, 2007. 
 Interest on this Note will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from September 20, 2006; provided that, if there is no existing default in the payment of interest and
if this Note is authenticated between a Regular Record Date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year
of twelve 30-day months. 
 The Company shall pay interest on overdue principal and premium, if any, and interest on overdue installments of
interest, to the extent lawful, at a rate per annum equal to 1% per annum in excess of the rate of interest applicable to the Notes. 
 (2) Method of Payment. The Company will pay interest (except defaulted interest) on the principal amount of the Notes on each March 15 and September 15, beginning March 15, 2007 to the Persons who are Holders (as
reflected in the Register at the close of business on the March 1 and September 1 immediately preceding the Interest Payment Date), in each case, even if the Note is canceled on registration of transfer or registration of exchange after
such Regular Record Date; provided that, with respect to the payment of principal, the Company will make payment to the Holder that surrenders this Note to any Paying Agent on or after September 15, 2016. 
 The Company will pay principal, premium, if any, and interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. Payments (including principal, premium, if any, and interest) in respect of the Notes represented by the Global Notes, the Holders of which have given wire transfer instructions on or prior to the relevant record date,
shall be made by wire transfer of immediately available funds to the accounts specified by the Global Note Holder. With respect to Physical Notes, the Company will make all payments of principal, premium, if any, and interest at the office or agency
maintained by the Company for such purposes in The City of New York or, at the Company’s option, by mailing a check to each such Holder’s registered address. If a payment date is a date other than a Business Day, payment may be made at
that place on the next succeeding day that is a Business Day and no interest shall accrue for the intervening period. 
 (3) Paying Agent
and Registrar. Initially, the Trustee will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar upon written notice thereto. The Company, any Subsidiary or any Affiliate of any of them may act as Paying Agent,
Registrar or co-registrar. 
 (4) Indenture; Limitations. The Company issued the Notes under an Indenture dated as of
September 20, 2006 (as amended, supplemented or otherwise modified from time to time, the “Indenture”), among the Company, the Subsidiary Guarantors and The Bank of New York, as trustee (the “Trustee”).
Capitalized terms herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference 

  

 A-4 

 
to the Trust Indenture Act of 1939 (the “TIA”). The Notes are subject to all such terms, and Holders are referred to the Indenture and the
TIA for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall control. 
 The Notes are secured senior obligations of the Company. The Indenture limits the initial aggregate principal amount of the Notes to $900,000,000 but
permits the issuance of Additional Notes subject to compliance with certain conditions and covenants contained in the Indenture and except as may be limited by applicable law. 
 (5) Optional Redemption. The Notes may be redeemed at the option of the Company, in whole or in part, at any time and from time to time, on or
after September 15, 2011, at the following Redemption Prices (expressed in percentages of principal amount on the relevant Redemption Date), plus accrued and unpaid interest to the Redemption Date, if redeemed during the 12-month period
commencing September 15 of each of the years set forth below: 
  

				
	 Year
	  	Redemption Price	 
	 2011
	  	104.125	%
	 2012
	  	102.750	%
	 2013
	  	101.375	%
	 2014 and thereafter
	  	100.000	%

 Prior to September 15, 2009, the Company may, at its option, on any one or more occasions,
redeem up to 35% of the aggregate principal amount of the Notes (including any Additional Notes issued after the Issue Date) at a Redemption Price equal to 108.250% of the principal amount thereof, plus accrued and unpaid interest thereon to, but
not including, the Redemption Date, with all or a portion of the net proceeds of one or more sales (other than to a Subsidiary or Joint Venture of the Company) of Qualified Equity Interests of the Company; provided that at least 65% of the
aggregate principal amount of the Notes issued under the Indenture remains outstanding immediately after the occurrence of such redemption; and provided, further, that such redemption shall occur within 90 days of the date of the closing of any such
sale of Qualified Equity Interests of the Company. 
 At any time prior to September 15, 2011, the Company may also redeem, in whole or
in part, the Notes at a Redemption Price equal to 100% of the principal amount of Notes to be redeemed, plus the Applicable Premium (as defined below) as of, and accrued and unpaid interest thereon to, but not including, the Redemption Date, subject
to the rights of the Holders on the relevant record date to receive interest due on the relevant Interest Payment Date. 
 “Applicable
Premium” means, with respect to any note on any Redemption Date, the excess of: 
 (1) the present value at such Redemption Date of
(i) the Redemption Price of the Note on September 15, 2011, plus (ii) all required interest payments due on the Note through September 15, 2011 (excluding accrued but unpaid interest to the Redemption Date) discounted back to the
Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a rate equal to the Treasury Rate as of such Redemption Date plus 50 basis points; over 
 (2) the principal amount of the Note. 
 “Treasury Rate” means, as of any Redemption Date, the yield to maturity as of such Redemption Date of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve
Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to the Redemption Date (or, if such Statistical Release is no longer published, any publicly available source of similar market data)) most
nearly equal to the period from the Redemption 

  

 A-5 

 
Date to September 15, 2011; provided, however, that if the period from the Redemption Date to September 15, 2011 is less than one
year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year will be used. 
 If less than all the Notes are to be redeemed at any time, selection of Notes for redemption will be made by the Trustee in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are
listed or, if the Notes are not so listed, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate; provided that no Notes of $1,000 or less shall be redeemed in part. 
 Notices of redemption shall be mailed by first class mail at least 30 but not more than 60 days before the redemption date to each Holder of Notes to be
redeemed at its registered address. Redemption may be subject to one or more conditions precedent. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note shall state the portion of the principal amount thereof
to be redeemed. A new Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Note. Notes called for redemption become due on the date fixed for redemption.
On and after the redemption date, interest ceases to accrue on Notes or portions of them called for redemption. 
 (6) Repurchase upon a
Change in Control and Sale of Assets. Upon the occurrence of (a) a Change in Control, each Holder shall have the right to require that the Company repurchase such Holder’s Notes at a purchase price in cash equal to 101% of the
principal amount thereof on the date of purchase, plus accrued and unpaid interest to the date of purchase and (b) an Asset Sale, the Company may be obligated to make an offer to purchase on a pro rata basis from the Holders the Notes
with the Excess Proceeds of such Asset Sales at a purchase price equal to 100% of the principal amount of such Notes plus accrued interest to the date of purchase. 
 (7) Denominations; Transfer; Exchange. The Notes are in fully registered form without coupons, in denominations of $1,000 and any integral multiples of $1,000. A Holder may register the transfer or exchange of
Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. 
 (8) Persons Deemed Owners. A Holder may be treated as the owner of a Note for all purposes. 
 (9) Unclaimed Money. If money for the payment of principal, premium, if any, or interest remains unclaimed for two years, the Trustee and the
Paying Agent will pay the money back to the Company at its written request. After that, Holders entitled to the money must look to the Company for payment, unless an abandoned property law designates another Person, and all liability of the Trustee
and such Paying Agent with respect to such money shall cease. 
 (10) Discharge Prior to Redemption or Maturity. If the Company
irrevocably deposits, or causes to be deposited, with the Trustee money or U.S. Government Obligations sufficient to pay the then outstanding principal of and premium, if any, and accrued interest on the Notes (a) to redemption or maturity, the
Company will be discharged from the Indenture and the Notes, except in certain circumstances for certain sections thereof, and (b) to redemption or maturity, the Company will be discharged from certain covenants set forth in the Indenture.

 (11) Amendment; Supplement; Waiver. Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with
the consent of the Holders of at least a majority in aggregate principal amount of the Notes then Outstanding, and any existing Default or compliance with any provision may be waived with the consent of the Holders or a majority in aggregate
principal amount of the Notes then Outstanding. Without notice to or the consent of any Holder, the parties thereto may amend the Indenture or the Notes to the extent set forth in the Indenture. 
  

 A-6 

 (12) Restrictive Covenants. The Indenture contains certain covenants, including, without
limitation, covenants with respect to the following matters: (i) Indebtedness; (ii) Restricted Payments; (iii) distributions from Restricted Subsidiaries and Joint Ventures; (iv) sales of assets; (v) transactions with
Affiliates; (vi) Liens; (vii) no amendment to subordination provisions; (viii) repurchase of Notes upon a Change in Control; (ix) Sale and Leaseback Transactions; (x) Subsidiary Guarantees; and (xi) consolidation,
merger and sale of assets. Within 120 days after the end of each fiscal year, the Company must report to the Trustee on compliance with such limitations. 
 (13) Successor Persons. When a successor person or other entity (other than a Subsidiary of the Company) assumes all the obligations of its predecessor under the Notes and the Indenture, the predecessor person
will be released from those obligations. 
 (14) Remedies for Events of Default. If an Event of Default (other than an Event of
Default specified in Section 6.01(g) or (h) of the Indenture that occurs with respect to the Company or a Subsidiary Guarantor) occurs and is continuing under this Indenture, then in every such case the Trustee or the Holders
of at least 25% in aggregate principal amount of the Outstanding Notes, by written notice to the Company (and to the Trustee if such notice is given by the Holders), may, and the Trustee at the written request of such Holders shall, declare the
principal of, premium, if any, and accrued interest on all of the Outstanding Notes to be immediately due and payable. Upon a declaration of acceleration, such principal of, premium, if any, and accrued interest shall be immediately due and payable.
If an Event of Default specified in Section 6.01(g) or (h) of the Indenture occurs with respect to the Company or a Subsidiary Guarantor, the principal of, premium, if any, and accrued interest on the Outstanding Notes shall
ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. The Holders of at least a majority in aggregate principal amount of the Outstanding Notes by written notice to
the Company and to the Trustee, may waive all past defaults and rescind and annul a declaration of acceleration and its consequences if (1) all existing Events of Default, other than the nonpayment of the principal of, premium, if any, and
interest on the Notes that have become due solely by such declaration of acceleration, have been cured or waived and (2) the rescission would not conflict with any judgment or decree of a court of competent jurisdiction. 
 Holders may not enforce the Indenture, the Notes or the Subsidiary Guarantees except as provided in the Indenture. The Trustee may require security or
indemnity satisfactory to it before it enforces the Indenture, the Notes or the Subsidiary Guarantees. The Holders of at least a majority in aggregate principal amount of the Notes then Outstanding may direct the Trustee in the exercise of any trust
or power in accordance with the terms of the Indenture. 
 (15) Subsidiary Guarantees. Each Subsidiary Guarantor irrevocably and
unconditionally guarantees, jointly and severally, on a senior basis, the full and punctual payment (whether at Stated Maturity, upon acceleration, optional redemption, upon repurchase following a Change of Control Offer or an Asset Sale Offer or
otherwise) of the principal of, premium, if any, and interest on, and all other amounts payable under, this Note provided for under this Indenture, and the full and punctual payment of all other amounts payable by the Company under the Indenture;
provided that, notwithstanding anything to the contrary herein, the aggregate amount of the Obligations guaranteed under the Indenture by any Subsidiary Guarantor shall be limited in amount to the maximum amount that would not render such Subsidiary
Guarantor’s obligations subject to avoidance under the applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of any applicable state law. 
 (16) Additional Subsidiary Guarantees. If any of the Company’s Restricted Subsidiaries shall Guarantee or secure the payment of any other
Indebtedness of the Company or any of its Restricted Subsidiaries, then, subject to certain exceptions specified in the Indenture, such Restricted Subsidiary shall become a Subsidiary Guarantor by executing a supplemental indenture. 
 (17) Trustee Dealings with Company. The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of
Notes and may make loans to, accept deposits from, perform services for, and otherwise deal with, the Company and its Affiliates as if it were not the Trustee. 
  

 A-7 

 (18) Authentication. This Note shall not be valid until the Trustee signs the certificate of
authentication on this Note. 
 (19) Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such
as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), COST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors Act). 
 (20) Governing Law. This Note shall be governed by and construed in accordance with the internal laws of the State of New York, without giving
effect to any principles of conflict of laws to the extent that the application of the law of another jurisdiction is required thereby. 
 The Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to the Company, One Houston Center, Suite 700, 1221 McKinney, Houston, Texas 77010; Attention: General Counsel.

  

 A-8 

 [FORM OF TRANSFER NOTICE] 
 FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 
 Insert Taxpayer
Identification No. 
  

	
	_______________________________________________________
	(Please print or typewrite name and address including zip code of assignee)
	
	_______________________________________________________
	the within Note and all rights thereunder, hereby irrevocably constituting and appointing
	
	_______________________________________________________
	attorney to transfer such Note on the books of the Company with full power of substitution in the premises.

  

 A-9 

 OPTION OF HOLDER TO ELECT PURCHASE 
 If you wish to have this Note purchased by the Company pursuant to Section 4.09 or Section 4.14 of the Indenture, check the box:
   ̈ 
 If you wish to have
a portion of this Note purchased by the Company pursuant to Section 4.09 or Section 4.14 of the Indenture, state the amount (in original principal amount) below: 
  

	
	 $
                                       
 

	
	 Date:
                                

	
	 Your Signature:
                                        
                                        
    

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

	
	 Signature Guarantee:
                                       
                                   

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

 A-10 

 SCHEDULE OF EXCHANGES OF SECURITIES 
 The following exchanges of a part of this Global Note for Physical Notes or a part of another Global Note have been made: 
  

									
	Date of Exchange	  	Amount of decrease
in principal amount
of this Global Note	  	Amount of increase
in principal amount
of this Global Note	  	Principal amount of this
Global Note following
such decrease (or
increase)	  	Signature of
authorized officer of
Trustee

  

 A-11 

 EXHIBIT B 
 SUPPLEMENTAL INDENTURE 
 dated as of
                ,          
 among 
 LYONDELL CHEMICAL COMPANY, 
 as Company 
 [SUBSIDIARY GUARANTORS] 
 and 
 THE BANK OF NEW YORK, 
 as Trustee 
  

 8 1/4% Senior
Notes due 2016 
  

 B-1 

 THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), entered into as of
                    ,         , among LYONDELL CHEMICAL COMPANY., a Delaware corporation (the
“Company”) [INSERT EACH SUBSIDIARY GUARANTOR EXECUTING THIS SUPPLEMENTAL INDENTURE AND ITS JURISDICTION OF INCORPORATION] (each an “Undersigned”) and THE BANK OF NEW YORK, as trustee (the
“Trustee”). 
 RECITALS 
 WHEREAS, the Company, the Subsidiary Guarantors party thereto and the Trustee entered into the Indenture, dated as of September 20, 2006 (the “Indenture”), relating to the Company’s 8 1/4% Senior Notes due 2016 (the “Notes”); 
 WHEREAS, as a condition to the Trustee entering into the Indenture and the purchase of the Notes by the Holders, the Company agreed, subject to certain
exceptions, pursuant to Section 4.22 of the Indenture to cause any Restricted Subsidiary that has guaranteed or secured Indebtedness of the Company or any of its Restricted Subsidiaries to provide Subsidiary Guarantees. 
 AGREEMENT 
 NOW, THEREFORE, in
consideration of the premises and mutual covenants herein contained and intending to be legally bound, the parties hereto hereby agree as follows: 
 Section 1. Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture. 
 Section 2. Each Undersigned, by its execution of this Supplemental Indenture, agrees to be a Subsidiary Guarantor under the Indenture and to be bound by the terms of the Indenture applicable to Subsidiary Guarantors, including, but not
limited to, Article 13 thereof. 
 Section 3. This Supplemental Indenture shall be governed by and construed in accordance with
the internal laws of the State of New York. 
 Section 4. This Supplemental Indenture may be signed in various counterparts which
together shall constitute one and the same instrument. 
 Section 5. This Supplemental Indenture is an amendment supplemental to the
Indenture and said Indenture and this Supplemental Indenture shall henceforth be read together. 
  

 B-2 

 IN WITNESS WHEREOF, the parties have duly executed and delivered this Supplemental Indenture or have
caused this Supplemental Indenture to be duly executed on their respective behalf by their respective officers thereunto duly authorized, as of the day and year first above written. 
  

			
	LYONDELL CHEMICAL COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	[SUBSIDIARY GUARANTORS]
	
	 THE BANK OF NEW YORK,
 as
Trustee

		
	By:	 	  

	Name:	 	
	Title	 	

  

 B-3Exhibit 10.1

PURCHASE AND EXCHANGE AGREEMENT

          THIS PURCHASE AND EXCHANGE AGREEMENT (the “Agreement”), dated as of September 13, 2006 by and between Unify Corporation, a Delaware corporation (“Unify”), and Halo Technology Holdings, Inc., a Nevada corporation (“Halo”).

RECITALS

	
  
A.
  	
  
Unify and Halo are parties   to a certain Agreement and Plan of Merger, dated March 14, 2006, (as amended   by (i) that certain Amendment No. 1 to the Merger Agreement among the Parties   dated May 24, 2006, and (ii)  that   certain Amendment No. 2 to the Merger Agreement among the Parties dated July   5, 2006, the “Merger Agreement”).
  
	
  
 
  	
  
 
  
	
  
B.
  	
  
Unify and Halo have   mutually agreed to terminate the Merger Agreement, as of the date hereof,   pursuant to that certain Termination Agreement between the parties of even   date herewith, and have instead agreed to proceed with the transactions   contemplated in this Agreement.
  
	
  
 
  	
  
 
  
	
  
C.
  	
  
Unify desires to purchase   from Halo, and Halo desires to sell to Unify, Halo’s software development   tools and database business as conducted by the Gupta Entities (the “Gupta   Business,” and for the avoidance of doubt, the term “Gupta Business” does not   include any business, activities, products or services, of or offered or sold   by Halo or any subsidiary of Halo other than the Gupta Entities);
  
	
   
  	
  
 
  
	
  
D.
  	
