Document:

Exhibit 4.1

 

EXECUTION DRAFT

 

INDENTURE,

 

Dated as of November 30, 2004,

 

among

 

ALTRA INDUSTRIAL MOTION INC.,

 

as Issuer,

 

THE GUARANTORS NAMED HEREIN,

 

as Guarantors,

 

and

 

THE BANK OF NEW YORK TRUST COMPANY, N.A.

 

as Trustee and as Collateral Agent

 

9% SENIOR SECURED NOTES DUE 2011

 

 

CROSS REFERENCE TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  310

  	
   

  	
  (a)(1)

  	
   

  	
   

  	
  7.10(a)

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
   

  	
  7.10(a)

  
	
   

  	
   

  	
  (a)(3)

  	
   

  	
   

  	
  7.10(a)

  
	
   

  	
   

  	
  (a)(4)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
   

  	
  (a)(5)

  	
   

  	
   

  	
  7.10(a)

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  7.03; 7.08; 7.10(a)

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  N.A.

  
	
  311

  	
   

  	
  (a)

  	
   

  	
   

  	
  7.03; 7.11

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  7.03; 7.11

  
	
  312

  	
   

  	
  (a)

  	
   

  	
   

  	
  2.05

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  7.07; 11.03

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  11.03

  
	
  313

  	
   

  	
  (a)

  	
   

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  7.06

  
	
   

  	
   

  	
  (d)

  	
   

  	
   

  	
  7.06

  
	
  314

  	
   

  	
  (a)

  	
   

  	
   

  	
  4.06; 4.21

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  12.02

  
	
   

  	
   

  	
  (c)(1)

  	
   

  	
   

  	
  4.06; 11.04

  
	
   

  	
   

  	
  (c)(2)

  	
   

  	
   

  	
  11.04

  
	
   

  	
   

  	
  (c)(3)

  	
   

  	
   

  	
  4.06

  
	
   

  	
   

  	
  (d)

  	
   

  	
   

  	
  12.03(c)

  
	
   

  	
   

  	
  (e)

  	
   

  	
   

  	
  11.05

  
	
   

  	
   

  	
  (f)

  	
   

  	
   

  	
  N.A.

  
	
  315

  	
   

  	
  (a)

  	
   

  	
   

  	
  7.01(b)

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  7.05

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  7.01(a)

  
	
   

  	
   

  	
  (d)

  	
   

  	
   

  	
  7.01(c)

  
	
   

  	
   

  	
  (e)

  	
   

  	
   

  	
  6.11

  
	
  316

  	
   

  	
  (a)(last sentence)

  	
   

  	
   

  	
  2.09

  
	
   

  	
   

  	
  (a)(1)(A)

  	
   

  	
   

  	
  6.05

  
	
   

  	
   

  	
  (a)(1)(B)

  	
   

  	
   

  	
  6.04

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  6.07

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  9.04

  
	
  317

  	
   

  	
  (a)(1)

  	
   

  	
   

  	
  6.08

  
	
   

  	
   

  	
  (a)(2)

  	
   

  	
   

  	
  6.09

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  2.04

  
	
  318

  	
   

  	
  (a)

  	
   

  	
   

  	
  11.01

  
	
   

  	
   

  	
  (b)

  	
   

  	
   

  	
  N.A.

  
	
   

  	
   

  	
  (c)

  	
   

  	
   

  	
  11.01

  

 

N.A. means Not Applicable

 

NOTE: This Cross-Reference
Table shall not, for any purpose, be deemed to be a part of this Indenture.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE ONE DEFINITIONS AND INCORPORATION
  BY REFERENCE

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 1.01

  	
  Definitions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.02

  	
  Incorporation by Reference of TIA.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.03

  	
  Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  TWO THE NOTES

  	
   

  
	
   

  	
   

  
	
   

  	
  Section
  2.01

  	
  Form
  and Dating.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.02

  	
  Execution
  and Authentication; Aggregate Principal Amount.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.03

  	
  Registrar
  and Paying Agent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.04

  	
  Obligations
  of Paying Agent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.05

  	
  Holder
  Lists.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.06

  	
  Transfer
  and Exchange.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.07

  	
  Replacement
  Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.08

  	
  Outstanding
  Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.09

  	
  Treasury
  Notes; When Notes are Disregarded.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.10

  	
  Temporary
  Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.11

  	
  Cancellation.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.12

  	
  CUSIP
  Numbers.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.13

  	
  Deposit
  of Moneys.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.14

  	
  Book-Entry
  Provisions for Global Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.15

  	
  Special
  Transfer Provisions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  2.16

  	
  Transfers
  of Global Notes and Physical Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE THREE REDEMPTION

  	
   

  
	
   

  	
   

  
	
   

  	
  Section
  3.01

  	
  Optional
  Redemption.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.02

  	
  Selection
  of Notes to be Redeemed.

  	
   

  

 

 

	
   

  	
  Section
  3.03

  	
  Notice
  of Redemption.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.04

  	
  Effect
  of Notice of Redemption.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.05

  	
  Deposit
  of Redemption Price.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  3.06

  	
  Notes
  Redeemed in Part.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FOUR COVENANTS

  	
   

  
	
   

  	
   

  
	
   

  	
  Section
  4.01

  	
  Payment
  of Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.02

  	
  Maintenance
  of Office or Agency.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.03

  	
  Corporate
  Existence.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.04

  	
  Payment
  of Taxes and Other Claims.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.05

  	
  Maintenance
  of Properties and Insurance; Compliance with Laws.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.06

  	
  Compliance
  Certificate; Notice of Default.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.07

  	
  Waiver
  of Stay, Extension or Usury Laws.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.08

  	
  Limitation
  on Incurrence of Additional Indebtedness.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.09

  	
  Limitation
  on Restricted Payments.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.10

  	
  Limitation
  on Asset Sales.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.11

  	
  Limitation
  on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.12

  	
  Limitation
  on Issuances and Sales of Capital Stock of Subsidiaries.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.13

  	
  Limitation
  on Liens.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.14

  	
  Limitations
  on Transactions with Affiliates.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.15

  	
  Additional
  Subsidiary Guarantees.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.16

  	
  Impairment
  of Security Interest.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.17

  	
  Real
  Estate Mortgages and Filings.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.18

  	
  Leasehold
  Mortgages and Filings; Landlord Waivers.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.19

  	
  Conduct
  of Business.

  	
   

  

 

ii

 

	
   

  	
  Section
  4.20

  	
  Reports
  to Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.21

  	
  Payments
  for Consent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.22

  	
  Repurchase
  Upon Change of Control.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  4.23

  	
  Additional
  Interest.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  FIVE SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
  Section
  5.01

  	
  Merger,
  Consolidation and Sale of Assets.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  5.02

  	
  Successor
  Entity Substituted.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  SIX DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  
	
   

  	
  Section
  6.01

  	
  Events
  of Default.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.02

  	
  Acceleration.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.03

  	
  Other
  Remedies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.04

  	
  Waiver
  of Past Defaults.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.05

  	
  Control
  by Majority.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.06

  	
  Limitation
  on Suits.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.07

  	
  Rights
  of Holders to Receive Payment.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.08

  	
  Collection
  Suit by Trustee or Collateral Agent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.09

  	
  Trustee
  May File Proofs of Claim.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.10

  	
  Priorities.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.11

  	
  Undertaking
  for Costs.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  6.12

  	
  Restoration
  of Rights and Remedies.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN TRUSTEE

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 7.01

  	
  Duties of Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.02

  	
  Rights of Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.03

  	
  Individual Rights of Trustee.

  	
   

  

 

iii

 

	
   

  	
  Section 7.04

  	
  Trustee’s Disclaimer.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.05

  	
  Notice of Default.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.06

  	
  Reports by Trustee to Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.07

  	
  Compensation and Indemnity.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.08

  	
  Replacement of Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.09

  	
  Successor Trustee by Merger, Etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.10

  	
  Eligibility; Disqualification.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.11

  	
  Preferential Collection of Claims Against
  Company.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section
  7.12

  	
  Trustee
  as Paying Agent and Collateral Agent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.13

  	
  Co-Trustees , Co-Collateral Agent and
  Separate Trustees and Collateral Agent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.14

  	
  Form of Documents Delivered to Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT SATISFACTION AND DISCHARGE OF
  INDENTURE

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 8.01

  	
  Legal Defeasance and Covenant Defeasance.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.02

  	
  Satisfaction and Discharge.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.03

  	
  Survival of Certain Obligations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.04

  	
  Acknowledgment of Discharge by Trustee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.05

  	
  Application of Trust Moneys.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.06

  	
  Repayment to the Company; Unclaimed Money.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.07

  	
  Reinstatement.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE NINE AMENDMENTS, SUPPLEMENTS AND
  WAIVERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.01

  	
  Without Consent of Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.02

  	
  With Consent of Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.03

  	
  Compliance with TIA.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.04

  	
  Revocation and Effect of Consents.

  	
   

  

 

iv

 

	
   

  	
  Section 9.05

  	
  Notation on or Exchange of Notes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.06

  	
  Trustee to Sign Amendments, Etc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TEN GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.01

  	
  Guarantee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.02

  	
  Release of a Guarantor.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.03

  	
  Limitation of Guarantor’s Liability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.04

  	
  Guarantors May Consolidate, etc., on
  Certain Terms.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.05

  	
  Contribution.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.06

  	
  Waiver of Subrogation.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.07

  	
  Waiver of Stay, Extension or Usury Laws.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.08

  	
  Evidence of Guarantee.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 11.01

  	
  TIA Controls.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.02

  	
  Notices.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.03

  	
  Communications by Holders with Other
  Holders.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.04

  	
  Certificate and Opinion as to Conditions
  Precedent.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.05

  	
  Statements Required in Certificate or
  Opinion.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.06

  	
  Rules by Trustee, Paying Agent, Registrar.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.07

  	
  Legal Holidays.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.08

  	
  Governing Law.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.09

  	
  No Adverse Interpretation of Other
  Agreements.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.10

  	
  No Recourse Against Others.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.11

  	
  Successors.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.12

  	
  Duplicate Originals.

  	
   

  

 

v

 

	
   

  	
  Section 11.13

  	
  Severability.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.14

  	
  Waiver of Jury Trial.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE SECURITY

  	
   

  
	
   

  	
   

  
	
   

  	
  Section 12.01

  	
  Grant of Security Interest.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.02

  	
  Recording and Opinions.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.03

  	
  Release of Collateral.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.04

  	
  Specified Releases of Collateral.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.05

  	
  Release upon Satisfaction or Defeasance of
  all Outstanding Obligations.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.06

  	
  Form and Sufficiency of Release.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.07

  	
  Purchaser Protected.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.08

  	
  Authorization of Actions to be Taken by the
  Collateral Agent Under the Collateral Agreements.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.09

  	
  Authorization of Receipt of Funds by the
  Trustee Under the Collateral Agreements.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.10

  	
  Intercreditor Agreement.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Form of Initial Note

  	
   

  
	
  Exhibit B

  	
  —

  	
  Form of Exchange Note

  	
   

  
	
  Exhibit
  C

  	
  —

  	
  Form
  of Legend for Global Notes

  	
   

  
	
  Exhibit
  D

  	
  —

  	
  Form
  of Certificate to be Delivered in Connection with Transfers to Non-QIB
  Accredited Investors

  	
   

  
	
  Exhibit
  E

  	
  —

  	
  Form
  of Certificate to be Delivered in Connection with Transfers Pursuant to
  Regulation S

  	
   

  
	
  Exhibit F-1

  	
  —

  	
  Form of
  Landlord Waiver

  	
   

  
	
  Exhibit F-2

  	
  —

  	
  Form of
  Bailee Waiver

  	
   

  
	
  Exhibit F-3

  	
  —

  	
  Form of
  Consignee Waiver

  	
   

  
					

 

NOTE:  This Table of
Contents shall not, for any purpose, be deemed to be part of this Indenture.

 

vi

 

INDENTURE, dated as of November 30,
2004, among Altra Industrial Motion, a Delaware corporation (the “Company”),
the Guarantors (as herein defined) and The Bank of New York Trust Company,
N.A., as Trustee (in such capacity, the “Trustee”) and Collateral Agent
(in such capacity, the “Collateral Agent”).

 

WITNESSETH:

 

WHEREAS, the Company and the Guarantors (with
respect to the Guarantees) have duly authorized the creation of the Notes and,
to provide therefor, the Company and the Guarantors have duly authorized the
execution and delivery of this Indenture; and

 

WHEREAS, all things necessary to make the
Notes, when duly issued and executed by the Company, and authenticated and
delivered hereunder, the valid obligations of the Company, and to make this
Indenture a valid and binding agreement of each of the Company and the
Guarantors, have been done.

 

NOW, THEREFORE, each party hereto agrees as
follows for the benefit of the other parties and for the equal and ratable
benefit of the Holders:

 

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01           Definitions.

 

“Acceleration Notice” has the meaning
set forth in Section 6.02(a).

 

“Acquired Indebtedness” means Indebtedness
of a Person or any of its Subsidiaries:

 

(a)           (i) existing at the time such Person becomes a
Restricted Subsidiary or at the time it merges or consolidates with or into the
Company or any of its Restricted Subsidiaries or assumed in connection with the
acquisition of assets from such Person or (ii) incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary upon the consummation of the acquisition of all or
substantially all of the assets or all of the Capital Stock of such Person by
the Company or any of its Restricted Subsidiaries; and

 

(b)           that is without recourse to the Company or any of
its Subsidiaries or to any of their respective properties or assets other than
the Person or the assets to which such Indebtedness relates.

 

“Additional Interest” has the meaning
set forth in the Registration Rights Agreement.

 

“Additional Notes” means all Notes issued
after the Issue Date (other than pursuant to Sections 2.06, 2.07,
2.10 and 3.06 of this Indenture and other than Exchange Notes)
from time to time in accordance with the terms of this Indenture, including,
without limitation, the provisions of Section 2.02.

 

“Administrative Agent” has the meaning
set forth in the definition of the term “Credit Agreement.”

 

1

 

“Affiliate” means, with respect to any
specified Person, any other Person who directly or indirectly through one or
more intermediaries controls, or is controlled by, or is under common control
with, such specified Person. The term “control” means the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities,
by contract or otherwise; provided, that Beneficial Ownership of 10% or
more of the Voting Stock of any Person shall be deemed to be control of such
Person. The terms “controlling” and “controlled” have meanings correlative of
the foregoing.

 

“Affiliate Transaction” has the
meaning set forth in Section 4.14.

 

“Agent” means any Registrar, Paying
Agent or co-Registrar.

 

“Agent Members” has the meaning set
forth in Section 2.14(a) and means, with respect to the Depository,
Euroclear or Clearstream, a Person who has an account with the Depository,
Euroclear or Clearstream, respectively (and with respect to the Depository,
shall include Euroclear and Clearstream).

 

“Applicable Procedures” means, with
respect to any transfer or exchange of or for beneficial interests in any
Global Note, the rules and procedures of the Depository, Euroclear and
Clearstream that apply to such transfer or exchange.

 

“Asset Acquisition” means:

 

(1)           an Investment by the Company or any Restricted
Subsidiary in any Person (other than a Subsidiary) pursuant to which such
Person becomes a Wholly Owned Subsidiary, or is merged with or into the Company
or any Restricted Subsidiary, or

 

(2)           the acquisition by the Company or any Restricted
Subsidiary of the assets of any Person (other than a Subsidiary) that
constitute all or substantially all of the assets of such Person or comprise
any division or line of business of such Person.

 

“Asset Sale” means any direct or
indirect sale, issuance, conveyance, transfer, lease (other than operating
leases entered into in the ordinary course of business, consistent with past
practice), assignment or other transfer of:

 

(1)           any Capital Stock of any Restricted Subsidiary; or

 

(2)           any other property or assets of the Company or any
Restricted Subsidiary other than in the ordinary course of business, consistent
with past practice;

 

provided, that Asset
Sales shall not include:

 

(a)           a transaction or series of related transactions for
which the Company or its Restricted Subsidiaries receive aggregate
consideration of less than $2.5 million;

 

(b)           the transfer of all or substantially all of the
assets of the Company as permitted under Section 5.01;

 

(c)           any Restricted Payment permitted under Section
4.09, or any Permitted Investment;

 

(d)           the sale of Cash Equivalents;

 

2

 

(e)           the creation of a Permitted Lien (but not the sale
or other disposition of the property subject to such Lien); and

 

(f)            a transfer to the Company or to a Guarantor.

 

“Authenticating Agent” has the meaning
set forth in Section 2.02.

 

“Bankruptcy Code” means the Bankruptcy
Reform Act of 1978, as amended, and codified as 11 U.S.C. §§101 et seq.

 

“Beneficial Owner” has the meaning
assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act,
except that in calculating the beneficial ownership of any particular “person”
(as that term is used in Section 13(d)(3) of the Exchange Act), such “person”
will be deemed to have beneficial ownership of all securities that such “person”
has the right to acquire by conversion or exercise of other securities, whether
such right is currently exercisable or is exercisable only upon the occurrence
of a subsequent condition. The terms “Beneficially Owns,” “Beneficially Owned”
and “Beneficial Ownership” have meanings correlative to the foregoing.

 

“Board of Directors” means, as to any
Person, the board of directors or similar governing body of such Person or any
duly authorized committee thereof.

 

“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 of such Person and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

 

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

 

“Capital Stock” means:

 

(1)           with respect to any Person that is a corporation,
any and all shares, interests, participations or other equivalents (however
designated and whether or not voting) of corporate stock, including each class
of Common Stock and Preferred Stock of such Person;

 

(2)           with respect to any Person that is not a
corporation, any and all partnership, membership or other equity interests of
such Person; and

 

(3)           any warrants, rights or options to purchase any of
the instruments or interests referred to in clauses (1) or (2)
above.

 

“Capitalized Lease Obligation” means,
as to any Person, the obligations of such Person under a lease that are
required to be classified and accounted for as capital lease obligations under
GAAP and, for purposes of this definition, the amount of such obligations at
any date shall be the capitalized amount of such obligations at such date,
determined in accordance with GAAP.

 

“Cash Equivalents” means:

 

(1)           marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition thereof;

 

3

 

(2)           marketable direct obligations issued by any state
of the United States of America or any political subdivision of any such state
or any public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either Standard & Poor’s Ratings Group (“S&P”)
or Moody’s Investors Service, Inc. (“Moody’s”);

 

(3)           commercial paper maturing no more than one year
from the date of creation thereof and, at the time of acquisition, having a
rating of at least A-1 from S&P or at least P-1 from Moody’s;

 

(4)           certificates of deposit or bankers’ acceptances
maturing within one year from the date of acquisition thereof issued by any
bank organized under the laws of the United States of America or any state
thereof or the District of Columbia or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined net capital and surplus of not less
than $250.0 million;

 

(5)           repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clause (1)
above entered into with any bank meeting the qualifications specified in clause
(4) above; and

 

(6)           investments in money market funds which invest
substantially all their assets in securities of the types described in clauses
(1) through (5) above.

 

“Change of Control” means the
occurrence of one or more of the following events:

 

(1)           any direct or indirect sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation),
in one transaction or a series of related transactions, of all or substantially
all of the assets of the Company to any Person or group of related Persons for
purposes of Section 13(d) of the Exchange Act (a “Group”), other than a
transaction in which the transferee is controlled by one or more Permitted
Holders;

 

(2)           the Company consolidates with, or merges with or
into, any Person, or any Person consolidates with, or merges with or into, the
Company, other than (A) a transaction in which the surviving or Transferee
Person is a Person that is controlled by the Permitted Holders or (B) any
such transaction where the Voting Stock of the Company outstanding immediately
prior to such transaction is converted into or exchanged for Voting Stock
(other than Disqualified Capital Stock) of the surviving or transferee Person
constituting a majority of the outstanding shares of such Voting Stock of such
surviving or transferee Person (immediately after giving effect to such
issuance);

 

(3)           the approval by the holders of Capital Stock of the
Company of any plan or proposal for the liquidation, winding up or dissolution
of the Company;

 

(4)           prior to the first Public Equity Offering, the
Permitted Holders cease for any reason to be the Beneficial Owner, directly or
indirectly, in the aggregate of at least a majority of the total voting power
of the Voting Stock of the Company, whether by virtue of the issuance, sale or
other disposition of Capital Stock of the Company, a merger, consolidation or
sale of assets involving the Company, a Restricted Subsidiary, any voting trust
or other agreement; or

 

(5)           subsequent to the first Public Equity Offering, (a) any
Person or Group is or becomes the Beneficial Owner, directly or indirectly, in
the aggregate of more than 35% of the

 

4

 

total voting
power of the Voting Stock of the Company, and (b) the Permitted Holders
Beneficially Own, directly or indirectly, in the aggregate a lesser percentage
of the total voting power of the Voting Stock of the Company than such other
Person or Group.

 

“Change of Control Offer” has the meaning
set forth in Section 4.22.

 

“Change of Control Payment Date” has
its meaning set forth in Section 4.22.

 

“Clearstream” means Clearstream
Banking, societe anonyme.

 

“Collateral” shall mean collateral as
such term is defined in the Security Agreement, all property mortgaged under
the Mortgages and any other property, whether now owned or hereafter acquired,
upon which a Lien securing the Obligations or other obligations is granted or
purported to be granted under any Collateral Agreement.

 

“Collateral Agent” means the
collateral agent and any successor under this Indenture.

 

“Collateral Agreements” means,
collectively, the Intercreditor Agreement, the Security Agreement, each
Mortgage and the Control Agreement, the Patent Security Agreement, and the
Trademark Security Agreement executed and delivered pursuant to the Security
Agreement, in each case, as the same may be in force from time to time.

 

“Common Stock” of any Person means any
and all shares, interests or other participations in, and other equivalents
(however designated and whether voting or non-voting) of such Person’s common
stock, whether outstanding on the Issue Date or issued after the Issue Date,
and includes, without limitation, all series and classes of such common stock.

 

“Company” has the meaning set forth in
the preamble to this Indenture.

 

“Consolidated EBITDA” means, for any
period, the sum (without duplication) of:

 

(1)           Consolidated Net Income; and

 

(2)           to the extent Consolidated Net Income has been
reduced thereby:

 

(a)           all income taxes paid or accrued in accordance with
GAAP for such period;

 

(b)           Consolidated Interest Expense and interest
attributable to write-offs of deferred financing costs; and

 

(c)           Consolidated Non-cash Charges less any non-cash
items increasing Consolidated Net Income for such period.

 

all as determined on a consolidated basis in accordance
with GAAP.

 

“Consolidated Fixed Charge Coverage Ratio”
means the ratio of Consolidated EBITDA during the four consecutive full fiscal
quarters (the “Four Quarter Period”) most recently ending on or prior to
the date of the transaction or event giving rise to the need to calculate the
Consolidated Fixed Charge Coverage Ratio for which financial statements are
available (the “Transaction Date”) to Consolidated Fixed Charges for the
Four Quarter Period.

 

5

 

For purposes of this definition, “Consolidated
EBITDA” and “Consolidated Fixed Charges” shall be calculated after giving
effect on a pro forma basis for the period of such calculation to:

 

(1)           the incurrence or repayment of any Indebtedness of
the Company or any of its Restricted Subsidiaries (and the application of the
proceeds thereof) giving rise to the need to make such calculation and any
incurrence or repayment of other Indebtedness (and the application of the
proceeds thereof), other than the incurrence or repayment of Indebtedness in
the ordinary course of business for working capital purposes pursuant to
working capital facilities, occurring during the Four Quarter Period or at any
time subsequent to the last day of the Four Quarter Period and on or prior to
the Transaction Date, as if such incurrence or repayment, as the case may be
(and the application of the proceeds thereof), occurred on the first day of the
Four Quarter Period; and

 

(2)           any Asset Sale or Asset Acquisition (including,
without limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of the Company or one of its Restricted Subsidiaries
(including any Person who becomes a Restricted Subsidiary as a result of any
such Asset Acquisition) incurring, assuming or otherwise being liable for
Acquired Indebtedness during the Four Quarter Period or at any time subsequent
to the last day of the Four Quarter Period and on or prior to the Transaction
Date), as if such Asset Sale or Asset Acquisition (including the incurrence,
assumption or liability for any such Indebtedness or Acquired Indebtedness and
also including any Consolidated EBITDA associated with such Asset Acquisition)
occurred on the first day of the Four Quarter Period.

 

Furthermore, in calculating “Consolidated
Fixed Charges” for purposes of determining the denominator (but not the
numerator) of this “Consolidated Fixed Charge Coverage Ratio”:

 

(1)           interest on outstanding Indebtedness determined on
a fluctuating basis as of the Transaction Date (including Indebtedness actually
incurred on the Transaction Date) and which will continue to be so determined
thereafter shall be deemed to have accrued at a fixed rate per annum equal to
the rate of interest on such Indebtedness in effect on the Transaction Date;
and

 

(2)           notwithstanding clause (1) above, interest
on Indebtedness determined on a fluctuating basis, to the extent such interest
is covered by agreements relating to Interest Swap Obligations, shall be deemed
to accrue at the rate per annum resulting after giving effect to the operation
of such agreements.

 

“Consolidated Fixed Charges” means,
with respect to any Person for any period, the sum, without duplication, of:

 

(1)           Consolidated Interest Expense (excluding
amortization or write-off of deferred financing costs); plus

 

(2)           the product of (x) the amount of all dividend
payments on any series of Preferred Stock of such Person (other than dividends
paid in Qualified Capital Stock) paid, accrued or scheduled to be paid or
accrued during such period times (y) a fraction, the numerator of
which is one and the denominator of which is one minus the then current
effective consolidated federal, state and local tax rate of such Person,
expressed as a decimal.

 

“Consolidated Interest Expense” means,
with respect to any Person for any period, the aggregate of the interest
expense of such Person and its consolidated Subsidiaries for such period, on a
consolidated basis, as determined in accordance with GAAP, and including,
without duplication, (a) all amortization or

 

6

 

accretion of original issue
discount; (b) the interest component of Capitalized Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by such Person and its
Restricted Subsidiaries during such period; and (c) net cash costs under
all Interest Swap Obligations (including amortization of fees).

 

“Consolidated Net Income” means, for
any period, the aggregate net income (or loss) of the Company and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; provided, that there shall be excluded therefrom
(to the extent otherwise included therein):

 

(1)           gains from Asset Sales and extraordinary gains, in
each case together with any provision for taxes on such gains;

 

(2)           the net income (but not loss) of any Subsidiary of
the Company to the extent that the declaration of dividends or similar
distributions by that Subsidiary of that income is restricted by a contract,
operation of law or otherwise;

 

(3)           the net income (but not loss) of any Person, other
than the Company or a Restricted Subsidiary, except to the extent of cash
dividends or distributions paid to the Company or to a Restricted Subsidiary by
such Person;

 

(4)           any restoration to income of any material
contingency reserve, except to the extent that provision for such reserve was
made out of Consolidated Net Income accrued at any time following the Issue
Date;

 

(5)           income or loss attributable to discontinued
operations (including, without limitation, operations disposed of during such
period whether or not such operations were classified as discontinued);

 

(6)           all gains realized on or because of the purchase or
other acquisition by the Company or any of its Restricted Subsidiaries of any
securities of such Person or any of its Restricted Subsidiaries;

 

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

 

(8)           in the case of a successor to the Company by
consolidation or merger or as a transferee of the Company’s assets, any
earnings of the successor corporation prior to such consolidation, merger or
transfer of assets.

 

“Consolidated Non-cash Charges” means,
with respect to any Person, for any period, the aggregate depreciation,
amortization and other non-cash items and expenses of such Person and its
consolidated Subsidiaries to the extent they reduce Consolidated Net Income of
such Person for such period, determined on a consolidated basis in accordance
with GAAP (excluding any such charges constituting an extraordinary item or
loss or any such charge that requires an accrual of or a reserve for cash
charges for any future period).

 

“Corporate Trust Office” means (a) with
respect to the Trustee, the office of The Bank of New York Trust Company, N.A.
at which the trust created by this Indenture shall, at any particular time, be
principally administered, which office is, at the date of this Indenture,
located at 700 S. Flower Street, Suite 500, Los Angeles, California 90017 or (b) such
other location located in the Borough of Manhattan in the City of New York, New
York that is specified in writing by The Bank of New York Trust Company, N.A.
to the Trustee for purposes of this Indenture.

 

7

 

“Covenant Defeasance” has the meaning
set forth in Section 8.01(c).