  
Halo desires to purchase   from Unify, and Unify desires to sell to Halo, Unify’s risk management   software and solution business as conducted by Unify through its Acuitrek,   Inc. subsidiary (“Acuitrek”) and its Insurance Risk Management division,   including, without limitation, the Acuitrek business and the NavRisk product   (the “NavRisk Business”) and Unify’s ViaMode software product and related   intellectual property rights (the “ViaMode Product”) and for the avoidance of   doubt, the term “NavRisk Business” does not include any business, activities,   products or services, of or offered or sold by Unify or any subsidiary or   unit of Unify other than Acuitrek or the Insurance Risk Management division   of Unify.
  

AGREEMENTS

          NOW, THEREFORE, in consideration of the above premises and of the mutual representations, warranties and covenants contained in this Agreement, Unify and Halo agree as follows:

	
  
1
  	
  
DEFINITIONS;   SALE AND TRANSFER OF ASSETS.
  

                    1.1     Definitions.  All capitalized terms used in this Agreement and not otherwise defined shall have the meanings provided in the Glossary Schedule.

                    1.2     Transfer of Gupta Business.  Subject to all of the terms and conditions of this Agreement, Halo hereby agrees to sell to Unify, and Unify hereby agrees to purchase from Halo, on the Closing Date, the assets and liabilities of the Gupta Business, including, without limitation, all of the Gupta LLC Interests.

                    1.3     Transfer of NavRisk Business and ViaMode Product.  Subject to all of the terms and conditions of this Agreement, Unify hereby agrees to sell to Halo, and Halo hereby agrees to purchase from Unify, on the Closing Date, (i) the assets and liabilities of the NavRisk Business and (ii) the ViaMode Product each as described further herein.

	
  
2
  	
  
PURCHASE   PRICE.
  

                    2.1     Convertible Deposit.  Upon the execution of this Agreement, Unify will pay to Halo $500,000 (the “Deposit”).  As described in Section 12.13C, in the event the Closing does not occur, the Deposit may be converted into equity securities of Halo (shares and warrants, if applicable), retained by Halo, or refunded by Halo to Unify.  

                    2.2     Purchase Price.  The purchase price to be paid by Unify to Halo for the Gupta Business (the “Purchase Price”) which shall consist of:  

	
  
 
  	
  
(a)
  	
  
    The Deposit;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
    At the Closing, Unify will deliver to Halo $4,500,000 paid by wire transfer or other means as specified by Halo to the accounts specified by Halo (together with the Deposit, the “Cash Purchase Price”);
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
    The amount by which the Gupta Net Working Capital exceeds the NavRisk Net Working Capital (the “Working Capital Adjustment”);
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
    At the Closing, Unify will deliver to Halo, one or more certificates, duly executed and registered in Halo’s name, representing 5,000,000 shares of Unify Common Stock (the “Purchase Shares”);
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
    At the closing, Unify will deliver to Halo the NavRisk Business and the ViaMode Product; and 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(f)
  	
  
    At the Closing, Unify will deliver to Halo warrants to acquire 750,000 shares of Unify common stock at an exercise price of $0.40 per share (the “Purchase Warrant”), duly executed and registered in Halo’s name.
  

          The parties agree that the value of the Purchase Price as of the date hereof is Thirteen Million Five Hundred Thousand Dollars ($13,500,000).

          The purchase price for Halo’s purchase of the assets and liabilities of the NavRisk Business and the ViaMode Product as described further herein shall be the acceptance of those assets and liabilities as part of the Purchase Price to be paid by Unify to Halo, and Halo will have no other purchase price obligation in consideration for the purchase of such assets and liabilities. 

          The Working Capital Adjustment will be paid as follows:  the first $500,000 will be payable no later than 30 days after the Closing; and the remaining amount, if any, will be payable no later than 90 days after the Closing.

          Not later than ten (10) days after the Closing Date, Halo shall deliver to Unify an unaudited  consolidated balance sheet for the Gupta Entities as of the Closing Date prepared in accordance with GAAP consistently applied (the “Gupta Closing Balance Sheet”).  Not later than ten (10) days after the Closing Date, Unify shall deliver to Halo an unaudited  consolidated balance sheet for the NavRisk Business as of the Closing Date prepared in accordance with GAAP consistently applied (the “NavRisk

2

Closing Balance Sheet”).  Not later than fifteen (15) days after the Closing Date, Halo will calculate the Working Capital Adjustment based on the Gupta Closing Balance Sheet and the NavRisk Closing Balance and will provide Unify with a written copy of such calculation.  Such calculation shall be definitive and binding upon the parties unless (i) Unify gives Halo written notice of its objection to such calculation based on the amounts shown in the Gupta Closing Balance Sheet within fifteen (15) days after the receipt of the calculation, and/or (ii)  Halo gives Unify written notice of its objection to such calculation based on the amounts shown in the NavRisk Closing Balance Sheet within fifteen (15) days after Halo’s delivery of the calculation  (in either or both cases, an “Objection Notice”).  If either or both parties deliver an Objection Notice, the parties shall negotiate in good faith to resolve all disputes
regarding the Net Working Capital.  If the parties can not resolve such a dispute after thirty (30) days,  they shall mutually agree upon a nationally or regionally recognized accounting firm to determine the Net Working Capital, whose decision, absent manifest error, shall be binding upon the parties.  In the event of a dispute, Unify shall pay Halo the Working Capital Adjustment within ten (10) days after the resolution of the dispute, provided, however, that if, notwithstanding the dispute, the parties do not dispute that the Working Capital Adjustment is in excess of $500,000, then Unify shall pay Halo $500,000 within thirty (30) days of the Closing Date, and Unify shall pay Halo the remainder of the Working Capital Adjustment within ten (10) days after the resolution of the dispute.   

                    2.3     Assumed Liabilities.  Unify will assume all obligations of the Gupta Business and all liabilities associated with the Gupta Entities listed on the Unify Assumed Liabilities Schedule.  Halo will assume all liabilities and obligations of the NavRisk Business and the ViaMode Product listed on the Halo Assumed Liabilities Schedule.  

                    2.4     Assignment.  All right, title and interest in and to the Gupta LLC Interests, NavRisk Assets and the ViaMode Assets shall be deemed to have been assigned, conveyed and transferred by Halo to Unify, or by Unify to Halo, as the case may be, effective with the Closing, with full substitution and subrogation of all rights and actions of warranty, express and implied, against all preceding owners, contractors and developers, and, without limitation, the right to sue and recover damages for past, present and future infringements of intellectual property rights and/or other rights, and to fully and entirely stand in the place of Unify in all matters related thereto.  With respect to any Contracts assigned by Unify to Halo, or by Halo (or the Gupta Entities) to Unify, and assumed hereunder by Halo or
Unify, as the case may be, the parties agree that prior to the Closing Date they will cooperate in giving notice to the other party to each Contract of the proposed assignment and assumption of such Contract and shall cooperate in procuring a consent to such assignment and assumption where required by the terms of such Contract, in each case effective as of the Closing.

	
  
3
  	
  
CLOSING;   PAYMENT AND OTHER MATTERS.
  

                    3.1     Closing.  The closing of the transactions contemplated hereby (“Closing”) shall be held at the offices of Halo, at 1:00 p.m. (local time) on the second business day following the waiver or satisfaction of the conditions to Closing set forth herein, or at such other time and place as may be mutually agreed upon in writing by the parties (the “Closing Date”).

                    3.2     Closing Deliveries.  On the Closing Date, Unify will deliver to Halo the instruments and items set forth on the Unify Deliveries Schedule and Halo will deliver to Unify instruments and items set forth on the Halo Deliveries Schedule.

                    3.3     Payment of Purchase Price.  Unify shall at the Closing deliver to Halo the consideration constituting the Purchase Price for the Gupta LLC Interests in accordance with Section 2.2 above.

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                    3.4     Delivery of the Gupta LLC Interests.  Halo shall at the Closing deliver to Unify the Gupta LLC Interests against delivery of the consideration constituting the Purchase Price for the Gupta LLC Interests as described in Section 2.2 above.   

                    3.5     Allocation of Purchase Price.   The parties agree that the Purchase Price shall be allocated for Tax purposes in accordance with the Allocations Schedule, which shall be mutually agreed by the parties prior to Closing.  This allocation shall be used by the parties in preparing and filing all relevant federal, state, local and foreign tax returns, information reports or other documents and forms, and the parties agree to cooperate with each other in good faith in preparing such tax returns, information reports, statements or other documents and forms, including IRS Form 8594 and any required exhibits (or other forms required pursuant to Section 1060 of the Code or other applicable tax Laws).

                    3.6     Risk and Loss Prior to Closing.  Unify will not acquire any title to the Gupta Business or the Gupta LLC Interests, and Halo will not acquire any title to the NavRisk Assets or ViaMode Assets, until possession has been given to it in accordance with this the terms hereof at the Closing, and, accordingly, all risk and loss with respect to the Gupta Business will be borne by Halo, and all risk and loss with respect to the NavRisk Business and ViaMode Product will be borne by Unify, until possession has been given at the Closing.    

4     REPRESENTATIONS AND WARRANTIES OF HALO.  To induce Unify to enter into this Agreement and to consummate the transactions provided for herein, Halo represents and warrants to Unify as follows, subject in each case to the specific disclosures in the Disclosure Letter and/or in the other schedules hereto provided by Halo.

                    4.1     Organization and Good Standing; Operation.  Halo is a corporation duly organized, validly existing, and in good standing under the Laws of its state of formation with full power and authority to own and operate its properties and to carry on its business as it is now being conducted.  Halo is authorized to transact business in its state of formation and in all other jurisdictions in which the nature of its business and the ownership of its properties makes such qualification necessary, except where the failure to so qualify or be in good standing has not had and would not be likely to have a Material Adverse Effect on the Gupta Business.  Each Gupta Entity is a corporation, limited liability company or partnership, or an entity formed under the laws of a jurisdiction outside of the United
States, duly organized, validly existing, and in good standing under the Laws of its state or country of formation with full power and authority to own and operate its properties and to carry on its business as it is now being conducted.  Each Gupta Entity is authorized to transact business in all jurisdictions in which the nature of its business and the ownership of its properties makes such qualification necessary, except where the failure to so qualify or be in good standing has not had and would not be likely to have a Material Adverse Effect on the Gupta Business.

                    4.2     Authority.  Halo has full power, authority, and legal capacity to enter into this Agreement and the other Acquisition Documents to which Halo is a party and to perform its obligations hereunder and thereunder.

                    4.3     Due Authorization; Enforceability.  The execution and delivery of this Agreement by Halo and the performance of the obligations of Halo under this Agreement and the other Acquisition Documents to which Halo is a party have been duly authorized by the Board of Directors of Halo, and all other corporate action has been taken which is necessary to authorize the execution and delivery of this Agreement and the other Acquisition Documents to which Halo is a party by Halo and the performance of the obligations of Halo hereunder and thereunder.  No approval of the stockholders of

4

Halo is required to consummate the transactions set forth herein or in the other Acquisition Documents.  This Agreement and the other Acquisition Documents to which Halo is a party have been duly and validly executed and delivered by Halo and constitute legal, valid, and binding obligations of Halo and are enforceable against Halo in accordance with their terms.

                    4.4     No Conflicts.  The execution, delivery, and performance of this Agreement and the other Acquisition Documents to which Halo is a party:  (a) will not conflict with or will not result in a breach of any provision contained in the Organizational Documents of Halo or any of the Gupta Entities, (b) will not result in any conflict with, breach of, or default (or give rise to any right of termination, cancellation or acceleration or loss of any right or benefit) under or require any notice, consent or approval which has not been obtained with respect to any of the terms, conditions or provisions of any Contracts to which Halo or any of the Gupta Entities is bound, and (c) will not violate any Law applicable to Halo or to the Gupta Entities.  No action, consent or approval by, or filing by Halo
with, any Governmental Authority, is required in connection with the execution, delivery or performance by Halo of this Agreement or the consummation of the sale of the Gupta LLC Interests and the other transactions contemplated hereby, except for any filings under applicable securities laws in connection with the issuance of the shares of Halo Stock, if any are issued hereunder, and warrants to purchase Halo Stock, if any are issued hereunder.  Neither the execution of this Agreement nor the consummation of the transactions herein contemplated will result in the creation of any Lien on any of the Gupta LLC Interests or the assets owned by the Gupta Entities, other than Liens created by Unify.  

                    4.5     Real Property.  The Gupta Entities own no real property.  The Gupta Real Property Schedule is a true and complete list of all real property leases to which relate to the Gupta Business (the “Gupta Leased Properties”) and includes, without limitation, any pending audits or disputes related to common area management, taxes or any other fees or charges related to the Leased Properties.  Each lease related to each of the Leased Properties is valid, binding and enforceable in accordance with its terms.  No notice of any claim of default has been given to Halo or any Gupta Entity under any such lease.

                    4.6     Environmental Representations.   There has been no use by any Gupta Entity during its tenancy of Hazardous Materials on the premises of the Gupta Leased Properties.

                    4.7     Tax Matters.

	
  
 
  	
  
 
  	
  
A.
  	
  
Halo or the Gupta Entities   has or have filed or caused to be filed, on a timely basis, all Tax returns   and reports of any nature whatsoever which are required to be filed with any   Governmental Authority with respect to any Gupta Entity and such Tax returns   are complete, correct, and accurate in all material respects.  Except as disclosed on the Tax Returns Schedule, no Gupta Entity   has requested an extension of time within which to file any Tax return.  Each Gupta Entity has paid in full or   established an adequate reserve for all assessments received and all Taxes of   any nature whatsoever which have become due under Law with respect to all   periods beginning prior to the Closing Date.    No Claims have been made against any Gupta Entity by any Governmental   Authority in a jurisdiction where such Gupta Entity does not file tax returns   and reports that it is or may be subject to Taxation by that   jurisdiction.  There are
no currently   pending, or, to Halo’s knowledge, any threatened audits or assessments with   respect to any liability in respect of Taxes that are likely to result in any   additional liability for Taxes by any Gupta Entity.
  

5

	
  
 
  	
  
 
  	
  
B.
  	
  
Each Gupta Entity or Halo   on its behalf has withheld and paid timely all Taxes required to have been   withheld and paid in connection with amounts paid or owing to any employee,   independent contractor, creditor or other third party relating to the Gupta   Business.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
C.
  	
  
Halo is not a party to any   Tax allocation or Tax sharing agreement regarding the Gupta Business other   than the Membership Interest Purchase Agreement, pursuant to which Halo   acquired the Gupta Entities.
  

                    4.8     Employee Benefit Plans and Other Plans.

	
  
 
  	
  
 
  	
  
A.
  	
  
The Employee Benefits Schedule contains a   true, correct and complete list of all Employee Plans which cover or have   covered employees or former employees of any Gupta Entity.  True and complete copies of each of the   following documents have been made available by Halo to Unify:  (i) the current version of each   Welfare Plan and Pension Plan applicable to employees of the Gupta Entities   and the current summary plan description and any subsequent summaries of   material modifications thereof, and (ii) the current version of each   Employee Plan applicable to employees of the Gupta Entities and the current   summary plan description and any subsequent summaries of material   modifications thereof and a complete description of any Employee Plan   applicable to employees of the Gupta Entities which is not in writing.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
B.
  	
  
Neither Halo nor any ERISA   Affiliate contributes to or has any obligation to contribute, or has   contributed to or had any obligation to contribute, to any Multiemployer Plan   with respect to any current or former employee of any Gupta Entities.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
C.
  	
  
Each Welfare Plan which   covers or has covered employees or former employees of the Gupta Entities and   which is a “group health plan,” as defined in Section 607(1) of ERISA,   has been operated in compliance with provisions of COBRA (if applicable) at   all times.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
D.
  	
  
No event has occurred in   connection with, or arising out of, the establishment, operation,   administration, or termination of any Employee Plan applicable to employees   of the Gupta Entities or the transactions contemplated by this Agreement   which could subject Halo or any ERISA Affiliate or any Employee Plan   applicable to employees of the Gupta Entities, directly or indirectly, to any   material liability (i) under any Law relating to any Employee Plans or   (ii) pursuant to any obligation of Halo to indemnify any person against   liability incurred under any such Law as they relate to the Employee Plans   applicable to employees of the Gupta Entities.
  

6

	
  
 
  	
  
 
  	
  
E.
  	
  
No Employee Plan   applicable to employees of the Gupta Entities is subject to Title IV of ERISA   or Section 412 of the Code.
  

                    4.9     Contracts.  

	
  
 
  	
  
(a)
  	
  
Except as disclosed in   Halo’s reports filed with the Securities and Exchange Commission (“Halo’s SEC   Reports”) or on the Gupta Contract Schedule, no Gupta Entity is a party to or   bound by any contract, arrangement or commitment (i) with respect to the   employment of any directors, officers, employees or consultants, (ii) which,   upon the consummation of the transactions contemplated by this Agreement will   (either alone or upon the occurrence of any additional acts or events) result   in any payment (whether of severance pay or otherwise) becoming due from any   Gupta Entity to any director, officer or employee thereof, (iii) which   materially restricts the conduct of any line of business by any Gupta Entity,   (iv) with or to a labor union or guild (including any collective bargaining   agreement), or (v) any of the benefits of which will be increased, or the   vesting of the benefits of which will be accelerated by the occurrence of
any   of the transactions contemplated by this Agreement, or the value of any of   the benefits of which will be calculated on the basis of any of the   transactions contemplated by this Agreement (including as to this clause (v),   any stock option plan, stock appreciation rights plan, restricted stock plan   or stock purchase plan).  Except as   disclosed in Halo’s SEC Reports or in the Gupta Contract Schedule, there are   no employment, consulting and deferred compensation agreements to which any   Gupta Entity is a party.  The Gupta   Contract Schedule sets forth a list of all material contracts (as defined in   Item 601(b)(10) of Regulation S-K or otherwise in an amount greater than   $100,000 per annum) of the Gupta Entities.    Each contract, arrangement or commitment of the type described in this   Section 4.9, whether or not set forth in the Gupta Contract Schedule, is   referred to herein as a “Gupta Contract,” and Halo has not received notice   of, nor do any
executive officers of such entities know of, any violation of   any Gupta Contract.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
(i) Each Gupta Contract is   valid and binding and in full force and effect, (ii) the Gupta Entities have   in all material respects performed all obligations required to be performed   by it to date under each Gupta Contract, and (iii) no event or condition   exists which constitutes or, after notice or lapse of time or both, would   constitute, a default on the part of the Gupta Entities under any such Gupta   Contract, except where such default would not be likely to have, either   individually or in the aggregate, a material adverse effect on the Gupta   Business.
  