 

“Credit Agreement” means the Credit
Agreement, dated as of the Issue Date, among the Company and the lenders party
thereto (together with their successors and assigns, the “Lenders”) and Wells
Fargo Foothill, Inc. as administrative agent (in such capacity, together with
its successors and assigns, the “Administrative Agent”), together with
the related documents thereto (including, without limitation, any guarantee
agreements and security documents), or any agreement extending the maturity of,
refinancing, replacing, refunding, restating or otherwise restructuring
(whether upon or at any time or from time to time after termination or
otherwise) all or any portion of the Indebtedness under such agreement or
document or any successor or replacement agreement or document and whether by
the same or any other agent, lender or group of lenders, or institutional
investors, providing for revolving credit loans, term loans, letters of credit
or issuance of notes or any other debt, in each of the above cases as such
agreements may be amended, supplemented or otherwise modified from time to
time.

 

“Currency Agreement” means any foreign
exchange contract, currency swap agreement or other similar agreement or
arrangement designed to protect the Company or any Restricted Subsidiary
against fluctuations in currency values.

 

“CUSIP” has the meaning set forth in Section
2.12.

 

“Custodian” means any receiver,
trustee, assignee, liquidator, sequestrator or similar official under the Bankruptcy
Code or any other state or federal bankruptcy or insolvency law.

 

“Default” means an event or condition
the occurrence of which is, or with the lapse of time or the giving of notice
or both would be, an Event of Default.

 

“Depository” means DTC, its nominees and
successors.

 

“Disqualified Capital Stock” with
respect to any Person means that portion of any Capital Stock of such Person
which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event (other than an event that would
constitute a Change of Control), matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or is redeemable at the sole option
of the holder thereof (except in each case, upon the occurrence of a Change of
Control) on or prior to the first anniversary of the final maturity date of the
Notes for cash or is convertible into or exchangeable for debt securities of
the Company or its Subsidiaries at any time prior to such anniversary.

 

“Distribution Compliance Period” means
the 40-day distribution compliance period as defined in Regulation S.

 

“Domestic Restricted Subsidiary”
means, with respect to any Person, a Domestic Subsidiary of such Person that is
a Restricted Subsidiary of such Person.

 

“Domestic Subsidiary” means, with
respect to any Person, a Subsidiary of such Person that is not a Foreign
Subsidiary of such Person.

 

“DTC” means The Depositary Trust
Company, its nominees and successors.

 

“Equity Offering” means an
underwritten public offering of Common Stock of the Company or any holding
company of the Company (including Holdings) pursuant to a registration
statement filed with the SEC (other than on Form S-8) or any private placement
of Common Stock of the Company or any

 

8

 

holding company of the Company
(including Holdings) to any Person other than issuances upon exercise of
options by employees of any holding company, the Company or any of the
Restricted Subsidiaries.

 

“Euroclear” means Euroclear Bank
S.A./N.V., as operator of the Euroclear system.

 

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

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

 

“Exchange Notes” means Notes issued in
exchange for the Initial Notes or Additional Notes pursuant to the terms of a
Registration Rights Agreement.

 

“Exchange Offer” means an exchange
offer that may be made by the Company, pursuant to the Registration Rights
Agreement, to exchange for any and all Notes a like aggregate principal amount
of Notes having substantially identical terms to the Notes registered under the
Securities Act.

 

“Fair Market Value” means, with respect
to any asset or property, the price which could be negotiated in an arm’s
length, free market transaction, for cash, between a willing seller and a
willing and able buyer, neither of whom is under undue pressure or compulsion
to complete the transaction. Fair Market Value shall be determined by the Board
of Directors of the Company acting in good faith and shall be evidenced by a
Board Resolution.

 

“Foreign Restricted Subsidiary” means
any Restricted Subsidiary that is organized under the laws of any jurisdiction
other than the United States of America, any state thereof or the District of
Columbia.

 

“Foreign Subsidiary” means, with
respect to any Person, any Subsidiary of such Person that is organized under
the laws of any jurisdiction other than the United States of America, any state
thereof or the District of Columbia.

 

“Four Quarter Period” has the meaning
set forth in the definition of “Consolidated Fixed Charge Coverage Ratio.”

 

“GAAP” means accounting principles
generally accepted in the United States 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
may be approved by a significant segment of the accounting profession of the
United States, which are in effect from time to time.

 

“Global Notes” means, collectively,
the 144A Global Notes, the IAI Global Notes, the Regulation S Permanent Global
Notes and the Regulation S Temporary Global Notes.

 

“Group” has the meaning set forth in
the definition of the term “Change of Control.”

 

“Guarantee” has the meaning set forth
in Section 10.01.

 

“Guarantor” means (1) each of the
Company’s Domestic Restricted Subsidiaries existing on the Issue Date and (2) each
of the Company’s Domestic Restricted Subsidiaries that in the future executes a
supplemental indenture in which such Domestic Restricted Subsidiary agrees to
be bound by the terms of the Indenture as a Guarantor; provided that any
Person constituting a Guarantor as described above shall

 

9

 

cease to constitute a Guarantor
when its respective Guarantee is released in accordance with the terms of the
Indenture.

 

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

 

“Holdings” means Altra Holdings, Inc.

 

“IAI Global Notes” has the meaning set
forth in Section 2.01.

 

“incur” has the meaning set forth in Section
4.08.

 

“Indebtedness” means with respect to
any Person, without duplication:

 

(1)           all Obligations of such Person for borrowed money;

 

(2)           all Obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments;

 

(3)           all Capitalized Lease Obligations of such Person;

 

(4)           all Obligations of such Person issued or assumed as
the deferred purchase price of property, all conditional sale obligations and
all Obligations under any title retention agreement (but excluding trade
accounts payable and other accrued liabilities arising in the ordinary course
of business, consistent with past practice, that are not overdue by 90 days or
more or are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted and any deferred purchase price represented
by earn outs consistent with the Company’s past practice);

 

(5)           all Obligations for the reimbursement of any
obligor on any letter of credit, banker’s acceptance or similar credit
transaction, whether or not then due;

 

(6)           guarantees and other contingent obligations in
respect of Indebtedness referred to in clauses (1) through (5)
above and clause (8) below;

 

(7)           all Obligations of any other Person of the type
referred to in clauses (1) through (6) which are secured by any
Lien on any property or asset of such Person, the amount of any such Obligation
being deemed to be the lesser of the Fair Market Value of the property or asset
securing such Obligation or the amount of such Obligation;

 

(8)           all Interest Swap Obligations and all Obligations
under Currency Agreements of such Person; and

 

(9)           all Disqualified Capital Stock issued by such
Person with the amount of Indebtedness represented by such Disqualified Capital
Stock being equal to the greater of its voluntary or involuntary liquidation
preference and its maximum fixed repurchase price, but excluding accrued
dividends, if any.

 

For purposes hereof, the “maximum fixed
repurchase price” of any Disqualified Capital Stock which does not have a
fixed repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were purchased
on any date on which Indebtedness shall be required to be determined pursuant
to the Indenture, and if such price is based upon,

 

10

 

or measured by, the Fair Market
Value of such Disqualified Capital Stock, such Fair Market Value shall be
determined reasonably and in good faith by the board of directors of the issuer
of such Disqualified Capital Stock.

 

“Indemnified Party” has the meaning
set forth in Section 7.07.

 

“Indenture” means this Indenture, as
amended or supplemented from time to time in accordance with the terms hereof.

 

“Indenture Documents” means,
collectively, this Indenture, the Notes, the Guarantees, and the Collateral
Agreements.

 

“Independent Financial Advisor” means
a nationally recognized accounting, appraisal or investment banking firm: (1) that
does not, and whose directors, officers and employees or Affiliates do not,
have a direct or indirect financial interest in the Company; and (2) that,
in the judgment of the Board of Directors of the Company, is otherwise
independent and qualified to perform the task for which it is to be engaged.

 

“Initial Notes” means the 9% Senior
Secured Notes due 2011 issued on the Issue Date.

 

“Initial Purchaser” means Jefferies
& Company, Inc.

 

“Institutional Accredited Investor”
means an institution that is an “accredited investor” as that term is defined
in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

 

“Intercreditor Agreement” means the
Intercreditor Agreement among the Administrative Agent, the Trustee, the
Collateral Agent, the Company and the Guarantors, dated as of the Issue Date,
as the same may be amended, supplemented or modified from time to time.

 

“Interest Payment Date” means June 1
and December 1 of each year, commencing June 1, 2005.

 

“Interest Swap Obligations” means the
obligations of any Person pursuant to any arrangement with any other Person,
whereby, directly or indirectly, such Person is entitled to receive from time
to time periodic payments calculated by applying either a floating or a fixed
rate of interest on a stated notional amount in exchange for periodic payments
made by such other Person calculated by applying a fixed or a floating rate of
interest on the same notional amount and shall include, without limitation,
interest rate swaps, caps, floors, collars and similar agreements.

 

“Investment” in any Person means any
direct or indirect advance, loan (other than advances to customers in the
ordinary course of business, consistent with past practice, that are required
to be recorded in accordance with GAAP as accounts receivable on the balance
sheet of the lender) or other extensions of credit (including by way of
guarantee or similar arrangement) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition for value
of Capital Stock, Indebtedness or other similar instruments issued by such
Person. If the Company or any Restricted Subsidiary issues, sells or otherwise
disposes of any Capital Stock of a Person that is a Restricted Subsidiary such
that, after giving effect thereto, such Person is no longer a Restricted
Subsidiary, any Investment by the Company or any Restricted Subsidiary in such
Person remaining after giving effect thereto will be deemed to be a new
Investment at such time. The acquisition by the Company or any Restricted
Subsidiary of a Person that holds an Investment in a third Person will be
deemed to be an Investment by the Company or such Restricted Subsidiary in such
third Person at such time. Except as otherwise provided for herein, the

 

11

 

amount of an Investment shall
be its fair market value at the time the Investment is made and without giving
effect to subsequent changes in value.

 

For purposes of the definition of “Unrestricted
Subsidiary,” the definition of “Restricted Payment” and the covenant
described under Section 4.09:

 

(i)            “Investment” shall include the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the Fair
Market Value of the net assets of any Subsidiary of the Company at the time
that such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a Restricted
Subsidiary, the Company shall be deemed to continue to have a permanent “Investment”
in an Unrestricted Subsidiary equal to an amount (if positive) equal to (A) the
Company’s “Investment” in such Subsidiary at the time of such redesignation
less (B) the portion (proportionate to the Company’s equity interest in
such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary
at the time of such redesignation; and

 

(ii)           any property transferred to or from an Unrestricted
Subsidiary shall be valued at its Fair Market Value at the time of such
transfer, in each case as determined in good faith by the Board of Directors of
the Company.

 

“Issue Date” means November 30, 2004.

 

“Lease” has the meaning set forth in Section
4.18.

 

“Leased Premises” has the meaning set
forth in Section 4.18.

 

“Legal Defeasance” has the meaning set
forth in Section 8.01(b).

 

“Legal Holiday” has the meaning set
forth in Section 11.07.

 

“Lenders” has the meaning set forth in
the definition of the term “Credit Agreement.”

 

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

 

“Management Agreement” means the Advisory
Services Agreement, dated as of November 30, 2004, by and among the
Company, Holdings and Genstar Capital, L.P.

 

“Maturity Date” means December 1,
2011.

 

“Moody’s” means Moody’s Investors
Service, Inc.

 

“Mortgages” means the mortgages, deeds
of trust, deeds to secure Indebtedness or other similar documents securing
Liens on the Premises and/or the Leased Premises, as well as the other
Collateral secured by and described in the mortgages, deeds of trust, deeds to
secure Indebtedness or other similar documents.

 

“Net Cash Proceeds” means, with respect
to any Asset Sale, the proceeds in the form of cash or Cash Equivalents
including payments in respect of deferred payment obligations when received in
the

 

12

 

form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Company or any of its Restricted Subsidiaries from
such Asset Sale net of:

 

(1)           reasonable out-of-pocket expenses and fees relating
to such Asset Sale (including, without limitation, legal, accounting and
investment banking fees and sales commissions);

 

(2)           all taxes and other costs and expenses actually
paid or estimated by the Company (in good faith) to be payable in cash in
connection with such Asset Sale;

 

(3)           repayment of Indebtedness that is secured by the
property or assets that are the subject of such Asset Sale and is required to
be repaid in connection with such Asset Sale; and

 

(4)           appropriate amounts to be provided by the Company
or any Restricted Subsidiary, as the case may be, as a reserve, in accordance
with GAAP, against any liabilities associated with such Asset Sale and retained
by the Company or any Restricted Subsidiary, as the case may be, after such
Asset Sale, including, without limitation, pension and other post-employment
benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset
Sale;

 

provided, however,
that if, after the payment of all taxes with respect to such Asset Sale, the
amount of estimated taxes, if any, pursuant to clause (2) above exceeded
the tax amount actually paid in cash in respect of such Asset Sale, the
aggregate amount of such excess shall, at such time, constitute Net Cash
Proceeds.

 

“Net Proceeds Offer” has the meaning
set forth in Section 4.10.

 

“Net Proceeds Offer Amount” has the
meaning set forth in Section 4.10.

 

“Net Proceeds Offer Payment Date” has
the meaning set forth in Section 4.10.

 

“Net Proceeds Offer Trigger Date” has
the meaning set forth in Section 4.10.

 

“Non-U.S. Person” means a Person who
is not a U.S. person, as defined in Regulation S.

 

“Notes” means, collectively, the
Initial Notes, the Additional Notes and the Exchange Notes.

 

“Obligations” means all obligations
for principal, premium, interest, Additional Interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

 

“Offering Circular” means the Offering
Circular, dated November 22, 2004, relating to the offering of the Initial
Notes.

 

“Officer” means the Chief Executive
Officer, the President, the Chief Financial Officer or any Vice President of
the Company.

 

“Officers’ Certificate” means a
certificate signed by two Officers of the Company, at least one of whom shall
be the principal financial officer of the Company, and delivered to the
Trustee.

 

“144A Global Notes” has the meaning
set forth in Section 2.01.

 

13

 

“Opinion of Counsel” means a written
opinion of counsel who shall be reasonably acceptable to the Trustee or
Collateral Agent, as applicable, complying with the requirements of Sections
11.04 and 11.05, as they relate to the giving of an Opinion of
Counsel.

 

“Paying Agent” has the meaning set
forth in Section 2.03.

 

“Permitted Affiliate Transaction” had
the meaning set forth in Section 4.14.

 

“Permitted Business” means any
business that is the same as or similar, reasonably related, complementary or
incidental to the business in which the Company and its Restricted Subsidiaries
are engaged on the Issue Date.

 

“Permitted Holders” means Genstar
Capital, L.P. and its Affiliates.

 

“Permitted Indebtedness” means,
without duplication, each of the following:

 

(1)           Indebtedness under the Notes issued on the Issued
Date or in the Exchange Offer in an aggregate outstanding principal amount not
to exceed $165.0 million and the related Guarantees;

 

(2)           Indebtedness incurred pursuant to the Credit
Agreement in an aggregate principal amount at any time outstanding not to
exceed $30.0 million, as such amount may be reduced from time to time as a
result of permanent reductions of the commitments thereunder as provided in Section
4.10;

 

(3)           other Indebtedness of the Company and its
Restricted Subsidiaries outstanding on the Issue Date;

 

(4)           Interest Swap Obligations of the Company or any
Restricted Subsidiary of the Company covering Indebtedness of the Company or
any of its Restricted Subsidiaries; provided, however, that such Interest Swap Obligations
are entered into for the purpose of fixing or hedging interest rates with
respect to any fixed or variable rate Indebtedness that is permitted by the
Indenture to be outstanding to the extent that the notional amount of any such
Interest Swap Obligation does not exceed the principal amount of Indebtedness
to which such Interest Swap Obligation relates;

 

(5)           Indebtedness under Currency Agreements; provided that in the case of Currency
Agreements which relate to Indebtedness, such Currency Agreements do not increase
the Indebtedness of the Company and its Restricted Subsidiaries outstanding
other than as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder;

 

(6)           intercompany Indebtedness of the Company or a
Guarantor for so long as such Indebtedness is held by the Company or a
Guarantor; provided that if as of any date
any other Person owns or holds any such Indebtedness or a Lien in respect of
such Indebtedness, such date shall be deemed the incurrence of Indebtedness not
constituting Permitted Indebtedness under this clause (6) by the issuer
of such Indebtedness;

 

(7)           Indebtedness arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument inadvertently
(except in the case of daylight overdrafts) drawn

 

14

 

against
insufficient funds in the ordinary course of business, consistent with past
practice; provided, that such Indebtedness
is extinguished within three Business Days of incurrence;

 

(8)           Indebtedness of the Company or any of its
Restricted Subsidiaries represented by letters of credit for the account of the
Company or such Restricted Subsidiary, as the case may be, to provide security
for workers’ compensation claims, payment obligations in connection with
self-insurance or similar requirements in the ordinary course of business,
consistent with past practice;

 

(9)           obligations in respect of performance, bid and
surety bonds and completion guarantees provided by the Company or any
Restricted Subsidiary in the ordinary course of business, consistent with past
practice;

 

(10)         Indebtedness represented by Capitalized Lease
Obligations and Purchase Money Indebtedness incurred in the ordinary course of
business, consistent with past practice (including Refinancings thereof that do
not result in an increase in the aggregate principal amount of Indebtedness of
such Person as of the date of such proposed Refinancing (plus the amount of any
premium required to be paid under the terms of the instrument governing such
Indebtedness and plus the amount of reasonable expenses incurred by the Company
in connection with such Refinancing)) not to exceed $5.0 million at any time
outstanding;

 

(11)         Refinancing Indebtedness;

 

(12)         Indebtedness represented by guarantees by the Company
or a Restricted Subsidiary of Indebtedness incurred by the Company or a
Restricted Subsidiary so long as the incurrence of such Indebtedness by the
Company or any such Restricted Subsidiary is otherwise permitted by the terms
of the Indenture;

 

(13)         Indebtedness of the Company or any of its Restricted
Subsidiaries to the extent the net proceeds thereof are promptly used to redeem
the Notes in full or deposited to defease or discharge the Notes, in each case,
in accordance with the Indenture; and

 

(14)         additional Indebtedness of the Company and its
Restricted Subsidiaries in an aggregate principal amount not to exceed $15.0
million at any time outstanding.

 

For purposes of determining compliance with Section
4.08, (a) the outstanding principal amount of any item of Indebtedness
shall be counted only once and (b) in the event that an item of
Indebtedness meets the criteria of more than one of the categories of Permitted
Indebtedness described in clauses (1) through (14) above or is
entitled to be incurred pursuant to the Consolidated Fixed Charge Coverage
Ratio provisions of Section 4.08, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any manner
that complies with Section 4.08.

 

“Permitted Investments” means:

 

(1)           Investments in any Person that is or will become
immediately after such Investment a Guarantor or that will merge or consolidate
with or into the Company or a Guarantor, or that transfers or conveys all or
substantially all of its assets to the Company or a Guarantor;

 

15

 

(2)           Investments in the Company by any Restricted
Subsidiary; provided that any Indebtedness
evidencing such Investment is unsecured and subordinated, pursuant to a written
agreement, to the Company’s Obligations under the Notes and the Indenture;

 

(3)           Investments in cash and Cash Equivalents;

 

(4)           Currency Agreements and Interest Swap Obligations
entered into in the ordinary course of the Company’s or its Restricted
Subsidiaries’ businesses, consistent with past practice, and otherwise in
compliance with the Indenture;

 

(5)           Investments in the Notes and Exchange Notes;

 

(6)           Investments in securities of trade creditors or
customers received pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of such trade creditors or
customers in exchange for claims against such trade creditors or customers;

 

(7)           Investments as a result of non-cash consideration
received in connection with an Asset Sale made in compliance with Section
4.10;

 

(8)           Investments in existence on the Issue Date;

 

(9)           loans and advances, including advances for travel
and moving expenses, to employees, officers and directors of the Company and
its Restricted Subsidiaries in the ordinary course of business, consistent with
past practice, for bona fide business purposes and in accordance with
applicable laws not in excess of $500,000 at any one time outstanding; and

 

(10)         advances to suppliers and customers in the ordinary
course of business, consistent with past practice.

 

“Permitted Liens” means the following
types of Liens:

 

(1)           Liens (other than Liens arising under ERISA) for
taxes, assessments or governmental charges or claims either (a) not
delinquent or (b) contested in good faith by appropriate proceedings and
as to which the Company or its Restricted Subsidiaries shall have set aside on
its books such reserves as may be required pursuant to GAAP;

 

(2)           statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens
imposed by law or pursuant to customary reservations or retentions of title
incurred in the ordinary course of business, consistent with past practice, for
sums not yet delinquent or being contested in good faith, if such reserve or
other appropriate provision, if any, as shall be required by GAAP shall have
been made in respect thereof;

 

(3)           Liens incurred or deposits made in the ordinary
course of business, consistent with past practice, in connection with workers’
compensation, unemployment insurance and other types of social security,
including any Lien securing letters of credit issued in the ordinary course of
business, consistent with past practice, in connection therewith, or to secure
the performance of tenders, statutory obligations, surety and appeal bonds,
bids, leases, government contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed
money);

 

16

 

(4)           easements, rights-of-way, zoning restrictions and
other similar charges or encumbrances in respect of real property not
interfering in any material respect with the ordinary conduct of the business,
consistent with past practice, of the Company or any of its Restricted
Subsidiaries;

 

(5)           any interest or title of a lessor under any
Capitalized Lease Obligation permitted pursuant to clause (10) of the
definition of “Permitted Indebtedness;” provided that such Liens do not
extend to any property or assets which is not leased property subject to such
Capitalized Lease Obligation;

 

(6)           Liens securing Purchase Money Indebtedness
permitted pursuant to clause (10) of the definition of “Permitted
Indebtedness;” provided, that (a) the Indebtedness shall not exceed
the cost of the property or assets acquired, together, in the case of real
property, with the cost of the construction thereof and improvements thereto,
and shall not be secured by a Lien on any property or assets of the Company or
any Restricted Subsidiary other than such property or assets so acquired or
constructed and improvements thereto and (b) the Lien securing such
Indebtedness shall be created within 180 days of such acquisition or
construction or, in the case of a refinancing of any Purchase Money
Indebtedness, within 180 days of such refinancing;

 

(7)           Liens upon specific items of inventory or other
goods and proceeds of any Person securing such Person’s obligations in respect
of bankers’ acceptances issued or created for the account of such Person to
facilitate the purchase, shipment or storage of such inventory or other goods;

 

(8)           Liens securing reimbursement obligations with
respect to commercial letters of credit which encumber documents and other
property relating to such letters of credit and products and proceeds thereof;

 

(9)           Liens encumbering deposits made to secure
obligations arising from statutory, regulatory, contractual, or warranty
requirements of the Company or any of its Restricted Subsidiaries, including
rights of offset and set-off;

 

(10)         Liens securing Interest Swap Obligations that relate
to Indebtedness that is otherwise permitted under the Indenture;

 

(11)         Liens securing Indebtedness under Currency Agreements
that are permitted under the Indenture;

 

(12)         judgment Liens not giving rise to an Event of Default
so long as such Lien is adequately bonded and any appropriate legal proceedings
which may have been duly initiated for the review of such judgment shall not
have been finally terminated or the period within such proceedings may be
initiated shall not have expired;

 

(13)         Liens securing Acquired Indebtedness incurred in
accordance with Section 4.08, provided,
that such Liens do not extend to or cover any property or assets of the Company
or of any of its Restricted Subsidiaries other than the property or assets that
secure the Acquired Indebtedness;

 

(14)         Liens securing the Notes and all other monetary
obligations under the Indenture and the Guarantees;

 

17

 

(15)         Liens securing Indebtedness under the Credit
Agreement to the extent such Indebtedness is permitted under clause (2)
of the definition of the term “Permitted Indebtedness;” and

 

(16)         Liens securing Refinancing Indebtedness incurred to
Refinance any Indebtedness secured by a Lien permitted under this paragraph and
incurred in accordance with Section 4.08; provided, that such
Liens: (i) are no less favorable to the Holders and are not more favorable
to the lienholders with respect to such Liens than the Liens in respect of the
Indebtedness being Refinanced; and (ii) do not extend to or cover any
property or assets of the Company or any of its Restricted Subsidiaries not
securing the Indebtedness so Refinanced.

 

“Person” means an individual,
partnership, corporation, limited liability company, unincorporated
organization, trust or joint venture, or a governmental agency or political
subdivision thereof.

 

“Physical Notes” has the meaning set
forth in Section 2.14(b).

 

“Preferred Stock” of any Person means
any Capital Stock of such Person that has preferential rights to any other
Capital Stock of such Person with respect to dividends or redemptions or upon
liquidation.

 

“Premises” has the meaning set forth
in Section 4.17.

 

“Private Placement Legend” means the
legend set forth on the Initial Notes in the form set forth in Exhibit A.

 

“Public Equity Offering” means an
underwritten public offering of Common Stock of the Company or any holding
company of the Company pursuant to a registration statement filed with the SEC
(other than on Form S-8).

 

“Purchase Money Indebtedness” means
Indebtedness of the Company and its Restricted Subsidiaries incurred for the
purpose of financing all or any part of the purchase price, or the cost of
installation, construction or improvement, of property or equipment, provided, that the aggregate principal amount
of such Indebtedness does not exceed the lesser of the Fair Market Value of
such property or such purchase price or cost.

 

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

 

“Qualified Capital Stock” means any
Capital Stock that is not Disqualified Capital Stock.

 

“Record Date” means any of the Record
Dates specified in the Notes, whether or not a Legal Holiday.

 

“Redemption Date” means, when used
with respect to any Note to be redeemed, the date fixed for redemption pursuant
to this Indenture and the Notes.

 

“Redemption Price” means, when used
with respect to any Note to be redeemed, the price fixed for redemption
pursuant to this Indenture and the Notes.

 

“Reference Date” has the meaning set
forth in Section 4.09.

 

18

 

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

 

“Refinancing Indebtedness” means any
Refinancing by the Company or any Restricted Subsidiary of Indebtedness
incurred in accordance with Section 4.08 (other than pursuant to
Permitted Indebtedness) or clauses (1), (3) or (11) of the
definition of Permitted Indebtedness, in each case that does not:

 

(1)           have an aggregate principal amount (or, if such
Indebtedness is issued with original issue discount, an aggregate offering
price) greater than the sum of (x) the aggregate principal amount of the
Indebtedness being Refinanced (or, if such Indebtedness being Refinanced is
issued with original issue discount, the aggregate accreted value) as of the
date of such proposed Refinancing plus (y) the amount of fees, expenses,
premium, defeasance costs and accrued but unpaid interest relating to the
Refinancing of such Indebtedness being Refinanced;

 

(2)           create Indebtedness with: (a) a Weighted
Average Life to Maturity that is less than the Weighted Average Life to
Maturity of the Indebtedness being Refinanced; or (b) a final maturity
earlier than the final maturity of the Indebtedness being Refinanced; or

 

(3)           affect the security, if any, for such Refinancing
Indebtedness (except to the extent that less security is granted to holders of
such Refinancing Indebtedness);

 

If such Indebtedness being Refinanced is
subordinate or junior by its terms to the Notes, then such Refinancing
Indebtedness shall be subordinate by its terms to the Notes at least to the
same extent and in the same manner as the Indebtedness being Refinanced.

 

“Register” is defined in Section
2.03.

 

“Registrar” has the meaning set forth
in Section 2.03.

 

“Registration Rights Agreement” means
the Registration Rights Agreement, dated November 30, 2004, among the Company,
the Guarantors and the Initial Purchaser, as the same may be amended or
modified from time to time in accordance with the terms thereof.

 

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

 

“Regulation S Permanent Global Note”
means a permanent Global Note deposited with or on behalf of and registered in
the name of the Depositary or its nominee, issued in a denomination equal to
the outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Distribution Compliance Period.

 

“Regulation S Temporary Global Note”
means a temporary Global Note deposited with or on behalf of and registered in
the name of the Depositary or its nominee, issued in a denomination equal to
the outstanding principal amount of the Initial Notes or Additional Notes initially
sold in reliance on Rule 903 of Regulation S.

 

“Restricted Payment” has the meaning
set forth in Section 4.09.

 

19

 

“Restricted Security” has the meaning
assigned to such term in Rule 144(a)(3) under the Securities Act; provided that the Trustee shall be entitled to
request and conclusively rely on an Opinion of Counsel with respect to whether
any Note constitutes a Restricted Security.

 

“Restricted Subsidiary” means any
Subsidiary of the Company which at the time of determination is not an
Unrestricted Subsidiary.

 

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

 

“S&P” means Standard & Poor’s
Ratings Group.

 

“SEC” has the meaning set forth in Section
4.20.

 

“Secured Parties” has the meaning set
forth in the Security Agreement.

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder.

 

“Security Agreement” means the
Security Agreement, dated as of the Issue Date, made by the Company and the
Guarantors in favor of the Collateral Agent, as amended or supplemented from
time to time in accordance with its terms.