                    4.10    Title to Gupta LLC Interests.  Halo owns and possesses all right, title and interest in and to the Gupta LLC Interests, free and clear of all Liens or other restrictions on transfer other than those which will be released prior to the Closing.  Halo has the right, power and capacity to convey, transfer, assign and deliver to Unify the Gupta LLC Interests free and clear of any Lien or other restrictions on transfer.

                    4.11    Employee Matters.   Attached hereto as the Gupta Employees Schedule is a list of all current employees and persons on leave of absence, interim layoff or other temporary suspension of employment, in each case of the Gupta Entities stating the salary, wages, bonuses, severance pay, expenses, allowances, benefits and date of hire of each such person.   Halo agrees, to the extent permissible under applicable law, to make available to Unify the employment records of the current

7

employees of the Gupta Entities, on or prior to the Closing Date. As of the Closing Date, Halo or the Gupta Entities will have paid all salaries, wages, bonuses, expenses, allowances, benefits, severance pay, and other compensation owed to its employees and agents in connection with the Gupta Business to the extent the same is due and payable in respect of periods on or prior to the Closing Dare other than as reflected as Accrued Compensation on the Gupta Closing Balance Sheet.

                    4.12     Violations of Law.  Halo has not received any notice of any claimed violation of any Laws or Permits relating to or affecting the Gupta Business; and there is no investigation by any person or a Governmental Authority of any claimed violation of Laws pending or, to the knowledge of Halo, threatened or anticipated or any basis therefor relating to or affecting the Gupta Business.

                    4.13     Litigation.  (a) There is no Action pending or, to the knowledge of Halo, threatened or anticipated by or before any Governmental Authority or private arbitration tribunal against any Gupta Entity or relating to the Gupta Business or the transactions contemplated hereby, (b) neither Halo nor, to the knowledge of Halo, any affiliate, officer, director or employee or any corporate partner or joint venture with Halo, has been permanently or temporarily enjoined or barred by order, judgment or decree of any Governmental Authority or private arbitration tribunal from engaging in or continuing any conduct or practice in connection with the Gupta Business, and (c) there is not in existence any order, judgment or decree of any private arbitration tribunal with respect to or binding upon the Gupta
Business.  There are no unsatisfied judgments against any Gupta Entity.

                    4.14     Insurance.  The Gupta Insurance Schedule is a true and correct list of all the policies of insurance covering the Gupta Entities or the Gupta Business presently in force (including as to each (a) risk insured against, (b) name of carrier, (c) policy number, (d) amount of coverage, (e) amount of premium, (f) expiration date and (g) the property, if any, insured, indicating as to each whether it insures on an “occurrence” or a “claims made” basis. All of the insurance policies set forth on the Gupta Insurance Schedule are in full force and effect and all premiums, retention amounts and other related expenses due have been paid, and Halo has not received any notice of cancellations with respect to any of the policies.

                    4.15     Compliance with Laws.  The Gupta Business has operated in compliance with all Laws and Permits.

                    4.16     Financial Statements.  Halo has delivered to Unify a copy of the Gupta Entities’ unaudited financial statements, for the fiscal year ended June 30, 2006 (the “Gupta Financial Statements”) a copy of which is attached hereto.  Such financial statements have been prepared in accordance with GAAP (except in the case of the unaudited financial statements, for lack of footnotes and being subject to year-end audit adjustments none of which have been or are expected to be material).  Each of the financial statements therein (including the related notes and schedules thereto) fairly present the financial position of the Gupta Entities as of the date of such balance sheet and each of the statements of income, retained earnings and cash flows or equivalent statements contained therein
(including any related notes and schedules thereto) fairly presented (or in the case of any financial statements made available after the date of this Agreement, will fairly present) the results of operations, changes in retained earnings, and cash flows, as the case may be, of the Gupta Entities for the periods set forth therein, in accordance with GAAP consistently applied, except in each case as may be noted therein.  

                    4.17     Absence of Changes.  Since the June 30, 2006, there has not been:

	
   
  	
  
 
  	
  
A.
  	
  
Any Material Adverse   Change related to the Gupta Business;
  

8

	
  
 
  	
  
 
  	
  
B.
  	
  
Any material damage,   destruction or loss (whether or not covered by insurance) affecting the   assets of the Gupta Business;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
C.
  	
  
Any increase in the   compensation, bonus, sales commission or fee arrangement payable or to become   payable by any Gupta Entity to any employee of the Gupta Business, except   increases in the ordinary course of business and consistent with past   practice;
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
D.
  	
  
Any work interruptions,   labor grievances or Claims filed, or, to the knowledge of Halo, proposed Law   or any event or condition of any character, reasonably likely to have a   Material Adverse Effect on the Gupta Business;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
E.
  	
  
Any sale or transfer, or   any agreement to sell or transfer, any material assets, property or rights of   any Gupta Entity relating to the Gupta Business to any person;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
F.
  	
  
Any material purchase or   acquisition, or agreement, plan or arrangement to purchase or acquire, any   property, rights or assets relating to the operation of the Gupta Business;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
G.
  	
  
Any waiver of any material   rights or Claims under any Contract or Permit related to the Gupta Business;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
H.
  	
  
Any breach, amendment or   termination of any Contract or Permit related to the Gupta Business;
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
I.
  	
  
Any issuance of any equity   interests in any of the Gupta Entities, or any securities convertible into or   exercisable for, or any rights, warrants or options to acquire, any such   equity interests, or any agreement with respect to any of the foregoing;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
J.
  	
  
Any incurrence of any   indebtedness for borrowed money, any assumption,  guarantee, endorsement or other agreement to become responsible   for the material obligations of any other individual, corporation or other   entity, except for indebtedness to trade creditors in the ordinary course of business   consistent with past practice; or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
K.
  	
  
Except as specifically   contemplated by this Agreement, any transaction relating to the Gupta   Business outside the ordinary course of business.
  

                    4.18     No Undisclosed Liabilities.  Except as and to the extent disclosed in the Unify Assumed Liabilities Schedule, the Disclosure Letter or the Gupta Financial Statements, the Gupta Entities have no liabilities or obligations whatsoever, whether accrued, absolute, secured, unsecured, contingent or otherwise except liabilities which have been incurred after the date of the most recent Financial Statements in the ordinary course of business, consistent with past practice, or which are obligations to perform under executory contracts in the ordinary course of business.

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                    4.19     Permits.  The Gupta Entities possess all Permits necessary to permit it to engage in the Gupta Business as presently conducted in and at all locations and places where it is presently operating.  

                    4.20     Brokerage and Finder’s Fees.  Neither Halo nor any of its affiliates nor any shareholder, officer, director or agent of Halo has incurred any liability to any broker, finder or agent for any brokerage fees, finder’s fees, or commissions with respect to the transactions contemplated by this Agreement.

                    4.21     Affiliate Transactions.  No officer or director of Halo, nor, to Halo’s knowledge, any stockholder or other Affiliate of Halo is a party to any agreement, contract, commitment or transaction which pertains to the Gupta Business or has any interest in any property used in or pertaining to the Gupta Business.

                    4.22     Investment Representations.  Halo is acquiring the Purchase Shares and the Purchase Warrant for its own account and not with a view to, or for resale in connection with, a distribution thereof in contravention of the Securities Act of 1933, as amended, and the rules and regulations thereunder (the “Securities Act”).  Halo agrees and acknowledges that it will not, directly or indirectly, offer, transfer or sell any Purchase Shares, the Purchase Warrant or any shares issued upon exercise of the Purchase Warrant, or solicit any offers to purchase or acquire any Purchase Shares, the Purchase Warrant or any shares issued upon exercise of the Purchase Warrant, unless the transfer or sale is (i) pursuant to an effective registration statement under the Securities Act and has been registered
under any applicable state securities or “blue sky” laws or (ii) pursuant to an exemption from registration under the Securities Act and all applicable state securities or “blue sky” laws.

                    4.23     Additional Investment Representations.  Halo (i) has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment hereunder, (ii) is able to incur a complete loss of such investment, (iii) it is able to bear the economic risk of such investment for an indefinite period of time and (iv) it is an “accredited investor” as that term is defined in Regulation D under the Securities Act.

                    4.24     Legends.  Halo hereby acknowledges that Unify will stamp or otherwise imprint each certificate representing Purchase Shares, the Purchase Warrant or any shares issued upon exercise of the Purchase Warrant with a legend in substantially the following form:

	
  
 
  	
  
[THESE SHARES][THIS   WARRANT AND ANY SHARES OF STOCK OBTAINABLE UPON ITS EXERCISE] HAVE NOT BEEN   REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES   ACT”), OR ANY STATE’S SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD OR   OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE   SECURITIES ACT OR PURSUANT TO AN EXEMPTION THEREFROM.
  

          In connection with the transfer of any Purchase Shares, the Purchase Warrant or any shares issued upon exercise of the Purchase Warrant (other than a transfer pursuant to a public offering registered under the Securities Act, pursuant to Rule 144 or Rule 144A promulgated under the Securities Act (or any similar rules then in effect) or to an affiliate of Halo), Halo shall deliver, upon the reasonable request of Unify, an opinion of counsel, which counsel shall be knowledgeable in securities laws and which opinion shall be reasonably satisfactory to Unify, to the effect that such transfer may be effected without registration under the Securities Act.  Upon receipt of an opinion of counsel reasonably satisfactory to Unify to the effect that such legend no longer applies to any particular security, Unify shall promptly issue a replacement certificate evidencing such securities, which does not contain
such legend.

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4.25
  	
  
Title to Assets; Condition   of Assets; Assets Schedule.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
A.
  	
  
The Gupta Entities own and   possesses all right, title and interest in and to the Gupta Assets free and   clear of all Liens or other restrictions on transfer.  The Gupta Entities have the right, power   and capacity to convey, transfer, assign and deliver to Unify the Gupta   Assets free and clear of any Lien or other restrictions on transfer, and the   Gupta Entities enjoy peaceful and quiet possession of the Gupta Assets   pursuant to the Contracts and Permits under which the Gupta Business are   being operated.  As of the Closing,   Unify will enjoy peaceful and quiet possession of the Gupta Assets, free and   clear of all Liens.  The Gupta Assets   comprise all assets of any kind or character necessary for the conduct and   operation of the Gupta Business as it is presently conducted.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
B.
  	
  
The Gupta Assets are in   good condition and repair, and are useable in the ordinary course of business   and The Gupta Entities has maintained the Gupta Assets pursuant to customary   industry and manufacturer maintenance procedures.  None of the Gupta Assets are held under any lease, security   agreement, conditional sales contracts or other title retention or security   arrangement, or is located other than at the Leased Properties except as   disclosed on the The Gupta Assets Schedule.  All inventories of The Gupta Entities are   of good and standard quality, are not obsolete or damaged and consist of a   quality and quantity useable or saleable in the ordinary course of business.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
C.
  	
  
The Gupta Assets Schedule is a true, correct   and complete list and description of all Gupta Assets, including, without   limitation, all Intellectual Property, Software and equipment, owned,   licensed or leased, by The Gupta Entities or otherwise pertaining to the   Gupta Business and true, correct and complete copies of all leases pertaining   to the licensed Intellectual Property and Software and the leased equipment   have been made available to Unify.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
4.26
  	
  
Intellectual Property.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
The Gupta Entities have,   and Unify shall receive, good, valid and marketable title to the Intellectual   Property assumed by Unify pursuant to this Agreement, including but not   limited to the Software and all components of the Software, free and clear of   all title defects, liens, restrictions, claims charges, security interests or   other encumbrances of any nature whatsoever, and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The Software is in good   operating order, condition and repair.
  

11

                    4.27     Financial Condition.  Upon giving effect to the consummation of the transactions contemplated hereby, and assuming the value of the NavRisk Business and ViaMode Product is at least equal to the amounts contemplated hereby, to the knowledge of Halo, the fair saleable value of the consolidated operating businesses of Halo and its subsidiaries (including, without limitation, the NavRisk Business and the ViaMode Product), operating as going concerns, is at least equal to the amount that will be required to be paid on or in respect of the existing indebtedness and other liabilities of Halo as they mature. 

                    4.28     Indebtedness.  The Gupta Debts Schedule is a true and complete list of all Claims against Gupta, including, without limitation, trade accounts payable in excess of Five Thousand Dollars ($5,000), including a description of the terms of payment, and, if such claim is secured, a description of all properties or other assets pledged, mortgaged or otherwise hypothecated as security, and if a lease of equipment, the imputed rate of interest on such lease.  

                    4.29     Customer Relations.  Except as otherwise set forth on the Gupta Customer Relations Schedule, at no time prior to the Closing Date, no customer of the Gupta Business has stated, advised, or otherwise indicated to Halo or any of the Gupta Entities that it intends to terminate or cancel any Contract with any of the Gupta Entities.

5          REPRESENTATIONS AND WARRANTIES OF UNIFY.  To induce Halo to enter into this Agreement and to consummate the transactions provided for herein, Unify represents and warrants to Halo as follows subject in each case to the specific disclosures in the Disclosure Letter and/or in the other schedules hereto provided by Unify:

                    5.1     Organization and Good Standing.  Unify is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Delaware with full power and authority to own and operate its properties and to carry on its business as it is now being conducted.

                    5.2     Authority.  Unify has full power, authority, and legal capacity to enter into this Agreement and the other Acquisition Documents to which Unify is a party, to perform its obligations hereunder and thereunder, to issue and deliver the Purchase Shares and the Purchase Warrants and, upon exercise of the Purchase Warrants, the shares issuable under the Purchase Warrants, to Halo.

                    5.3     Due Authorization; Enforceability.  The execution and delivery of this Agreement and the other Acquisition Documents to which Unify is a party by Unify and the performance of the obligations of Unify under this Agreement and such other Acquisition Documents and the issuance and delivery of the Purchase Shares, the Purchase Warrant and, the shares issuable upon exercise of the Purchase Warrants, have been duly authorized by all necessary corporate action.  This Agreement and the other Acquisition Documents to which Unify is a party have been duly and validly executed and delivered by Unify and constitute legal, valid and binding obligations of Unify and are enforceable against Unify in accordance with their terms.

                    5.4     Validity of Purchase Shares, Purchase Warrant and Shares Issuable upon Exercise of the Purchase Warrant.  The Purchase Shares and Purchase Warrant to be issued to Halo pursuant to this Agreement and the shares to be issued upon exercise of the Purchase Warrant will, when issued or conveyed, as applicable, be duly and validly issued, fully paid, non-assessable and free and clear of all liens.

                    5.5     No Conflicts.  The execution, delivery, and performance of this Agreement and the other Acquisition Documents to which Unify is a party: (a) will not conflict with or will not result in a breach of any provision contained in the Organizational Documents of Unify; (b) will not result in any

12

conflict with, breach of, or default (or give rise to any right of termination, cancellation or acceleration or loss of any right or benefit) under or require any notice, consent or approval which has not been obtained with respect to any of the terms, conditions or provisions of any Contracts, and (c) will not violate any Law applicable to Unify or to the NavRisk Assets or the ViaMode Assets.  No action, consent or approval by, or filing by Unify with, any Governmental Authority, is required in connection with the execution, delivery or performance by Unify of this Agreement or the consummation of the sale of the NavRisk Assets or the ViaMode Assets and the other transactions contemplated hereby, except for any filings under applicable securities laws in connection with the issuance of the Purchase Shares and the Purchase Warrants.  Neither the execution of this Agreement nor the consummation of the transactions herein contemplated will result in the
creation of any Lien on any of the NavRisk Assets or the ViaMode Assets.  

                    5.6     Real Property.  Unify owns no real property.  The Real Property Schedule is a true and complete list of all real property leases to which Unify is a party and which are used in the NavRisk Business  (the “Unify Leased Properties”).  Halo is not assuming any obligation relating to any of Unify Leased Property.

                    5.7     Environmental Representations.  There has been no use by Unify during its tenancy of Hazardous Materials on the premises of the Unify Leased Properties.

                    5.8     Tax Matters.

	
  
 
  	
  
A.
  	
  
Unify has filed, on a   timely basis, all Tax returns and reports of any nature whatsoever which are   required to be filed with any Governmental Authority and such Tax returns are   complete, correct, and accurate in all respects.  Except as disclosed on the Unify   Tax Returns Schedule, Unify has not requested an extension of time   within which to file any Tax return.    Unify has paid in full or established an adequate reserve for all   assessments received and all Taxes of any nature whatsoever which have become   due under Law with respect to all periods beginning prior to the Closing   Date.  No Claims have been made   against Unify by any Governmental Authority in a jurisdiction where Unify   does not file tax returns and reports that it is or may be subject to   Taxation by that jurisdiction.  There   are, and will hereafter be, no Tax deficiencies (including penalties,   interest and additions to Tax) of any kind against or
relating to Unify with   respect to any taxable periods (or portions thereof) ending on or before, or   including, the Closing Date of a character or nature which would result in   any Lien on the NavRisk Assets or Viamode Assets or Halo’s title thereto or   use thereof, or would result in any claim against Halo.  There are no current pending, to Unify’s   knowledge, or threatened audits or assessments with respect to any liability   in respect of Taxes that are likely to result in any additional liability for   Taxes by Unify.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
Unify has withheld and   paid timely all Taxes required to have been withheld and paid in connection   with amounts paid or owing to any employee, independent contractor, creditor   or other third party relating to the NavRisk Business.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
Unify is not a party to   any Tax allocation or Tax sharing agreement.
  