 

“Significant Subsidiary” with respect
to any Person, means any Restricted Subsidiary of such Person that satisfies
the criteria for a “significant subsidiary” set forth in Rule 1-02(w) of
Regulation S-X under the Exchange Act.

 

“Subsidiary” with respect to any
Person, means:

 

(1)           any corporation of which the outstanding Capital
Stock having at least a majority of the votes entitled to be cast in the
election of directors under ordinary circumstances shall at the time be owned,
directly or indirectly, by such Person; or

 

(2)           any other Person of which at least a majority of
the voting interest under ordinary circumstances is at the time, directly or
indirectly, owned by such Person.

 

“Surviving Entity” has the meaning set
forth in Section 5.01(1)(b).

 

“Syracuse Facility” means the facility
of the Company located at 1728 Burnet Avenue, Syracuse, Onondago County, New
York.

 

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

 

“Transaction Date” has the meaning set
forth in the definition of the term “Consolidated Fixed Charge Coverage Ratio.”

 

“Trustee” has the meaning set forth in
the preamble to this Indenture.

 

“Trust Officer” means, when used with
respect to the Trustee, any officer within the Corporate Trust Office of the
Trustee, including 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, respectively, or to whom

 

20

 

any corporate trust matter is
referred because of such person’s knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration
of this Indenture.

 

“Unrestricted Subsidiary” means:

 

(1)           any Subsidiary of the Company that at the time of
determination shall be or continue to be designated an Unrestricted Subsidiary
by the Board of Directors of the Company in the manner provided below; and

 

(2)           any Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors may designate any
Subsidiary (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or
owns or holds any Lien on any property of, the Company or any other Subsidiary
of the Company that is not a Subsidiary of the Subsidiary to be so designated, provided that:

 

(1)           the Company certifies to the Trustee that such
designation complies with Section 4.09; and

 

(2)           each Subsidiary to be so designated and each of its
Subsidiaries has not at the time of designation, and does not thereafter,
create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable with respect to any Indebtedness pursuant to which the lender
has recourse to any of the assets of the Company or any of its Restricted
Subsidiaries.

 

The Board of Directors may designate any
Unrestricted Subsidiary to be a Restricted Subsidiary only if:

 

(1)           immediately after giving effect to such
designation, the Company is able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in compliance with Section
4.08; and

 

(2)           immediately before and immediately after giving
effect to such designation, no Default or Event of Default shall have occurred
and be continuing.

 

Any such designation by the Board of
Directors shall be evidenced to the Trustee by promptly filing with the Trustee
a copy of the Board Resolution giving effect to such designation and an
Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

 

“U.S. Government Obligations” means
direct obligations of, and obligations guaranteed by, the United States of
America for the payment of which the full faith and credit of the United States
of America is pledged.

 

“U.S. Legal Tender” means such coin or
currency of the United States which, as at the time of payment, shall be
immediately available legal tender for the payment of public and private debts.

 

“Voting Stock” means, with respect to
any Person, securities of any class or classes of Capital Stock of such Person
entitling the holders thereof (whether at all times or only so long as no
senior class of stock has voting power by reason of any contingency) to vote in
the election of members of the Board of Directors (or equivalent governing
body) of such Person.

 

21

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years
obtained by dividing (1) the then outstanding aggregate principal amount
of such Indebtedness into (2) the sum of the total of the products
obtained by multiplying:

 

(a)           the amount of each then remaining installment,
sinking fund, serial maturity or other required payment of principal, including
payment at final maturity, in respect thereof, by

 

(b)           the number of years (calculated to the nearest
one-twelfth) which will elapse between such date and the making of such
payment.

 

“Wholly Owned Subsidiary” means any
Guarantor of which all the outstanding Capital Stock (other than directors’
qualifying shares or an immaterial amount of shares required to be owned by
other Persons pursuant to applicable law) are owned by the Company or any other
Wholly Owned Subsidiary.

 

Section
1.02           Incorporation by Reference
of TIA.

 

Whenever this Indenture refers to a provision
of the TIA, such provision is incorporated by reference in, and made a part of,
this Indenture. The following TIA terms used in this Indenture have the
following meanings:

 

“indenture securities” means the
Notes.

 

“indenture security holder” means a
Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

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

 

All other TIA terms used in this Indenture
that are defined by the TIA, defined by TIA reference to another statute or
defined by SEC rule and not otherwise defined herein have the meanings assigned
to them therein.

 

Section
1.03           Rules of
Construction.

 

Unless the context otherwise requires in this
or any other Indenture Document:

 

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

 

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

 

(3)           “or” is not exclusive;

 

(4)           words in the singular include the plural, and words
in the plural include the singular;

 

(5)           “herein,” “hereof” and other words of similar
import refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision;

 

22

 

(6)                                  when
the words “includes” or “including” are used herein, they shall be deemed to be
followed by the words “without limitation”;

 

(7)                                  all
references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated; and

 

(8)                                  unless
otherwise defined or the context otherwise requires, terms for which meanings
are provided in this Indenture shall have such meanings when used in each other
Indenture Document.

 

ARTICLE TWO

THE NOTES

 

Section 2.01                                Form and Dating.

 

The Initial
Notes and the Additional Notes and the Trustee’s certificate of authentication
thereon shall be substantially in the form of Exhibit A hereto. The
Exchange Notes and the Trustee’s certificate of authentication thereon shall be
substantially in the form of Exhibit B hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or the
Depository rule or usage. The Company and the Trustee shall approve the form of
the Notes and any notation, legend or endorsement on them. Each Note shall be
dated the date of its authentication.

 

The terms and
provisions contained in the forms of the Notes annexed hereto as Exhibit A
and Exhibit B shall constitute, and are hereby expressly made, a part of
this Indenture and, to the extent applicable, the Company, the Guarantors and
the Trustee, by their execution and delivery of this Indenture, expressly agree
to such terms and provisions and to be bound thereby.

 

Notes offered
and sold in reliance on Rule 144A shall be issued initially in the form of one
or more permanent global notes in registered form, substantially in the form
set forth in Exhibit A (the “144A Global Notes”), deposited with
the Trustee, as custodian for the Depository, duly executed by the Company and
authenticated by the Trustee as hereinafter provided and shall bear the legend
set forth in Exhibit C.

 

Notes offered
and sold to Institutional Accredited Investors in reliance on
Rule 501(a)(1), (2), (3) or (7) under the Securities Act shall be issued
initially in the form of one or more permanent global notes in registered form,
substantially in the form set forth in Exhibit A (the “IAI Global
Notes”), deposited with the Trustee, as custodian for the Depository, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided and shall bear the legend set forth in Exhibit C.

 

Notes offered
and sold in offshore transactions in reliance on Regulation S shall be issued
initially in the form of one or more Regulation S Temporary Global Notes
deposited with the Trustee, as custodian for the Depository, and registered in the
name of the Depositary or the nominee of the Depositary for the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed
by the Company and authenticated by the Trustee as hereinafter provided and
shall bear the legend set forth in Exhibit C.

 

Following the
termination of the Distribution Compliance Period, beneficial interests in a
Regulation S Temporary Global Note will be exchanged for beneficial interests
in a Regulation S Permanent Global Note pursuant to the Applicable Procedures. Simultaneously
with the authentication of

 

23

 

a Regulation S Permanent Global Note, the Trustee will cancel the
related Regulation S Temporary Global Note.

 

The provisions
of the “Operating Procedures of the Euroclear System” and “Terms and Conditions
Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream Banking” and “Customer Handbook” of Clearstream will be applicable
to transfers of beneficial interests in the Regulation S Temporary Global Note
and the Regulation S Permanent Global Note that are held by participants
through Euroclear or Clearsteam.

 

The aggregate
principal amount of any Global Note may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depository, as hereinafter provided.

 

The definitive
Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted
by the rules of any securities exchange on which the Notes may be listed, all
as determined by the Officer executing such Notes, as evidenced by their
execution of such Notes.

 

Section 2.02                                Execution and
Authentication; Aggregate Principal Amount.

 

An Officer
(who shall have been duly authorized by all requisite corporate actions) shall
sign the Notes for the Company by manual or facsimile signature.

 

If an Officer
whose signature is on a Note was an Officer at the time of such execution but
no longer holds that office or position at the time the Trustee authenticates
the Note, the Note shall nevertheless be valid.

 

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

 

The Trustee
shall authenticate (i) Initial Notes for original issue in the aggregate
principal amount not to exceed $165,000,000, (ii) Exchange Notes from time
to time for issue only in exchange for a like principal amount of Initial Notes
or Additional Notes, and (iii) subject to compliance with Section 4.08,
one or more series of Additional Notes in an unlimited amount in each case upon
written orders of the Company in the form of an Officers’ Certificate, which
Officers’ Certificate shall, in the case of any issuance of Additional Notes,
certify that such issuance is in compliance with Section 4.08. In
addition, each Officers’ Certificate 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 Initial Notes, Exchange Notes or Additional Notes. All
Notes issued under this Indenture shall vote and consent together on all matters
as one class and no series of Notes shall have the right to vote or consent as
a separate class on any matter.

 

The Trustee
may appoint an authenticating agent (the “Authenticating Agent”)
reasonably acceptable to the Company to authenticate Notes. Unless otherwise
provided in the appointment, an Authenticating Agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such Authenticating
Agent. An Authenticating Agent has the same rights as an Agent to deal with the
Company and Affiliates of the Company.

 

The Notes
shall be issuable in fully registered form only, without coupons, in
denominations of $1,000 in principal amount and any integral multiple thereof.

 

24

 

Section 2.03                                Registrar and Paying
Agent.

 

The Company
initially appoints the Trustee as registrar (the “Registrar”), paying
agent (the “Paying Agent”) and agent for service of demand and notices
in connection with the Notes. In addition, the Company shall maintain an office
or agency in the Borough of Manhattan, The City of New York, where
(a) Notes may be presented or surrendered for registration of transfer or
for exchange, (b) Notes may be presented or surrendered for payment and
(c) notices and demands to or upon the Company in respect of the Notes and
this Indenture may be served. Such office shall initially be at The Bank of New
York, 101 Barclay Street, Floor 8W, New York, New York 10286, Attention: Corporate
Trust Administration. The Registrar shall keep a register of the Notes and of
their transfer and exchange (the “Register”). The Company, upon prior
written notice to the Trustee, may have one or more co-Registrars and one or
more additional Paying Agents reasonably acceptable to the Trustee. The term
“Paying Agent” includes any additional Paying Agent. Neither the Company nor
any Affiliate of the Company may act as Paying Agent.

 

The Company
shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture, which agreement shall incorporate the provisions of the TIA and
implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee in writing, in advance, of the name and address
of any such Agent and otherwise be reasonably satisfactory to the Trustee. If
the Company fails to maintain a Registrar or Paying Agent, or fails to give the
foregoing notice, the Trustee shall act as such.

 

Any Paying
Agent or Registrar may resign upon thirty (30) days’ written notice to the
Company.

 

Section 2.04                                Obligations of
Paying Agent.

 

The Company
shall require each Paying Agent other than the Trustee to agree in writing that
such Paying Agent shall hold separate and apart from, and not commingle with
any other properties, for the benefit of the Holders or the Trustee, all assets
held by the Paying Agent for the payment of principal of, or interest and
Additional Interest, if any, on, the Notes (whether such assets have been
distributed to it by the Company or any other obligor on the Notes), and the
Company and the Paying Agent shall notify the Trustee in writing of any Default
by the Company (or any other obligor on the Notes) in making any such payment. The
Company at any time may require a Paying Agent to distribute all assets held by
it to the Trustee and account for any assets disbursed and the Trustee may at
any time during the continuance of any payment Default, upon written request to
a Paying Agent, require such Paying Agent to distribute all assets held by it
to the Trustee and to account for any assets distributed. Upon receipt by the
Trustee of all assets that shall have been delivered by the Company to the
Paying Agent, the Paying Agent shall have no further liability for such assets.

 

Section 2.05                                Holder Lists.

 

The Trustee
shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of the Holders and shall
otherwise comply with TIA Section 312(a). If the Trustee is not the
Registrar, the Company shall furnish or cause the Registrar to furnish to the
Trustee before each Record Date and at such other times as the Trustee may
request in writing a list as of such date and in such form as the Trustee may
reasonably request of the names and addresses of the Holders, which list may be
conclusively relied upon by the Trustee.

 

25

 

Section 2.06                                Transfer and
Exchange.

 

Subject to the
provisions of Sections 2.14 and 2.15, when Notes are presented to
the Registrar or a co-Registrar with a request to register the transfer of such
Notes or to exchange such Notes for an equal principal amount of Notes of other
authorized denominations, the Registrar or co-Registrar shall register the transfer
or make the exchange as requested; provided,
however, that the Notes presented or surrendered for registration of
transfer or exchange shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar or
co-Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing and such other documents as the Registrar or co-Registrar
may reasonably require. To permit registrations of transfers and exchanges, the
Company shall issue and the Trustee shall authenticate Notes at the Registrar’s
or co-Registrar’s request. No service charge shall be made for any registration
of transfer or exchange, but the Company or the Trustee may require payment of
a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchanges or transfers pursuant to Section 2.10,
3.06 or 4.10, in which event the Company shall be responsible for
the payment of such taxes).

 

The Registrar
or co-Registrar shall not be required to register the transfer or exchange of
any Note (i) during a period beginning at the opening of business fifteen
(15) days before the mailing of a notice of redemption of Notes and ending at
the close of business on the day of such mailing and (ii) selected for
redemption in whole or in part pursuant to Article Three, except
the unredeemed portion of any Note being redeemed in part.

 

Any Holder of
a Global Note shall, by acceptance of such Global Note, agree that transfers of
beneficial interests in such Global Note may be effected only through the
Depository, in accordance with this Indenture and the Applicable Procedures.

 

Section 2.07                                Replacement Notes.

 

If a mutilated
Note is surrendered to the Trustee or if the Holder of a Note claims in writing
that the Note has been lost, destroyed or wrongfully taken, then, in the
absence of written notice to the Company or the Trustee that such Note has been
acquired by a protected purchaser, the Company shall issue and the Trustee
shall authenticate a replacement Note of like tenor and principal amount and
bearing a number not contemporaneously outstanding if the Trustee’s
requirements are met. Except with respect to mutilated Notes, such Holder must
provide an affidavit of lost certificate and an indemnity bond, sufficient in
the judgment of both the Company and the Trustee, to protect the Company, the
Trustee or any Agent from any loss which any of them may suffer if a Note is
replaced. The Company may charge such Holder for its reasonable out-of-pocket
expenses in replacing a Note, including reasonable fees and expenses of its
counsel and of the Trustee and its counsel. In case any mutilated, lost,
destroyed or wrongfully taken Note has become or is about to become due and
payable, the Company in its discretion may pay such Note instead of issuing a
new Note in replacement thereof. Every replacement Note shall constitute an
additional obligation of the Company, entitled to the benefits of this
Indenture.

 

Section 2.08                                Outstanding Notes.

 

Notes
outstanding at any time are all the Notes that have been authenticated by the
Trustee except those cancelled by it, those delivered to it for cancellation
and those described in this Section 2.08 as not outstanding. Subject
to the provisions of Section 2.09, a Note does not cease to be
outstanding because the Company or any of its Affiliates holds the Note.

 

26

 

If a Note is
replaced pursuant to Section 2.07 (other than a mutilated Note
surrendered for replacement), it ceases to be outstanding unless each of the
Company and the Trustee receives proof satisfactory to it that the replaced
Note is held by a protected purchaser. A mutilated Note ceases to be
outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.07.

 

If on a
Redemption Date or the Maturity Date the Paying Agent holds U.S. Legal Tender
or U.S. Government Obligations sufficient to pay all of the principal and
interest, and Additional Interest, if any, due on the Notes payable on that
date and is not prohibited from paying such money to the Holders thereof
pursuant to the terms of this Indenture, then on and after that date such Notes
cease to be outstanding and interest, and Additional Interest, if applicable,
on them ceases to accrue.

 

Section 2.09                                Treasury Notes; When
Notes are Disregarded.

 

In determining
whether the Holders of the required principal amount of Notes have concurred in
any direction, waiver or consent, Notes owned by the Company or any of its
Affiliates shall be considered as though they are not outstanding; provided,
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes which the Trustee
actually knows are so owned shall be so considered. Notes so owned which have
been pledged in good faith may be regarded as outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s right so to act
with respect to such Notes and that the pledgee is not the Company or any other
obligor upon the Notes or any Affiliate of the Company or of such other
obligor. The Company shall notify the Trustee, in writing (which notice shall
constitute actual notice for purposes of the foregoing sentence), when it or
any of its Affiliates repurchases or otherwise acquires Notes, of the aggregate
principal amount of such Notes so repurchased or otherwise acquired.

 

Section 2.10                                Temporary Notes.

 

Until definitive
Notes are ready for delivery, the Company may prepare and execute and the
Trustee shall authenticate temporary Notes upon receipt of a written order of
the Company in the form of an Officers’ Certificate. The Officers’ Certificate
shall specify the amount of temporary Notes to be authenticated and the date on
which the temporary Notes are to be authenticated. Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes. Without unreasonable delay,
the Company shall prepare and the Trustee shall authenticate upon receipt of a
written order of the Company pursuant to Section 2.02 definitive
Notes in exchange for temporary Notes. Until so exchanged, the temporary Notes
shall be entitled to the same benefits under this Indenture as definitive
Notes.

 

Section 2.11                                Cancellation.

 

The Company at
any time may deliver Notes previously authenticated hereunder which the Company
has acquired in any lawful manner, to the Trustee for cancellation. The
Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for transfer, exchange or payment. The Trustee, or at the
direction of the Trustee, the Registrar or the Paying Agent, and no one else, shall
cancel all Notes surrendered for transfer, exchange, payment or cancellation. Subject
to Section 2.07, the Company may not issue new Notes to replace
Notes that it has paid or delivered to the Trustee for cancellation. If the
Company shall acquire any of the Notes, such acquisition shall not operate as a
redemption or satisfaction of the Indebtedness represented by such Notes unless
and until the same are surrendered to the Trustee for cancellation pursuant to
this Section 2.11. The Trustee shall dispose of all cancelled Notes
in accordance with customary procedures or, at the written request of the
Company, shall return the same to the Company.

 

27

 

Section 2.12                                CUSIP Numbers.

 

A “CUSIP”
number shall be printed on the Notes, and the Trustee shall use the CUSIP
number in notices of redemption, purchase or exchange as a convenience to
Holders; provided that any such notice may
state that no representation is made as to the correctness or accuracy of the
CUSIP number printed in the notice or on the Notes and that reliance may be
placed only on the other identification numbers printed on the Notes. The
Company shall promptly notify the Trustee of any change in the CUSIP number.

 

Section 2.13                                Deposit of Moneys.

 

Prior to 11:00
a.m. New York City time on each Interest Payment Date and the Maturity Date,
the Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to
make cash payments, if any, due on such Interest Payment Date or the Maturity
Date, as the case may be.

 

Section 2.14                                Book-Entry
Provisions for Global Notes.

 

(a)                                  The
Global Notes initially shall (i) be registered in the name of the
Depository or the nominee of the Depository, (ii) be delivered to the
Trustee as custodian for the Depository and (iii) bear legends as set
forth in Exhibit C.

 

Members of, or
participants in, the Depository (“Agent Members”) shall have no rights
under this Indenture with respect to any Global Note held on their behalf by
the Depository, or the Trustee as its custodian, or under any Global Note, and
the Depository may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner of the Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee
from giving effect to any written certification, proxy or other authorization
furnished by the Depository or impair, as between the Depository and its Agent
Members, the operation of customary practices governing the exercise of the
rights of a Holder of any Note.

 

(b)                                 Transfers
of the Global Notes shall be limited to transfers in whole, but not in part, to
the Depository, its successors or their respective nominees. Interests of
beneficial owners in the Global Notes may be transferred or exchanged in
accordance with the Applicable Procedures of the Depository and the provisions
of Section 2.15; provided, however,
that prior to the expiration of the Distribution Compliance Period, transfers
of beneficial interests in the Regulation S Temporary Global Note may not be
made to a U.S. Person or for the account or benefit of a U.S. Person (other
than the Initial Purchaser). In addition, Notes in the form of certificated
Notes in registered form in substantially the form set forth in Exhibit A
hereto (the “Physical Notes”) shall be transferred to all beneficial
owners in exchange for their beneficial interests in the Global Notes if
(i) the Depository notifies the Company that it is unwilling or unable to
continue as depository for the Global Notes and a successor Depository is not
appointed by the Company within ninety (90) days of such notice or (ii) an
Event of Default has occurred and is continuing and the Registrar has received
a request from the Depository to issue Physical Notes; provided that a beneficial interest in the Regulation S Temporary
Global Note may not be exchanged for a Physical Note or transferred to a Person
who takes delivery thereof in the form of a Physical Note prior to (A) the
expiration of the Distribution Compliance Period and (B) the receipt by
the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B)
under the Securities Act, except in the case of a transfer pursuant to an exemption
from the registration requirements of the Securities Act other than Rule 903 or
Rule 904.

 

(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 shall,
upon transfer, cease to be an

 

28

 

interest in such Global Note
and become a beneficial interest in such other Global Note and, accordingly,
shall thereafter be subject to all transfer restrictions, if any, and other
procedures applicable to a beneficial interest in such other Global Notes for
as long as it remains such an interest.

 

(d)                                 In
connection with any transfer or exchange of a portion of the beneficial
interest in the Global Note to beneficial owners pursuant to paragraph (b)
of this Section 2.14, the Registrar shall (if one or more Physical
Notes are to be issued) reflect on its books and records the date and a
decrease in the principal amount of the Global Note in an amount equal to the
principal amount of the beneficial interest in the Global Note to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Physical Notes of like tenor and aggregate principal
amount.

 

(e)                                  In
connection with the transfer of an entire Global Note to beneficial owners
pursuant to paragraph (b) of this Section 2.14, the Global
Notes 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 Depository in exchange for its
beneficial interest in the Global Notes, an equal aggregate principal amount of
Physical Notes of authorized denominations.

 

(f)                                    Any
Physical Note constituting a Restricted Security delivered in exchange for an
interest in the Global Note pursuant to paragraph (b) or (c)
shall, except as otherwise provided by paragraphs (a)(i)(x) and (c)
of Section 2.15, bear the legend regarding transfer restrictions
applicable to the Physical Notes set forth in Exhibit A, as applicable.

 

(g)                                 The
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.

 

Section 2.15                                Special Transfer
Provisions.

 

(a)                                  Transfers
to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The
following provisions shall apply with respect to the registration of any
proposed transfer of a Note constituting a Restricted Security to any
Institutional Accredited Investor which is not a QIB or to any Non-U.S. Person:

 

(i)                                     the
Registrar shall register the transfer of any Note constituting a Restricted
Security, whether or not such Note bears the Private Placement Legend, if
(x) the requested transfer is after November 30, 2006 or
(y) (1) in the case of a transfer to an Institutional Accredited
Investor which is not a QIB (excluding Non-U.S. Persons), the proposed transferee
has delivered to the Registrar a certificate substantially in the form of Exhibit
D hereto or (2) in the case of a transfer to a Non-U.S. Person, the
proposed transferor has delivered to the Registrar a certificate substantially
in the form of Exhibit E hereto; and

 

(ii)                                  if
the proposed transferor is an Agent Member holding a beneficial interest in the
Global Note, upon receipt by the Registrar of (x) the certificate, if any,
required by paragraph (i) above and (y) instructions given in
accordance with the Applicable Procedures and the Registrar’s procedures,

 

whereupon
(1) the Registrar shall reflect on its books and records the date and (if
the transfer does not involve a transfer of outstanding Physical Notes) a
decrease in the principal amount of the Global Note in an amount equal to the
principal amount of the beneficial interest in the Global Note to be
transferred, and (2) the Company shall execute and the Trustee shall
authenticate and deliver one or more Physical Notes of like tenor and principal
amount.

 

29

 

(b)                                 Transfers
to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Note constituting a Restricted
Security to a QIB (excluding transfers to Non-U.S. Persons):

 

(i)                                     the
Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that the sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that it is purchasing the Note for its own account or an account with respect
to which it exercises sole investment discretion and that it and any such
account is a QIB within the meaning of Rule 144A, and is aware that the sale to
it is being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Company as it has requested pursuant to Rule
144A or has determined not to request such information and that it is aware
that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A; and

 

(ii)                                  if
the proposed transferee is an Agent Member, and the Notes to be transferred
consist of Physical Notes which after transfer are to be evidenced by an
interest in the Global Note, upon receipt by the Registrar of instructions
given in accordance with the Applicable Procedures and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and
an increase in the principal amount of the Global Note in an amount equal to
the principal amount of the Physical Notes to be transferred, and the Trustee
shall cancel the Physical Notes so transferred.

 

(c)                                  Private
Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Registrar shall deliver Notes that do
not bear the Private Placement Legend. Upon the transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Registrar shall
deliver only Notes that bear the Private Placement Legend unless (i) the
circumstance contemplated by paragraph (a)(i)(x) of this Section 2.15
exists or (ii) an Opinion of Counsel reasonably satisfactory to the
Company and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act is delivered to the Registrar. The Registrar
shall not register a transfer of any Note unless such transfer complies with
the restrictions on transfer of such Note set forth in this Indenture. In
connection with any transfer of Notes, each Holder agrees by its acceptance of
the Notes to furnish the Registrar or the Company such certifications, legal
opinions or other information as either of them may reasonably require to confirm
that such transfer is being made pursuant to an exemption from, or a
transaction not subject to, the registration requirements of the Securities
Act; provided that the Registrar shall not
be required to determine (but may rely on a determination made by the Company
with respect to) the sufficiency of any such certifications, legal opinions or
other information.

 

(d)                                 General.
By its acceptance of any Note bearing the Private Placement Legend, each Holder
of such a Note acknowledges the restrictions on transfer of such Note set forth
in this Indenture and in the Private Placement Legend and agrees that it shall
transfer such Note only as provided in this Indenture.

 

The Registrar
shall retain copies of all letters, notices and other written communications received
pursuant to Section 2.14 or this Section 2.15. The
Company shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving
of reasonable written notice to the Registrar.

 

30

 

Section 2.16                                Transfers of Global
Notes and Physical Notes.

 

A transfer of
a Global Note or a Physical Note (including the right to receive principal and
interest, and Additional Interest, if any, payable thereon) may be made only by
the Registrar’s entering the transfer in the Register. Prior to such entry, the
Company shall treat the person in whose name such Note is registered as the
owner of the Note for all purposes.

 

Each Holder of
a Note agrees to indemnify the Company and the Trustee against any liability
that may result from the transfer, exchange or assignment of such Holder’s Note
in violation of any provision of this Indenture and/or applicable United States
Federal or state securities law.

 

The Trustee
shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or
under applicable law with respect to any transfer of any interest in any Note
(including any transfers between or among Depositary participants or beneficial
owners of interests in any Global Note) other than to require delivery of such
certificates and other documentation or evidence as are expressly required by,
and to do so if and when expressly required by the terms of, this Indenture,
and to examine the same to determine substantial compliance as to form with the
express requirements hereof.

 

ARTICLE THREE

REDEMPTION

 

Section 3.01                                Optional Redemption.

 

The Company
may, at its option, redeem the Notes, in whole or in part, at specified times
and under specified conditions, as set forth in Paragraph 5 of the
Notes. If the Company elects to redeem Notes pursuant to Paragraph 5 of
the Notes, it shall, at least forty-five (45) days (or such shorter period as
the Trustee may agree) before the Redemption Date, notify to the Trustee and
Paying Agent in writing of the Redemption Date and the principal amount of the
Notes to be redeemed and the clause of this Indenture or the Notes pursuant to
which the redemption shall occur.

 

Each Officers’
Certificate provided for in this Section 3.01 shall be accompanied
by an Opinion of Counsel stating that such redemption has complied with the
conditions contained herein and in the Notes.

 

Section 3.02                                Selection of Notes
to be Redeemed.

 

In the event
that fewer than all of the Notes are to be redeemed pursuant to Paragraph 5
of the Notes, the Trustee shall select the Notes to be redeemed:

 

(1)                                  in
compliance with the requirements of the principal national securities exchange,
if any, on which such Notes are listed; or

 

(2)                                  if
such Notes are not then listed on a national securities exchange, on a pro
rata basis, by lot or by such method as the Trustee may reasonably
determine is fair and appropriate; provided
that no partial redemption will reduce the principal amount of a Note not
redeemed to less than $1,000; and provided further, that if a partial
redemption is made with the proceeds of an Equity Offering then the Trustee
shall select the Notes or portions thereof for redemption only on a pro  rata
basis or on as nearly a

 

31

 

pro
rata basis as is practicable (subject to the procedures of the
Depository), unless such method is prohibited.