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                    5.9     Employee Benefit Plans and Other Plans.

	
  
 
  	
  
A.
  	
  
The Unify Employee Benefits Schedule   contains a true, correct and complete list of all Employee Plans which cover   or have covered employees or former employees of the NavRisk Business.  True and complete copies of each of the   following documents have been made available by Unify to Halo:  (i) the current version of each   Welfare Plan and Pension Plan and the current summary plan description and   any subsequent summaries of material modifications thereof, and (ii) the   current version of each Employee Plan and the current summary plan   description and any subsequent summaries of material modifications thereof   and a complete description of any Employee Plan which is not in writing.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
Neither Unify nor any   ERISA Affiliate contributes to or has any obligation to contribute, or has   contributed to or had any obligation to contribute, to any Multiemployer Plan   with respect to any current or former employee.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
Each Welfare Plan which   covers or has covered employees or former employees of the NavRisk Business   and which is a “group health plan,” as defined in Section 607(1) of   ERISA, has been operated in compliance with provisions of COBRA (if   applicable) at all times.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
D.
  	
  
No event has occurred in   connection with, or arising out of, the establishment, operation,   administration, or termination of any Employee Plan or the transactions   contemplated by this Agreement which could subject Unify or any ERISA   Affiliate or any Employee Plan or any NavRisk Assets or ViaMode Assets,   directly or indirectly, to any material liability (i) under any Law   relating to any Employee Plans or (ii) pursuant to any obligation of   Unify to indemnify any person against liability incurred under any such Law   as they relate to the Employee Plans.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
E.
  	
  
No Employee Plan is   subject to Title IV of ERISA or Section 412 of the Code.
  

                    5.10     Contracts.  The Unify Contracts Schedule is a true and correct list of each Contract (i) to which Unify is a party and which Halo is assuming pursuant to this Agreement, or (ii) by which any of the NavRisk Assets or ViaMode Assets are bound or affected (except ViaMode contracts not being assigned to Halo which Unify will be permitted to retain subject to the ViaMode license to be entered into between the parties).  Each written, and a description of each oral, Contract so listed have been delivered to Halo.  Each Contract is legal, valid, binding, enforceable (except as such enforceability may be limited by (a) bankruptcy, insolvency, moratorium, reorganization and other similar Laws affecting creditors’ rights generally and (b) the general principles of equity, regardless
of whether asserted in a proceeding in equity or at Law) and in full force and effect.  Neither Unify, nor to Unify’s knowledge, any other party, is in material breach or default, and no event has occurred which with notice or lapse of time could constitute a material breach or default or permit termination, modification or acceleration, under any Contracts.  No party has repudiated any term of any Contracts, and there are no 

14

renegotiations of, attempts to renegotiate, or outstanding rights to renegotiate any material amounts paid or payable to Unify under current or completed Contracts with any Person, and no such Person has made written demand for such renegotiation.  Other than as set forth on the Unify Contracts Schedule, each Contract set forth on the Unify Contracts Schedule is fully assignable to Halo at the Closing.

                    5.11    Title to Assets; Condition of Assets; Assets Schedule.  

	
  
 
  	
  
A.
  	
  
Unify owns and possesses   all right, title and interest in and to the NavRisk Assets and ViaMode Assets   free and clear of all Liens or other restrictions on transfer.  Unify has the right, power and capacity to   convey, transfer, assign and deliver to Halo the NavRisk Assets and ViaMode   Assets free and clear of any Lien or other restrictions on transfer, and   Unify enjoys peaceful and quiet possession of the NavRisk Assets and ViaMode   Assets pursuant to the Contracts and Permits under which the NavRisk   Business  is being operated.  As of the Closing, Halo will enjoy   peaceful and quiet possession of the NavRisk Assets and ViaMode Assets, free   and clear of all Liens.  The NavRisk   Assets and ViaMode Assets comprise all assets of any kind or character   necessary for the conduct and operation of the NavRisk Business as it is   presently conducted or use of the ViaMode Product
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
The NavRisk Assets and   ViaMode Assets are in good condition and repair, and are useable in the   ordinary course of business and Unify has maintained the NavRisk Assets and   ViaMode Assets pursuant to customary industry and manufacturer maintenance   procedures.  None of the NavRisk   Assets or ViaMode Assets are held under any lease, security agreement,   conditional sales contracts or other title retention or security arrangement,   or is located other than at the Leased Properties except as disclosed on the Unify Assets Schedule.  All inventories of Unify are of good and   standard quality, are not obsolete or damaged and consist of a quality and   quantity useable or saleable in the ordinary course of business.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
The Unify Assets Schedule is a true, correct   and complete list and description of all NavRisk Assets and ViaMode Assets,   including, without limitation, all Intellectual Property, Software and   equipment, owned, licensed or leased, by Unify or otherwise pertaining to the   NavRisk Business or ViaMode Product and true, correct and complete copies of   all leases pertaining to the licensed Intellectual Property and Software and   the leased equipment have been delivered to Halo.
  

                    5.12     Employee Matters.  Attached hereto as the Employees Schedule is a list of all current employees and persons on leave of absence, interim layoff or other temporary suspension of employment, in each case of the NavRisk Business and ViaMode Product, stating the salary, wages, bonuses, severance pay, expenses, allowances, benefits and date of hire of each such person, and Unify agrees, on or prior to the Closing Date, to the extent permissible under applicable law to make available to Halo, the employment records of all current employees.  Unify will, as of the Closing Date, have paid all salaries, wages, bonuses, expenses, allowances, benefits, severance pay and other compensation owed to its employees and agents in connection with the NavRisk Business and ViaMode Product to the extent the same is d

ue and payable in respect of periods on or prior to the Closing Date other than as reflected as Accrued Compensation on the NavRisk Closing Balance Sheet.

15

                    5.13     Violations of Law.  Unify has not received any notice of any claimed violation of any Laws or Permits relating to or affecting the NavRisk Business, the ViaMode Product, the NavRisk Assets or the ViaMode Assets or any Employee Plan; and there is no investigation by any person or a Governmental Authority of any claimed violation of Laws pending or, to the knowledge of Unify, threatened or anticipated or any basis therefor relating to or affecting the NavRisk Business, the ViaMode Product, the NavRisk Assets or the ViaMode Assets or any Employee Plan.

                    5.14     Litigation.  

	
  
 
  	
  
(a)
  	
  
There is no Action pending   or, to the knowledge of Unify, threatened or anticipated by or before any   Governmental Authority or private arbitration tribunal against Unify or which   relates to or affects the NavRisk Business, the ViaMode Product, the NavRisk   Assets or the ViaMode Assets or any Employee Plan or the transactions   contemplated hereby,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Neither Unify nor, to the   knowledge of Unify, any affiliate, officer, director or employee or any   corporate partner or joint venture with Unify, has been permanently or   temporarily enjoined or barred by order, judgment or decree of any   Governmental Authority or private arbitration tribunal from engaging in or   continuing any conduct or practice in connection with the NavRisk Business,   the ViaMode Product, the NavRisk Assets or the ViaMode Assets or any Employee   Plan, and
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
There is not in existence   any order, judgment or decree of any private arbitration tribunal with   respect to or binding upon the NavRisk Business, the ViaMode Product, the   NavRisk Assets or the ViaMode Assets or any Employee Plan.  Neither Unify nor any Employee Plan or is   in default with respect to any judgment, order, writ, injunction or decree of   any Governmental Authority, and there are no unsatisfied judgments against   the NavRisk Business, the ViaMode Product, the NavRisk Assets or the ViaMode   Assets or any Employee Plan.
  

                    5.15     Indebtedness.  The Unify Debts Schedule is a true and complete list of all Claims against Unify relating to the NavRisk Business, , the NavRisk Assets or the ViaMode Assets, including, without limitation, trade accounts payable in excess of Five Thousand Dollars ($5,000), including a description of the terms of payment, and, if such claim is secured, a description of all properties or other assets pledged, mortgaged or otherwise hypothecated as security, and if a lease of equipment, the imputed rate of interest on such lease.  

                    5.16     Insurance.  The Unify Insurance Schedule is a true and correct list of all the policies of insurance covering the NavRisk Business, or the NavRisk Assets or the ViaMode Assets presently in force (including as to each (a) risk insured against, (b) name of carrier, (c) policy number, (d) amount of coverage, (e) amount of premium, (f) expiration date and (g) the property, if any, insured, indicating as to each whether it insures on an “occurrence” or a “claims made” basis. All of the insurance policies set forth on the Unify Insurance Schedule are in full force and effect and all premiums, retention amounts and other related expenses due have been paid, and Unify has not received any notice of cancellations with respect to any of the policies. 

16

                    5.17     Compliance with Laws.  Unify has operated the NavRisk Business and owned the NavRisk Assets and the ViaMode Assets in compliance with all Laws and Permits.

                    5.18     Financial Statements.  Unify has delivered to Halo a copy of the audited financial statements for the NavRisk Business  for the fiscal year ended April 30, 2006 and un-audited monthly statements for the subsequent months of May, June and July (together, the “NavRisk Financial Statements”), a copy of which is attached hereto.  Such financial statements have been prepared in accordance with GAAP (except in the case of the unaudited financial statements, for lack of footnotes and being subject to year-end audit adjustments none of which have been or are expected to be material).  Each of the financial statements therein (including the related notes and schedules thereto) fairly present the financial position of Unify as of the date of such balance sheet and each of the statements
of income, retained earnings and cash flows or equivalent statements contained therein (including any related notes and schedules thereto) fairly presented (or in the case of any financial statements made available after the date of this Agreement, will fairly present) the results of operations, changes in retained earnings, and cash flows, as the case may be, of the NavRisk Business for the periods set forth therein, in accordance with GAAP consistently applied, except in each case as may be noted therein.  

                    5.19     Absence of Changes.  Since July 31, 2006, there has not been:

	
   
  	
  
A.
  	
  
Any Material Adverse   Change;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
Any material damage,   destruction or loss (whether or not covered by insurance) affecting the   NavRisk Assets or the ViaMode Assets;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
Any increase in the   compensation, bonus, sales commission or fee arrangement payable or to become   payable by Unify to any employee of the NavRisk Business, except increases in   the ordinary course of business and consistent with past practice;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
D.
  	
  
Any work interruptions,   labor grievances or Claims filed, or, to the knowledge of Unify, proposed Law   or any event or condition of any character, reasonably likely to have a Material   Adverse Effect on the NavRisk Business;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
E.
  	
  
Any sale or transfer, or   any agreement to sell or transfer, any material assets, property or rights of   Unify relating to the NavRisk Business or the ViaMode Product to any person;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
F.
  	
  
Any material purchase or   acquisition, or agreement, plan or arrangement to purchase or acquire, any   property, rights or assets relating to the operation of the NavRisk Business   or the ViaMode Product;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
G.
  	
  
Any waiver of any material   rights or Claims under any Contract or Permit;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
H.
  	
  
Any breach, amendment or   termination of any Contract or Permit;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
I.
  	
  
Any issuance of any equity   interests in the NavRisk Business (including, without limitation, Acuitrek),   or any securities convertible into or exercisable for, or any rights,   warrants or options to acquire, any such equity interests, or any agreement   with respect to any of the foregoing;
  

17

	
  
 
  	
  
J.
  	
  
Any incurrence of any   indebtedness for borrowed money, any assumption,  guarantee, endorsement or other agreement to become responsible   for the material obligations of any other individual, corporation or other   entity, except for indebtedness to trade creditors in the ordinary course of   business consistent with past practice; or
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
K.
  	
  
Except as specifically   contemplated by this Agreement, any transaction relating to the NavRisk   Business or the ViaMode Product outside the ordinary course of business.
  

                    5.20     No Undisclosed Liabilities.  Except as and to the extent disclosed in the Halo Assumed Liabilities Schedule, the Disclosure Letter or the NavRisk Financial Statements, Unify has no liabilities or obligations whatsoever, whether accrued, absolute, secured, unsecured, contingent or otherwise except liabilities which have been incurred after the date of the most recent Financial Statements in the ordinary course of business, consistent with past practice, or which are obligations to perform under executory contracts in the ordinary course of business.

                    5.21     Permits.  Unify possesses all Permits necessary to permit it to engage in the NavRisk Business or the ViaMode Product as presently conducted in and at all locations and places where it is presently operating.  All Permits related to the NavRisk Business or the ViaMode Product are listed on the Unify Permits Schedule.

                    5.22     Customer Relations.  Except as otherwise set forth on the Customer Relations Schedule, at no time prior to the Closing Date, no customer of the NavRisk Business or the ViaMode Product has stated, advised, or otherwise indicated to Unify that it intends to terminate or cancel any Contract with Unify.

                    5.23      Intellectual Property.  

	
  
 
  	
  
(a)
  	
  
Unify has, and Halo shall   receive, good, valid and marketable title to the Intellectual Property   assumed by Halo pursuant to this Agreement, including but not limited to the   Software and all components of the Software, free and clear of all title   defects, liens, restrictions, claims charges, security interests or other   encumbrances of any nature whatsoever, and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The Software is in good   operating order, condition and repair.
  

                    5.24     Financial Condition.  Upon giving effect to the consummation of the transactions contemplated hereby, and assuming the value of the Gupta Business is at least equal to the amounts contemplated hereby, to the knowledge of Unify, the fair saleable value of the consolidated operating businesses of Unify and its subsidiaries (including, without limitation, the Gupta Business), operating as going concerns, is at least equal to the amount that will be required to be paid on or in respect of the existing indebtedness and other liabilities of Unify as they mature.  

6          CONDITIONS TO UNIFY’S PERFORMANCE.  The obligations of Unify under this Agreement to consummate the transactions contemplated hereby shall be subject to the satisfaction on or prior to the Closing Date of the following conditions, unless waived in writing by Unify:

18

                    6.1     Representations and Warranties; Covenants.  All representations and warranties of Halo contained in this Agreement, or any of the certificates, schedules, exhibits, or other documents attached to this Agreement or delivered to Unify pursuant to this Agreement shall be true, correct, and complete in all material respects on and as of the Closing Date, and Halo shall have executed and delivered to Unify a certificate dated as of the Closing Date to the foregoing effect.  All covenants hereunder to be performed by or on behalf of Halo on or before the Closing Date shall have been performed in all material respects.

                    6.2     Certificates.  Halo shall have delivered to Unify such certificates of the officers of Halo and others to evidence compliance with the conditions set forth in this Section 6 as may be reasonably requested by Unify.

                    6.3     No Governmental Proceedings or Litigation.  No Action by any Governmental Authority or other person shall have been instituted or threatened for the purpose of enjoining or preventing the transactions contemplated by this Agreement, that (a) questions the validity or legality of the transactions contemplated hereby, (b) could reasonably be expected to have a Material Adverse Effect on Halo or the Gupta Business, or (c) seeks to enjoin consummation of the transactions contemplated hereby or could reasonably be expected to cause any of the transactions contemplated by this Agreement to be rescinded following consummation.

                    6.4     Permits.  Halo shall have transferred to Unify, or Unify shall have otherwise obtained, all Permits with respect to the Gupta Business, the absence of which would be likely to have a Material Adverse Effect on the Gupta Business.

                    6.5     No Material Adverse Changes.  There shall have been no Material Adverse Change in the Gupta Business.

                    6.6     Registration Agreement.  Halo shall have executed and delivered the Registration Agreement.

                    6.7     Warrant Agreement.  Halo shall have executed and delivered the Purchase Warrant.

                    6.8     License Agreement.  Halo shall have executed and delivered the License Agreements for licensing Unify NXJ and for a limited use license of ViaMode back to Unify (the “License Agreements”).

                    6.9     Disclosure Letter; Schedules.  Any changes to the Disclosure Letter and/or any Schedules hereto prepared by Halo and attached hereto shall (a) have been delivered to Unify and (b) be reasonably acceptable to Unify in both form and substance.

                    6.10   Financing Contingency.  Unify shall have obtained proceeds from an equity or debt financing, asset sales or other means, on such terms as are reasonably acceptable to it, in an amount sufficient, together with any available funds from working capital, to enable Unify to pay the remaining portion of the Cash Purchase Price to Halo.

                    6.11  Lender Consent.  Halo shall have delivered all requisite consents, approvals, waivers, releases of liens, or any other items from the appropriate parties under Halo’s agreements with Fortress Credit Corp. (or any subsequent lender) for the completion of the transactions contemplated hereby, including without limitation, the release of the Gupta Entities as guarantors and borrowers under the applicable credit agreements with Fortress and other lenders.

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                    6.12.   Good Standing.  Halo shall have delivered certificates evidencing the good standing of Halo in Nevada and of the Gupta Entities in their respective organizational  jurisdictions.

                    6.13    Other Conditions.  The conditions set forth on the Unify Conditions Schedule shall have been satisfied.

7          CONDITIONS TO HALO’S PERFORMANCE.  The obligations of Halo under this Agreement to consummate the transactions contemplated hereby shall be subject to the satisfaction on or prior to the Closing Date of the following conditions, unless waived in writing by Halo:

                    7.1     Representations and Warranties; Covenants.  All representations and warranties of Unify contained in this Agreement, or any of the certificates, schedules, exhibits, or other documents attached to this Agreement or delivered to Halo pursuant to this Agreement shall be true, correct, and complete in all material respects on and as of the Closing Date, and Unify shall have executed and delivered to Halo a certificate dated as of the Closing Date to the foregoing effect.  All covenants hereunder to be performed by or on behalf of Unify on or before the Closing Date shall have been performed in all material respects.

                    7.2     Certificates.  Unify shall have delivered to Halo such certificates of the officers of Unify and others to evidence compliance with the conditions set forth in this Section 7 as may be reasonably requested by Halo.