 

The Trustee
shall make the selection from the Notes outstanding and not previously called
for redemption and 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 principal amount at maturity thereof, to be redeemed. Notes in
denominations of $1,000 in principal amount at maturity may be redeemed only in
whole. The Trustee may select for redemption portions (equal to $1,000 in
principal amount at maturity or any integral multiple thereof) of the principal
of Notes that have denominations larger than $1,000. Provisions of this
Indenture that apply to Notes called for redemption also apply to portions of
Notes called for redemption.

 

Section 3.03                                Notice of
Redemption.

 

At least
thirty (30) days but not more than sixty (60) days before a Redemption Date,
the Company shall mail or cause to be mailed a notice of redemption by first
class mail, postage prepaid, to each Holder whose Notes are to be redeemed at
its registered address, with a copy to the Trustee and any Paying Agent. At the
Company’s written request, the Trustee shall give the notice of redemption in
the Company’s name and at the Company’s expense. Failure to give notice of
redemption, or any defect therein to any Holder of any Note selected for
redemption shall not impair or affect the validity of the redemption of any
other Note.

 

Each notice of
redemption shall identify the Notes to be redeemed and shall state:

 

(1)                                  the
Redemption Date;

 

(2)                                  the
Redemption Price and the amount of accrued interest and Additional Interest, if
any, to be paid to (but not including) the Redemption Date;

 

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

 

(4)                                  the
CUSIP number;

 

(5)                                  the
subparagraph of the Notes pursuant to which such redemption is being made;

 

(6)                                  the
place where such Notes called for redemption must be surrendered to the Paying
Agent to collect the Redemption Price plus accrued interest and Additional
Interest, if any, to (but not including) the Redemption Date;

 

(7)                                  that,
unless the Company fails to deposit with the Paying Agent funds in satisfaction
of the applicable redemption price, interest and Additional Interest, if any,
on Notes called for redemption ceases to accrue on and after the Redemption
Date in accordance with Section 3.05, and the only remaining right
of the Holders of such Notes is to receive payment of the Redemption Price plus
accrued interest and Additional Interest, if any, to (but not including) the
Redemption Date, upon surrender to the Paying Agent of the Notes redeemed;

 

(8)                                  if
any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the Redemption Date, and upon surrender of
such Note, a new Note or Notes in the aggregate principal applicable amount
equal to the unredeemed portion thereof shall be issued; and

 

32

 

(9)                                  if
fewer than all the applicable Notes are to be redeemed, the identification of
the particular Notes (or portion thereof) to be redeemed, as well as the aggregate
principal amount of the applicable Notes to be redeemed and the aggregate
principal amount of the applicable Notes to be outstanding after such partial
redemption.

 

If any of the
Notes to be redeemed is in the form of a Global Note, then the Company shall
modify such notice to the extent necessary to accord with the procedures of the
Depository applicable to redemption.

 

Section 3.04                                Effect of Notice of
Redemption.

 

Once notice of
redemption is mailed in accordance with Section 3.03, Notes or
portions thereof called for redemption shall become irrevocably due and payable
on the Redemption Date and at the Redemption Price plus accrued interest and
Additional Interest, if any, to (but not including) the Redemption Date. Upon
surrender to the Trustee or Paying Agent, such Notes or portions thereof called
for redemption shall be paid at the Redemption Price plus accrued interest and
Additional Interest, if any, thereon to (but not including) the Redemption
Date, but installments of interest, the maturity of which is on or prior to the
Redemption Date, shall be payable to Holders of record at the close of business
on the relevant Record Dates referred to in the Notes.

 

Section 3.05                                Deposit of
Redemption Price.

 

Not later than
10:00 a.m. local time in the place of payment on the Redemption Date, the
Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay
the Redemption Price plus accrued and unpaid interest and Additional Interest,
if any, to (but not including) the Redemption Date, of all Notes or portions
thereof to be redeemed on that date.

 

The Paying
Agent shall promptly return to the Company any U.S. Legal Tender so deposited
which is not required for that purpose, except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.

 

If the Company
complies with the preceding paragraph, then, unless the Company defaults in the
payment of such Redemption Price plus accrued interest and Additional Interest,
if any, to (but not including) the Redemption Date, on the Notes or portions
thereof to be redeemed shall cease to accrue on and after the applicable
Redemption Date, whether or not such Notes are presented for payment.

 

Section 3.06                                Notes Redeemed in
Part.

 

Upon surrender
of a Note that is to be redeemed in part, the Company shall issue and the
Trustee shall authenticate for the Holder at the expense of the Company a new
Note or Notes equal in principal amount to the unredeemed portion of the Note
surrendered.

 

ARTICLE FOUR

COVENANTS

 

Section 4.01                                Payment of Notes.

 

The Company
shall pay the principal of, or premium, if any, or interest, and Additional
Interest, if any, on the Notes on the dates and in the manner provided in the
Notes and in this Indenture. An installment of principal of, or premium, if
any, or interest, and Additional Interest, if any, on the Notes

 

33

 

shall be considered paid on the date it is due if the Trustee or Paying
Agent (other than the Company or an Affiliate of the Company) holds by 11:00
a.m. on that date U.S. Legal Tender designated for and sufficient to pay the
installment in full.

 

Notwithstanding
anything to the contrary contained in this Indenture, the Company may, to the
extent it is required to do so by law, deduct or withhold income or other
similar taxes imposed by the United States from principal or interest payments
hereunder.

 

Section 4.02                                Maintenance of
Office or Agency.

 

The Company
shall maintain the office or agency required under Section 2.03. The
Company shall give prior written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of The
Bank of New York Trust Company, N.A. and the Company hereby appoints The Bank
of New York Trust Company, N.A. as its agent to receive all such presentations,
surrenders, notices and demands.

 

Section 4.03                                Corporate Existence.

 

Except as
otherwise permitted by Article Four, Article Five and Article Ten,
the Company shall do or cause to be done, at its own cost and expense, all
things necessary to preserve and keep in full force and effect its corporate
existence and the limited liability company, partnership or corporate existence
of each of the Restricted Subsidiaries in accordance with the respective
organizational documents of each such Restricted Subsidiary and the material
rights (charter and statutory) and franchises of the Company and each such
Restricted Subsidiary; provided, however,
that the Company shall not be required to preserve, with respect to itself, any
material right or franchise and, with respect to any of the Restricted
Subsidiaries, any such existence, material right or franchise, if the Board of
Directors of the Company, shall determine in good faith that the preservation
thereof is no longer desirable in the conduct of the business of the Company
and its Restricted Subsidiaries, taken as a whole.

 

Section 4.04                                Payment of Taxes and
Other Claims.

 

The Company
shall pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (i) all material taxes, assessments and governmental
charges (including withholding taxes and any penalties, interest and additions
to taxes) levied or imposed upon it or any of the Restricted Subsidiaries or
its properties or any of the Restricted Subsidiaries’ properties and (ii) all
material lawful claims for labor, materials and supplies that, if unpaid, might
by law become a Lien upon its properties or any of its Restricted Subsidiaries’
properties; provided, however, that the Company shall not be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being or shall be contested in
good faith by appropriate proceedings properly instituted and diligently
conducted for which adequate reserves, to the extent required under GAAP, have
been taken.

 

Section 4.05                                Maintenance of
Properties and Insurance; Compliance with Laws.

 

(a)                                  The
Company shall, and shall cause each of its Restricted Subsidiaries to, maintain
in good working order and condition in all material respects (subject to
ordinary wear and tear) its properties that are used or useful in the conduct
of its business and that are material to the conduct of such business, and make
all necessary repairs, renewals, replacements, additions, betterments and
improvements thereto and actively conduct and carry on its business; provided, however, that nothing in

 

34

 

this Section 4.05
shall prevent the Company or any of the Restricted Subsidiaries from
discontinuing the operation and maintenance of any of its properties if such
discontinuance is, in the good faith judgment of the Board of Directors or
other governing body of the Company or the Restricted Subsidiary concerned, as
the case may be, desirable in the conduct of its businesses and is not
disadvantageous in any material respect to the Holders.

 

(b)                                 The
Company shall maintain insurance (including appropriate self-insurance) against
loss or damage of the kinds that, in the good faith judgment of the Company, is
adequate and appropriate for the conduct of the business of the Company and the
Restricted Subsidiaries in a prudent manner, with reputable insurers or with
the government of the United States or an agency or instrumentality thereof, in
such amounts, with such deductibles, and by such methods as shall be customary,
in the good faith judgment of the Company, for companies similarly situated in
the industry in which the Company and the Restricted Subsidiaries are engaged.

 

(c)                                  The
Company shall, and shall cause each of its Subsidiaries to, comply with all
applicable statutes, rules, regulations, orders and restrictions of the United
States, all states and municipalities thereof, and of any governmental
department, commission, board, regulatory authority, bureau, agency and
instrumentality of the foregoing, in respect of the conduct of its businesses
and the ownership of its properties, except for such noncompliances as are not
in the aggregate reasonably likely to have a material adverse effect on the
financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole, or the ability of the Company to perform its
obligations hereunder.

 

Section 4.06                                Compliance
Certificate; Notice of Default.

 

(a)                                  The
Company shall deliver to the Trustee, within ninety (90) days after the end of
the Company’s fiscal year, an Officers’ Certificate stating that a review of
the activities of the Company and its Restricted Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers (one of whom is the principal executive officer, principal financial
officer or principal accounting officer) with a view to determining whether
they have kept, observed, performed and fulfilled their obligations under this
Indenture and the other Indenture Documents and further stating, as to each
such Officer signing such certificate, that to the best of such Officer’s
actual knowledge the Company and its Restricted Subsidiaries during such
preceding fiscal year have kept, observed, performed and fulfilled each and
every condition and covenant under this Indenture and the other Indenture
Documents in all material respects and at the date of such certificate there is
no Default or Event of Default that has occurred and is continuing or, if such
signers do know of such Default or Event of Default, the certificate shall
describe the Default or Event of Default and its status with particularity.

 

(b)                                 The
Company shall, so long as any Notes are outstanding, upon any Officer of the
Company becoming aware of any Default or Event of Default, deliver to the
Trustee an Officers’ Certificate specifying such Default or Event of Default
within five (5) Business Days of such Officer becoming aware of such
occurrence.

 

Section 4.07                                Waiver of Stay,
Extension or Usury Laws.

 

The Company
covenants (to the extent that it may lawfully do so) that it shall not at any
time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive the Company from paying all or any portion of the
principal of, premium, if any, or interest or Additional Interest, if any, on
the Notes as contemplated herein, wherever enacted, now or at any time
hereafter in force, or which may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) the Company
hereby expressly waives all benefit or advantage of any such law, and covenant
that it shall not,

 

35

 

by resort to any such law, hinder, delay or impede the execution of any
power herein granted to the Trustee or Collateral Agent, but shall suffer and
permit the execution of every such power as though no such law had been
enacted.

 

Section 4.08                                Limitation on
Incurrence of Additional Indebtedness.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, assume, guarantee, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, “incur”) any Indebtedness (other than
Permitted Indebtedness). Notwithstanding the foregoing the Company and the
Guarantors may incur Indebtedness (including Acquired Indebtedness) if on the
date of (after giving effect to) the incurrence of such Indebtedness: (i) no
Default or Event of Default shall have occurred and be continuing; and
(ii) the Consolidated Fixed Charge Coverage Ratio of the Company will be
at least 2.0 to 1.0.

 

Section 4.09                                Limitation on
Restricted Payments.

 

The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly:

 

(1)                                  declare
or pay any dividend or make any distribution (other than dividends or
distributions payable (i) in Qualified Capital Stock of the Company or
(ii) to the Company or a Guarantor) on or in respect of shares of Capital
Stock of the Company or its Restricted Subsidiaries;

 

(2)                                  purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the
Company, any Restricted Subsidiary or any Affiliate of the Company (other than
any such Capital Stock owned by the Company or any Guarantor);

 

(3)                                  make
any principal payment on, purchase, defease, redeem, prepay or otherwise
acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Indebtedness of the Company or
any Guarantor that is subordinate or junior in right of payment to the Notes or
a Guarantee; or

 

(4)                                  make
any Investment (other than Permitted Investments);

 

(each of the
foregoing actions set forth in clauses (1), (2), (3) and (4)
being referred to as a “Restricted Payment”), if at the time of such
Restricted Payment or immediately after giving effect thereto:

 

(i)                                     a
Default or an Event of Default shall have occurred and be continuing;

 

(ii)                                  the
Company is not permitted to incur at least $1.00 of additional Indebtedness
(other than Permitted Indebtedness) pursuant to the covenant described under Section 4.08;
or

 

(iii)                               the
aggregate amount of Restricted Payments (including such proposed Restricted
Payment) made subsequent to the Issue Date (the amount expended for such
purposes, if other than in cash, being the Fair Market Value of such property
at the time of the making thereof) shall exceed the sum of:

 

(A)                              50%
of the cumulative Consolidated Net Income (or if cumulative Consolidated Net
Income is a loss, minus 100% of such loss) of the Company during the period
beginning on the first day of the first fiscal quarter after the Issue Date and
ending

 

36

 

on the last
day of the Company’s most recent fiscal quarter ending prior to the date of
such Restricted Payment for which financial statements are available (the “Reference
Date”) (treating such period as a single accounting period); plus

 

(B)                                100%
of the aggregate net cash proceeds received by the Company from any Person
(other than a Subsidiary of the Company) from the issuance and sale subsequent
to the Issue Date and on or prior to the Reference Date of Qualified Capital
Stock of the Company (which shall include capital contributions to the Company)
(excluding any net proceeds from an Equity Offering to the extent used to
redeem Notes pursuant to the provisions of Section 3.01; plus

 

(C)                                100%
of the aggregate net cash proceeds received from the issuance of Indebtedness
or shares of Disqualified Capital Stock of the Company (other than to a
Subsidiary of the Company) that have been converted into or exchanged for
Qualified Capital Stock of the Company subsequent to the Issue Date and on or
prior to the Reference Date; plus

 

(D)                               the
net reduction in the Investments (other than Permitted Investments) treated as
a Restricted Payment previously made by the Company or any Restricted
Subsidiary in any Person (other than a Restricted Subsidiary) to the extent
such reduction results from net proceeds received by the Company and its
Restricted Subsidiaries upon the (x) repurchase, repayment or redemption
of such Investments by such Person (but only to the extent constituting return
of capital) and (y) the sale of such Investment (but only to the extent
such sale does not increase Consolidated Net Income of the Company), in each
case, in an amount not exceeding the aggregate amount of such Investments; plus

 

(E)                                 (1) the
Company’s portion (proportionate to the Company’s equity interest in such
Subsidiary) of the fair market value of the net assets of any Unrestricted
Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted
Subsidiary in an amount not to exceed the amount of Investments (excluding
Permitted Investments) previously made (and treated as a Restricted Payment) by
the Company of any or its Restricted Subsidiaries in such Unrestricted
Subsidiary and (2) the aggregate amount of cash dividends or cash
distributions received by the Company or the Guarantors from an Unrestricted
Subsidiary from the Issue Date to the Reference Date.

 

In the case of
clause (iii)(B) above, any net cash proceeds from issuances and sales of
Qualified Capital Stock of the Company financed directly or indirectly using
funds borrowed from the Company or any Subsidiary of the Company, shall be
excluded until and to the extent such borrowing is repaid.

 

Notwithstanding
the foregoing, the provisions set forth in the immediately preceding paragraph
do not prohibit:

 

(1)                                  the
payment of any dividend or other distribution or redemption within 60 days
after the date of declaration of such dividend or call for redemption if such
payment would have been permitted on the date of declaration or call for
redemption;

 

(2)                                  the
acquisition of any shares of Qualified Capital Stock of the Company, solely in
exchange for other shares of Qualified Capital Stock of the Company;

 

(3)                                  the
acquisition of any Indebtedness of the Company or the Guarantors that is
subordinate or junior in right of payment to the Notes and Guarantees or the
acquisition of

 

37

 

Disqualified Capital Stock either (i) solely in exchange for
shares of Qualified Capital Stock of the Company, or (ii) through the
application of net proceeds of a sale for cash (other than to a Subsidiary of
the Company) within sixty (60) days after such sale if no Default or Event of
Default would exist after giving effect thereto, of Refinancing Indebtedness;

 

(4)                                  an
Investment either (i) solely in exchange for shares of Qualified Capital
Stock of the Company or (ii)  through the application of the net proceeds
of a sale for cash (other than to a Subsidiary of the Company) of shares of
Qualified Capital Stock of the Company within sixty (60) days after such sale;

 

(5)                                  in
the event of a Change of Control, and if no Default shall have occurred and be
continuing or would exist after giving effect thereto, the payment, purchase,
redemption, defeasance, satisfaction, discharge or other acquisition or
retirement of Indebtedness that is subordinated to the Notes or the Guarantees,
in each case, at a purchase price not greater than 101% of the principal amount
of such Indebtedness (or, if such Indebtedness was issued with original issue
discount, 101% of the accreted value), plus any accrued and unpaid interest
thereon; provided, however, that
prior to such payment, purchase, redemption, defeasance, satisfaction,
discharge or other acquisition or retirement, the Company has made a Change of
Control Offer with respect to the Notes as a result of such Change of Control
and has repurchased all Notes validly tendered and not withdrawn in connection
with such Change of Control Offer;

 

(6)                                  (i) general
corporate overhead expenses of Holdings, including, without limitation,
franchise taxes and other fees required to maintain the existence of Holdings,
insurance premiums and indemnification claims made by directors or officers of
Holdings attributable to the ownership or operation of the Company and its
Subsidiaries and (ii) reasonable fees and expenses paid to members of the
board of directors of Holdings; provided,
that such fees and expenses described in this clause (ii) are in an
aggregate amount not to exceed $500,000 in any fiscal year;

 

(7)                                  the
application of the proceeds from the issuance of the Notes on the Issue Date as
described under the “Use of Proceeds” section of the Offering Circular;

 

(8)                                  advances
to any direct or indirect parent entity of the Company to be used by such
entity solely to pay federal, state and local income taxes made no earlier than
five days prior to the date on which such entity is required to make such
payment in an amount not to exceed the aggregate tax liability of the Company
and its Restricted Subsidiaries for such calendar year determined as if the
Company and its Restricted Subsidiaries were a separate affiliated group (as
defined in Section 1504 of the Internal Revenue Code of 1986, as amended)
filing a consolidated return, or, to the extent applicable, a separate group
filing combined or unitary returns, and then only to the extent that any such
payments are actually paid by such entity to governmental entities;

 

(9)                                  if
no Default or Event of Default has occurred and is continuing or would exist
after giving effect thereto, the purchase, repurchase, redemption or other
acquisition of Capital Stock of the Company from employees, former employees,
directors, or former directors of the Company (or permitted transferees of such
employees, former employees, directors or former directors), pursuant to the
terms of the agreements (including employment agreements) or plans (or
amendments thereto) approved by the Board of Directors of the Company under
which such individuals purchase or sell, or are granted the option to purchase
or sell, shares of such Capital Stock; provided,
that the aggregate amount of such repurchases and other acquisitions in any
calendar year shall not exceed $500,000;

 

38

 

(10)                            if
no Default or Event of Default has occurred and is continuing or would exist
after giving effect thereto, the payment of the consulting fee pursuant to the
Management Agreement; provided, that the aggregate amount of such fee in
any calendar year shall not exceed $1.0 million; and

 

(11)                            if
no Default or Event of Default shall have occurred and be continuing or would
exist after giving effect thereto, other Restricted Payments not to exceed
$10.0 million in the aggregate since the Issue Date.

 

In determining
the aggregate amount of Restricted Payments made subsequent to the Issue Date
in accordance with clause (iii) of the first paragraph of this Section 4.09
amounts expended pursuant to clauses (1), (4)(ii) and (9) shall
be included in such calculation and amounts expended pursuant to clauses (2),
(3), 4(i), (5), (6), (7), (8), (10) and (11) shall not be included
in such calculation.

 

Not later than
the date of making any Restricted Payment, the Company shall deliver to the
Trustee an Officers’ Certificate stating that such Restricted Payment complies
with the Indenture and setting forth in reasonable detail the basis upon which
the required calculations were computed, which calculations may be based upon
the Company’s latest available internal quarterly financial statements.

 

Section 4.10                                Limitation on Asset
Sales.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, consummate
an Asset Sale unless:

 

(1)                                  the
Company or the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the Fair Market
Value of the assets sold or otherwise disposed;

 

(2)                                  at
least 75% of the consideration Received by the Company or the Restricted
Subsidiary, as the case may be, from such Asset Sale is in the form of cash or
Cash Equivalents received substantially concurrent with the time of such
disposition; provided that the amount of
any liabilities (as shown on the most recent applicable balance sheet) of the
Company or such Restricted Subsidiary (other than liabilities that are by their
terms subordinated to the Notes) that are assumed by the transferee of any such
assets shall be deemed to be cash for purposes of this provision if the
documents governing such liabilities provide that there is no further recourse
to the Company or any of its Subsidiaries with respect to such liabilities; and

 

(3)                                  the
Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash
Proceeds relating to such Asset Sale within 360 days of receipt thereof either:

 

(a)                                  to
repay any outstanding Indebtedness under the Credit Agreement and
correspondingly reduce the commitments thereunder;

 

(b)                                 to
reinvest in property, plant, equipment or other long-term assets that replace
the properties and assets that were the subject of such Asset Sale or that will
be used or useful in the Permitted Business (including expenditures for
maintenance, repair or improvement of existing properties and assets); or

 

(c)                                  a
combination of repayment and investment permitted by clauses (3)(a) and (3)(b).

 

39

 

Pending the
final application of Net Cash Proceeds, the Company may temporarily reduce
revolving credit borrowings or invest such Net Cash Proceeds in Cash
Equivalents. On the 361st day after an Asset Sale or such earlier date, if any,
as the Board of Directors of the Company or of such Restricted Subsidiary
determines not to apply the Net Cash Proceeds relating to such Asset Sale as
set forth in clauses (3)(a), 3(b) or 3(c) of the preceding
paragraph (each, a “Net Proceeds Offer Trigger Date”), such aggregate
amount of Net Cash Proceeds which have not been applied (each a “Net
Proceeds Offer Amount”) shall be applied by the Company or such Restricted
Subsidiary to make an offer to purchase (the “Net Proceeds Offer”) on a
date (the “Net Proceeds Offer Payment Date”) not less than thirty (30)
nor more than forty-five (45) days following the applicable Net Proceeds Offer
Trigger Date, from all Holders of the Notes the maximum principal amount of
Notes that may be purchased with the Net Proceeds Offer Amount at a price equal
to 100% of the principal amount thereof, plus accrued and unpaid interest and Additional
Interest thereon, if any, to the date of purchase.

 

If at any time
any consideration other than cash and Cash Equivalents received by the Company
or any Restricted Subsidiary, as the case may be, in connection with any Asset
Sale is converted into or sold or otherwise disposed of for cash or Cash
Equivalents (other than interest received with respect to any such non-cash
consideration), then such conversion or disposition shall be deemed to be an
Asset Sale on the date of such conversion or disposition, as the case may be,
and the Net Cash Proceeds thereof shall be applied in accordance with this
covenant.

 

The Company
may defer any Net Proceeds Offer until there is an aggregate unutilized Net
Proceeds Offer Amount equal to or in excess of $5.0 million resulting from one
or more Asset Sales in which case the accumulation of such amount shall
constitute a Net Proceeds Offer Trigger Date (at which time, the entire
unutilized Net Proceeds Offer Amount, and not just the amount in excess of $5.0
million, shall be applied as required pursuant to this covenant). If any of the
Net Cash Proceeds Amount remains after consummation of a Net Proceeds Offer,
the Company may use such amount for any corporate purpose to the extent not
otherwise prohibited by the Indenture and the Net Proceeds Offer Amount will be
reset at zero.

 

In the event
of the transfer of substantially all (but not all) of the property and assets
of the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Section 5.01 that does not constitute a
Change of Control, the successor entity shall be deemed to have sold the
properties and assets of the Company and its Restricted Subsidiaries not so
transferred for purposes of this Section 4.10, and shall comply
with this Section 4.10 with respect to such deemed sale as if it
constituted an Asset Sale. The Fair Market Value of such properties and assets
of the Company or its Restricted Subsidiaries deemed to be sold shall be deemed
to be Net Cash Proceeds for purposes of this Section 4.10.

 

Each notice of
a Net Proceeds Offer shall be mailed first class, postage prepaid, to the
record Holders as shown on the register of Holders within twenty (20) days
following the Net Proceeds Offer Trigger Date, with a copy to the Trustee. Upon
receiving notice of the Net Proceeds Offer, Holders may elect to tender their
Notes in whole or in part in integral multiples of $1,000 in exchange for cash.
To the extent Holders properly tender Notes in an amount exceeding the Net Proceeds
Offer Amount, Notes of tendering Holders will be purchased on a pro  rata
basis (based on amounts tendered). A Net Proceeds Offer shall remain open for a
period of 20 Business Days or such longer period as may be required by law.

 

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 Notes pursuant
to a Net Proceeds Offer. To the extent that the provisions of any securities
laws or regulations conflict with this Section 4.10, the Company
shall comply

 

40

 

with the applicable securities laws and regulations and shall not be
deemed to have breached its obligations under this Section 4.10 by
virtue of such compliance.

 

Section 4.11                                Limitation on
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, create or otherwise cause or permit to exist or become
effective any encumbrance or restriction on the ability of any Restricted
Subsidiary to:

 

(1)                                  pay
dividends or make any other distributions on or in respect of its Capital
Stock;

 

(2)                                  make
loans or advances or to pay any Indebtedness or other obligation owed to the
Company or any other Restricted Subsidiary; or

 

(3)                                  transfer
any of its property or assets to the Company or any other Restricted
Subsidiary,

 

except for
such encumbrances or restrictions existing:

 

(a)                                  under
applicable law, rule, regulation, order, license or permit;

 

(b)                                 under
the Indenture and the Collateral Agreements;

 

(c)                                  by
reason of customary non-assignment provisions of any lease of any Restricted
Subsidiary to the extent such provisions restrict the transfer of the lease or
the property leased thereunder;

 

(d)                                 under
any instrument governing Acquired Indebtedness, which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person or the properties or assets of the Person so
acquired;

 

(e)                                  under
the Credit Agreement;

 

(f)                                    by
reason of restrictions on the transfer of assets subject to any Permitted Lien;

 

(g)                                 under
customary agreements to sell assets or Capital Stock permitted to be sold under
the Indenture pending the closing of such sale;

 

(h)                                 under
Purchase Money Indebtedness or Capitalized Lease Obligations permitted under
the Indenture; provided, that such
encumbrances and restrictions relate only to the assets financed with such
Indebtedness;

 

(i)                                     by
reason of restrictions on cash or other deposits under bona fide arrangements
with customers entered into in the ordinary course of business, consistent with
past practice;

 

(j)                                     on
any Foreign Restricted Subsidiary under Indebtedness of such Subsidiary
permitted under the Indenture; or

 

41

 

(k)                                  under
Refinancing Indebtedness incurred to Refinance the Indebtedness referred to in clause
(b), (d) or (e); provided,
that the provisions relating to such encumbrance or restriction contained in
any such Indebtedness are no more adverse to the Holders and no less favorable
or more onerous to the Company and its Restricted Subsidiaries than the
provisions relating to such encumbrance or restriction contained in agreements
referred to in the Indebtedness being Refinanced.

 

Section 4.12                                Limitation on
Issuances and Sales of Capital Stock of Subsidiaries.

 

The Company
will not, and will not permit or cause any of its Restricted Subsidiaries to,
transfer, convey, issue or sell any Capital Stock of any Restricted Subsidiary
to any Person (other than to the Company or to a Wholly Owned Subsidiary and
directors’ qualifying shares); provided,
that this provision shall not prohibit:

 

(1)                                  any
transfer, issuance or sale if, immediately after giving effect thereto, such
Restricted Subsidiary would no longer constitute a Restricted Subsidiary and
any Investment in such Person remaining after giving effect to such issuance or
sale would have been permitted to be made under Section 4.09 if
made on the date of such issuance or sale; or

 

(2)                                  the
sale of all of the Capital Stock of a Restricted Subsidiary in compliance with
the provisions of Section 4.10.

 

Section 4.13                                Limitation on Liens.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, create, incur, assume or otherwise cause or suffer to exist any
Liens (other than Permitted Liens) of any kind against or upon any property or
assets of the Company or any of its Restricted Subsidiaries whether owned on
the Issue Date or acquired after the Issue Date, or any proceeds therefrom, or
assign or otherwise convey any right to receive income or profits therefrom.

 

Section 4.14                                Limitations on
Transactions with Affiliates.

 

(a)                                  The
Company will not, and will not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction or series
of related transactions (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with, or for
the benefit of, any of its Affiliates (each an “Affiliate Transaction”),
other than:

 

(x)                                   Permitted
Affiliate Transactions, and

 

(y)                                 Affiliate
Transactions on terms that are no less favorable than those that might
reasonably have been obtained in a comparable transaction at such time on an
arm’s length basis from a Person that is not an Affiliate of the Company or
such Restricted Subsidiary.

 

With respect
to all Affiliate Transactions (other than Permitted Affiliated Transactions):

 

(i)                                     the
Company will deliver an Officers’ Certificate to the Trustee certifying that
such transactions are in compliance with clause (y) of the preceding
paragraph;

 

(ii)                                  if
such Affiliate Transaction involves aggregate payments or other property with a
Fair Market Value in excess of $2.5 million shall be approved by a majority of
the members of the Board of Directors of the Company (including a majority of
the disinterested members

 

42

 

thereof), as the case may be, such approval to be evidenced by a Board
Resolution stating that such Board of Directors has determined that such
transaction complies with this Section 4.14(ii); and

 

(iii)                               if
such Affiliate Transaction involves an aggregate Fair Market Value of more than
$5.0 million, the Company will, prior to the consummation thereof, obtain a
favorable opinion as to the fairness of the financial terms of such transaction
or series of related transactions to the Company or the relevant Restricted
Subsidiary, as the case may be, from an Independent Financial Advisor and file
the same with the Trustee.

 

(b)                                 The
restrictions set forth in the first paragraph of this covenant will not apply
to the following transactions (collectively, “Permitted Affiliate
Transactions”):

 

(1)                                  reasonable
fees and compensation paid to and indemnity provided on behalf of, officers,
directors, employees or consultants of the Company or any Restricted
Subsidiary;

 

(2)                                  transactions
exclusively between or among the Company and any of its Wholly Owned Restricted
Subsidiaries or exclusively between or among such Wholly Owned Restricted
Subsidiaries, provided, that such transactions are not otherwise prohibited by
the Indenture;

 

(3)                                  any
agreement as in effect as of the Issue Date or any transaction contemplated
thereby and any amendment thereto or any replacement agreement thereto so long
as any such amendment or replacement agreement is not more disadvantageous to
the Holders, the Company or the Restricted Subsidiaries in all material
respects than the original agreement as in effect on the Issue Date;

 

(4)                                  Restricted
Payments permitted by the Indenture or Permitted Investments;

 

(5)                                  any
merger or other transaction with an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction or creating a holding
company of the Company;

 

(6)                                  any
employment, stock option, stock repurchase, employee benefit compensation,
business expense reimbursement, severance, termination or other employment
related agreements, arrangements or plans entered into in good faith by the
Company or any of its Restricted Subsidiaries in the ordinary course of
business;

 

(7)                                  sales
or purchases of inventory, other products or services to or from any Affiliate
of the Company entered into in the ordinary course of business on terms no less
favorable to the Company and its Subsidiaries than those that could be obtained
at the time of such sale or purchase in arm’s length dealings with a Person who
is not an Affiliate; and

 

(8)                                  any
agreement existing and as in effect on the Issue Date, including the Management
Agreement.

 

Section 4.15                                Additional
Subsidiary Guarantees.

 

If the Company
or any of its Restricted Subsidiaries acquires or creates another Domestic
Restricted Subsidiary after the Issue Date (other than an Unrestricted
Subsidiary), then the Company shall cause such Domestic Restricted Subsidiary
to:

 

43

 

(1)                                  execute
and deliver to the Trustee a supplemental indenture in form reasonably
satisfactory to the Trustee pursuant to which such Subsidiary shall
unconditionally guarantee on a senior secured basis all of the Company’s
obligations under the Notes and the Indenture on the terms set forth in the
Indenture;

 

(2)                                  execute
and deliver to the Collateral Agent such amendments to the Collateral
Agreements as the Collateral Agent deems necessary or advisable in order to
grant to the Collateral Agent, for the benefit of the Holders, a perfected
security interest in the Capital Stock of such new Domestic Restricted
Subsidiary and any debt securities of such new Subsidiary, subject to the
Permitted Liens, which are owned by the Company or Subsidiary and required to
be pledged pursuant to the Security Agreement, (b) deliver to the
Collateral Agent any certificates representing such Capital Stock and debt
securities, together with (i) in the case of such Capital Stock, undated
stock powers or instruments of transfer, as applicable, endorsed in blank, and
(ii) in the case of such debt securities, endorsed in blank, in each case
executed and delivered by an Officer of the Company or such Subsidiary, as the
case may be;

 

(3)                                  take
such actions as are necessary or as the Collateral Agent reasonably determines
to be advisable to grant to the Collateral Agent for the benefit of the Holders
a perfected security interest in the assets of such new Domestic Restricted
Subsidiary, subject to the Permitted Liens, including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required
by the Security Agreement or by law or as may be reasonably requested by the
Collateral Agent;

 

(4)                                  take
such further action and execute and deliver such other documents specified in
the Indenture or otherwise reasonably requested by the Trustee or the
Collateral Agent to effectuate the foregoing; and

 

(5)                                  deliver
to the Trustee an Opinion of Counsel that such supplemental indenture and any
other documents required to be delivered have been duly authorized, executed
and delivered by such Domestic Restricted Subsidiary and constitutes a legal,
valid, binding and enforceable obligations of such Domestic Restricted
Subsidiary and such other opinions regarding the perfection of such Liens in
the assets of such Domestic Restricted Subsidiary as provided for in the
Indenture.

 

Thereafter,
such Subsidiary shall be a Guarantor for all purposes of the Indenture.

 

Section 4.16                                Impairment of
Security Interest.

 

Neither the
Company nor any of its Restricted Subsidiaries will (a) take or omit to
take any action which would adversely affect or impair in any material respect
the Liens (other than the incurrence of Permitted Liens) in favor of the
Collateral Agent with respect to the Collateral, (b) grant to any Person
(other than the Collateral Agent), or permit any Person (other than the
Collateral Agent), to retain any interest whatsoever in the Collateral other
than Permitted Liens or (c) enter into any agreement that requires the
proceeds received from any sale of Collateral to be applied to repay, redeem,
defease or otherwise acquire or retire any Indebtedness of any Person, other
than as permitted by the Indenture, the Notes and the Collateral Agreements.
The Company shall, and shall cause each Guarantor to, at their sole cost and
expense, (i) execute and deliver all such agreements and instruments as
necessary or as the Collateral Agent shall reasonably request to more fully or
accurately describe the property intended to be Collateral or the obligations
intended to be secured by the Collateral Agreements and (ii) file any such
notice filings or other agreements or instruments as may be reasonably
necessary or desirable under

 

44

 

applicable law to perfect the Liens created by the Collateral
Agreements at such appropriate times and at such appropriate places or as the
Collateral Agent may reasonably request.

 

Section 4.17                                Real Estate
Mortgages and Filings.

 

(a)                                  With
respect to any fee interest in any real property (individually and
collectively, the “Premises”) (x) owned by the Company or a
Domestic Restricted Subsidiary on the Issue Date (other than the Syracuse
Facility) or (y) acquired by the Company or a Domestic Restricted
Subsidiary after the Issue Date (other than real property located in the State
of New York), (i) with a purchase price, or with a Fair Market Value as of
the Issue Date, as applicable, greater than $500,000, and (ii) within 60 days
of the Issue Date in the case of clause (x) or within ninety (90) days
of the acquisition thereof in the case of clause (y), the Company shall
deliver to the Collateral Agent:

 

(1)                                  as
mortgagee, fully executed counterparts of Mortgages, each dated as of a date
prior to the 60th day after the Issue Date or as of a date prior to
the 90th day after the applicable date of acquisition of such
property, as the case may be, duly executed by the Company or the applicable
Domestic Restricted Subsidiary, together with evidence of the completion (or
satisfactory arrangements for the completion), of all recordings and filings of
such Mortgage as may be necessary to create a valid, perfected Lien, subject to
Permitted Liens, against the properties purported to be covered thereby and, in
the case of clause (x), opinions of counsel addressed to the Initial
Purchaser, the Trustee and the Collateral Agent and in form and substance
reasonably satisfactory to the Initial Purchaser (as communicated in writing by
the Initial Purchaser to the Trustee), in connection with the grant of such
Mortgages;

 

(2)                                  mortgagee’s
title insurance policies in favor of the Collateral Agent, as mortgagee for the
ratable benefit of the Collateral Agent, the Trustee and the Holders in an
amount equal to 100% of the Fair Market Value of the Premises purported to be
covered by the related Mortgage, insuring that title to such property is
marketable and that the interests created by the Mortgage constitute valid
Liens thereon free and clear of all Liens, defects and encumbrances other than
Permitted Liens, and such policies shall also include, to the extent available,
other customary endorsements and shall be accompanied by evidence of the
payment in full of all premiums thereon; and

 

(3)                                  with
respect to each of the covered Premises, the most recent survey of such
Premises, together with either (i) an updated survey certification in
favor of the Trustee and the Collateral Agent from the applicable surveyor
stating that, based on a visual inspection of the property and the knowledge of
the surveyor, there has been no change in the facts depicted in the survey or
(ii) an affidavit from the Company or the applicable Guarantor, as
applicable, stating that there has been no change, other than, in each case,
changes that do not materially adversely affect the use by the Company or
Guarantor, as applicable, of such Premises for the Company or such Guarantor’s
business as so conducted, or intended to be conducted, at such Premises.

 

(b)                                 In
the event that the Company or the Guarantors, as applicable, execute Mortgages
of the Syracuse Facility or any other existing and future owned real property
in the State of New York under the Credit Agreement in the future, the Company
or such Guarantor shall simultaneously execute Mortgages of such real property
in favor of the Collateral Agent for the benefit of the Holders of the Notes.

 

45

 

Section 4.18                                Leasehold Mortgages
and Filings; Landlord Waivers.

 

(a)                                  The
Company and each of its Domestic Restricted Subsidiaries shall deliver
Mortgages with respect to the Company’s leasehold interests in the premises
(the “Leased Premises”) occupied by the Company or such Domestic
Restricted Subsidiary pursuant to leases entered into after the Issue Date
(collectively, the “Leases,” and individually, a “Lease”).

 

(b)                                 Prior
to the effective date of any Lease, the Company and such Subsidiaries shall
provide to the Trustee all of the items described in clauses (2) and (3)
of Section 4.17 and in addition shall use their respective
reasonable commercial efforts to obtain an agreement executed by the lessor
under the Lease, whereby the lessor consents to the Mortgage and waives or
subordinates its landlord Lien (whether granted by the instrument creating the
leasehold estate or by applicable law), if any, and which shall be entered into
by the Collateral Agent.

 

(c)                                  Each
of the Company and each of its Domestic Restricted Subsidiaries that is a
lessee of, or becomes a lessee of, real property, is, and will be, required to
use commercially reasonable efforts to deliver to the Collateral Agent a
landlord waiver, substantially in the form attached as Exhibit F-1
hereto, executed by the lessor of such real property; provided that in the case where such lease is a lease in existence
on the Issue Date, the Company or its Domestic Restricted Subsidiary that is
the lessee thereunder shall be required to use such commercially reasonable
efforts to deliver within ninety (90) days from the Issue Date.

 

Section 4.19                                Conduct of Business.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, engage in
any businesses other than Permitted Businesses.

 

Section 4.20                                Reports to Holders.

 

Whether or not
required by the rules and regulations of the Securities and Exchange Commission
(the “SEC”), so long as any Notes are outstanding, the Company will
furnish to the Trustee and, upon request, to the Holders:

 

(1)                                  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” that describes the financial
condition and results of operations of the Company and its consolidated Subsidiaries
(showing in reasonable detail, either on the face of the financial statements
or in the footnotes thereto and in “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” the financial condition and
results of operations of the Company and its Restricted Subsidiaries separate
from the financial condition and results of operations of the Unrestricted
Subsidiaries of the Company, if any) and, with respect to the annual
information only, a report thereon by the Company’s certified independent
accountants; and

 

(2)                                  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 each case within the time
periods specified in the SEC’s rules and regulations.

 

Delivery of
such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information

 

46

 

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 Officers’ Certificates).

 

Notwithstanding
this Section 4.20, the Company may satisfy such requirements prior
to the effectiveness of the registration statement contemplated by the
Registration Rights Agreement by filing with the SEC such registration
statement, to the extent that any such registration statement contains
substantially the same information as would be required to be filed by the
Company if it were subject to the reporting requirements of Section 13 or
15(d) of the Exchange Act, and by providing the Trustee and Holders with such
Registration Statement (and any amendments thereto) promptly following the
filing thereof.

 

In addition,
following the consummation of the Exchange Offer, 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 within the time
periods specified in the SEC’s rules and regulations (unless the SEC will not
accept such a filing). In addition, the Company has agreed that, prior to the
consummation of the Exchange Offer, for so long as any Notes remain
outstanding, it will furnish to the Holders upon their request, the information
required to be delivered pursuant to Rule 144(A)(d)(4) under the Securities
Act.

 

Section 4.21                                Payments for Consent.

 

The Company
will not, and will not permit any of its Restricted Subsidiaries to, directly
or indirectly, pay or cause to be paid any consideration to or for the benefit
of any Holder for or as an inducement to any consent, waiver or amendment of
any of the terms or provisions of this Indenture, the Notes, any Collateral
Agreement or the Intercreditor Agreement unless such consideration is offered
to be paid or is paid to all Holders that consent, waive or agree to amend in
the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.

 

Section 4.22                                Repurchase Upon
Change of Control.

 

(a)                                  Upon the occurrence
of a Change of Control, the Company shall make an offer to purchase all
outstanding Notes pursuant to the requirements described in clause (b) below
(the “Change of Control Offer”) at a purchase price in cash equal to
101% of the principal amount thereof on the date of purchase plus accrued and
unpaid interest and Additional Interest, if any, to the date of purchase.

 

(b)                                 Within thirty (30)
days following the date upon which the Change of Control occurred, the Company
shall send, by registered first class mail, postage prepaid, a notice to each
record Holder as shown on the register of Holders, with a copy to the Trustee,
which notice shall govern the terms of the Change of Control Offer. The notice
to the Holders shall contain all instructions and materials necessary to enable
such Holders to tender Notes pursuant to the Change of Control Offer. Such
notice shall state:

 

(1)                                  that the Change of
Control Offer is being made pursuant to this Section 4.22 and that,
to the extent lawful, all Notes tendered and not withdrawn shall be accepted
for payment;

 

(2)                                  the purchase price
(including the amount of accrued interest, if any) and the purchase date (which
shall be no earlier than thirty (30) days nor later than sixty (60) days from
the date such notice is mailed, other than as may be required by law) (the “Change
of Control Payment Date”);

 

47

 

(3)                                  that any Note not
tendered shall continue to accrue interest and Additional Interest, if
applicable;

 

(4)                                  that, unless the
Company defaults in making payment therefor, any Note accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest, and
Additional Interest, if applicable, after the Change of Control Payment Date;

 

(5)                                  that Holders electing
to have a Note purchased pursuant to a Change of Control Offer shall be
required to surrender the Note, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on the third
Business Day prior to the Change of Control Payment Date;

 

(6)                                  that Holders shall be
entitled to withdraw their election if the Paying Agent receives, not later
than five (5) Business Days prior to the Change of Control Payment Date, a
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Notes the Holder delivered for purchase and a statement
that such Holder is withdrawing its election to have such Notes purchased;

 

(7)                                  that Holders whose
Notes are purchased only in part shall be issued new Notes in a principal
amount equal to the unpurchased portion of the Notes surrendered; provided
that each Note purchased and each new Note issued shall be in an original
principal amount of $1,000 or integral multiples thereof; and

 

(8)                                  the circumstances and
relevant facts regarding such Change of Control.

 

If any of the
Notes subject to the Change of Control Offer is in the form of a Global Note,
then the Company shall modify such notice to the extent necessary to comply
with the procedures of the Depositary applicable to repurchases.

 

On or before
the Change of Control Payment Date, the Company shall, to the extent lawful
(i) accept for payment Notes or portions thereof properly tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying
Agent U.S. Legal Tender sufficient to pay the purchase price plus accrued
interest and Additional Interest, if any, of all Notes or portions thereof so
tendered and (iii) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by the Company. The
Paying Agent shall promptly mail to the Holders of Notes so tendered the
purchase price for such Notes and the Company shall promptly issue and the
Trustee shall promptly (but in any case not later than five days after the
Change of Control Payment Date) authenticate and mail (or cause to be
transferred by book entry) to each Holder a new Note equal in principal amount
to any unpurchased portion of the Notes surrendered; provided that each
such new Note shall be in a principal amount of $1,000 or an integral multiple
thereof. Any Notes not so accepted shall be promptly mailed by the Company to
the Holders thereof. For purposes of this Section 4.22, the Trustee
shall act as the Paying Agent.

 

Any amounts
remaining after the purchase of Notes pursuant to a Change of Control Offer
shall be returned by the Trustee to the Company.

 

Neither the
Board of Directors of the Company nor the Trustee may waive the Company’s
obligation to offer to purchase the Notes pursuant to this Section 4.22.

 

48

 

The Company
shall not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements of this Section 4.22
and purchases all Notes validly tendered and not withdrawn under such Change of
Control Offer.

 

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 Notes pursuant
to a Change of Control Offer. To the extent the provisions of any securities
laws or regulations conflict with the provisions under this Section 4.22,
the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached their obligations under this Section 4.22
by virtue thereof.

 

Section 4.23                                Additional Interest.

 

If Additional
Interest becomes payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee an Officers’ Certificate
stating (i) the amount of Additional Interest due and payable, (ii) the
Section of the Registration Rights Agreement pursuant to which Additional
Interest is due and payable and (iii) the date on which Additional Interest is
payable. Unless and until a Responsible Officer of the Trustee receives such an
Officers’ Certificate, the Trustee may assume without inquiry that no
Additional Interest is payable; provided, that the failure of the
Company to deliver to the Trustee such Officers’ Certificate shall not relieve
the Company of its obligation to pay any such Additional Interest when due and
payable.

 

ARTICLE FIVE

SUCCESSOR CORPORATION

 

Section 5.01                                Merger,
Consolidation and Sale of Assets.

 

The Company
will not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, or sell, assign, transfer, lease,
convey or otherwise dispose of (or cause or permit any Restricted Subsidiary to
sell, assign, transfer, lease, convey or otherwise dispose of) all or
substantially all of the Company’s assets (determined on a consolidated basis for
the Company and its Restricted Subsidiaries) whether as an entirety or
substantially as an entirety to any Person unless:

 

(1)                                  either:

 

(a)                                  the
Company shall be the surviving or continuing corporation; or

 

(b)                                 the
Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition the properties and assets of
the Company and of the Company’s Restricted Subsidiaries substantially as an
entirety (the “Surviving Entity”):

 

(x)                                   shall
be an entity organized and validly existing under the laws of the United States
or any State thereof or the District of Columbia; and

 

(y)                                 shall
expressly assume (i) by supplemental indenture (in form and substance
reasonably satisfactory to the Trustee), executed and delivered to the Trustee,
the due and punctual payment of the principal of, and premium, if

 

49

 

any, interest and Additional Interest, if any, on all of the Notes and
the performance of every covenant of the Notes, the Indenture and the
Registration Rights Agreement on the part of the Company to be performed or
observed thereunder and (ii) by amendment, supplement or other instrument
(in form and substance reasonably satisfactory to the Trustee and the
Collateral Agent), executed and delivered to the Trustee, all obligations of
the Company under the Collateral Agreements, and in connection therewith shall
cause such instruments to be filed and recorded in such jurisdictions and take
such other actions as may be required by applicable law to perfect or continue
the perfection of the Lien created under the Collateral Agreements on the
Collateral owned by or transferred to the surviving entity;

 

(2)                                  immediately
after giving effect to such transaction and the assumption contemplated by clause
(1)(b)(y) above (including giving effect to any Indebtedness and Acquired
Indebtedness incurred or anticipated to be incurred in connection with or in
respect of such transaction), (a) the Company or such Surviving Entity, as
the case may be, is able to incur at least $1.00 of additional Indebtedness
(other than Permitted Indebtedness) in compliance with the covenant described
under Section 4.08 and (b)  no Default or Event of Default
shall have occurred or be continuing; and

 

(3)                                  the
Company or the Surviving Entity shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, sale, assignment, transfer, lease, conveyance or other
disposition and, if a supplemental indenture is required in connection with
such transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in the Indenture
relating to such transaction have been satisfied.

 

For purposes
of Section 5.01(1), the transfer (by lease, assignment, sale or
otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

 

Section 5.02                                Successor Entity
Substituted.

 

Upon any
consolidation, combination or merger or any transfer of all or substantially
all of the assets of the Company in accordance with Section 5.01,
in which the Company is not surviving or the continuing corporation, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture and the Notes with the same effect as if such surviving
entity had been named as such. Upon such substitution, the Company and any
Guarantors that remain Subsidiaries of the Company shall be released from their
obligations under this Indenture and the Guarantees.

 

ARTICLE SIX

DEFAULT AND REMEDIES

 

Section 6.01                                Events of Default.

 

The following
events are defined as “Events of Default”:

 

50

 

(1)                                  the
failure to pay interest and Additional Interest, if any, on any Notes when the
same becomes due and payable and the default continues for a period of thirty
(30) days;

 

(2)                                  the
failure to pay the principal of or premium, if any, on any Notes, when such
principal becomes due and payable, at maturity, upon redemption or otherwise
(including the failure to make a payment to purchase Notes tendered pursuant to
a Change of Control Offer or a Net Proceeds Offer when such payments become
due);

 

(3)                                  a
default in the observance or performance of any other covenant or agreement
contained in the Indenture (other than the payment of the principal of, or
premium, if any, or interest or Additional Interest, if any, on any Note) or
any Collateral Agreement which default continues for a period of thirty (30)
days after the Company receives written notice specifying the default (and
demanding that such default be remedied) from the Trustee or the Holders of at
least 25% of the outstanding principal amount of the Notes (except in the case
of a default pursuant to Section 5.01, which will constitute an
Event of Default with such notice requirement but without such passage-of-time
requirement);

 

(4)                                  the
failure to pay at final maturity (giving effect to any applicable grace periods
and any extensions thereof) the principal amount of any Indebtedness of the
Company or any Restricted Subsidiary other than the Notes and Guarantees, or
the acceleration of the final stated maturity of any such Indebtedness (which
acceleration is not rescinded, annulled or otherwise cured within twenty (20)
days from the date of acceleration) if the aggregate principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
in default for failure to pay principal at final maturity or which has been
accelerated (in each case with respect to which the 20-day period described
above has elapsed), aggregates $5.0 million or more at any time;

 

(5)                                  one
or more judgments in an aggregate amount in excess of $5.0 million shall have
been rendered against the Company or any of its Restricted Subsidiaries (other
than any judgment as to which a reputable and solvent third party insurer has
accepted full coverage) and such judgments remain undischarged, unpaid or
unstayed for a period of sixty (60) days after such judgment or judgments
become final and non-appealable;

 

(6)                                  the
Company or any Significant Subsidiary (A) commences a voluntary case or
proceeding under the Bankruptcy Code or any other state or federal bankruptcy
or insolvency law with respect to itself, (B) consents to the entry of an order
for relief against it in an involuntary case under the Bankruptcy Code or any
other state or federal bankruptcy or insolvency law, (C) consents to the
appointment of a Custodian of it or for substantially all of its property, (D)
makes a general assignment for the benefit of its creditors; or (E) takes
any corporate action to authorize or effect any of the foregoing;

 

(7)                                  a
court of competent jurisdiction enters an order or decree that (A) is an order
for relief in respect of the Company or any Significant Subsidiary in an
involuntary case under the Bankruptcy Code or any other state or federal
bankruptcy or insolvency law, (B) appoints a Custodian of the Company or
any Significant Subsidiary or for substantially all of its property or
(C) orders the winding-up or liquidation of its affairs; and such order or
decree shall remain unstayed and in effect for a period of sixty (60)
consecutive days;

 

(8)                                  any
Collateral Agreement at any time for any reason shall cease to be in full force
and effect in all material respects, or ceases to give the Collateral Agent the
Liens, rights,

 

51

 

powers and privileges purported to be created thereby, superior to and
prior to the rights of all third Persons other than the holders of Permitted
Liens and subject to no other Liens except as expressly permitted by the
applicable Collateral Agreement;

 

(9)                                  the
Company or any of the Guarantors, directly or indirectly, contest in any manner
the effectiveness, validity, binding nature or enforceability of any Collateral
Agreement; or

 

(10)                            any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or
any Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Guarantee of a Significant Subsidiary is found to be
invalid or any Guarantor denies its liability under its Guarantee (other than
by reason of release of a Guarantor in accordance with the terms of the
Indenture).

 

Section 6.02                                Acceleration.

 

(a)                                  If
an Event of Default (other than an Event of Default specified in Section 6.01
above with respect to the Company) shall occur and be continuing and has not
been waived, the Trustee or the Holders of at least 25% in principal amount of
outstanding Notes may declare the principal of and premium, if any, accrued
interest and Additional Interest, if any, on all the Notes to be due and
payable by notice in writing to the Company and the Trustee specifying the
Event of Default and that it is a “notice of acceleration” (the “Acceleration
Notice”), and the same shall become immediately due and payable.

 

(b)                                 If
an Event of Default specified in Section 6.01(6) or (7)
above with respect to the Company occurs and is continuing, then all unpaid
principal of, and premium, if any, and accrued and unpaid interest and
Additional Interest, if any, on all of 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.

 

(c)                                  At
any time after a declaration of acceleration with respect to the Notes as
described in Section 6.02(a) and (b), the Holders of a
majority in principal amount of the Notes may rescind and cancel such
declaration and its consequences:

 

(i)                                     if
the rescission would not conflict with any judgment or decree;

 

(ii)                                  if
all existing Events of Default have been cured or waived except nonpayment of
principal, premium, if any, interest or Additional Interest, if any, that has
become due solely because of the acceleration;

 

(iii)                               to
the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal and premium, if any, and
Additional Interest, if any, which has become due otherwise than by such
declaration of acceleration, has been paid;

 

(iv)                              if
the Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its reasonable expenses, disbursements and its advances; and

 

(v)                                 in
the event of the cure or waiver of an Event of Default of the type described in
Section 6.01(6) or (7), the Trustee shall have received an
Officers’ Certificate and an Opinion of Counsel that such Event of Default has
been cured or waived.

 

52

 

(d)                                 No
such rescission shall affect any subsequent Default or impair any right
consequent thereto.

 

Section 6.03                                Other Remedies.

 

If an Event of
Default occurs and is continuing, each of the Trustee and the Collateral Agent
may pursue any available remedy by proceeding at law or in equity to collect
the payment of principal of, premium, if any, or interest, or Additional
Interest, if any, on the Notes or to enforce the performance of any provision
of the Notes, this Indenture or any Collateral Agreement.

 

Each of the
Trustee and the Collateral Agent 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, the Collateral Agent 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. No remedy is exclusive of any other remedy. All available
remedies are cumulative to the extent permitted by law.

 

Section 6.04                                Waiver of Past
Defaults.

 

Subject to Sections
2.09, 6.07 and 9.02, the Holders of a majority in principal
amount of the Notes may waive any existing Default or Event of Default and its
consequences, except (other than as provided in Section 6.02(c)) a
default in the payment of the principal of or premium, if any, interest or
Additional Interest, if any, on any Notes. When a Default or Event of Default
is waived, it is cured and ceases to exist.

 

Section 6.05                                Control by Majority.

 

Subject to Section 2.09,
the Holders of a majority in principal amount of the outstanding Notes may
direct the time, method and place of conducting any proceeding for exercising
any remedy available to the Trustee or the Collateral Agent, as the case may
be, or exercising any trust or power conferred on the Trustee or the Collateral
Agent, as the case may be, including, without limitation, any remedies provided
for in Section 6.03. Subject to Section 7.01 and 7.02(f),
however, the Trustee or the Collateral Agent, as the case may be, may refuse to
follow any direction (which direction, if sent to the Trustee or the Collateral
Agent, as the case may be, shall be in writing) that the Trustee or the
Collateral Agent, as the case may be, reasonably believes conflicts with any
applicable law or this Indenture, that the Trustee or the Collateral Agent, as
the case may be, determines may be unduly prejudicial to the rights of another
Holder, or that may subject the Trustee or the Collateral Agent, as the case
may be, to personal liability; provided
that the Trustee or the Collateral Agent, as the case may be, may take any
other action deemed proper by the Trustee or the Collateral Agent, as the case
may be, which is not inconsistent with such direction (which direction, if sent
to the Trustee or the Collateral Agent, as the case may be, shall be in
writing).

 

Section 6.06                                Limitation on Suits.