                    7.3     No Governmental Proceedings or Litigation.  No Action by any Governmental Authority or other person shall have been instituted or threatened for the purpose of enjoining or preventing the transactions contemplated by this Agreement, that (a) questions the validity or legality of the transactions contemplated hereby, (b) could reasonably be expected to have a Material Adverse Effect on Unify or the NavRisk Business or the ViaMode Product, or (c) seeks to enjoin consummation of the transactions contemplated hereby or could reasonably be expected to cause any of the transactions contemplated by this Agreement to be rescinded following consummation.

                    7.4     Permits.  Unify shall have transferred to Halo, or Halo shall have otherwise obtained, all Permits with respect to the NavRisk Business or the ViaMode Product, the absence of which would be likely to have a Material Adverse Effect on the NavRisk Business or the ViaMode Product.

                    7.5     No Material Adverse Changes.  There shall have been no Material Adverse Change in NavRisk Business or in the ViaMode Product.

                    7.6     Consents.  Unify shall have obtained and delivered to Halo all of the consents of third parties required, if any, for the assignment to Halo of all Contracts assumed by Halo, which consents shall include waivers of rights to terminate, modify or accelerate such Contracts.

                    7.7     Instruments of Transfer.  Unify has executed and delivered to Halo good and sufficient instruments of transfer transferring to Halo title to all of the NavRisk Assets or the ViaMode Assets.  The instruments of transfer must be in form and substance reasonably satisfactory to Halo and its counsel.

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                    7.8     Registration Agreement.  Unify shall have executed and delivered the Registration Agreement.

                    7.9     Warrant Agreement.  Unify shall have executed and delivered the Purchase Warrant.

                    7.10   License Agreement.  Unify shall have executed and delivered the License Agreements.

                    7.11   Disclosure Letter; Schedules.  Any changes to the Disclosure Letter and/or any Schedules hereto prepared by Unify and attached hereto shall (a) have been delivered to Halo and (b) be reasonably acceptable to Halo in both form and substance.

                    7.12   Other Conditions.  The conditions set forth on the Halo Conditions Schedule shall have been satisfied.

                    7.13   Delivery of Purchase Shares and Purchase Warrant.  Unify shall have delivered the Purchase Shares and the Purchase Warrant.

                    7.14   Payment of Cash Purchase Price.  Unify shall have delivered the Cash Purchase Price.

                    7.15   Lender Consent.  Halo shall have received from the appropriate parties under Halo’s agreements with Fortress Credit Corp. (or any subsequent lender) all requisite consents, approvals, waivers, releases of liens, and other items necessary for the completion of the transactions contemplated hereby, including without limitation, the release of the Gupta Entities as guarantors and borrowers under the applicable credit agreements with Fortress and other lenders.

                    7.16   Good Standing.  Unify shall have delivered certificates evidencing the good standing of Unify in Delaware and of Acuitrek in its organizational  jurisdiction.

	
  
8
  	
  
OTHER COVENANTS AND AGREEMENTS.
  

                    8.1     Access and Investigation.  Prior to the Closing, upon reasonable prior notice each party will (i) afford the other party and its representatives full and free access to the properties, Contracts, Business Records, and other documents and data related to the respective businesses, (ii) furnish the other party and its representatives with copies of all such Contracts, Business Records, and (iii) furnish the other party and its representatives with such additional financial, operating, and other data and information as may be reasonably requested.

                    8.2     Further Assurances.  At or after the Closing, at the request of either party, the other party shall promptly execute and deliver or cause to be executed and delivered all such deeds, assignments, bills of sale, endorsements, powers of attorney, and other documents, in addition to those otherwise required by this Agreement, in form and substance reasonably satisfactory to the requesting party, as may reasonably be requested in order to (a) vest in Halo title to and possession of the NavRisk Assets and ViaMode Assets and vest in Unify title to and possession of the Gupta LLC Interests and the Gupta Business, and (b) perfect and record, if necessary, the sale, transfer, assignment, conveyance, and delivery to Halo of the NavRisk Assets and ViaMode Assets.

21

                    8.3     Reimbursement of Certain Payments.  Unify and Halo acknowledge that, after the Closing Date, each may from time to time inadvertently make or receive payments which are actually due and payable or receivable by the other.  In the event that any such payment is made or received within six months after the Closing Date, the party making such payment will provide the other party with all invoices, statements and other supporting material that such other party may reasonably request and, after such other party has had a reasonable time to review such material, such other party shall reimburse the party originally making such payment for the amount of such payment which is properly allocable to such other party, or in the case of a receivable, the receiving party shall transfer such payment to the
party to whom the payment was owed.

                    8.4     Business Records.  Not later than thirty (30) days after the Closing Date, Halo, at its expense, upon written request of Unify, shall deliver to Unify all of the Business Records of the Gupta Business, and Unify, at its expense, upon written request of Halo, shall deliver to Halo all of the Business Records of the NavRisk Business.  

                    8.5      Conduct of Business.

	
  
 
  	
  
(a)
  	
  
Except as   otherwise consented to in writing by Unify, from and after the date hereof   until the Closing Date, Halo shall (A) carry on the Gupta Business in the   ordinary course consistent with past practice and in such manner that the   representations and warranties of Halo contained in Article IV hereof will   continue to be true and correct in all material respects through the Closing   Date and, consistent therewith, shall use commercially reasonable efforts to   preserve intact the Gupta Business and Halo’s relationships with employees   and persons having dealings with it; (B) not institute any new methods   accounting that will vary materially from the methods used by Halo as of the   date of this Agreement; (C) continue to operate its billing and collection   policies and procedures with respect to the Gupta Business consistent with   past practice; and (D) maintain its Books and Records in accordance with its   past practices.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Except as   otherwise consented to in writing by Halo, from and after the date hereof   until the Closing Date, Unify shall (A) carry on the NavRisk Business in the   ordinary course consistent with past practices and in such manner that the   representations and warranties of Halo contained in Article V hereof will   continue to be true and correct in all material respects through the Closing   Date and, consistent therewith, shall use commercially reasonable efforts to   preserve intact the NavRisk Business and    the ViaMode Product and Halo’s relationships with employees and   persons having dealings with it; (B) not institute any new methods accounting   that will vary materially from the methods used by Unify as of the date of   this Agreement; (C) continue to operate its billing and collection policies   and procedures with respect to the NavRisk Business consistent with past   practice; and (D) maintain its Books and Records in accordance with
its past   practices.
  

                    8.6       Restricted Activities and Transactions.

	
  
 
  	
  
(a)
  	
  
Halo shall   not engage, or agree to engage, in any one or more of the following   activities or transactions, except in the ordinary course of business,   without the prior written permission of Unify after no less than five (5)   Business Days prior written notice (i) take any action or omit to take any   action or cause another 
  

22

	
  
 
  	
  
 
  	
  
Person to   take an action or omit to take an action that may damage, harm, encumber or   otherwise have an adverse effect on the Gupta Business; (ii) destroy or   remove from the facilities any Books or Records maintained in connection with   the Gupta Business; (iii) terminate any policies of title, liability, fire,   workers’ compensation, property and any other form of insurance covering the   Gupta Entities or the Gupta Business; (iv) settle any lawsuit or claim   if such settlement imposes any continuing liability or non-monetary   obligation on the Gupta Business or any of Gupta Entities; (v) waive any   material claims or rights relating to the Gupta Business; or (vi) take any   action or omit to take any action that would cause the representations and   warranties of Halo contained in Article IV hereof to be untrue, inaccurate or   misleading.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Unify shall   not engage, or agree to engage, in any one or more of the following   activities or transactions, except in the ordinary course of business,   without the prior written permission of Halo after no less than five (5)   Business Days prior written notice (i) take any action or omit to take any   action or cause another Person to take an action or omit to take an action   that may damage, harm, encumber or otherwise have an adverse effect on any of   the NavRisk Assets or ViaMode Assets; (ii) destroy or remove from the   facilities any Books or Records maintained in connection with the NavRisk   Business; (iii) terminate any policies of title, liability, fire, workers’   compensation, property and any other form of insurance covering the NavRisk   Assets or ViaMode Assets or operations of the NavRisk Business or the ViaMode   Product; (iv) settle any lawsuit or claim if such settlement imposes any   continuing liability or non-monetary
obligation on the NavRisk Business or any   of the NavRisk Assets or ViaMode Assets; (v) waive any material claims or   rights relating to the NavRisk Assets or ViaMode Assets or the NavRisk   Business; or (vi) take any action or omit to take any action that would cause   the representations and warranties of Unify contained in Article V hereof to   be untrue, inaccurate or misleading.
  

                    8.7      Employee Matters.  

	
   
  	
  
(a)
  	
  
Upon   execution of this Agreement, Unify and Halo will prepare and agree upon a   list of Unify employees who will be hired by Halo at the Closing.  Nothing herein shall require any employee   to accept employment with Halo.    Employees of the Gupta Entities as set forth on the Gupta Employees   Schedule will remain employees of the Gupta Entities after the Closing, with   the Gupta Entities as subsidiaries of Unify.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Following   the Closing, (A) Halo shall provide employees of Unify who accept employment   with Halo with (i) benefit plans providing coverage and benefits which, in   the aggregate, are no less favorable than those provided to similarly   situated employees of Halo and (ii) credit for years of service with Unify prior to the Closing for   purpose of eligibility and vesting pursuant to Halo’s plans and policies to the extent such service was recognized for such purpose by a comparable Halo Benefit Arrangement (but not for accrual of benefits to the extent that such credit would result in a duplication of benefits) and (B) Unify shall provide employees of the Gupta Entities with (i) benefit plans providing coverage and benefits which, in the aggregate, are no less favorable than those provided to similarly situated employees of Unify and (ii) credit for years  of 
  

23

	
  
 
  	
  
 
  	
  
service   with Halo or the Gupta Entities prior to the Closing for purpose of   eligibility and vesting pursuant to Unify’s plans and policies to the extent   such service was recognized for such purpose by a comparable Unify Benefit   Arrangement (but not for accrual of benefits to the extent that such credit   would result in a duplication of benefits).    The
preceding sentence shall not preclude Halo or Unify or any   subsidiary of Halo or Unify at any time following the Closing from   terminating the employment of any employee and shall not modify or alter the   at-will status of any employee.  The   transactions contemplated hereby will not result in accelerated vesting of   any Halo stock options.  The   transactions contemplated hereby will result in accelerated vesting of any   Unify stock options held by employees of the NavRisk business and Unify shall   remain responsible for all such options in accordance with their terms.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
The Parties   shall cooperate fully with each other, including by providing such   information as is necessary or appropriate, to enable the Parties to satisfy   their respective obligations pursuant to this Section 8.7.  The Parties shall pay all premiums, fees   and accruals relating to all compensation and Benefit Arrangements for their   respective employees due or payable prior to the Closing.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
Except for   the hiring of employees specifically contemplated by this Agreement, from and   after the date of this Agreement and for a period of 12 months after the   Closing, (i) Halo shall not directly or indirectly recruit, solicit or hire   any employee of Unify or any of its subsidiaries, or induce or attempt to   induce or take any action which is intended to induce any employee of Unify   or any of its subsidiaries to terminate his or her employment with, or   otherwise cease his or her relationship with Unify or its subsidiaries, or   interfere in any manner with the contractual or employment relationship   between Unify or any of its subsidiaries and any employee of Unify or its   subsidiaries and (ii) Unify shall not directly or indirectly recruit, solicit   or hire any employee of Halo or any of its subsidiaries, or induce or attempt   to induce or take any action which is intended to induce any employee of Halo   or any of its subsidiaries to
terminate his or her employment with, or   otherwise cease his or her relationship with Halo or its subsidiaries, or interfere   in any manner with the contractual or employment relationship between Halo or   any of its subsidiaries and any employee of Halo or its subsidiaries.
  

                    8.        Non-Solicitation.

	
  
 
  	
  
(a)
  	
  
From and   after the date of this Agreement until the Closing or the earlier termination   of this Agreement in accordance with its terms, Halo will not, and will not   permit its directors, officers, investment bankers, affiliates,   representatives and agents to, (i) solicit, initiate, or encourage (including   by way of furnishing information), or take any other action to facilitate,   any inquiries or proposals that constitute, or could reasonably be expected   to lead to, any Gupta Acquisition Proposal, or (ii) engage in, or enter   into, any negotiations or discussions concerning any Gupta Acquisition   Proposal.  Halo will immediately cease   any and all existing activities, discussions or negotiations with any parties   conducted heretofore with respect to any of the foregoing.
  

24

	
  
 
  	
  
(b)
  	
  
From and   after the date of this Agreement until the Closing or the earlier termination   of this Agreement in accordance with its terms, Unify will not, and will not   permit its directors, officers, investment bankers, affiliates,   representatives and agents to, (i) solicit, initiate, or encourage (including   by way of furnishing information), or take any other action to facilitate,   any inquiries or proposals that constitute, or could reasonably be expected   to lead to, any NavRisk/ViaMode Acquisition Proposal, or (ii) engage in,   or enter into, any negotiations or discussions concerning any NavRisk/ViaMode   Acquisition Proposal.  Unify will   immediately cease any and all existing activities, discussions or   negotiations with any parties conducted heretofore with respect to any of the   foregoing.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
For Purposes   of this Agreement:
  

	
  
 
  	
  
“Gupta Acquisition Proposal” means any   bona fide inquiry, proposal or offer relating to any (i) merger,   consolidation, business combination, or similar transaction involving the   Gupta Business, (ii) sale, lease or other disposition, directly or   indirectly, by merger, consolidation, share exchange or otherwise, of  any assets of  the Gupta Business in one or more transactions, (iii) issuance,   sale, or other disposition of (including by way of merger, consolidation,   share exchange or any similar transaction) securities (or options, rights or   warrants to purchase such securities, or securities convertible into such   securities) of Gupta LLC, (iv) liquidation, dissolution, recapitalization or   other similar type of transaction with respect to the Gupta Business, (v)   transaction which is similar in form, substance or purpose to any of the   foregoing transactions, or (vi) public announcement of an agreement,   proposal,
plan or intention to do any of the foregoing, provided, however,   that the term “Gupta Acquisition Proposal” shall not include the transactions   contemplated by this Agreement.
  
	
   
  	
  
 
  
	
  
 
  	
  
“NavRisk/ViaMode Acquisition Proposal”   means any bona fide inquiry, proposal or offer relating to any (i) merger,   consolidation, business combination, or similar transaction involving the   NavRisk Business or the ViaMode Product, (ii) sale, lease or other   disposition, directly or indirectly, by merger, consolidation, share exchange   or otherwise, of  any assets of  the NavRisk Busuiness or the ViaMode   Product in one or more transactions, (iii) issuance, sale, or other   disposition of (including by way of merger, consolidation, share exchange or   any similar transaction) securities (or options, rights or warrants to   purchase such securities, or securities convertible into such securities) of   the NavRisk Business or the ViaMode Product, (iv) liquidation, dissolution,   recapitalization or other similar type of transaction with respect to the   NavRisk Business or the ViaMode Product, (v) transaction which is similar in
  form, substance or purpose to any of the foregoing transactions, or (vi)   public announcement of an agreement, proposal, plan or intention to do any of   the foregoing, provided, however, that the term   “NavRisk/ViaMode Acquisition Proposal” shall not include the transactions   contemplated by this Agreement.
  

          In addition to the obligations set forth in this Section 8.8, the Parties will promptly (and in any event within twenty-four (24) hours) advise the other, orally and in writing, if any Gupta Acquisition Proposal or NavRisk/ViaMode Acquisition Proposal is made or proposed to be made or any information or access to properties, books or records of Halo or Unify is requested in connection with a Gupta Acquisition Proposal or a NavRisk/ViaMode Acquisition Proposal, the principal terms and conditions of any such Gupta Acquisition Proposal or NavRisk/ViaMode Acquisition Proposal or potential Gupta Acquisition Proposal or potential NavRisk/ViaMode Acquisition Proposal inquiry and the identity of the party making such proposal, potential proposal or inquiry.  The Parties will keep each other advised of the status and details (including amendments and proposed amendments) of any such request, Gupta
Acquisition Proposal or NavRisk/ViaMode Acquisition Proposal.

25

                    8.9      Delivery of Gupta Audited Financial Statements.  Halo will provide to Unify a set of fully audited financial statements for Gupta for the year ended June 30, 2006 as soon as they are available, but no later than September 30, 2006.  For the avoidance of doubt, the audited financials Halo will provide will be the financials of Gupta prepared as part of Halo’s annual audit of Halo and its Subsidiaries, and nothing shall require a separate audit of Gupta.  

                    8.10     Delivery of un-audited Monthly Financial Statements. 

	
  
 
  	
  
(a)
  	
  
Halo shall   prepare and deliver to Unify the Gupta monthly financial statements within 15   days following the end of the month and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Unify shall   prepare and deliver to Halo the NavRisk monthly financial statements within   15 days following the end of the month.
  

                    8.11     Notice of Developments and Amendment of Schedules.  

	
  
 
  	
  
(a)
  	
  
Between the   date of this Agreement and the Closing Date, Halo shall promptly notify Unify   in writing if Halo becomes aware of (i) any fact or condition that causes or   constitutes a breach of any of Halo’s representations and warranties as of   the date of this Agreement, or if Halo becomes aware of the occurrence after   the date of this Agreement of any fact or condition that would (except as   expressly contemplated by this Agreement) cause or constitute a breach of any   such representation or warranty had such representation or warranty been made   as of the time of occurrence or discovery of such fact or condition, or (ii)   any event that would reasonably be expected to give rise to, individually or   in the aggregate, a Material Adverse Change on the Gupta Business or the   Gupta Assets or would reasonably be expected to prevent or materially delay   the consummation of the contemplated transactions.  No notice provided for under this
Section 8.11(a) shall be   deemed to cure any breach of representation, warranty or covenant or update   any Schedule (except to the extent accepted by Unify in writing) or otherwise   affect in any respect the rights and remedies of Unify.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(b)
  	
  
Between the   date of this Agreement and the Closing Date, Unify shall promptly notify Halo   in writing if Unify becomes aware of (i) any fact or condition that causes or   constitutes a breach of any of Unify’s representations and warranties as of   the date of this Agreement, or if Unify becomes aware of the occurrence after   the date of this Agreement of any fact or condition that would (except as   expressly contemplated by this Agreement) cause or constitute a breach of any   such representation or warranty had such representation or warranty been made   as of the time of occurrence or discovery of such fact or condition, or (ii)   any event that would reasonably be expected to give rise to, individually or   in the aggregate, a Material Adverse Change on the NavRisk Business, the   ViaMode Product, the NavRisk Assets or the ViaMode Assets or would reasonably   be expected to prevent or materially delay the consummation of the   contemplated
transactions.  No notice   provided for under this Section 8.11(b) shall be deemed to cure any breach of   representation, warranty or covenant or update any Schedule (except to the   extent accepted by Halo in writing) or otherwise affect in any respect the   rights and remedies of Halo.
  