 

A Holder may
not pursue any remedy with respect to this Indenture or the Notes unless:

 

(1)                                  the
Holder gives to the Trustee written notice of a continuing Event of Default;

 

(2)                                  subject
to Section 2.09, Holders of at least 25% in principal amount of the
outstanding Notes make a written request to the Trustee to institute
proceedings in respect of that Event of Default;

 

53

 

(3)                                  such
Holders offer to the Trustee indemnity reasonably satisfactory to the Trustee
against any loss, liability or expense to be incurred in compliance with such
request;

 

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

 

(5)                                  during
such sixty (60) day period the Holders of a majority in principal amount of the
outstanding Notes do not give the Trustee a written direction which, in the
opinion of the Trustee, is inconsistent with the request.

 

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

 

Section 6.07                                Rights of Holders to
Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder to receive
payment of principal of, premium, if any, and interest on a Note, on or after
the respective due dates expressed in such 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 such Holder.

 

Section 6.08                                Collection Suit by
Trustee or Collateral Agent.

 

If an Event of
Default specified in Section 6.01(1) or (2) occurs and is
continuing, the Trustee or the Collateral Agent may recover judgment
(i) in its own name and (ii)(x) in the case of the Trustee, as
trustee of an express trust or (y) in the case of the Collateral Agent, as
collateral agent on behalf of each of the Secured Parties, in each case against
the Company or any other obligor on the Notes for the whole amount of principal
of, premium, if any, and accrued interest, and Additional Interest, if any,
remaining unpaid on, the Notes, together with interest on overdue principal
and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest at the rate set forth in Section 4.01 and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, the Collateral Agent and their respective agents and
counsel and any other amounts due the Trustee under the Collateral Agreements
and Section 7.07.

 

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 relating to the Company or any other obligor upon the Notes, any of
their respective creditors or any of their respective property and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same, and any
Custodian in any such judicial proceedings 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, taxes,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under the Collateral Agreements and Section 7.07.
The Company’s payment obligations under this Section 6.09 shall be
secured in accordance with the provisions of Section 7.07. 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

 

54

 

authorize the Trustee or the Collateral Agent, as the case may be, to
vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10                                Priorities.

 

If the Trustee
collects any money or property pursuant to this Article Six, it
shall pay out the money in the following order:

 

First:
to the Trustee, the Collateral Agent, the Paying Agent and the Registrar for
amounts due under Section 7.07 (including payment of all
compensation expense, all liabilities incurred and all advances made by the
Trustee or the Collateral Agent, as the case may be, and the costs and expenses
of collection);

 

Second:
if the Holders are forced to proceed against the Company directly without the
Trustee or the Collateral Agent, to Holders for their collection costs;

 

Third:
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

 

Fourth:
to the Company or any other obligor on the Notes, as their interests may
appear, or as a court of competent jurisdiction may direct.

 

The Trustee,
upon prior written notice to the Company, may fix a record date and payment
date for any payment to Holders pursuant to this Section 6.10.

 

Section 6.11                                Undertaking for
Costs.

 

All parties to
this Indenture agree, and each Holder by its acceptance of its Note shall be
deemed to have agreed, that in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee or the
Collateral Agent, as the case may be, for any action taken or omitted by it as
Trustee or the Collateral Agent, as the case may be, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to
pay the costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit by the Trustee or the Collateral Agent, as the case
may be, a suit by a Holder pursuant to Section 6.07, or a suit by a
Holder or Holders of more than 10% in principal amount of the outstanding
Notes.

 

Section 6.12                                Restoration of
Rights and Remedies.

 

If the
Trustee, the Collateral Agent or any Holder has instituted any proceedings to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee, the Collateral Agent, or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the
Trustee, the Collateral Agent and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee, the Collateral Agent and the Holders shall continue as
though no such proceeding has been instituted.

 

55

 

ARTICLE SEVEN

TRUSTEE

 

Section 7.01                                Duties of Trustee.

 

The duties and
responsibilities of the Trustee shall be as provided by the TIA and as set
forth herein.

 

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

 

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

 

(1)                                  the duties of the
Trustee shall be determined solely by the express provisions of this Indenture
and the TIA, and the Trustee need perform only those duties as are specifically
set forth in this Indenture and no covenants or obligations shall be implied in
or read into this Indenture against the Trustee; and

 

(2)                                  in the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; provided, however, in case of any
such certificates or opinions furnished to the Trustee which by the provisions
hereof are 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.

 

(c)                                  Notwithstanding
anything to the contrary herein contained, the Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

 

(1)                                  this paragraph does
not limit the effect of paragraph (b) of this Section 7.01;

 

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

 

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

 

(d)                                 No provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any liability. The Trustee shall be under no obligation to
exercise of any of its rights or powers under this Indenture or the Collateral
Agreements at the request, order or direction of any Holders unless such
Holders have offered to the Trustee security and indemnity reasonably
satisfactory to the Trustee against the costs and expenses which may be
incurred by it in compliance with such request, order or direction.

 

(e)                                  Whether or not
therein expressly so provided, every provision of this Indenture that in any
way relates to the Trustee is subject to paragraphs (a), (b), (c) and (d)
of this Section 7.01.

 

56

 

(f)                                    The Trustee shall
not be liable for interest on any money or assets received by it except as the
Trustee may agree in writing with the Company. Money and assets held in trust
by the Trustee need not be segregated from other funds or assets held by the
Trustee except to the extent required by law.

 

Section 7.02                                Rights of Trustee.

 

Subject to Section 7.01:

 

(a)                                  The Trustee may
conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement instrument, opinion, report,
request direction, consent, order, bond, note or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in the
document.

 

(b)                                 Before the Trustee
acts or refrains from acting, it may consult with counsel of its selection and
may require an Officers’ Certificate or an Opinion of Counsel, or both, which
shall conform to Sections 11.04 and 11.05. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate or Opinion of Counsel. The written advice of the
Trustee’s counsel or any Opinion of Counsel shall be full and complete
authorization and protection from liability in respect of any action taken,
suffered or omitted by the Trustee hereunder in good faith and in reliance
thereon.

 

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

 

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

 

(e)                                  The Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, notice, request,
direction, consent, order, bond, debenture, or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled, upon
reasonable notice to the Company, to examine the books, records and premises of
the Company, personally or by agent or attorney and to consult with the
officers and representatives of the Company, including the Company’s
accountants and attorneys. Except as expressly stated herein to the contrary,
in no event shall the Trustee have any responsibility to ascertain whether
there has been compliance with any of the covenants or provisions of Articles
Four or Five hereof.

 

(f)                                    The Trustee shall
not be required to give any bond or surety in respect of the performance of its
powers and duties hereunder.

 

(g)                                 Unless otherwise
specifically provided in this Indenture, any demand, request, direction or
notice from the Company shall be sufficient if signed by an Officer of the
Company and any resolution of the Board of Directors shall be sufficient if
evidenced by a copy of such resolution certified by an Officer of the Company
to have been duly adopted and in full force and effect on the date hereof.

 

(h)                                 The Trustee shall not
be deemed to have notice of any Default or Event of Default unless a Trust
Officer of the Trustee has actual knowledge thereof or shall have received from
the Company, any Guarantor or any other obligor upon the Notes or from any
Holder written notice thereof at its address set forth in Section 11.02
hereof, and such notice references the Notes and this Indenture.

 

57

 

(i)                                     The rights,
privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

(j)                                     The Trustee may
request that the Company deliver an Officers’ Certificate setting forth the
names of individuals and/or titles of officers authorized at such time to take
specified actions pursuant to this Indenture, which Officers’ Certificate may
be signed by any persons authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

(k)                                  The permissive right
of the Trustee to take any action under this Indenture or any Collateral
Agreements shall not be construed as a duty to so act.

 

Section 7.03                                Individual
Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company, any Subsidiary of the Company or its
respective Affiliates with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11 of this Indenture, and the
Trustee is subject to TIA Sections 310(b) and 311.

 

Section 7.04                                Trustee’s Disclaimer.

 

The Trustee
makes no representation as to the validity, adequacy or sufficiency of this
Indenture, the Notes or the Collateral Agreements, and it shall not be
accountable for the Company’s use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Company in this Indenture, the
Notes, the Collateral Agreements or any other documents in connection with the
issuance of the Notes other than the Trustee’s certificate of authentication.

 

Beyond the
exercise of reasonable care in the custody thereof and the fulfillment of its
obligations under this Indenture, the Intercreditor Agreement and the
Collateral Agreements, the Trustee shall have no duty as to any Collateral in
its possession or control or in the possession or control of any agent or
bailee or any income thereon or as to preservation of rights against prior parties
or any other rights pertaining thereto. The Trustee shall be deemed to have
exercised reasonable care in the custody of the Collateral in its possession if
the Collateral is accorded treatment substantially equal to that which it
accords its own property. The Trustee shall not be responsible for filing any
financing or continuation statements or recording any documents or instruments
in any public office at any time or times or otherwise perfecting or
maintaining the perfection of any security interest in the Collateral.

 

The Trustee
makes no representations as to and shall not be responsible for the existence,
genuineness, value, sufficiency or condition of any of the Collateral or as to
the security afforded or intended to be afforded thereby, hereby or by any
Collateral Agreement, or for the validity, perfection, priority or
enforceability of the Liens or security interests in any of the Collateral
created or intended to be created by any of the Collateral Agreements, whether
impaired by operation of law or by reason of any action or omission to act on
its part hereunder, except to the extent such action or omission constitutes
gross negligence or willful misconduct on the part of the Trustee, for the
validity or sufficiency of the Collateral, any Collateral Agreements or any
agreement or assignment contained in any thereof, for the validity of the title
of the Company or any Guarantor to the Collateral, for insuring the Collateral
or for the payment of taxes, charges, assessments or Liens upon the Collateral
or otherwise as to the maintenance of the Collateral.

 

58

 

Section 7.05                                Notice of Default.

 

If a Default
or an Event of Default occurs and is continuing and if a Trust Officer has
actual knowledge or has received written notice from the Company or any Holder,
the Trustee shall mail to each Holder, with a copy to the Company, notice of
the Default or Event of Default within ninety (90) days thereof. Except in the
case of a Default or an Event of Default in payment of principal of, premium,
if any, interest or Additional Interest, if any, on, any Note, including an
accelerated payment and the failure to make payment on the Change of Control
Payment Date pursuant to a Change of Control Offer and, except in the case of a
failure to comply with Article Five, the Trustee may withhold the
notice if and so long as its Board of Directors, the executive committee of its
Board of Directors or a committee of its directors and/or Trust Officers in
good faith determines that withholding the notice is in the interest of the
Holders.

 

Section 7.06                                Reports
by Trustee to Holders.

 

Within sixty
(60) days after each May 15, beginning with May 15, 2005, the Trustee
shall, to the extent that any of the events described in TIA Section 313(a)
occurred within the previous twelve months, but not otherwise, mail to each
Holder a brief report dated as of such date that complies with TIA
Section 313(a). The Trustee also shall comply with TIA Sections 313(b) and
(c).

 

A copy of each
report at the time of its mailing to Holders shall be mailed to the Company and
filed by the Company with the SEC and each stock exchange or market, if any, on
which the Notes are listed or quoted.

 

The Company
shall promptly notify the Trustee if the Notes become listed or quoted on any
stock exchange or market and the Trustee shall comply with TIA
Section 313(d).

 

Section 7.07                                Compensation
and Indemnity.

 

The Company
shall pay to the Trustee, Collateral Agent, the Paying Agent and the Registrar
(each an “Indemnified Party”) from time to time compensation for their
respective services as Trustee, Collateral Agent, Paying Agent or Registrar, as
the case may be, as agreed to between each of the Trustee, the Collateral
Agent, the Paying Agent and the Registrar, on the one hand and the Company, on
the other. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse each
Indemnified Party upon request for all reasonable out-of-pocket expenses
incurred or made by it in connection with the performance of its duties under,
as the case may be, this Indenture or the Collateral Agreements. Such expenses
shall include the reasonable fees and expenses of each of such Indemnified
Party’s agents and counsel.

 

The Company
and the Guarantors, jointly and severally, hereby indemnify each Indemnified
Party and its agents, employees, stockholders and directors and officers for,
and holds each of them harmless against, any loss, cost, claim, liability or expense
(including taxes) incurred by any of them except to the extent caused by any
gross negligence or willful misconduct on the part of such Indemnified Party,
arising out of or in connection with this Indenture or the Collateral
Agreements, or the administration of this trust, including the reasonable costs
and expenses of enforcing this Indenture against the Company (including this Section 7.07)
and defending themselves against any claim or liability in connection with the
exercise or performance of any of their rights, powers or duties hereunder or
thereunder (including the reasonable fees and expenses of counsel). The Trustee
shall notify the Company promptly of any claim asserted against an Indemnified
Party for which such Indemnified Party has advised the Trustee that it may seek
indemnity hereunder or under the Collateral Agreements. Failure by the Trustee
to so notify the Company shall not relieve the Company of its obligations
hereunder. At

 

59

 

the Indemnified Party’s sole discretion, the Company shall defend the
claim and the Indemnified Party shall cooperate and may participate in the
defense; provided that any settlement of a
claim shall be approved in writing by the Indemnified Party. Alternatively, the
Indemnified Party may at its option have separate counsel of its own choosing
and the Company shall pay the reasonable fees and expenses of such counsel; provided that the Company shall not be
required to pay such fees and expenses if it assumes the Indemnified Party’s
defense and there is no conflict of interest between the Company and the
Indemnified Party in connection with such defense as reasonably determined by
the Indemnified Party. The Company need not pay for any settlement made without
its written consent, which consent shall not be unreasonably withheld.

 

To secure the
Company’s and each Guarantor’s payment obligations in this Section 7.07,
each Indemnified Party shall have a lien prior to the Notes on all Collateral
held or collected by the Trustee, in its capacity as Trustee, except assets or
money held in trust to pay principal of or interest on particular Notes.

 

When an
Indemnified Party incurs expenses or renders services after an Event of Default
specified in Section 6.01(6) or (7) occurs, such expenses
(including the reasonable fees and expenses of its counsel) and the
compensation for such services are intended to constitute expenses of
administration under any Bankruptcy Code.

 

The
obligations of the Company under this Section 7.07 shall survive
the satisfaction and discharge of this Indenture, termination of the Collateral
Agreements or the resignation or removal of the Trustee.

 

The Trustee
shall comply with the provisions of TIA Section 312(b)(2) to the extent
applicable.

 

Section 7.08                                Replacement of
Trustee.

 

The Trustee
may resign by providing written notice to the Company. No resignation or
removal of the Trustee and no appointment of a successor Trustee pursuant to
this Section 7.08 shall become effective until the acceptance of
appointment by the successor Trustee in accordance with this Indenture. The
Holders of a majority in aggregate principal amount of the outstanding Notes
may remove the Trustee by so notifying the Company and the Trustee in writing
and may appoint a successor Trustee. The Company, by a Board Resolution, may
remove the Trustee if:

 

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

 

(2)                                  the
Trustee is adjudged bankrupt or insolvent;

 

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

 

(4)                                  the
Trustee becomes incapable of acting with respect to the Notes.

 

If the Trustee
resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall notify each Holder in writing of such event and shall
promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in aggregate principal amount
of the outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

A successor
Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company and thereupon the resignation or removal of the
retiring Trustee shall become

 

60

 

effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all rights, powers, trusts, duties and
obligations of the retiring Trustee and shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such Trustee so
ceasing to act hereunder subject nevertheless to its lien, if any, provided for
in Section 7.07. Upon request of the Company or the successor
Trustee, such retiring Trustee shall at the expense of the Company and upon
payment of the charges of the Trustee then unpaid, 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.

 

If a successor
Trustee does not take office within thirty (30) days after the retiring Trustee
resigns or is removed, the retiring Trustee, at the Company’s expense, the
Company or the Holders of at least 10% in aggregate principal amount of the
outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

If the Trustee
fails to comply with Section 7.10, any Holder who satisfies the requirements
of TIA Section 310(b) may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

 

The Company
shall give notice of any resignation and any removal of the Trustee and each
appointment of a successor Trustee to all Holders in writing. Each notice shall
include the name of the successor Trustee and the address of its Corporate
Trust Office.

 

Notwithstanding
any resignation or replacement of the Trustee pursuant to this Section 7.08,
the Company’s obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee.

 

Section 7.09                                Successor
Trustee by Merger, Etc.

 

If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business (including the administration of the trust
created by this Indenture) to, another Person, the resulting, surviving or
transferee Person without any further act shall, if such resulting, surviving
or transferee Person is otherwise eligible hereunder, be the successor Trustee;
provided, however, that such Person shall be otherwise qualified
and eligible under this Article Seven.

 

In case any
Notes 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 7.10                                Eligibility;
Disqualification.

 

(a)                                  This Indenture shall
always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1),
(2), (3) and (5). The Trustee (or, in the case of a corporation included in a
bank holding company system, the related bank holding company) shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. In addition, if the Trustee is a
corporation included in a bank holding company system, the Trustee,
independently of such bank holding company, shall meet the capital requirements
of TIA Section 310(a)(2). The Trustee shall comply with TIA
Section 310(b); provided, however,
that there shall be excluded from the operation of TIA Section 310(b)(1)
any indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Company are outstanding
if the requirements for such exclusion set forth in TIA Section 310(b)(1)
are met. The provisions of TIA Section 310 shall apply to the Company, as
obligor of the Notes.

 

61

 

(b)                                 If the Trustee has or
acquires a conflicting interest within the meaning of the TIA, the Trustee
shall either eliminate such interest or resign, to the extent and in the manner
provided by, and subject to the provisions of, the TIA and this Indenture.

 

Section 7.11                                Preferential
Collection of Claims Against Company.

 

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

 

Section 7.12                                Trustee as Paying
Agent and Collateral Agent.

 

References to
the Trustee in Sections 7.01(f), 7.02, 7.03, 7.04,
and 7.07 shall include the Trustee in its role as Paying Agent and as
Collateral Agent.

 

Section 7.13                                Co-Trustees
, Co-Collateral Agent and Separate Trustees and Collateral Agent.

 

(a)                                  At any time or times,
for the purpose of meeting the legal requirements of any jurisdiction in which
any of the Collateral may at the time be located, the Company, the Trustee and
the Collateral Agent shall have the power to appoint, and, upon the written
request of the Trustee, the Collateral Agent or of the Holders of at least 25%
in principal amount of the Notes outstanding, the Company shall for such
purpose, join with the Trustee or the Collateral Agent, as the case may be, in
the execution, delivery and performance of all instruments and agreements
necessary or proper to appoint, one or more Persons approved by the Trustee
either to act as co-trustee, jointly with the Trustee, of all or any part of
the Collateral, to act as co-collateral agent, jointly with the Collateral
Agent, or to act as separate trustees or Collateral Agent of any such property,
in either case with such powers as may be provided in the instrument of
appointment, and to vest in such Person or Persons in the capacity aforesaid,
any property, title, right or power, deemed necessary or desirable, subject to
the other provisions of this Section 7.13.

 

(b)                                 Should any written
instrument from the Company be required by any co-trustee, co-collateral agent
or separate trustee or separate collateral agent so appointed for more fully
confirming to such co-trustee or separate trustee such property, title, right
or power, any and all such instruments shall, on request, be executed,
acknowledged and delivered by the Company.

 

(c)                                  Every co-trustee,
co-collateral agent or separate trustee or separate collateral agent shall, to
the extent permitted by law, but to such extent only, be appointed subject to
the following terms, namely:

 

(i)                                     The Notes shall be
authenticated and delivered, and all rights, powers, duties and obligations
hereunder in respect of the custody of securities, cash and other personal
property held by, or required to be deposited or pledged with, the Trustee
hereunder, shall be exercised solely, by the Trustee.

 

(ii)                                  The rights, powers,
duties and obligations hereby conferred or imposed upon the Trustee shall be
conferred or imposed upon and exercised or performed by the Trustee or by the
Trustee and such co-trustee or separate trustee, or by the Collateral Agent and
such co-collateral agent or separate collateral agent, jointly as shall be provided
in the instrument appointing such co-trustee or separate trustee or
co-collateral agent or separate collateral agent, except to the extent that
under any law of any jurisdiction in which any particular act is to be
performed, the Trustee shall be incompetent or unqualified to perform such act,
in which event such rights,

 

62

 

powers, duties and obligations shall be
exercised and performed by such co-trustee or separate trustee, collateral
agent or co-collateral agent or separate collateral agent.

 

(iii)                               The Trustee at any time,
by an instrument in writing executed by it, with the concurrence of the Company
evidenced by a Board Resolution, may accept the resignation of or remove any
co-trustee or separate trustee appointed under this Section 7.13; provided,
that, in case an Event of Default has occurred and is continuing, the Trustee
shall have power to accept the resignation of, or remove, any such co-trustee,
co-collateral agent, separate trustee or separate collateral agent without the
concurrence of the Company. Upon the written request of the Trustee, the
Company shall join with the Trustee in the execution, delivery and performance
of all instruments and agreements necessary or proper to effectuate such
resignation or removal. A successor to any co-trustee, co-collateral agent,
separate trustee or separate collateral agent so resigned or removed may be
appointed in the manner provided in this Section 7.13.

 

(iv)                              No co-trustee,
co-collateral agent or separate trustee or separate collateral agent hereunder
shall be personally liable by reason of any act or omission of any other such
trustee or collateral agent hereunder.

 

(v)                                 Any act of Holders
delivered to the Trustee shall be deemed to have been delivered to each such
co-trustee or separate trustee and any act of Holders delivered to the
Collateral Agent shall be deemed to have been delivered to each such
co-collateral agent or separate collateral agent.

 

Section 7.14                                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
Persons as to other matters and any such Person may certify or give an opinion
as to such matters in one or several documents.

 

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

 

63

 

ARTICLE EIGHT

SATISFACTION AND DISCHARGE OF INDENTURE

 

Section 8.01                                Legal
Defeasance and Covenant Defeasance.

 

(a)                                  The Company may, at
its option and at any time, elect to have either paragraph (b) or paragraph
(c) below be applied to the outstanding Notes upon compliance with the
applicable conditions set forth in paragraph (d).

 

(b)                                 Upon
the Company’s exercise under paragraph (a) of the option applicable to
this paragraph (b), the Company and the Guarantors shall be deemed to
have been released and discharged from their obligations with respect to the
outstanding Notes, the Guarantees and the Collateral Agreements on the date the
applicable conditions set forth below 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 the Sections and matters under this
Indenture referred to in clause (i) and (ii) below, and the
Company and the Guarantors shall be deemed to have satisfied all their other
obligations under such Notes and this Indenture, the Guarantees and the
Collateral Agreements, except for the following 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 paragraph
(d) below and as more fully set forth in such paragraph payments in respect
of the principal of, and premium, if any, interest and Additional Interest, if
any, on such Notes when such payments are due, (ii) obligations listed in Section 8.03,
subject to compliance with this Section 8.01 and (iii) the
rights, powers, trusts, duties and immunities of the Trustee and the Company’s
obligations in connection therewith. The Company may exercise its option under
this paragraph (b) notwithstanding the prior exercise of its option
under paragraph (c) below with respect to the Notes.

 

(c)                                  Upon
the Company’s exercise under paragraph (a) of the option applicable to
this paragraph (c), the Company and its Restricted Subsidiaries shall be
released and discharged from their obligations under any covenant contained in Section 4.05,
Sections 4.08 through 4.20, Sections 4.22 through 4.23 and
Section 5.01(2), with respect to the outstanding Notes on and after
the date the conditions set forth below are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed to be not
“outstanding” for the purpose 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 (it being understood that such Notes shall not be deemed outstanding
for accounting purposes). 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, but, except as specified above,
the remainder of this Indenture and such Notes shall be unaffected thereby. In
addition, upon the Company’s exercise under paragraph (a) hereof of the
option applicable to this paragraph (c), subject to the satisfaction of
the conditions set forth in paragraph (d) below, Sections 6.01(3)
through 6.01(9) (except, in the case of Section 6.01(6) and
6.01(7), with respect only to Significant Subsidiaries) shall not
constitute Events of Default.

 

(d)                                 The
following shall be the conditions to application of either paragraph (b)
or paragraph (c) above to the outstanding Notes:

 

64

 

(1)                                  The
Company shall have irrevocably deposited in trust with the Trustee, pursuant to
an irrevocable trust and security agreement in form and substance reasonably
satisfactory to the Trustee, U.S. Legal Tender or non-callable U.S. Government
Obligations or a combination thereof, in such amounts and at such times as are
sufficient, in the opinion of a nationally-recognized firm of independent
public accountants, to pay the principal of, and premium, if any, interest and
Additional Interest, if any, on the outstanding Notes on the stated dates for
payment or redemption, as the case may be; provided, however, that the
Trustee (or other qualifying trustee) shall have received an irrevocable
written order from the Company instructing the Trustee (or other qualifying
trustee) to apply such U.S. Legal Tender or the proceeds of such U.S.
Government Obligations to said payments with respect to the Notes to maturity
or redemption;

 

(2)                                  No
Default or Event of Default shall have occurred and be continuing on the date
of such deposit (other than a Default or Event of Default arising from the
failure to comply with Section 4.08 in connection with the substantially
contemporaneous borrowing of funds to fund the deposit referenced in clause
(1) above and/or the granting of any Lien securing such borrowing) or
insofar as Defaults or Events of Default from bankruptcy or insolvency events
are concerned, at any time in the period ending on the 91st day after the date
of such deposit;

 

(3)                                  Such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default hereunder (other than a Default or Event
of Default arising in connection with the substantially contemporaneous
borrowing of funds to fund the deposit referenced in clause (1) above
and the granting of any Lien securing such borrowing) or any other material
agreement or instrument to which the Company or any of it Subsidiaries is a
party or by which the Company or any of its Subsidiaries is bound;

 

(4)                                  (i) In
the event the Company elects paragraph (b) above, the Company shall
deliver to the Trustee an Opinion of Counsel in the United States of America,
in form and substance reasonably acceptable to the Trustee, to the effect that
(A) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling or (B) since the Issue Date, there has
been a change in the applicable federal income tax law, in either case to the
effect that, and based thereon such Opinion of Counsel shall state that,
Holders shall not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance contemplated hereby and shall 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 Legal Defeasance had not
occurred or (ii) in the event the Company elects paragraph (c)
above, the Company shall deliver to the Trustee an Opinion of Counsel in the
United States, in form and substance reasonably satisfactory to the Trustee, to
the effect that Holders shall not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance contemplated hereby
and shall 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 Covenant
Defeasance had not occurred;

 

(5)                                  The
Company shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit under clause (1) was not made by the Company with the
intent of preferring the Holders over any other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding any other creditors
of the Company or others;

 

(6)                                  The
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent specified herein
relating to the defeasance contemplated by this Section 8.01 have
been complied with;

 

65

 

(7)                                  The
Company shall have delivered to the Trustee an Opinion of Counsel (subject to
customary qualifications and exclusions) to the effect that after the 91st day
following the date of deposit, the trust funds will not be subject to the
effect of any applicable bankruptcy, insolvency, reorganization or similar laws
affecting creditors’ rights generally; and

 

(8)                                  The
Company shall have delivered to the Trustee an Opinion of Counsel (subject to
customary qualifications and exclusions) to the effect that the trust resulting
from the deposit under clause (1) does not constitute, or is qualified
as, a regulated investment company under the Investment Company Act of 1940, as
amended.

 

Notwithstanding
the foregoing, the Opinion of Counsel required by Section 8.01(d)(4)(i)
above with respect to a Legal Defeasance need not be delivered if all Notes not
theretofore delivered to the Trustee for cancellation (1) have become due
and payable or (2) shall become due and payable on the maturity date
within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at the expense, of the
Company.

 

In the event
all or any portion of the Notes are to be redeemed through such irrevocable
trust, the Company must make arrangements reasonably satisfactory to the
Trustee, at the time of such deposit, for the giving of the notice of such
redemption or redemptions by the Trustee in the name and at the expense of the
Company.

 

Section 8.02                                Satisfaction
and Discharge.

 

In addition to
the Company’s rights under Section 8.01, the Company may terminate
all of its obligations under this Indenture (subject to Section 8.03),
and this Indenture, the Notes, the Guarantees and the Collateral Agreements,
and all Liens created thereunder, shall be discharged and shall cease to be in
effect when:

 

(1)                                  either:

 

(a)                                  all
the Notes theretofore authenticated and delivered (except lost, stolen or
destroyed Notes which have been replaced or paid as provided in Section 2.07
and 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) have been delivered to the Trustee for
cancellation; or

 

(b)                                 all
Notes not theretofore delivered to the Trustee for cancellation (i) have
become due and payable, (ii) shall become due and payable at their stated
maturity within one year or (iii) are to be called for redemption within
one year under arrangements reasonably satisfactory to the Trustee, and the
Company has irrevocably deposited or caused to be deposited with the Trustee
funds in an amount sufficient to pay and discharge the entire Indebtedness on the
Notes not theretofore delivered to the Trustee for cancellation, for principal
of, and premium, if any, interest and Additional Interest, if any, on the Notes
to the date of deposit together with irrevocable instructions from the Company
directing the Trustee to apply such funds to the payment thereof at maturity or
redemption, as the case may be;

 

(2)                                  all
other sums payable under this Indenture, the Notes and the Collateral
Agreements by the Company have been paid; and

 

66

 

(3)                                  the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel stating that all conditions precedent under this Indenture relating to
the satisfaction and discharge of this Indenture have been complied with.

 

Section 8.03                                Survival
of Certain Obligations.

 

Notwithstanding
the satisfaction and discharge of this Indenture and of the Notes referred to
in Section 8.01 or 8.02, the respective obligations of the
Company and the Trustee under Sections  2.03, 2.04, 2.05,
2.06, 2.07,  2.08 and 2.10, Sections 7.07 and
7.08 and Sections 8.05, 8.06 and 8.07 shall survive
until the Notes are no longer outstanding, and thereafter the obligations of
the Company and the Trustee under Sections 7.07, 8.04, 8.05
and 8.06 and 8.07 shall survive.

 

Section 8.04                                Acknowledgment
of Discharge by Trustee.

 

Subject to Section 8.07,
after (i) the conditions of Section 8.01 or 8.02 have
been satisfied, (ii) the Company has paid or caused to be paid all other
sums payable hereunder by the Company and (iii) the Company has delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that all conditions precedent referred to in clause (i) above relating
to the satisfaction and discharge of this Indenture have been complied with,
the Trustee, upon written request, shall acknowledge in writing the discharge
of the Company’s obligations under this Indenture except for those surviving
obligations specified in Section 8.03 and the Trustee shall execute
and deliver to the Company any document reasonably requested by the Company to
effect or evidence any release and discharge of Lien or Collateral Agreement
contemplated by Section 12.05.

 

Section 8.05                                Application
of Trust Moneys.

 

The Trustee
shall hold any U.S. Legal Tender or U.S. Government Obligations deposited with
it in the irrevocable trust established pursuant to Section 8.01. The
Trustee shall apply the deposited U.S. Legal Tender or the U.S. Government
obligations, together with earnings thereon, through the Paying Agent, in
accordance with this Indenture and the terms of the irrevocable trust agreement
established pursuant to Section 8.01, to the payment of principal
of, premium, if any, and interest, and Additional Interest, if any, on the
Notes. Anything in this Article Eight to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the
Company’s request any U.S. Legal Tender or U.S. Government Obligations held by
it as provided in Section 8.01(d) which, in the opinion of a
nationally-recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.06                                Repayment
to the Company; Unclaimed Money.

 

Subject to Sections
7.07, 8.01 and 8.02, the Trustee and the Paying Agent shall
promptly pay to the Company upon written request from the Company any excess
U.S. Legal Tender or U.S. Government Obligations held by them at any time. The
Trustee and the Paying Agent shall pay to the Company, upon receipt by the
Trustee or the Paying Agent, as the case may be, of a written request from the
Company any money held by it for the payment of principal, premium, if any, or
interest and Additional Interest, if any, that remains unclaimed for two years
after payment to the Holders is required, without interest thereon; provided, however, that the Trustee and the
Paying Agent before being required to make any payment may, but need not, at
the expense of the Company cause to be published once in a newspaper of general
circulation in the City of New York or mail to each Holder entitled to such
money notice that such money remains unclaimed and that after a date specified
therein, which shall be at least thirty (30) days from the date of such
publication or mailing, any unclaimed balance of such money then remaining

 

67

 

shall be repaid to the Company, without interest thereon. After payment
to the Company, Holders entitled to money must look solely to the Company for
payment as general creditors unless an applicable abandoned property law
designated another Person, and all liability of the Trustee or Paying Agent
with respect to such money shall thereupon cease.

 

Section 8.07                                Reinstatement.

 

If the Trustee
or Paying Agent is unable to apply any U.S. Legal Tender or U.S. Government
Obligations in accordance with Section 8.01 or 8.02 by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and each Guarantors’ obligations under this
Indenture and each other Indenture Document to which such person is a party
shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01
or 8.02 until such time as the Trustee or Paying Agent is permitted to
apply all such U.S. Legal Tender or U.S. Government Obligations in accordance
with Section 8.01 or 8.02; provided,
however, that if the Company has made any payment of premium, if any, or
interest and Additional Interest, if any, on or principal of any Notes because
of the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 9.01                                Without
Consent of Holders.

 

From time to
time, the Company, the Guarantors, the Trustee and, if such amendment,
modification or supplement relates to any Collateral Agreement or the
Intercreditor Agreement, the Collateral Agent, without the consent of the
Holders, may amend, modify, waive or supplement provisions of this Indenture,
the Notes, the Guarantees, the Registration Rights Agreement, the Collateral
Agreements and the Intercreditor Agreement:

 

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

 

(2)                                  to
provide for uncertificated Notes in addition to or in place of certificated
Notes;

 

(3)                                  to
provide for the assumption of the Company’s or a Guarantor’s obligations to
Holders in accordance with the Section 5.01;

 

(4)                                  to
make any change that would provide any additional rights or benefits to the
Holders or that does not adversely affect the legal rights of any such Holder
under the Indenture, the Notes, the Guarantees or the Collateral Agreements;

 

(5)                                  to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA;

 

(6)                                  to
allow any Subsidiary or any other Person to guarantee the Notes;

 

(7)                                  to
release a Guarantor as permitted by the Indenture and the relevant Guarantee;
or

 

68

 

(8)                                  if
necessary, in connection with any addition or release of Collateral permitted
under the terms of the Indenture or Collateral Agreements.

 

After an
amendment, modification, waiver or supplement under this Section 9.01
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, modification, waiver or supplement. 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 such amendment,
modification, waiver or supplement.

 

Any
acknowledgment made pursuant to Section 5.4 of the Intercreditor Agreement
or other document or instrument necessary to reinstate the Intercreditor
Agreement in connection with a “New Credit Facility” as defined thereunder or
to add any new or additional agent, lender, group of lenders or institutional
investor under the Credit Agreement (in compliance with the terms of this
Indenture) as a party to the Intercreditor Agreement will not constitute an
amendment, modification or supplement to this Indenture, the Notes, the
Guarantees, the Intercreditor Agreement or any other Collateral Agreement.

 

Section 9.02                                With Consent of
Holders.

 

The Company
and the Guarantors, when authorized by a Board Resolution, and the Trustee, or
the Collateral Agent, as applicable, together, with the written consent of the
Holder or Holders of at least a majority in aggregate principal amount of the
outstanding Notes, may amend or supplement this Indenture, the Notes, any
Collateral Agreement, the Guarantees, Registration Rights or the Intercreditor
Agreement without notice to any other Holders. The Holder or Holders of a
majority in aggregate principal amount of the outstanding Notes may waive
compliance by the Company with any provision of this Indenture, any Collateral
Agreement, the Notes, or the Intercreditor Agreement without notice to any
other Holder. However, no amendment, supplement or waiver, including a waiver
pursuant to Section 6.04, shall without the consent of each Holder
of each Note affected thereby:

 

(1)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver of any provision of this Indenture or the Notes;

 

(2)                                  reduce
the rate of or change or have the effect of changing the time for payment of
interest, including default interest, or Additional Interest on any Notes;

 

(3)                                  reduce
the principal of or change or have the effect of changing the fixed maturity of
any Notes, or change the date on which any Notes may be subject to redemption
or reduce the redemption price therefor;

 

(4)                                  make
any Notes payable in money other than that stated in the Notes;

 

(5)                                  make
any change in provisions of this Indenture protecting the right of each Holder
to receive payment of principal of, premium, if any, interest and Additional
Interest, if any, on such Note on or after the due date thereof or to bring
suit to enforce such payment, or permitting Holders of a majority in principal
amount of Notes to waive Defaults or Events of Default;

 

(6)                                  amend,
change or modify in any material respect the obligation of the Company to make
and consummate a Change of Control Offer after the occurrence of a Change of
Control, or, modify any of the provisions or definitions with respect thereto;

 

69

 

(7)                                  subordinate
the Notes in rights of payment to any other Indebtedness of the Company or any
Guarantor;

 

(8)                                  release
any Guarantor from any of its obligations under its Guarantee or this Indenture
otherwise than in accordance with the terms of this Indenture;

 

(9)                                  release
all or substantially all of the Collateral otherwise than in accordance with
the terms of this Indenture and the Collateral Agreements; or

 

(10)                            make
any change to Section 9.01 or this Section 9.02.

 

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.

 

After an
amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall mail to the Holders affected thereby 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 such amendment, supplement or waiver.

 

Section 9.03                                Compliance with TIA.

 

Every
amendment, waiver or supplement of this Indenture, the Notes, the Collateral
Agreements, the Guarantees or the Intercreditor Agreement shall comply with the
TIA as then in effect.

 

Section 9.04                                Revocation
and Effect of Consents.

 

Until an
amendment, waiver or supplement becomes effective, a consent to it by a Holder is
a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences 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, any such Holder or subsequent Holder may revoke the
consent as to such Holder’s Note or portion of such Note by written notice to
the Trustee and the Company received before the date on which the Trustee and
if such amendment, waiver or supplement relates to any Collateral Agreement or
the Intercreditor Agreement, the Collateral Agent, receives an Officers’
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. An amendment, waiver or supplement shall become effective
upon receipt by the Trustee or the Collateral Agent, as the case may be, of
written consents from the Holders of the requisite percentage in principal
amount of the outstanding Notes or such Officers’ Certificate, whichever first
occurs, and the execution thereof by the Trustee or the Collateral Agent, as
the case may be.

 

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, which record date shall be either (i) at least thirty (30) days
prior to the first solicitation of such consent or (ii) the date of the
most recent list furnished to the Trustee under Section 2.05. If a
record date is fixed, then notwithstanding the last sentence of the immediately
preceding paragraph, those Persons who were Holders at such record date (or
their duly designated proxies), and only those Persons, shall be entitled to
revoke any consent previously given, whether or not such Persons continue to be
Holders after such record date. No such consent shall be valid or effective for
more than ninety (90) days after such record date.

 

70

 

After an
amendment, supplement or waiver becomes effective, it shall bind every Holder
unless it makes a change described in any of clauses (1) through (10)
of Section 9.02, in which case, the amendment, supplement or waiver
shall bind only each Holder of a Note who has consented to it and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note; provided
that any such waiver shall not impair or affect the right of any Holder to
receive payment of principal of, premium, if any, and interest and Additional
Interest, if any, on a Note, on or after the respective due dates expressed in
such Note, or to bring suit for the enforcement of any such payment on or after
such respective dates without the consent of such Holder.

 

Section 9.05                                Notation
on or Exchange of Notes.

 

If an
amendment, supplement or waiver changes the terms of a Note, the Trustee may
require the Holder of the Note to deliver the Note to the Trustee. The Trustee
at the written direction of the Company may place an appropriate notation on
the Note about the changed terms and return it to the Holder and the Trustee
may place an appropriate notation on any Note thereafter authenticated. 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 an appropriate notation, or issue a new
Note, shall not affect the validity and effect of such amendment, supplement or
waiver. Any such notation or exchange shall be made at the sole cost and
expense of the Company.

 

Section 9.06                                Trustee
to Sign Amendments, Etc.

 

The Trustee
and/or the Collateral Agent, as applicable, shall execute any amendment,
supplement or waiver authorized pursuant to this Article Nine; provided that the Trustee or the Collateral
Agent, as the case may be, may, but shall not be obligated to, execute any such
amendment, supplement or waiver that affects the rights, duties or immunities
of the Trustee or the Collateral Agent, as the case may be, under this
Indenture, any Collateral Agreement or the Intercreditor Agreement. The Trustee
and the Collateral Agent, as the case may be, shall be entitled to receive, and
shall be fully protected in relying upon, an Opinion of Counsel and an
Officers’ Certificate each stating that the execution of any amendment,
supplement or waiver authorized pursuant to this Article Nine is
authorized or permitted by this Indenture. Such Opinion of Counsel shall not be
an expense of the Trustee or the Collateral Agent, as the case may be, and
shall be paid for by the Company.

 

ARTICLE TEN

GUARANTEE

 

Section 10.01                          Guarantee.

 

Each Guarantor
hereby fully, irrevocably and unconditionally, jointly and severally,
unconditionally and irrevocably guarantees (such guarantee to be referred to
herein as the “Guarantee”), to each of the Holders, the Trustee and the
Collateral Agent and their respective successors and assigns that (i) the
principal of, premium, if any and interest, and Additional Interest, if any, on
the Notes shall be promptly paid in full when due, subject to any applicable
grace period, whether upon redemption pursuant to the terms of the Notes, by
acceleration or otherwise, and interest on the overdue principal, if any, and
interest on any interest, if any, to the extent lawful, of the Notes and all
other Obligations of the Company to the Holders, the Trustee and the Collateral
Agent hereunder, thereunder or under any Collateral Agreement shall be promptly
paid in full or performed, all in accordance with the terms hereof or thereof;
and (ii) in case of any extension of time of payment or renewal of any of
the Notes or of any such other obligations, the same shall be promptly paid in
full when due or performed in accordance with the terms

 

71

 

of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise, subject, however, in
the case of clauses  (i) and (ii) above, to the limitations
set forth in Section 10.03. The Guarantee of each Guarantor shall
rank senior in right of payment to all subordinated Indebtedness of such
Guarantor and equal in right of payment with all other senior obligations of
such Guarantor. Each Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes, this Indenture or any Collateral Agreement, the
absence of any action to enforce the same, any waiver or consent by any of the
Holders with respect to any provisions hereof or thereof, any release of any
other Guarantor, the recovery of any judgment against the Company, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a Guarantor. Each Guarantor hereby
waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever, in each case, other than the defense that the principal of,
premium, if any and interest, and Additional Interest, if any, on the Notes
shall have been paid in cash, to the extent of any such payments and covenants
that this Guarantee shall not be discharged except by complete performance of
the obligations contained in the Notes, this Indenture and in this Guarantee. The
obligations of each Guarantor are limited to the maximum amount which, after
giving effect to all other contingent and fixed liabilities of such Guarantor
and after giving effect to any collections from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Guarantee or pursuant to its contribution obligations under
this Indenture, shall result in the obligations of such Guarantor under the
Guarantee not constituting a fraudulent conveyance or fraudulent transfer under
federal or state law. The net worth of any Guarantor for such purpose shall
include any claim of such Guarantor against the Company for reimbursement and
any claim against any other Guarantor for contribution. Each Guarantor may
consolidate with or merge into or sell its assets to the Company or another
Guarantor without limitation in accordance with Sections  5.01, 4.10
and 10.04. If any Holder, the Collateral Agent or the Trustee is
required by any court or otherwise to return to the Company, any Guarantor, or
any custodian, trustee, liquidator or other similar official acting in relation
to the Company or any Guarantor, any amount paid by the Company or any
Guarantor to the Trustee, the Collateral Agent or such Holder, this Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and
effect. Each Guarantor further agrees that, as between each Guarantor, on the
one hand, and the Holders, the Collateral Agent and the Trustee, on the other
hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this
Guarantee notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and
(y) in the event of any acceleration of such obligations as provided in Article Six,
such obligations (whether or not due and payable) shall forthwith become due
and payable by each Guarantor for the purpose of this Guarantee.

 

Section 10.02                          Release of a Guarantor.

 

A Guarantor
will be automatically and unconditionally released from its Guarantee (and may
subsequently dissolve) without any action required on the part of the Trustee
or any Holder:

 

(1)                                  if
(a) all of the Capital Stock issued by such Guarantor or all or
substantially all of the assets of such Guarantor are sold or otherwise
disposed of (including by way of merger or consolidation) to a Person other
than the Company or any of its Domestic Restricted Subsidiaries or
(b) such Guarantor ceases to be a Restricted Subsidiary, and the Company
otherwise complies, to the extent applicable, with Section 4.10, or

 

(2)                                  if
the Company designates such Guarantor as an Unrestricted Subsidiary in
accordance with Section 4.09, or

 

72

 

(3)                                  if
the Company exercises its legal defeasance option or its covenant defeasance
option as described in Section 8.01, or

 

(4)                                  upon
satisfaction and discharge of this Indenture or payment in full of the
principal of, premium, if any, accrued and unpaid interest and Additional
Interest, if any, on the Notes and all other Obligations that are then due and
payable.

 

The Trustee
shall promptly deliver an appropriate instrument evidencing such release upon
receipt of a request by the Company accompanied by an Officers’ Certificate
certifying as to the compliance with this Section 10.02. Any
Guarantor not so released remains liable for the full amount of its Guarantee
as provided in this Article Ten.

 

Section 10.03                          Limitation
of Guarantor’s Liability.

 

Each Guarantor
and, by its acceptance hereof, each of the Holders hereby confirms that it is
the intention of all such parties that the guarantee by such Guarantor pursuant
to its Guarantee not constitute a fraudulent transfer or conveyance for
purposes of any Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar Federal or state law. To
effectuate the foregoing intention, the Holders and such Guarantor hereby
irrevocably agree that the obligations of such Guarantor under the Guarantee
shall be limited to the maximum amount as shall, after giving effect to all
other contingent and fixed liabilities of such Guarantor and after giving
effect to any collections from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under its
Guarantee or pursuant to Section 10.05, result in the obligations
of such Guarantor under the Guarantee not constituting such fraudulent transfer
or conveyance.

 

Section 10.04                          Guarantors
May Consolidate, etc., on Certain Terms.

 

Each Guarantor
(other than any Guarantor whose Guarantee is to be released in accordance with
the terms of the Guarantee and this Indenture in connection with any
transaction complying with Section 4.10) will not, and the Company
will not cause or permit any Guarantor to, consolidate with or merge with or
into any Person other than the Company or any other Guarantor unless:

 

(1)                                  the
entity formed by or surviving any such consolidation or merger (if other than
the Guarantor) or to which such sale, lease, conveyance or other disposition
shall have been made is a corporation organized and existing under the laws of
the United States or any State thereof or the District of Columbia or the
jurisdiction of organization of the Guarantor;

 

(2)                                  such
entity assumes (a) by supplemental indenture (in form and substance
reasonably satisfactory to the Trustee), executed and delivered to the Trustee,
all of the obligations of the Guarantor under the Guarantee and the performance
of every covenant of the Guarantee, this Indenture and the Registration Rights
Agreement and (b) by amendment, supplement or other instrument (in form
and substance satisfactory to the Trustee and the Collateral Agent) executed
and delivered to the Trustee and the Collateral Agent, all obligations of the
Guarantor under the Collateral Agreements and in connection therewith shall
cause such instruments to be filed and recorded in such jurisdictions and take
such other actions as may be required by applicable law to perfect or continue
the perfection of the Lien created under the Collateral Agreements on the
Collateral owned by or transferred to the surviving entity; and

 

(3)                                  immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing.

 

73

 

Any merger or
consolidation of (i) a Guarantor with and into the Company (with the
Company being the surviving entity) or another Guarantor or (ii) a
Guarantor or the Company with an Affiliate organized solely for the purpose of
reincorporating such Guarantor or the Company in another jurisdiction in the
United States or any state thereof or the District of Columbia need only comply
with (A) clause (3) of Section 5.01; and
(B) (x) clause (1)(b)(y) of Section 5.01 and
(y) clause (2) of the immediately preceding paragraph.

 

Section 10.05                          Contribution.

 

In order to
provide for just and equitable contribution among the Guarantors, the
Guarantors agree, inter se, that each Guarantor that makes a payment or distribution
under a Guarantee shall be entitled to a pro rata contribution from each
other Guarantor hereunder based on the net assets of each other Guarantor. The
preceding sentence shall in no way affect the rights of the Holders of Notes to
the benefits of this Indenture, the Notes or the Guarantees.

 

Section 10.06                          Waiver of Subrogation.

 

Each Guarantor
agrees that it shall not be entitled to any right of subrogation in relation to
the Holders in respect of any obligations guaranteed hereby until payment in
full of all obligations guaranteed hereby.

 

Section 10.07                          Waiver
of Stay, Extension or Usury Laws.

 

Each Guarantor
covenants to the extent permitted by law that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law that would prohibit
or forgive such Guarantor from performing its Guarantee as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Guarantee; and each Guarantor hereby
expressly waives to the extent permitted by law all benefit or advantage of any
such law, and covenants that it shall not hinder, delay or impede the execution
of any power herein granted to the Trustee, but shall suffer and permit the
execution of every such power as though no such law had been enacted.

 

Section 10.08                          Evidence of Guarantee.

 

To evidence
their guarantees to the Holders set forth in this Article Ten, each of the
U.S. Guarantors hereby agrees to execute the notation of Guarantee in
substantially the applicable forms included in the Notes attached as Exhibit
A and Exhibit B. Each such notation of Guarantee shall be signed on
behalf of each U.S. Guarantor by an Officer, Secretary or an assistant
Secretary by manual or facsimile signature.

 

If an Officer
whose signature is on a notation of the Guarantee was an Officer at the time of
such execution but no longer holds that office or position at the time the
Trustee authenticates a Note on which such notation of Guarantee appears, such
notation of Guarantee shall nevertheless be valid.

 

Each Guarantor
hereby agrees that its Guarantee set forth in Section 10.01 shall
remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of such Guarantee.

 

The delivery
of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantee set forth in this Indenture on behalf
of the Guarantors.

 

74

 

ARTICLE ELEVEN

MISCELLANEOUS

 

Section 11.01                          TIA Controls.

 

If any
provision of this Indenture limits, qualifies, or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control. Any provision of the TIA which is required to
be included in a qualified Indenture, but not expressly included herein, shall
be deemed to be included by this reference.

 

Section 11.02                          Notices.

 

Any notices or
other communications required or permitted hereunder shall be in writing, and
shall be sufficiently given if made by hand delivery, by telecopier, regular
mail, or registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

 

if to the
Company:

 

Altra
Industrial Motion, Inc.

14 Hayward Street

Quincy, Massachusetts 02171

Facsimile No. (617) 689-6202

Attention: Michael L. Hurt

 

with a copy
to:

 

Weil Gotshal
& Manges, LLP

201 Redwood Shores Parkway

Redwood Shores, California 94065

Facsimile No. (650) 802-3100

Attention: Curtis L. Mo, Esq.

 

if to the
Trustee and Collateral Agent:

 

The Bank of
New York Trust Company, N.A.

700 S. Flower Street, Ste. 500

Los Angeles, California 90017

Facsimile No. (213) 630-6298

Attention: Sandee
Parks

 

with a copy
to:

 

Emmet, Marvin
& Martin, LLP

120 Broadway

New York, NY 10271

Facsimile No. (212) 238-3100

Attention: Irv
Apar, Esq.

 

Each of the
Company and the Trustee by written notice to each other may designate
additional or different addresses for notices to such Person. Any notice or
communication to the Company shall be

 

75

 

deemed to have been given or made as of the date so delivered if
personally delivered; when receipt is acknowledged, if faxed; and five (5)
calendar days after mailing if sent by registered or certified mail, postage
prepaid. Notwithstanding anything to the contrary contained herein, notices to
the Trustee shall be effective only upon actual receipt by the Trustee.

 

Any notice or
communication mailed to a Holder shall be mailed to such Holder by first class
mail or other equivalent means at such Holder’s address as it appears on the
registration books of the Registrar and shall be sufficiently given to such
Holder if so mailed within the time prescribed.

 

Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders. If a notice or communication is
mailed in the manner provided above, it is duly given, whether or not the
addressee receives it, except that notices to the Trustee shall be deemed duly
given only upon receipt.

 

Section 11.03                          Communications
by Holders with Other Holders.

 

Holders may
communicate pursuant to TIA Section 312(b) with other Holders with respect
to their rights under this Indenture, any Collateral Agreement, any Guarantee
or the Notes. The Company, the Trustee, the Collateral Agent, the Registrar and
any other Person shall have the protection of TIA Section 312(c).

 

Section 11.04                          Certificate
and Opinion as to Conditions Precedent.

 

Upon any
request or application by the Company or any Guarantor to the Trustee or the
Collateral Agent, as the case may be, to take any action under this Indenture
or any Collateral Agreement, the Company shall furnish to the Trustee or the
Collateral Agent, as the case may be, upon request:

 

(1)                                  an
Officers’ Certificate, in form and substance reasonably satisfactory to the
Trustee or the Collateral Agent, as the case may be, stating that, in the
opinion of the signers, all conditions precedent to be performed by the Company
or the applicable Guarantor (as the case may be), if any, provided for in this
Indenture or any Collateral Agreement relating to the proposed action have been
complied with; and

 

(2)                                  an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent to be performed by the Company or the applicable Guarantor
(as the case may be), if any, provided for in this Indenture or any Collateral
Agreement relating to the proposed action have been complied with.

 

Section 11.05                          Statements
Required in Certificate or Opinion.

 

Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture or any Collateral Agreement, other than the Officers’
Certificate required by Section 4.06, shall include:

 

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

 

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

 

76

 

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

 

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

 

Section 11.06                          Rules
by Trustee, Paying Agent, Registrar.

 

The Trustee
may make reasonable rules in accordance with the Trustee’s customary practices
for action by or at a meeting of Holders. The Paying Agent or Registrar may
make reasonable rules for its functions.

 

Section 11.07                          Legal Holidays.

 

A “Legal
Holiday” used with respect to a particular place of payment is a Saturday,
a Sunday or a day on which banking institutions in New York, New York, in the
city in which the Corporate Trust Office of the Trustee is located or at such
place of payment are not required to be open. If a payment date is a Legal
Holiday at such place, payment may be made at such place on the next succeeding
day that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

 

Section 11.08                          Governing Law.

 

THIS
INDENTURE, THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS INDENTURE.

 

Section 11.09                          No
Adverse Interpretation of Other Agreements.

 

This Indenture
may not be used to interpret another indenture, loan or debt agreement of the
Company or any of its Subsidiaries. Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

 

Section 11.10                          No
Recourse Against Others.

 

A past,
present or future director, officer, employee, stockholder or incorporator, as
such, of the Company or a Guarantor shall not have any liability for any
obligations of the Company or the Guarantors under the Notes, the Guarantees,
the Collateral Agreements or this Indenture or for any claim based on, in
respect of or by reason of such obligations or their creation. Each Holder, by
accepting a Note, waives and releases all such liability. Such waiver and
release are part of the consideration for the issuance of the Notes.

 

Section 11.11                          Successors.

 

All agreements
of the Company and the Guarantors in this Indenture, the Notes, and the
Guarantees shall bind their successors. All agreements of each of the Trustee
and the Collateral Agent in this Indenture shall bind its respective
successors.

 

77

 

Section 11.12                          Duplicate Originals.

 

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

 

Section 11.13                          Severability.

 

In case any
one or more of the provisions in this Indenture, the Notes or in the Guarantees
shall be held invalid, illegal or unenforceable, in any respect for any reason,
the validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions shall not in any way be affected or
impaired thereby, it being intended that all of the provisions hereof shall be
enforceable to the full extent permitted by law.

 

Section 11.14                          Waiver of Jury Trial.

 

THE COMPANY
AND EACH GUARANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR IN CONNECTION WITH THIS INDENTURE, THE NOTES, THE GUARANTEES, THE COLLATERAL
AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE.

 

ARTICLE TWELVE

SECURITY

 

Section 12.01                          Grant
of Security Interest.

 

(a)                                  To
secure the due and punctual payment of the principal of, premium, if any, and
interest, or Additional Interest, if any, on the Notes and amounts due
hereunder and under the Guarantees when and as the same shall be due and
payable, whether on an Interest Payment Date, by acceleration, purchase, repurchase,
redemption or otherwise, and interest on the overdue principal of, premium, if
any, and interest (to the extent permitted by law), if any, on the Notes and
the performance of all other Obligations of the Company and the Guarantors to
the Holders, the Collateral Agent or the Trustee under this Indenture, the
Collateral Agreements, the Guarantees and the Notes, the Company and the
Guarantors hereby covenant to cause the Collateral Agreements to be executed
and delivered concurrently with this Indenture. The Collateral Agreements shall
provide for the grant by the Company and Guarantors party thereto to the
Collateral Agent security interests in the Collateral.