26

	
  
 
  	
  
(c)
  	
  
Halo shall   supplement or amend its Disclosure Letter and the Schedules hereto provided   by Halo, including, without limitation, Unify Assumed Liabilities Schedule,   the Gupta Assets Schedule, the Gupta Debts Schedule, the Gupta Real Property   Schedule, the Tax Returns Schedule, the Gupta Employees Schedule, the   Employee Benefits Schedule, the Gupta Contract Schedule, the Gupta Insurance Schedule   and the Gupta Customer Relations Schedule (the “Halo Schedules”) as of the   Closing Date in order to make the information set forth therein timely,   complete and accurate, and shall deliver to Unify such amended or   supplemented Schedules no later than five (5) business days prior to the   Closing.  For purposes of determining   the fulfillment of the condition set forth in Section 6.1 as of the Closing,   the Halo Schedules shall be deemed to include only that information contained   therein on the date of this Agreement and shall be deemed to
exclude any   information contained in any subsequent supplement or amendment thereto   (except to the extent accepted by Unify in writing).  For purposes of determining the accuracy of   the representations and warranties contained in Article IV and for purposes   of determining the fulfillment of the condition set forth in Section 6.9 as   of the Closing, the Halo Schedules shall be deemed to include all information   contained in such supplement or amendment whether or not accepted by Unify.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
Unify shall   supplement or amend its Disclosure Letter and the Schedules hereto provided   by Unify, including, without limitation, the Halo Assumed Liabilities   Schedule, the Unify Assets Schedule, the Unify Debts Schedule, the Real Property   Schedule, the Unify Tax Returns Schedule, the Unify Employee Benefits   Schedule, the Unify Contracts Schedule, the Unify Insurance Schedule, the   Unify Permits Schedule, the Employees Schedule and the Customer Relations   Schedule (the “Unify Schedules”) as of the Closing Date in order to make the   information set forth therein timely, complete and accurate, and shall   deliver to Halo such amended or supplemented Schedules no later than five (5)   business days prior to the Closing.    For purposes of determining the fulfillment of the condition set forth   in Section 7.1 as of the Closing, the Unify Schedules shall be deemed to   include only that information contained therein on the date of this
Agreement   and shall be deemed to exclude any information contained in any subsequent   supplement or amendment thereto (except to the extent accepted by Halo in   writing).  For purposes of determining   the accuracy of the representations and warranties contained in Article V and   for purposes of determining the fulfillment of the condition set forth in   Section 7.11 as of the Closing, the Unify Schedules shall be deemed to   include all information contained in such supplement or amendment whether or   not accepted by Halo.
  

	
  9
  	
  
INDEMNIFICATION; SURVIVAL OF REPRESENTATIONS AND WARRANTIES;   DISPUTES.
  

                    9.1     Survival of Representations and Warranties.  Notwithstanding the Closing of the transactions contemplated under this Agreement, or any investigation made by or on behalf of any party to this Agreement, the representations and warranties of the parties contained in this Agreement will

27

survive the Closing for a period of one year, except that the representations and warranties of Unify contained in Section 5.4, shall survive indefinitely, and that the representations and warranties of Unify and/or Halo concerning Taxes shall survive until the statute of limitations applicable to the underlying claim expires; provided, however, as to any breach of, or misstatement in, any such representation or warranty as to which the non-breaching party as given notice to the breaching party on or prior to the expiration of the applicable period, as above set forth, the same will continue to survive beyond said period, but only as to the circumstances referenced in such notice.

                    9.2     Halo’s Indemnification.  Halo will indemnify and save harmless Unify and its respective Affiliates and their respective shareholders, directors, officers, employees, representatives and agents from any and all Claims, costs (including of investigations or preparation for defense), expenses, losses, damages (actual or punitive) and liabilities incurred or suffered, directly or indirectly, by any of them (including, without limitation, reasonable legal fees and expenses) (collectively, the “Losses”) resulting from or attributable to (a) the breach of, or misstatement in, any one or more of the representations or warranties of Halo made in or pursuant to this Agreement; (b) any Claims, demands, suits, investigations, proceedings or actions by any third party containing or relating to
allegations that, if true, would constitute a breach of, or misstatement in, any one or more of the representations or warranties of Halo made in or pursuant to this Agreement, and (c) breach of any covenant of Halo contained herein;  provided, however, that, (A) Halo shall not be required to pay any Losses with respect to the breach of any representation or warranty pursuant to the foregoing clauses (a) or (b) unless the aggregate amount of all Losses exceeds $200,000, in which case all Losses shall be paid in excess of $200,000, and (B) in no event shall the aggregate amount of Losses payable by Halo exceed $5,000,000.   The limitation on damages set forth in this Section 9.2 shall not apply to any Losses incurred due to fraud.  

                    9.3     Unify’s Indemnification.  Unify will indemnify and save harmless Halo and its respective Affiliates and their respective shareholders, directors, officers, employees, representatives and agents from any and all Losses resulting from or attributable to (a) the breach of, or misstatement in, any one or more of the representations or warranties of Unify made in or pursuant to this Agreement; (b) any Claims, demands, suits, investigations, proceedings or actions by any third party containing or relating to allegations that, if true, would constitute a breach of, or misstatement in, any one or more of the representations or warranties of Unify made in or pursuant to this Agreement; or (c) breach of any covenant of Unify contained herein; provided, however, that, (A) Unify shall not be
required to pay any Losses with respect to the breach of any representation or warranty pursuant to the foregoing clauses (a) or (b) unless the aggregate amount of all Losses exceeds $200,000, in which case all Losses shall be paid in excess of $200,000, and (B) in no event shall the aggregate amount of Losses payable by Unify exceed $5,000,000. The limitation on damages set forth in this Section 9.3 shall not apply to any Losses incurred due to fraud.  

                    9.4     Indemnification Procedure for Third Party Claims.  In the event that subsequent to the Closing any person or entity entitled to indemnification under this Agreement (an “Indemnified Party”) asserts a claim for indemnification or receives notice of the assertion of any claim or of the commencement of any action or proceeding by any entity who is not a party to this Agreement or an Affiliate of such a party (including, but not limited to any domestic or foreign court or Governmental Authority, federal, state or local) (a “Third Party Claim”) against such Indemnified Party, against which a party to this Agreement is required to provide indemnification under this Agreement (an “Indemnifying Party”), the Indemnified Party shall give written notice together with a statement of
any available information regarding such claim to the Indemnifying Party within thirty (30) days after learning of such claim (or within such shorter time as may be necessary to give the Indemnifying Party a reasonable

28

opportunity to respond to such claim).  The Indemnifying Party shall have the right, upon written notice to the Indemnified Party (the “Defense Notice”) within thirty (30) days after receipt from the Indemnified Party of notice of such claim, [which notice by the Indemnifying Party shall specify the counsel it will appoint to defend such claim (“Defense Counsel”)], to conduct at its expense the defense against such claim in its own name, or if necessary in the name of the Indemnified Party; provided, however, that the Indemnified Party shall have the right to approve the Defense Counsel and in the event the Indemnifying Party and the Indemnified Party cannot agree upon such counsel within ten (10) days after the Defense Notice is provided, then the Indemnifying Party shall propose an alternate Defense Counsel, which shall be subject again to the Indemnified Party’s approval.

	
  
 
  	
  
A.
  	
  
In the event   that the Indemnifying Party shall fail to give such notice, it shall be   deemed to have elected not to conduct the defense of the subject claim, and   in such event the Indemnified Party shall have the right to conduct such   defense in good faith and to compromise and settle the claim without prior consent   of the Indemnifying Party and the Indemnifying Party will be liable for all   costs, expenses, settlement amounts or other Losses paid or incurred in   connection therewith.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
B.
  	
  
In the event   that the Indemnifying Party does elect to conduct the defense of the subject   claim, the Indemnified Party will cooperate with and make available to the   Indemnifying Party such assistance and materials as may be reasonably   requested by it, all at the expense of the Indemnifying Party, and the   Indemnified Party shall have the right at its expense to participate in the   defense assisted by counsel of its own choosing, provided that the   Indemnified Party shall have the right to compromise and settle the claim   only with the prior written consent of the Indemnifying Party, which consent   shall not be reasonably withheld or delayed.    Without the prior written consent of the Indemnified Party, the   Indemnifying Party will not enter into any settlement of any Third Party   Claim or cease to defend against such claim, if pursuant to or as a result of   such settlement or cessation, (i) injunctive or other equitable relief   would be
imposed against the Indemnified Party or its Affiliates, or (ii)   such settlement or cessation would lead to liability or create any financial   or other obligation on the part of the Indemnified Party or its Affiliates   for which the Indemnified Party is not entitled to indemnification   hereunder.  The Indemnifying Party   shall not be entitled to control, and the Indemnified Party shall be entitled   to have sole control over, the defense or settlement of any claim to the   extent that claim seeks an order, injunction or other equitable relief   against the Indemnified Party which, if successful, could materially   interfere with the business, operations, assets, condition (financial or   otherwise) or prospects of the Indemnified Party or its Affiliates (and the   cost of such defense shall constitute a Loss for which the Indemnified Party   is entitled to indemnification hereunder).    If a firm decision is made to settle a Third Party Claim, which offer   the Indemnifying Party is
permitted to settle under this Section 9.4B, and   the Indemnifying Party desires to accept and agree to such offer, the   Indemnifying Party will give written notice to the Indemnified Party to that   effect.  If the Indemnified Party   fails to consent to such firm offer within thirty (30) calendar days after   its receipt of such notice, the Indemnified Party may 
  

29

	
  
 
  	
  
 
  	
  
continue to   contest or defend such Third Party Claim and, in such event, the maximum   liability of the Indemnifying Party as to such Third Party Claim will not   exceed the amount of such settlement offer, plus costs and expenses paid or   incurred by the Indemnified Party through the end of such thirty (30) day   period.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
Any judgment   entered or settlement agreed upon in the manner provided herein shall be   binding upon the Indemnifying Party, and shall conclusively be deemed to be   an obligation with respect to which the Indemnified Party is entitled to   prompt indemnification hereunder.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
D.
  	
  
A failure by   an Indemnified Party to give timely, complete or accurate notice as provided   in Section 9.4 will not affect the rights or obligations of any party   hereunder except and only to the extent that, as a result of such failure, any   party entitled to receive such notice was deprived of its right to recover   any payment under its applicable insurance coverage or was otherwise directly   and materially damaged as a result of such failure to give timely notice.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
E.
  	
  
The   Indemnifying Party shall be subrogated to the Indemnified Party’s rights of   recovery to the extent of any Loss satisfied by the Indemnifying Party.  The Indemnified Party shall execute and   deliver such instruments and papers as are necessary to assign such rights   and assist in the exercise thereof, including access to books and records of   the Company.
  

                    9.5      Direct Claims.  It is the intent of the parties hereto that all direct Claims by an Indemnified Party against a party hereto not arising out of Third Party Claims shall be subject to and benefit from the terms of this Article 9.  Any claim under this Article 9 by an Indemnified Party for indemnification other than indemnification against a Third Party Claim (a “Direct Claim”) will be asserted by giving the Indemnifying Party written notice thereof.

                    9.6     Characterization of Indemnification Payments.  Unify and Halo agree to treat any payment under this Article 9 as an adjustment to the Purchase Price.  If, contrary to the intent of Unify and Halo as expressed in the preceding sentence, any payment made pursuant to this Article 9 is treated as taxable income of an Indemnified Party, then the Indemnifying Party shall indemnify and hold harmless the Indemnified Party from any liability for Taxes attributable to the receipt of such payment.

	
  
10
  	
  
UNIFY TAX MATTERS.
  

                   10.1     Payment of Taxes.  Unify shall pay, and indemnify, defend and hold Halo, and all its subsidiaries harmless against, any and all Taxes of the NavRisk Business (including without limitation, any Taxes due from Unify) allocable to any taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing Date (the “Pre-Closing Tax Period”).  In the case of any taxable period that includes (but does not end on) the Closing Date, the amount of any Taxes based on or measured by income or receipts of the NavRisk Business  allocable to the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the close of business on the Closing Date, and the
amount of other Taxes of the NavRisk Business allocable to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the number of days in the taxable period ending on the Closing Date and the denominator of which is the number of days in such taxable period.  

30

                    10.2     Preparation of Tax Returns.  Unify shall prepare and file all income Tax Returns for the NavRisk Business for any tax periods ending on or prior to the Closing Date, except for any Tax Returns relating to the NavRisk Business due after the Closing Date in which case Halo shall prepare such Tax Returns and Unify shall have the right to review and approve such Tax Returns at least 10 business days prior to filing, which approval shall not be unreasonably withheld.  Except as otherwise provided in the preceding sentence, Halo shall prepare all Tax Returns for the NavRisk Business.  Unify shall reimburse Halo for Taxes of the NavRisk Business which are allocable to the Pre-Closing Period (in accordance with Section 10.1) within 15 days after payment by Halo or its subsidiaries of such
Taxes, provided, however, that such reimbursement shall be made only to the extent that such Taxes exceed the amount, if any, included in the determination of the NavRisk Net Working Capital as of the Closing Date.  Halo shall not file, or cause the NavRisk Business or any of its subsidiaries to file, any amended Tax Returns for the NavRisk Business  or any of Halo’s subsidiaries for tax periods that include a period prior to the Closing Date without prior written consent of Unify, such consent not to be unreasonably withheld or delayed.

                    10.3     Payment Over of Refunds.  Halo shall pay or cause to be paid any refund, overpayment, or credit (including any interest paid or credited with respect thereto) of Taxes attributable to Tax periods (or portions thereof) ending on or before the Closing Date with respect to the NavRisk Business, to the extent Halo or a subsidiary receives such amounts.

                    10.4     Control of Tax Audits.  Unify shall have the right, at its own expense, to control any audit or examination by any Governmental Authority (a “Tax Audit”), initiate any claim for refund, contest, resolve and defend against any assessment, notice of deficiency, or other adjustment or proposed adjustment relating to any and all Taxes for any taxable period ending on or before the Closing Date with respect to the NavRisk Business; provided that Unify shall not resolve any such contest without the consent of Halo, such consent not to be unreasonably withheld or delayed.  Halo shall have the right, at its own expense, to control, or have the NavRisk Business  control, any other Tax Audit, initiate any other claim for refund, and contest, resolve and defend against any other assessment,
notice of deficiency, or other adjustment for tax years beginning after the Closing Date.

                    10.5     Cooperation.  Halo, and its Subsidiaries, on the one hand, and Unify, on the other hand, shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with the filing of Tax Returns pursuant to this Article 10, and any audit, litigation or other proceeding with respect to Taxes.  Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  Halo and Unify shall (i) retain all books and records with respect to Tax matters pertinent to the NavRisk Business relating to
any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by Halo or Unify, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Governmental Authority and (ii) to give the other party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other party so requests, Halo or Unify as the case may be, shall allow the other party to take possession of such books and records.  Upon request, Halo and Unify further agree to use their reasonable commercial efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including but not limited to with respect to the transactions contemplated hereby).

31

                    10.6     Characterization of Payments.  All payments made pursuant to this Article 10 shall be consistently treated as adjustments to the purchase price for all Tax purposes by Halo and Unify.

	
  
11
  	
  
HALO TAX   MATTERS.
  

                    11.1     Payment of Taxes.  Halo shall pay, and indemnify, defend and hold Unify, and all its subsidiaries harmless against, any and all Taxes of the Gupta Business (including without limitation, any Taxes due from Halo) allocable to any taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing Date (the “Pre-Closing Tax Period”).  In the case of any taxable period that includes (but does not end on) the Closing Date, the amount of any Taxes based on or measured by income or receipts of the Gupta Business allocable to the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the close of business on the Closing Date, and the amount of
other Taxes of the Gupta Business allocable to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the number of days in the taxable period ending on the Closing Date and the denominator of which is the number of days in such taxable period.  

                    11.2     Preparation of Tax Returns.  Halo shall prepare and file all income Tax Returns for the Gupta Business for any tax periods ending on or prior to the Closing Date, except for any Tax Returns relating to the Gupta Business due after the Closing Date in which case Unify shall prepare such Tax Returns and Halo shall have the right to review and approve such Tax Returns at least 11 business days prior to filing, which approval shall not be unreasonably withheld.  Except as otherwise provided in the preceding sentence, Unify shall prepare all Tax Returns for the Gupta Business.  Halo shall reimburse Unify for Taxes of the Gupta Business and the Subsidiaries which are allocable to the Pre-Closing Period (in accordance with Section 11.1) within 15 days after payment by Unify or its
subsidiaries of such Taxes, provided, however, that such reimbursement shall be made only to the extent that such Taxes exceed the amount, if any, included in the determination of the Gupta Net Working Capital as of the Closing Date.  Unify shall not file, or cause the Gupta Business or any of its subsidiaries to file, any amended Tax Returns for the Gupta Business or any of Unify’s subsidiaries for tax periods that include a period prior to the Closing Date without prior written consent of Halo, such consent not to be unreasonably withheld or delayed.

                    11.3     Payment Over of Refunds.  Unify shall pay or cause to be paid any refund, overpayment, or credit (including any interest paid or credited with respect thereto) of Taxes attributable to Tax periods (or portions thereof) ending on or before the Closing Date with respect to the Gupta Business, to the extent Unify or a subsidiary receives such amounts.

                    11.4     Control of Tax Audits.  Halo shall have the right, at its own expense, to control any audit or examination by any Governmental Authority (a “Tax Audit”), initiate any claim for refund, contest, resolve and defend against any assessment, notice of deficiency, or other adjustment or proposed adjustment relating to any and all Taxes for any taxable period ending on or before the Closing Date with respect to the Gupta Business; provided that Halo shall not resolve any such contest without the consent of Unify, such consent not to be unreasonably withheld or delayed.  Unify shall have the right, at its own expense, to control, or have the Gupta Business control, any other Tax Audit, initiate any other claim for refund, and contest, resolve and defend against any other assessment, notice of
deficiency, or other adjustment for tax years beginning after the Closing Date.

32

                    11.5     Cooperation.  Unify, and its Subsidiaries, on the one hand, and Halo, on the other hand, shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with the filing of Tax Returns pursuant to this Article 11, and any audit, litigation or other proceeding with respect to Taxes.  Such cooperation shall include the retention and (upon the other party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  Unify and Halo shall (i) retain all books and records with respect to Tax matters pertinent to the Gupta Business relating to
any taxable period beginning before the Closing Date until the expiration of the statute of limitations (and, to the extent notified by Unify or Halo, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any Governmental Authority and (ii) to give the other party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other party so requests, Unify or Halo as the case may be, shall allow the other party to take possession of such books and records.  Upon request, Unify and Halo further agree to use their reasonable commercial efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including but not limited to with respect to the transactions contemplated hereby).

                    11.6     Characterization of Payments.  All payments made pursuant to this Article 11 shall be consistently treated as adjustments to the purchase price for all Tax purposes by Unify and Halo.

	
  
12
  	
  
GENERAL   PROVISIONS.
  

                    12.1     Successors and Assigns.  The rights under this Agreement are not assignable nor are the duties delegable by a party without the written consent of the other party first having been obtained, and any attempted assignment or delegation without such consent will be null and void.

                    12.2     Section Headings.  The Section headings contained in this Agreement are for convenience of reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

                    12.3     Expenses.  Whether or not the obligations of the parties hereto are performed and except as otherwise expressly provided herein, each party shall pay its own expenses incident to the preparation of this Agreement and for the consummation of the transactions contemplated hereby.

                    12.4     Disclosure Letter. Information disclosed in one Section of each party’s Disclosure Letter shall suffice, without repetition or cross-reference, as a disclosure of such information in any other relevant Section of the Disclosure Letter, if the disclosure in respect of such one Section of the Disclosure Letter is sufficient on its face without further inquiry reasonably to inform the other party of the information required to be disclosed in respect of such other Sections of the Disclosure Letter to avoid a misrepresentation under the relevant counterpart Sections of the Agreement.

                    12.5     Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware without reference to any conflicts of Laws provisions which would cause the application of the domestic substantive Laws of any other jurisdiction.  

                    12.6     WAIVER OF JURY TRIAL.  EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

33

                    12.7     Counterparts.  This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original, and all such counterparts shall constitute but one and the same instrument. This Agreement, once executed, may be delivered to either party through the use of facsimile transmission.  In this regard, any and all signatures of the parties appearing on any facsimile copies of the signature page of this Agreement shall be deemed, unless otherwise proved, the valid signature of the executing party.

                    12.8     Notice.  All notices, requests, demands and other communications under this Agreement must be in writing and will be deemed duly given, unless otherwise expressly indicated to the contrary in this Agreement: (a) when personally delivered; (b) upon receipt of a telephonic facsimile transmission with a confirmed telephonic transmission answer back; (c) five (5) days after having been deposited in the United States mail, certified or registered, return receipt requested, postage prepaid; or (d) one (1) business day after having been delivered by a nationally recognized overnight courier service, addressed to the parties or their permitted assigns at the following addresses (or at such other address or number as is given in writing by either party to the other) as follows:

	
  
 
  	
  
If to Halo:
  	
  
Halo Technology Holdings,   Inc.
  
	
  
 
  	
  
 
  	
  
200 Railroad Avenue
  
	
  
 
  	
  
 
  	
  
Greenwich, CT 06830
  
	
  
 
  	
  
 
  	
  
Attention:  Ernest C. Mysogland
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
If to Unify:
  	
  
Unify Corporation, Attn   President
  
	
   
  	
  
 
  	
  
2101 Arena Blvd, Ste 100
  
	
  
 
  	
  
 
  	
  
Sacramento, CA 95834
  

                    12.9     Severability.  In the event that any provision of this Agreement shall be declared by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

                    12.10   Waiver.  No delay or omission to exercise any right, power, or remedy accruing to any party hereto upon any breach or default by another party shall impair any such right, power, or remedy except as expressly set forth herein.  Any waiver, permit, consent, or approval of any kind or character of any breach or default under this Agreement or any waiver of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in such writing.  The rights and remedies granted the parties under this Agreement are cumulative and the waiver of any single remedy will not constitute a waiver of such party’s right to assert all other legal remedies available to it under the circumstances.

                    12.11   Confidentiality; Public Statements.  Except as required by Law, no party hereto shall issue any press release or make any public statement regarding the transactions contemplated hereby, without the prior written approval of the other parties.

                    12.12   Entire Agreement.  This Agreement, including all Schedules and the Disclosure Letters and Financial Statements attached hereto (with such changes to the Schedules and Disclosure Letters as may be accepted in writing by Halo or Unify as the case may be), is the entire agreement between the parties regarding the subject matter hereof.  This Agreement constitutes an agreement solely between the parties hereto, and is not intended to and shall not confer any rights, remedies, obligations, or liabilities, legal or equitable, including any right of employment, on any person (including, without 

34

limitation, any employees or former employees) other than the parties hereto and their respective legal representatives, successors, or permitted assigns, or otherwise constitute any person a third party beneficiary under or by reason of this Agreement.  Nothing in this Agreement, expressed or implied, is intended to or shall constitute the parties hereto partners or participants in a joint venture.

                    12.13   Termination.  

	
  
 
  	
  
A.
  	
  
This Agreement may be   terminated at any time prior to Closing:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)
  	
  
By mutual written consent   of Unify and Halo;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
By Unify or Halo if the   Closing shall not have occurred on or before December 29, 2006; provided, however, that this provision   shall not be available to Unify if Halo has the right to terminate this   Agreement under clause (iv) of this Section 12.13A, and this provision   shall not be available to Halo if Unify has the right to terminate this   Agreement under clause (iii) of this Section 12.13A.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(iii)
  	
  
By Unify if there is a   material breach of any representation or warranty set forth in Article IV   hereof or any material covenant or agreement to be complied with or performed   by Halo pursuant to the terms of this Agreement or the failure of a condition   set forth in Article VI (other than the financing contingency set forth in   Section 6.10) to be satisfied (and such condition is not waived in writing by   Unify) on or prior to the Closing Date, or the occurrence of any event that   results or could reasonably be expected to result in the failure of a   condition set forth in Article VI (other than the financing contingency set   forth in Section 6.10) to be satisfied on or prior to the Closing Date; provided, however, that Unify may not   terminate this Agreement prior to the Closing Date if Halo has not had an   adequate opportunity to cure such failure (but in no event a period of longer   than 5 days); or
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iv)
  	
  
By Halo if there is a   material breach of any representation or warranty set forth in Article V   hereof or of any material covenant or agreement to be complied with or   performed by Unify pursuant to the terms of this Agreement or the failure of   a condition set forth in Article VII (other than the lender consent condition   set forth in Section 7.15) to be satisfied (and such condition is not waived   in writing by Halo) on or prior to the Closing Date, or the occurrence of any   event which results or could reasonably be expected to result in the failure   of a condition set forth in Article VIII (other than the lender consent   condition set forth in Section 7.15) to be satisfied on or prior to the   Closing Date; provided, however,   that Halo may not terminate this Agreement prior to the Closing Date if Unify   has not had an adequate opportunity to cure such failure (but in no event a   period of longer than 5 days).
  

35

	
  
 
  	
  
 
  	
  
(v)
  	
  
By Unify if there is a   failure of the financing contingency set forth in Section 6.10 to be   satisfied (and such condition is not waived in writing by Unify) on or prior   to the Closing Date.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(vi)
  	
  
By Halo if there is a   failure of the lender consent condition set forth in Section 7.15 to be   satisfied (and such condition is not waived in writing by Halo) on or prior   to the Closing Date, or by Unify if there is a failure of the lender consent   condition set forth in Section 6.11 to be satisfied (and such condition is   not waived in writing by Unify) on or prior to the Closing Date.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
In the event of   termination of this Agreement:
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(i)
  	
  
Each party will redeliver   all documents, work papers and other material of any other party relating to   the transactions contemplated hereby, whether so obtained before or after the   execution hereof, to the party furnishing the same;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
No confidential   information received by any party with respect to the business of any other   party or its Affiliates shall be disclosed to any third party, unless   required by Law; and
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iii)
  	
  
In the event that this   Agreement shall be terminated pursuant to Section 12.13A(i) or (ii) hereof,   all obligations of the parties hereto under this Agreement shall terminate   and there shall be no liability of any party hereto to any other party and   each party hereto shall bear its own expenses incurred in connection with the   negotiation, preparation, execution and performance of this Agreement.  The termination of this Agreement except   pursuant to Section 12.13A(i) shall not affect the right of any party to   bring an action for willful breach of this Agreement.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iv)
  	
  
In the event that this   Agreement shall be terminated by Unify pursuant to Section 12.13A(v), the   Deposit shall be converted into securities of Halo as set forth in Section   12.13C below.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(v)
  	
  
In the event that this   Agreement shall be terminated by Halo or by Unify pursuant to Section 12.13A(vi),   the Deposit shall be returned to Unify within ten (10) business days.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(vi)
  	
  
In the event that this   Agreement is terminated by Halo pursuant to Section 12.13A(iv), the Deposit   shall be retained by Halo.  Retention   of the Deposit shall not affect the right of Halo to bring an action for   breach of this Agreement.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(vii)
  	
  
In the event that this   Agreement is terminated by Unify pursuant to Section 12.13A(iii), the Deposit   shall be returned by Halo within ten (10) business days.  The refund of the Deposit by Halo to Unify   shall not affect the right of Unify to bring an action for breach of this   Agreement.
  

36

	
  
 
  	
  
 
  	
  
(viii)
  	
  
In the event that this   Agreement shall be terminated by the parties pursuant to Section 12.13A(i),   the Deposit shall be converted into securities of Halo as set forth in   Section 12.13C below.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ix)
  	
  
In the event that this   Agreement shall be terminated by either party pursuant to Section 12.13A(ii),   the Deposit shall be converted into securities of Halo as set forth in   Section 12.13C below.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
C.
  	
  
Deposit Conversion into   Halo Securities.  In the event that   the Deposit is to be converted into Halo securities as provided in Sections   12.13B(iv), (viii) or (ix) above, the Deposit shall convert into (i) 400,000   shares of Halo’s common stock (the “Halo Stock”), and (ii) in the event that   the volume weighted average closing price of Halo’s common stock for the ten   trading days ending on the day prior to the Closing Date (the “Market Price”)   is less than $1.25 per share (as adjusted for stock splits, reverse stock   splits and similar changes in Halo’s capital structure), then (a) if the   Market Price is less than $1.25 per share, but equal to or greater than $1.00   per share, Halo shall issue to Unify warrants to acquire 100,000 shares of   Halo Stock, or (b) if the Market Price is less than $1.00 per share, but   equal to or greater than $.75 per share, Halo shall issue to Unify warrants   to acquire 200,000
shares of Halo Stock, or (c) if the Market Price is less   than $.75 per share, Halo shall issue to Unify warrants to acquire 300,000   shares of Halo Stock.  For the   avoidance of doubt, in the event that the Market Price is less than $1.25 per   share, the maximum amount of warrants Halo will issue to Unify will be warrants   to acquire 300,000 shares of Halo Stock.    If any warrants are issued to Unify pursuant to this Section 12.13C,   the exercise price of the warrants will be $1.25 per share, and the warrants   will be in the form of Purchase Warrant attached hereto. In the event the   Deposit is converted into shares of Halo Stock (and warrants if applicable)   the parties agree to enter into an agreement to register such shares of Halo   Stock and the shares of Halo Stock issuable upon exercise of any Halo   warrants issued under this section, such agreement to be mutually acceptable   and containing the same terms as the Registration Agreement.
  

                    12.14   Non-Competition.  For a period commencing on the Closing Date and terminating on the second anniversary of the Closing Date (the “Restricted Period”):

	
  
 
  	
  
A.
  	
  
Halo, unless acting in   accordance with Unify’s prior written consent (which consent may be withheld   in Unify’s sole discretion) shall not, in the United States or any other   place where Unify or any of Unify’s Affiliates conducts the Gupta Business,   or any part thereof, directly or indirectly (whether as an owner, partner,   shareholder, agent, or 
  

37

	
  
 
  	
  
 
  	
  
otherwise), own, manage,   operate, control, invest in, perform services for (alone or in association   with any Person) or participate in any manner in the ownership, management,   operation, control or financing of, or be connected as a principal, agent,   representative, consultant, investor, owner, partner, manager, joint   venturer, or similar affiliation with, any business or enterprise that   engages in or owns, invests in, operates, manages, or controls any venture or   enterprise that engages or proposes to engage in the embedded database and   related software development tools business, or any part thereof; provided,   however, that (i) a business or enterprise in the embedded database and   related software development tools business shall not include a business or   enterprise in which such business accounts for less than ten percent (10%) of   the revenues, income, or the value of the assets of such business or   enterprise and (ii) Halo may own,
directly or indirectly, solely as an   investment, securities of any Person engaged in the embedded database and   related software development tools business having a class of securities (a)   registered under the Securities Exchange Act of 1934 and (b) publicly traded,   if Halo is not involved in the business of said corporation and if Halo and   Halo’s associates (as such term is defined in Regulation 14(A) promulgated   under the Securities Exchange Act of 1934, as in effect on the date hereof),   collectively, do not, directly or indirectly, own more than an aggregate of   five percent (5%) of any class of securities of such Person.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
B.
  	
  
Unify, unless acting in   accordance with Halo’s prior written consent (which consent may be withheld   in Halo’s sole discretion) shall not, in the United States or any other place   where Halo or any of Halo’s Affiliates conducts the NavRisk Business, or any   part thereof, directly or indirectly (whether as an owner, partner,   shareholder, agent, or otherwise), own, manage, operate, control, invest in,   perform services for (alone or in association with any Person) or participate   in any manner in the ownership, management, operation, control or financing   of, or be connected as a principal, agent, representative, consultant,   investor, owner, partner, manager, joint venturer, or similar affiliation   with, any business or enterprise that engages in or owns, invests in,   operates, manages, or controls any venture or enterprise that engages or   proposes to engage in the risk management software and solution business, or   any part thereof;
provided, however, that (i) a business or enterprise in the   risk management software and solution business shall not include a business   or enterprise in which the such business accounts for less than ten percent   (10%) of the revenues, income, or the value of the assets of such business or   enterprise and (ii) Unify may own, directly or indirectly, solely as an   investment, securities of any Person engaged in the risk management software   and solution business having a class of securities (a) registered under the   Securities Exchange Act of 1934 and (b) publicly traded, if Unify is not   involved in the business of said corporation and if Unify and Unify’s   associates (as such term is defined in Regulation 14(A) promulgated under the   Securities Exchange Act of 1934, as in effect on the date hereof),   collectively, do not, directly or indirectly, own more than an aggregate of   five percent (5%) of any class
  

38

	
  
 
  	
  
 
  	
  
of securities of such   Person.  Furthermore, Unify shall not   compete, in the manner contemplated by this Section 12.14B, with the ViaMode   Product, provided that Unify may operate as contemplated in the license   agreements between the parties regarding the ViaMode Product.
  

          The covenants contained in this Section 12.14 and Section 8.7(d) shall be construed as a series of separate covenants, one for each of the cities and counties in each of the states of the United States of America and one for each country in the world other than the United States.  It is the desire and intent of the parties that these covenants shall be enforced to the fullest extent permissible under applicable law.  If any particular provision or portion of this Section 12.14 or Section 8.7(d) shall be adjudicated to be invalid or unenforceable, this Section 12.14 or Section 8.7(d) shall be deemed amended to revise that provision or portion to the minimum extent necessary to render it enforceable.  Such amendment shall apply only with respect to the operation of the paragraph in the particular jurisdiction in which such adjudication was made.  If, in any judicial proceeding, a court
of competent jurisdiction shall refuse to enforce any covenant contained in this Section 12.14 or Section 8.7(d) (including, without limitation, the separate geographical covenants deemed included in this Agreement), then such unenforceable covenants shall be deemed deleted from this Section 12.14 or Section 8.7(d) to the extent necessary to permit the remaining separate covenants to be enforced.

[SIGNATURE PAGES FOLLOW]

39

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

	
  
 
  	
  
UNIFY CORPORATION
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Todd E. Wille
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Todd E. Wille
  
	
   
  	
  
Title:
  	
  
President and CEO
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
HALO TECHNOLOGY HOLDINGS,   INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Ernest Mysogland
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
Ernest (JR) Mysogland
  
	
   
  	
  
Title:
  	
  
Executive Vice President
  

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GLOSSARY SCHEDULE

          “Acquisition Documents” shall mean this Agreement, the Registration Agreement and the Purchase Warrant.

          “Acuitrek” has the meaning set forth in Recital D hereof.

          “Action” shall mean any charge, complaint, action, order, writ, injunction, judgment or decree outstanding or claim, suit, litigation, proceeding, labor dispute, arbitral action or investigation, and is first used as a defined term in Section 4.13.

          “Affiliate” or “affiliate” shall mean any person or entity, directly or indirectly, controlling, controlled by, or under common control with the person of which it is an affiliate, and is first used as a defined term in Section 4.13.

          “Assumed Liabilities” means the liabilities set forth on the Assumed Liabilities Schedule limited in amount as set forth on the Halo Assumed Liabilities Schedule.

          “Benefit Arrangement” means any employment, consulting, severance or other similar Contracts, arrangement or policy and each plan, arrangement (written or oral), program, agreement or commitment providing for insurance coverage (including without limitation any self-insured arrangements), workers’ compensation, disability benefits, supplemental unemployment benefits, vacation benefits, retirement benefits, life, health, disability or accident benefits (including without limitation any “voluntary employees’ beneficiary association”) as defined in Section 501(c)(9) of the Code providing for the same or other benefits) or for deferred compensation, profit-sharing bonuses, stock options, stock appreciation rights, stock purchases or other forms of incentive compensation or post-retirement insurance, compensation or benefits which (i) is not a Welfare Plan, Pension
Plan or Multiemployer Plan, (ii) is entered into, maintained, contributed to or required to be contributed to, and (iii) covers any employee or former employee, and is first used as a defined term in the definition of Employee Plans.

           “Business” means, as the context requires, either (i) the Gupta Business, or (ii) the NavRisk Business and the ViaMode Product.

          “Business Records” means all books, records, lists, ledgers, files, computer data, disks and files (including software and firmware), reports, plans, drawings and operating records of any kind, including, without limitation, all corporate and tax books and records.

          “Cash Purchase Price” has the meaning set forth in Section 2.2 hereof.

          “Claims” means all claims, causes of action, choses in action, rights of recovery and rights of set-off of whatever kind or description against any person or entity.

          “Closing” has the meaning set forth in Section 3.1 hereof.

          “Closing Date” has the meaning set forth in Section 3.1 hereof.

          “COBRA” means Part 6 of Title 1 of ERISA or Code Section 4980B.

          “Code” means the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder.

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          “Contracts” means any of the agreements, contracts, leases, powers of attorney, notes, loans, evidence of indebtedness, purchase orders, letters of credit, settlement agreements, franchise agreements, undertakings, covenants not to compete, employment agreements, consulting agreements, work-for-hire agreements, licenses, instruments, obligations, commitments, understandings, policies, purchase and sales orders, quotations, license agreements and other agreements of any kind related to any of the Intellectual Property and the Software, and other executory commitments, whether oral or written, express or implied.  

          “Defense Counsel” has the meaning set forth in Section 9.4 hereof.

          “Defense Notice” has the meaning set forth in Section 9.4 hereof.

          “Deposit” has the meaning set forth in Section 2.1 hereof.

          “Direct Claim” has the meaning set forth in Section 9.4 hereof.

          “Disclosure Letter” means in the case of Unify, the Disclosure Letter prepared by Unify, and in the case of Halo, the Disclosure Letter prepared by Halo.

          “Employee Plans” means all Benefit Arrangements, Pension Plans, Multiemployer Plans and Welfare Plans.

          “Environmental Law” means any federal, state, or local Laws, regulations,  ordinances, orders, permits and judgments, and common Law relating to the  protection of the environment, including any Law of strict liability, nuisance or with respect to conducting abnormally dangerous activities including, without limitation, provisions pertaining to or regulating air pollution, water pollution, noise control, wetlands, water courses, natural resources, wildlife, Hazardous Materials, or any other activities or conditions which impact or relate to the environment or nature. Such Environmental Laws shall include, without limitation, CERCLA, RCRA, the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq., the Emergency Planning and Community Right to Know Act (“EPCRA”), as amended, 42
U.S.C. Section 11001 et seq., the Oil Pollution Act, as amended, 33 U.S.C. Section 2701 et seq., and the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.

           “ERISA” means the Employee Retirement Income Security Act of 1974.

          “ERISA Affiliate” means, with respect to each party, any person which is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code of which such party is a member or (ii) solely for the purposes of potential liability under Section 302(c)(11) of ERISA and Section 412(c)(11) of the Code and the Lien created under Section 302(f) of ERISA and Section 412(n) of the Code, described in Section 414(m) or (o) of the Code of which such party is a member.

           “Financial Statements” means the Gupta Financial Statements or the NavRisk Financial Statements.

           “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time, consistently applied.

          “Governmental Authority” means any government, governmental or regulatory authority, board, agency or other entity, or any court, tribunal or judicial body, whether federal, state or local.

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          “Gupta Assets” means the Gupta Entities’ right, title and interest in and to substantially all of the assets, business and goodwill owned by any of the Gupta Entities in or related to the Gupta Business, (other than cash, cash equivalents, securities held for investment purposes, and marketable securities) wherever located, known or unknown, tangible or intangible, including, without limitation:  all Intellectual Property, Software, Internet domain names, Web sites, know-how, trade secrets, business leads, research and results thereof, technology, techniques, data, methods, processes, instructions, drawings and specifications, inventions, discoveries, improvements, designs, processes, formulae, recipes and shop rights, Intangible Assets, property, personal, real or mixed, accounts receivable, securities, deposits (on contractual obligations or otherwise), Claims and rights under
Contracts and Permits held by the Gupta Entities and all Business Records, all as the same exist on the Closing Date. Specifically excluded from Gupta Assets are any inter-company receivables or obligations between and/or among the (i) Gupta Entities and (ii) Halo or Halo’s Affiliates (other than the Gupta Entities).

          “Gupta Business” has the meaning set forth in Recital C hereof.

          “Gupta Closing Balance Sheet” has the meaning set forth in Section 2.2 hereof.

          “Gupta Contract” shall have the meaning set forth in Section 4.9 hereof.

          “Gupta Entities” means Gupta Technologies, LLC, Gupta Technologies, Ltd. and Gupta Technologies GmbH.

          “Gupta Financial Statements” shall have the meaning set forth in Section 4.16 hereof.

          “Gupta Leased Properties” shall have the meaning set forth in Section 4.5 hereof.

           “Gupta LLC Interests” means 100% of the membership interest in Gupta Technologies, LLC and 100% of its wholly owned subsidiaries, Gupta Technologies, Ltd. and Gupta Technologies GmbH .

          “Gupta Net Working Capital” means for the Gupta Entities the aggregate (a) accounts receivable (net of the allowance for doubtful accounts reflected on the Gupta Closing Balance Sheet), plus (b) cash deposits held by third parties, plus (c) prepaid expenses, less (x) Accounts Payable, (y) Accrued Expenses, and (z) Accrued Compensation  and related benefits including bonuses and commissions.  “Accrued Expenses” shall mean all expenses of the Gupta Entities, which are being assumed by Unify, including Taxes, that have been accrued and unpaid as of the date of determination.  “Accrued Compensation” shall mean all accrued, but unpaid, compensation to employees for services to the Gupta Entities for a compensation time period ending as of the date of determination but which is to be paid to such employees on a date occurring after the date of
determination and which is being assumed by Unify.  “Accounts Payable” shall mean the right to payments by third parties who have delivered goods or performed services to the Gupta Entities as of the date of determination, whether billed or unbilled, and whether or not evidenced by any contract or agreement, which are being assumed by Unify.  Specifically excluded from Gupta Net Working Capital are any inter-company receivables or obligations between and/or among the (i) Gupta Entities and (ii) Halo or Halo’s Affiliates (other than the Gupta Entities).

          “Halo Stock” shall have the meaning set forth in Section 12.13 hereof.

          “Hazardous Materials” include “hazardous wastes” as defined by the Resource Conservation and Recovery Act (“RCRA”), as amended, 42 U.S.C. Section 6901 et seq., or any similar state or local Law, regulation, ordinance, or order, (c) “hazardous substances” as defined by the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), as amended, 42 U.S.C. Section 9601 et seq., 

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or any similar state or local Law, regulation, ordinance, or order, (d)  “hazardous materials” as defined by the Hazardous Materials Transportation Act (“HMTA”), as amended, 49 U.S.C. Section 1802 et seq., or any similar  state or local Law, regulation, ordinance, or order, (e) radioactive materials  subject to the Atomic Energy Act (“AEA”, as amended, 42 U.S.C. Section  2014 et seq., or any similar state or local Law, regulation, ordinance, or order,  and (f) any other pollutant, contaminant, chemical, or substance defined or regulated as of the Closing Date as hazardous or toxic by any Environmental Law.

          “Indemnified Party” has the meaning set forth in Section 9.4 hereof.

          “Indemnifying Party” has the meaning set forth in Section 9.4 hereof.

          “Intangible Assets” means all intangible property owned, licensed or used by Unify and/or Acuitrek relating to the NavRisk Business and the ViaMode Product, or by the Gupta Entities relating to the Gupta Business, as the case may be, including, but not limited to, the Intellectual Property, contract rights, all warranties and similar guarantees of quality or performance given by third parties in respect of goods delivered or services performed, goodwill and approvals.

          “Intellectual Property” means all of the following whether patented or patentable or not  and whether or not such items have been reduced to written, computer-readable or other tangible form and irrespective of where any of the same were issued, are pending or exist that are owned by, issued to or licensed:  (i) United States and foreign patents of any description, and applications therefor, utility models and utility model applications (whether owned or licensed), including any equivalents, divisionals, continuations, continuations-in-part, re-issues, registrations, additions or extensions thereof, as well as any further patents, patent applications, utility models and utility model applications (whether owned by or licensed); (ii) United States (federal and state) and foreign trademarks (and goodwill associated therewith) and other trade names, labels, trade dress,
advertising and package designs, and other trade rights, whether or not registered and all applications therefor; and (iii) United States and foreign copyrights, whether or not registered and all applications therefor (including copyrights in computer software and computer software documentation, source code and systems documentation). 

          “Knowledge” or “knowledge” of a party as used in this Agreement with respect to facts or circumstances shall mean actual knowledge of the party after reasonable investigation and due diligence.  Actual knowledge of any officer, director or supervisory employee of such party will be imputed and deemed to be actual knowledge of such party.

          “Law” means any laws, statutes, ordinances, regulations, rules, notice requirements, agency guidelines and orders of any federal, state or local government and any other governmental department or agency, including, without limitation, Environmental Laws, ERISA, energy, motor vehicle safety, public utility, zoning, building and health codes, occupational safety and health Laws and Laws respecting employment practices, employee documentation, terms and conditions of employment and wages and hours.

          “License Agreements” has the meaning set forth in Section 6.8 hereof.

          “Lien” means any mortgage, pledge, security interest, encumbrance, lien, title defect, restriction or charge of any kind (including any conditional sale or other title retention agreement or lease in the nature thereof), any sale of receivables with recourse, any filing or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to reflect ownership by a third party of property leased under a lease which is not in the nature of a conditional sale or title retention agreement), or any subordination arrangement in favor of another Person.

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          “Losses” has the meaning set forth in Section 9.2 hereof.

          “Material Adverse Change” means a change the consequence of which is a Material Adverse Effect.

          “Material Adverse Effect” means a material adverse effect on the financial condition, business, earnings, results of operations, assets, liabilities or operations of the Gupta Business, or the NavRisk Business and ViaMode Product, as the context requires.

          “Merger Agreement” has the meaning set forth in Recital A hereof.

          “Multiemployer Plan” means any “multiemployer plan,” as defined in Section 3(37) or Section 4001(a)(3) of ERISA.

          “NavRisk Assets” means Unify’s and/or Acuitrek’s right, title and interest in and to substantially all of the assets, business and goodwill owned by Unify or Acuitrek in or related to the NavRisk Business (other than cash, cash equivalents, securities held for investment purposes, and marketable securities),, wherever located, known or unknown, tangible or intangible, including, without limitation:  all Intellectual Property, Software, Internet domain names, Web sites, know-how, trade secrets, business leads, research and results thereof, technology, techniques, data, methods, processes, instructions, drawings and specifications, inventions, discoveries, improvements, designs, processes, formulae, recipes and shop rights, Intangible Assets, property, personal, real or mixed, accounts receivable, securities, deposits (on contractual obligations or otherwise), Claims and
rights under Contracts and Permits assigned to Halo and all Business Records, all as the same exist on the Closing Date.

          “NavRisk Business” has the meaning set forth in Recital D hereof.

          “NavRisk Closing Balance Sheet” has the meaning set forth in Section 2.2 hereof.

          “NavRisk Financial Statements” shall have the meaning set forth in Section 5.18 hereof.

          “NavRisk Net Working Capital” means  the aggregate (a) accounts receivable (net of the allowance for doubtful accounts reflected on the NavRisk Closing Balance Sheet), plus (b) cash deposits held by third parties, plus (c) prepaid expenses, less (x) Accounts Payable (as defined for this purpose below), (y) Accrued Expenses (as defined for this purpose below), and (z) Accrued Compensation (as defined for this purpose below) and related benefits including bonuses and commissions.  “Accrued Expenses” shall mean all expenses of the NavRisk Business which are being assumed by Halo, including Taxes, that have been accrued and unpaid as of the date of determination.  “Accrued Compensation” shall mean all accrued, but unpaid, compensation to employees for services to Unify for a compensation time period ending as of the date of determination but
which is to be paid to such employees on a date occurring after the date of determination and which are being assumed by Halo.  “Accounts Payable” shall mean the right to payments by third parties who have delivered goods or performed services to the NavRisk Business  as of the date of determination, whether billed or unbilled, and whether or not evidenced by any contract or agreement, which is being assumed by Halo.  Specifically excluded from NavRisk Net Working Capital are any inter-company obligations between and/or among the NavRisk Business and Unify or Unify’s Affiliates.

          “Organizational Documents” means the charter, articles or certificates or organization or other organizational documents (including agreements among stockholders) or instruments of an entity.

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           “Pension Plan” mean any “employee pension benefit plan” as defined in Section 3(2) of ERISA (other than a Multiemployer Plan) (a) which Halo or any ERISA Affiliate of Halo, or Unify or any ERISA Affiliate of Unify, as applicable, maintains, administers, contributes to or is required to contribute to, or, within the six years prior to the Closing Date, maintained, administered, contributed to or was required to contribute to, or under which Halo or any ERISA Affiliate of Halo, or Unify or any ERISA Affiliate of Unify, as applicable, may incur any liability and (b) which covers any employee or former employee of Halo or any ERISA Affiliate of Halo, or Unify or any ERISA Affiliate of Unify, as applicable.

          “Permits” means all government licenses, permits and other governmental authorizations necessary to carry on a business as presently conducted and as proposed to be conducted.

          “Person” or “person” means any person or entity.

           “Purchase Price” has the meaning set forth in Section 2.2 hereof.

          “Purchase Shares” has the meaning set forth in Section 2.2 hereof.

          “Purchase Warrant” has the meaning set forth in Section 2.2 hereof and shall be in a form mutually agreed by the parties which shall include customary terms including a 5 year term, and a cash only exercise and equitable adjustment protection for stock splits, recapitalizations and the like (but no anti-dilution protection for future issuances of securities at below the exercise price). The Purchase Warrant will also provide that if (i) the common stock underlying the Purchase Warrant is registered pursuant to an effective registration statement, and (ii) the Unify common stock (as adjusted for stock splits, recapitalizations and the like) has a trailing thirty (30) day volume weighted average trading price of 200% of the warrant exercise price, Unify may (upon reasonable prior notice to Halo) repurchase once each fiscal quarter the number of shares of common stock underlying the
Purchase Warrant equal to one-twelfth (1/12th) of the Unify common stock trading volume for the immediately trailing twelve months.

           “Registration Agreement” means the Registration Rights Agreement between Halo and Unify in the form mutually agreed by the parties, which shall include the obligation of Unify to file appropriate registration statements with the Securities and Exchange Commission within 90 days after the Closing to register for resale the Purchase Shares and the shares of Unify issuable upon exercise of the Purchase Warrants, to have such registration statement effective within nine months after the Closing, to maintain the effectiveness of such statement for a period of  two years after the Closing, containing a lock up provision prohibiting Halo to sell such shares within the first nine months after the Closing (other than in a tender offer, merger or other significant transaction) and to include other customary terms and provisions.

          “Securities Act” has the meaning set forth in Section 4.22 hereof.

           “Software” means, collectively:  (a) all object and source code (in any computer language), and any embedded files, programs, data and associated databases, of and for all versions, revisions and releases (whether in development stages or commercially available) of all computer programs and all modules, and (b) all user, technical and programmer manuals and documentation of any kind (in whatever form, whether written, electronic or otherwise).

          “Subsidiary” or “Subsidiaries” of any Person means any corporation, partnership, limited liability company, association, trust, joint venture or other entity or organization of which such Person, either alone or through or together with any other Subsidiary, owns, directly or indirectly, more than 25% of the stock or other equity interests, the holder of which is generally entitled to vote for the election of the board of directors or other governing body of such corporation, partnership, limited liability company, association, trust, joint venture or other entity or organization.

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           “Tax” or “Taxes” means any federal, state, local or foreign income, gross receipts, license, capital stock, franchise, profits, payroll, employment, withholding, social security, unemployment, disability, real property, ad valorem/personal property, stamp, excise, occupation, sales, use, transfer, environmental (including taxes under Code § 59A), customs duties, value added, alternative or add-on minimum, estimated or other tax or governmental charge, including any interest, penalty or addition thereto, whether disputed or not.

          “Third Party Claim” has the meaning set forth in Section 9.4 hereof.

          “ViaMode Assets” means Unify’s right, title and interest in and to ViaMode Product all Intellectual Property and Software owned by Unify in or related to the ViaMode Product.

          “ViaMode Product” has the meaning set forth in Recital D hereof.

           “Welfare Plan” means any “employee welfare benefit plan” as defined in Section 3(1) of ERISA, (A) which an entity maintains, administers, contributes to or is required to contribute to, or under which an entity may incur any liability and (B) which covers any employee or former employee.

          “Working Capital Adjustment” has the meaning set forth in Section 2.2 hereof.

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