 

(b)                                 Each
Holder, by its acceptance of a Note, (i) appoints the Collateral Agent to
act as its agent (and by its signature below, the Collateral Agent accepts such
appointment) and (ii) consents and agrees to the terms of each Collateral
Agreement and the Intercreditor Agreement, as the same may be in effect or may
be amended from time to time in accordance with their respective terms, and
authorizes and directs the Collateral Agent to enter into the Collateral
Agreements and the Intercreditor Agreement and to perform its obligations and
exercise its rights thereunder in accordance therewith. The Company shall, and
shall cause each of its Restricted Subsidiaries to, do or cause to be done, at
its sole cost and expense, all such actions and things as may be necessary or
proper, or as may be required by the provisions of the Collateral Agreements and
the Intercreditor Agreement, to assure and confirm to the Collateral Agent the
security interests in the Collateral contemplated hereby and by the Collateral
Agreements and the Intercreditor Agreement, as from time to time constituted,
so as to render the same available for the security and benefit of this
Indenture and of the Notes and Guarantees secured hereby, according to the
intent and purpose herein and therein expressed. The Company shall, and shall
cause

 

78

 

each of its Restricted
Subsidiaries to, take any and all actions required or as may be requested by
the Collateral Agent to cause the Collateral Agreements to create and maintain,
as security for the Obligations contained in this Indenture, the Notes, the
Collateral Agreements and the Guarantees valid and enforceable, perfected
(except as expressly provided herein or therein) security interests in and on
all the Collateral, in favor of the Collateral Agent, superior to and prior to
the rights of all third Persons, and subject to no other Liens, in each case,
except as expressly provided herein or therein.

 

Section 12.02                          Recording
and Opinions.

 

(a)                                  The
Company shall, and shall cause each of its Restricted Subsidiaries to, at its
sole cost and expense, take or cause to be taken all action required to
perfect, maintain, preserve and protect the security interests in the
Collateral granted by the Collateral Agreements, including (i) the filing
of financing statements, continuation statements, collateral assignments and
any instruments of further assurance, in such manner and in such places as may
be required by law to preserve and protect fully the rights of the Holders, the
Collateral Agent, and the Trustee under this Indenture and the Collateral Agreements
to all property comprising the Collateral, and (ii) the delivery of the
certificates evidencing the securities pledged under the Security Agreement,
duly endorsed in blank or accompanied by undated stock powers or other
instruments of transfer executed in blank, it being understood that
concurrently with the execution of this Indenture the Company and its
Restricted Subsidiaries have delivered financing statements for filing by the
Initial Purchaser or its agents. The Company shall from time to time promptly
pay all financing and continuation statement recording and/or filing fees,
charges and recording and similar taxes relating to this Indenture, the
Collateral Agreements and any amendments hereto or thereto and any other
instruments of further assurance required pursuant hereto or thereto.

 

(b)                                 The
Company shall furnish to the Trustee and the Collateral Agent (if other than
the Trustee), on or within one month of May 15 of each year, commencing May 15,
2005, an Opinion of Counsel either (i) stating that, in the opinion of
such counsel, all action necessary to perfect or continue the perfection of the
security interests created by the Collateral Agreements and reciting the
details of such action or referring to prior Opinions of Counsel in which such details
are given have been taken or (ii) stating that, in the Opinion of such
Counsel, no such action is necessary to perfect or continue the perfection of
any security interest created under any of the Collateral Agreements.

 

Section 12.03                          Release of Collateral.

 

(a)                                  The
Collateral Agent shall not at any time release Collateral from the security
interests created by the Collateral Agreements unless such release is in
accordance with the provisions of this Indenture and the applicable Collateral
Agreements.

 

(b)                                 At
any time when a Default or an Event of Default shall have occurred and be
continuing, no release of Collateral pursuant to the provisions of this
Indenture and the Collateral Agreements (except to the extent specifically
provided in any such provision) shall be effective as against the Holders.

 

(c)                                  The
release of any Collateral from the terms of the Collateral Agreements shall not
be deemed to impair the security under this Indenture in contravention of the
provisions hereof if and to the extent the Collateral is released pursuant to
this Indenture and the Collateral Agreements. To the extent applicable, the
Company shall cause TIA Section 314(d) relating to the release of property
from the security interests created by this Indenture and the Collateral
Agreements to be complied with. Any certificate or opinion required by TIA
Section 314(d) may be made by an Officer of the Company, except in cases
where TIA Section 314(d) requires that such certificate or opinion be made
by an independent Person, which Person shall be an independent engineer,
appraiser or other expert selected or

 

79

 

approved by the Trustee in the
exercise of reasonable care. A Person is “independent” if such Person
(a) is in fact independent, (b) does not have any direct financial
interest or any material indirect financial interest in the Company or in any
Affiliate of the Company and (c) is not an officer, employee, promoter,
underwriter, trustee, partner or director or person performing similar
functions to any of the foregoing for the Company. The Trustee and the
Collateral Agent shall be entitled to receive and rely upon a certificate
provided by any such Person confirming that such Person is independent within
the foregoing definition.

 

(d)                                 Notwithstanding
any provision to the contrary herein, Collateral comprised of accounts
receivable, inventory or (prior to the occurrence and during the continuance of
an Event of Default) the proceeds of the foregoing shall be subject to release
upon sales of such inventory and collection of the proceeds of such accounts
receivable in the ordinary course of business. If requested in writing by the
Company, the Trustee shall instruct the Collateral Agent to execute and deliver
such documents, instruments and statements and to take all such other actions
promptly upon receipt of such instructions from the Trustee as the Company may
reasonably request to evidence or confirm that the Collateral falling under
this Section 12.03 has been released from the Liens of each of the
Collateral Agreements. The Collateral Agent shall execute and deliver such
documents, instruments and statements and shall take all such actions promptly
upon receipt of such instructions from the Trustee.

 

Section 12.04                          Specified
Releases of Collateral.

 

Subject to Section 12.03,
Collateral may be released from the Lien and security interest created by the
Security Documents at any time or from time to time in accordance with the
provisions of the Collateral Agreements, including the Intercreditor Agreement,
or as provided hereby. Upon the request of the Company pursuant to an Officers’
Certificate certifying, and an Opinion of Counsel stating, that all conditions
precedent hereunder have been met and without the consent of any Holder, the
Company and the Guarantors will be entitled to releases of assets included in
the Collateral from the Liens securing the obligations under the Notes and the
Guarantees under any one or more of the following circumstances:

 

(1)                                  to
enable the Company (or a Guarantor) to consummate asset dispositions permitted
or not prohibited under Section 4.10;

 

(2)                                  if
any Subsidiary that is a Guarantor is released from its Guarantee; or

 

(3)                                  as
required pursuant to the terms of the Intercreditor Agreement.

 

Upon receipt
of such Officers’ Certificate and Opinion of Counsel and any necessary or
proper instruments of termination, satisfaction or release prepared by the
Company, the Collateral Agent shall execute, deliver or acknowledge such
instruments or releases to evidence the release of any Collateral permitted to
be released pursuant to this Indenture or the Collateral Agreements, including
the Intercreditor Agreement.

 

Section 12.05                          Release
upon Satisfaction or Defeasance of all Outstanding Obligations.

 

The Liens on,
and pledges of, all Collateral will also be terminated and released upon
(i) payment in full of the principal of, premium, if any, on, accrued and
unpaid interest and Additional Interest, if any, on the Notes and all other
Obligations hereunder, the Guarantees and the Collateral Agreements that are
due and payable at or prior to the time such principal, premium, if any,
accrued and unpaid interest and Additional Interest, if any, are paid,
(ii) a satisfaction and discharge of this Indenture as described above
under Section 8.02 and (iii) the occurrence of a Legal
Defeasance or Covenant Defeasance as described above under Section 8.01.

 

80

 

Section 12.06                          Form
and Sufficiency of Release.

 

In the event
that the Company or any Guarantor has sold, exchanged, or otherwise disposed of
or proposes to sell, exchange or otherwise dispose of any portion of the
Collateral that may be sold, exchanged or otherwise disposed of by the Company
or such Guarantor, and the Company or such Guarantor requests in writing the
Collateral Agent to furnish a written disclaimer, release or quit-claim of any
interest in such property under this Indenture and the Collateral Agreements,
the Collateral Agent shall execute, acknowledge and deliver to the Company or
such Guarantor (in proper form-prepared by the Company or such Guarantor) such
an instrument promptly after satisfaction of the conditions set forth herein
for delivery of any such release. Notwithstanding the preceding sentence, all
purchasers and grantees of any property or rights purporting to be released
herefrom shall be entitled to rely upon any release executed by the Collateral
Agent hereunder as sufficient for the purpose of this Indenture and as
constituting a good and valid release of the property therein described from
the Lien of this Indenture or of the Collateral Agreements.

 

Section 12.07                          Purchaser Protected.

 

No purchaser
or grantee of any property or rights purporting to be released herefrom shall
be bound to ascertain the authority of the Trustee or the Collateral Agent to
execute the release or to inquire as to the existence of any conditions herein
prescribed for the exercise of such authority; nor shall any purchaser or
grantee of any property or rights permitted by this Indenture to be sold or
otherwise disposed of by the Company be under any obligation to ascertain or
inquire into the authority of the Company to make such sale or other
disposition.

 

Section 12.08                          Authorization
of Actions to be Taken by the Collateral Agent Under the Collateral Agreements.

 

Subject to the
provisions of the applicable Collateral Agreements, the Trustee and each
Holder, by acceptance of its Note(s) agrees that (a) the Collateral Agent
shall execute and deliver the Collateral Agreements and act in accordance with
the terms thereof, (b) the Collateral Agent may, in its sole discretion
and without the consent of the Trustee or the Holders, take all actions it
deems necessary or appropriate in order to (i) enforce any of the terms of
the Collateral Agreements and (ii) collect and receive any and all amounts
payable in respect of the Obligations of the Company and the Guarantors
hereunder and under the Notes, the Guarantees and the Collateral Agreements and
(c) the Collateral Agent shall have power to institute and to maintain
such suits and proceedings as it may deem expedient to prevent any impairment
of the Collateral by any act that may be unlawful or in violation of the
Collateral Agreements or this Indenture, and suits and proceedings as the
Collateral Agent may deem expedient to preserve or protect its interests and
the interests of the Trustee and the Holders in the Collateral (including the
power to institute and maintain suits or proceedings to restrain the
enforcement of or compliance with any legislative or other governmental
enactment, rule or order that may be unconstitutional or otherwise invalid if
the enforcement of, or compliance with, such enactment, rule or order would
impair the security interest thereunder or be prejudicial to the interests of
the Collateral Agent, the Holders or the Trustee). Notwithstanding the
foregoing, the Collateral Agent may, at the expense of the Company, request the
direction of the Holders with respect to any such actions and upon receipt of
the written consent of the Holders of at least a majority in aggregate
principal amount of the outstanding Notes, shall take such actions; provided that all actions so taken shall, at
all times, be in conformity with the requirements of the Intercreditor Agreement.

 

81

 

Section 12.09                          Authorization
of Receipt of Funds by the Trustee Under the Collateral Agreements.

 

The Collateral
Agent is authorized to receive any funds for the benefit of itself, the Trustee
and the Holders distributed under the Collateral Agreements and to the extent
not prohibited under the Intercreditor Agreement, for turnover to the Trustee
to make further distributions of such funds to itself, the Trustee and the
Holders in accordance with the provisions of Section 6.10 and the
other provisions of this Indenture.

 

Section 12.10                          Intercreditor
Agreement.

 

This Article Twelve,
the Security Agreement and the Mortgages are subject to the terms, limitations
and conditions set forth in the Intercreditor Agreement.

 

82

 

SIGNATURES

 

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

 

 

	
   

  	
  ALTRA INDUSTRIAL MOTION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A., as

  Trustee and Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN ENTERPRISE MPT CORP., as a Subsidiary

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN ENTERPRISES MPT HOLDINGS, L.P., as a

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  AMERIDRIVES INTERNATIONAL, L.P., as a Subsidiary

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOSTON GEAR LLC, as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FORMSPRAG LLC, as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE KILIAN COMPANY, as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  KILIAN MANUFACTURING CORPORATION, as a

  Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indenture

  

 

 

	
   

  	
  NUTTALL GEAR LLC, as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC INTERNATIONAL HOLDING, INC.,

  as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC LLC, as a Subsidiary Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC TECHNOLOGY LLC, as a Subsidiary

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Indenture

  

 

 

EXHIBIT A

 

[FORM OF 9%
SENIOR SECURED NOTE]

 

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

 

THE HOLDER OF THIS SECURITY
BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A ‘‘QUALIFIED
INSTITUTIONAL BUYER’’ (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B)
IT IS A NON-U.S. PURCHASER AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE
TRANSACTION WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, OR (C)
IT IS AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF
SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT AND
(2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE
DATE WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE
OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE
COMPANY OR ANY OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS
THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
REASONABLY BELIEVES IS A ‘‘QUALIFIED INSTITUTIONAL BUYER’’ AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND
SALES TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE
MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
‘‘ACCREDITED INVESTOR’’ WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR
(7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS
OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR,
FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN
CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR (F)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S, OR TRANSFER
AGENT’S, AS APPLICABLE, RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D), (E), OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM
AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE OR TRANSFER AGENT.

 

A-1

 

ALTRA INDUSTRIAL MOTION, INC.

 

9% SENIOR SECURED NOTES DUE 2011

 

CUSIP No.

	
  No.

  	
   

  	
  $

  

 

Altra
Industrial Motion, Inc., a Delaware corporation, for value received promise to
pay to
                           ,
or registered assigns, the principal sum of
                     
DOLLARS ($[          ]) on December 1,
2011.

 

Interest Rate:
9%

 

Interest
Payment Dates: June 1 and December 1, commencing June 1, 2005.

 

Record Dates: May
15 and November 15

 

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

 

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

 

	
   

  	
  ALTRA INDUSTRIAL MOTION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Dated:
                      ,
2004

 

A-2

 

TRUSTEE CERTIFICATE OF AUTHENTICATION

 

This is one of
the 9% Senior Secured Notes due 2011 referred to in the within-mentioned
Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST
  COMPANY,

  
	
   

  	
  N.A, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
          , 2004

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-3

 

(REVERSE OF SECURITY)

 

9%
SENIOR SECURED NOTES DUE 2011

 

1.                                       Interest.

 

Altra Industrial Motion,
Inc., a Delaware corporation (the “Issuer”), promises to pay interest on
the principal amount of this Note at the rate per annum shown above. Interest
on the Notes will accrue from the most recent date on which interest has been
paid or, if no interest has been paid, from and including the date of issuance.
The Issuer will pay interest semi-annually in arrears on each Interest Payment
Date, commencing June 1, 2005. Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months.

 

2.                                       Method
of Payment.

 

The Issuer shall pay
interest on the Notes to the Persons who are the registered Holders at the
close of business on the Record Date immediately preceding the Interest Payment
Date even if the Notes are cancelled on registration of transfer or
registration of exchange after such Record Date, and on or before such Interest
Payment Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Issuer shall pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts (“U.S. Legal Tender”). However, the Issuer may pay
principal and interest by check payable in such U.S. Legal Tender. The Issuer
may deliver any such interest payment to the Paying Agent or to a Holder at the
Holder’s registered address.

 

3.                                       Paying
Agent and Registrar.

 

Initially, The Bank of New
York (the “Trustee”) will act as Paying Agent and Registrar. The Issuer
may change any Paying Agent, Registrar or co-Registrar without notice to the
Holders. The Company may act as Paying Agent or Registrar.

 

4.                                       Indenture.

 

The Notes and the Guarantees
were issued under an Indenture, dated as of November 30, 2004 (the “Indenture”),
among the Issuer, the Guarantors named therein, the Trustee and the Collateral
Agent. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S. Code
§§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture until such time as the Indenture is qualified under the TIA, and
thereafter as in effect on the date on which the Indenture is qualified under
the TIA. Notwithstanding anything to the contrary herein, the Notes are subject
to all such terms, and Holders of Notes are referred to in the Indenture and
the TIA for a statement of such terms. The Notes are senior secured obligations
of the Issuer. Each Holder, by accepting a Note, agrees to be bound by all of
the terms and provisions of the Indenture, as the same may be amended from time
to time. Capitalized terms herein are used as defined in the Indenture unless
otherwise defined herein.

 

A-4

 

5.                                       Redemption
on or After December 1, 2008.

 

(a)                                  Optional
Redemption. Except as described below, the Notes are not redeemable before
December 1, 2008. On or after December 1, 2008, the Company may
redeem the Notes, at its option, in whole or in part, upon not less than 30 nor
more than 60 days’ notice, at the following redemption prices (expressed
as percentages of the principal amount thereof) if redeemed during the
twelve-month period commencing on December 1 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  104.500

  	
  %

  
	
  2009

  	
   

  	
  102.250

  	
  %

  
	
  2010 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition, the Company must pay accrued and
unpaid interest and Additional Interest, if any, on the Notes redeemed to the
date of redemption (subject to the right of the Holders of the relevant record
date to receive interest due on the relevant interest payment date).

 

(b)                                 Optional Redemption
upon Equity Offerings. In addition, at any time, or from time to time,
until December 1, 2007, the Company may, at its option, use an amount not
to exceed the net cash proceeds of one or more Equity Offerings to redeem up to
35% of the aggregate principal amount of the Notes (which includes Additional
Notes, if any) originally issued under the Indenture at a redemption price of
109% of the aggregate principal amount thereof, plus accrued and unpaid
interest and Additional Interest, thereon, if any, to the date of redemption; provided
that:

 

(1)                                  at
least 65% of the original principal amount of Notes (which includes Additional
Notes, if any) issued under the Indenture remains outstanding immediately after
any such redemption; and

 

(2)                                  the
Company makes such redemption not more than 120 days after the
consummation of any such Equity Offering.

 

(c)                                  Notice of
Redemption. Notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to each
Holder of Notes to be redeemed at such Holder’s registered address. If fewer
than all of 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 reasonably determines to be fair and
appropriate; provided that no partial redemption will reduce the
principal amount of a Note not redeemed to a denomination of less than $1,000;
and provided, further, that any such partial redemption made with
the proceeds of an Equity Offering will be made only on a pro  rata
basis or on as nearly a pro  rata basis as practicable (subject to
the procedures of the DTC or any other depository) unless such method is
otherwise prohibited. Notes in denominations of $1,000 or more may be redeemed
in part.

 

Except as set forth in the
Indenture, if monies for the redemption of the Notes called for redemption
shall have been deposited with the Paying Agent for redemption on such
redemption date sufficient to pay such redemption price plus accrued and unpaid
interest and

 

A-5

 

Additional
Interest, if any, the Notes called for redemption will cease to bear interest
from and after such redemption date, and the only remaining right of the
Holders of such Notes will be to receive payment of the redemption price plus
accrued and unpaid interest and Additional Interest, if any, as of the
redemption date upon surrender to the Paying Agent of the Notes redeemed.

 

6.                                       Offers
to Purchase.

 

Sections 4.10 and 4.22 of
the Indenture provide that after certain Asset Sales and upon the occurrence of
a Change of Control and subject to further limitations contained therein, the
Issuer will make an offer to purchase the Notes in accordance with the
procedures set forth in the Indenture.

 

7.                                       Registration
Rights.

 

Pursuant to the Registration
Rights Agreement among the Issuer, the Guarantors and the Initial Purchaser,
the Issuer will be obligated to consummate an exchange offer. Upon such
exchange offering, the Holders of the Initial Notes shall have the right,
subject to compliance with securities laws, to exchange such Initial Notes for
Notes, which have been registered under the Securities Act, in like principal
amount and having terms identical in all material respects to the Initial
Notes. The Holders of the Initial Notes shall be entitled to receive certain
Additional Interest payments in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in
accordance with the terms of the Registration Rights Agreement.

 

8.                                       Denominations;
Transfer; Exchange.

 

The Notes are in registered
form, without coupons, in denominations of $1,000 and integral multiples
thereof. A Holder shall register the transfer of 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, fees or similar governmental charges payable in connection therewith
as permitted by the Indenture. The Registrar need not register the transfer of
or exchange of any Notes or portions thereof selected for redemption.

 

9.                                       Persons
Deemed Owners.

 

The registered Holder of a
Note shall be treated as the owner of such Note for all purposes.

 

10.                                 Unclaimed
Money.

 

If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and the
Paying Agent may pay the money without interest thereon back to the Issuer. After
that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

 

A-6

 

11.                                 Discharge
Prior to Redemption or Maturity.

 

If the Issuer at any time
deposit with the Trustee U.S. Legal Tender or U.S. Government Obligations
sufficient to pay the principal of and interest on the Notes to redemption or
Maturity and comply with the other provisions of the Indenture relating
thereto, the Issuer shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, except for the rights of
Holders to receive payments in respect of the principal of, and premium, if
any, interest and Additional Interest, if any, on the Notes when such payments
are due from the deposits referred to above.

 

12.                                 Amendment;
Supplement; Waiver.

 

Subject to certain
exceptions, the Indenture, the Collateral Agreements, the Notes or the
Guarantees may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, and any existing Default or Event of Default or noncompliance with
any provision may be waived with the written consent of the Holders of a
majority in aggregate principal amount of the Notes then outstanding. Without
consent of any Holder, the parties thereto may amend or supplement the
Indenture, the Collateral Agreements, the Notes or the Guarantees to, among
other things, cure any ambiguity, defect or inconsistency, provide for
uncertificated Notes or Guarantees in addition to or in place of certificated
Notes or Guarantees, comply with the TIA, or comply with Article Five of
the Indenture or make any other change that does not adversely affect in any
material respect the rights of any Holder of a Note.

 

13.                                 Restrictive
Covenants.

 

The Indenture imposes
certain limitations on the ability of the Issuer and the Restricted
Subsidiaries to, among other things, incur additional Indebtedness or Liens,
make payments in respect of their Capital Stock or certain Indebtedness, enter
into transactions with Affiliates, create dividend or other payment
restrictions affecting Subsidiaries, merge or consolidate with any other
Person, sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets. Such limitations are subject to a number of
important qualifications and exceptions. The Issuer must annually report to the
Trustee on compliance with such limitations.

 

14.                                 Successors.

 

When a successor assumes, in
accordance with the Indenture, all the obligations of its predecessor under the
Indenture, the Collateral Agreements, the Notes and the Guarantees, the
predecessor will be released from those obligations.

 

15.                                 Defaults
and Remedies.

 

If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture. Holders of Notes may not enforce the Indenture
except as provided in the Indenture. The Trustee is not obligated to enforce
the Indenture or the Notes unless it has received indemnity satisfactory to it.
The Indenture permits, subject to certain limitations therein provided, Holders
of a majority in aggregate principal amount of the Notes then outstanding to

 

A-7

 

direct
the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders of Notes notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest) if it determines that
withholding notice is in their interest.

 

16.                                 Trustee
Dealings with Issuer.

 

Subject to the terms of the
TIA and the Indenture, the Trustee under the Indenture, in its individual or
any other capacity, may become the owner or pledgee of the Notes and may
otherwise deal with the Issuer, the Subsidiaries or their respective Affiliates
as if it were not the Trustee.

 

17.                                 No
Recourse Against Others.

 

No past, present or future
stockholder, director, officer, employee or incorporator, as such, of the
Issuer or the Guarantors shall have any liability for any obligation of the
Issuer under the Notes, the Guarantees, the Collateral Agreements or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder of a Note 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.

 

18.                                 Guarantees.

 

Payment of principal and
interest and Additional Interest, if any, is unconditionally guaranteed,
jointly and severally, by each of the Guarantors.

 

19.                                 Authentication.

 

This Note shall not be valid
until the Trustee or Authenticating Agent manually signs the certificate of
authentication on this Note.

 

20.                                 Governing
Law.

 

THE LAWS OF THE STATE OF NEW
YORK SHALL GOVERN THIS NOTE, THE GUARANTEES, THE COLLATERAL AGREEMENTS AND THE
INDENTURE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

21.                                 Waiver
of Jury Trial.

 

Each of the parties hereto
and the holders (by their acceptance of the Note) hereby irrevocably waives, to
the fullest extent permitted by law, any and all right to trial by jury in any
action or proceeding arising out of or in connection with the Indenture, this
Note, the Guarantees, the Collateral Agreements or the transactions
contemplated by the Indenture.

 

22.                                 Abbreviations
and Defined Terms.

 

Customary abbreviations may
be used in the name of a Holder of a Note 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), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

A-8

 

The Issuer will furnish to
any Holder of a Note upon written request and without charge a copy of the
Indenture. Requests may be made to: Altra Industrial Motion, Inc., 14 Hayward
Street, Quincy, Massachusetts 02171.

 

A-9

 

FORM OF GUARANTEE

 

Each of the
undersigned and their respective successors under the Indenture (collectively,
the “Guarantors”) has jointly and severally with each of the other
Guarantors, irrevocably and unconditionally guaranteed, on a senior secured
basis to the extent set forth in the Indenture, dated as of November 30,
2004, by and among the Issuer, the Guarantors and The Bank of New York Trust
Company, N.A. as Trustee and Collateral Agent (the “Indenture”), (i) the
due and punctual payment of the principal of, premium, if any, and interest and
Additional Interest, if any, on the Notes, whether at maturity, by acceleration
or otherwise, and the due and punctual performance of all other obligations of
the Issuer to the Holders or the Trustee all in accordance with the terms set
forth in Article Ten of the Indenture and (ii) in case of any extension of
time of payment or renewal of any Notes or any of such other obligations, that
the same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Capitalized terms used herein have the meanings
assigned to them in the Indenture unless otherwise indicated.

 

THE
OBLIGATIONS OF THE UNDERSIGNED TO HOLDERS OF THE NOTES AND TO THE TRUSTEE
PURSUANT TO THIS NOTATION OF GUARANTEE (THE “GUARANTEE”) AND THE INDENTURE ARE
EXPRESSLY SET FORTH IN ARTICLE TEN OF THE INDENTURE AND REFERENCE IS
HEREBY MADE TO THE INDENTURE FOR THE PRECISE TERMS OF THE GUARANTEE AND ALL
OTHER PROVISIONS OF THE INDENTURE TO WHICH THE GUARANTEE RELATES. EACH HOLDER
OF A NOTE, BY ACCEPTING THE SAME, (A) AGREES TO AND SHALL BE BOUND BY SUCH
PROVISIONS AND (B) APPOINTS THE TRUSTEE ATTORNEY-IN-FACT FOR SUCH HOLDER FOR
SUCH PURPOSES.

 

This Guarantee
shall be governed by and construed in accordance with the laws of the State of
New York.

 

A-10

 

IN WITNESS
WHEREOF, each Guarantor has caused its Guarantee to be duly executed.

 

	
   

  	
  AMERICAN ENTERPRISE MPT CORP., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERICAN ENTERPRISES MPT HOLDINGS, L.P.,

  as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AMERIDRIVES INTERNATIONAL, L.P., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOSTON GEAR LLC, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FORMSPRAG LLC, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KILIAN MANUFACTURING CORPORATION, as

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-11

 

	
   

  	
  NUTTALL GEAR LLC, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE KILIAN COMPANY, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC INTERNATIONAL HOLDING,

  INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC LLC, as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC TECHNOLOGY LLC, as

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-12

 

ASSIGNMENT FORM

 

If you the
Holder want to assign this Note, fill in the form below and have your signature
guaranteed:

 

I or we assign and transfer
this Note to:

 

	
   

  
	
   

  
	
   

  

(Print or type name, address and zip code and

social security or tax ID number of assignee)

 

	
  and irrevocably appoint

  	
   

  

agent to transfer this Note
on the books of the Issuer. The agent may substitute another to act for him.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name
  appears on

  the other side of this Note)

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

In connection
with any transfer of this Note occurring prior to the date which is the earlier
of (i) the date of the declaration by the SEC of the effectiveness of a
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering resales of this Note (which effectiveness shall not have
been suspended or terminated at the date of the transfer) and (ii)
November 30, 2006, the undersigned confirms that it has not utilized any
general solicitation or general advertising in connection with the transfer and
that this Note is being transferred:

 

[Check One]

 

(1) o                   to the Issuer
or a subsidiary thereof; or

 

(2) o                   pursuant to and
in compliance with Rule 144A under the Securities Act; or

 

(3) o                   to an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act) that has furnished to the Trustee a signed letter
containing certain representations and agreements (the form of which letter can
be obtained from the Trustee); or

 

(4) o                   outside the
United States to a person other than a “U.S. person” in compliance with Rule
904 of Regulation S under the Securities Act; or

 

(5) o                   pursuant to the
exemption from registration provided by Rule 144 under the Securities Act; or

 

(6) o                   pursuant to an
effective registration statement under the Securities Act.

 

A-13

 

Unless one of the boxes is
checked, the Trustee will refuse to register any of the Notes evidenced by this
certificate in the name of any person other than the registered Holder thereof;
provided that if box (3), (4) or (5) is checked, the Issuer or the
Trustee may require, prior to registering any such transfer of the Notes, in
its sole discretion, such legal opinions, certifications (including an
investment letter in the case of box (3) or (4)) and other information as the
Trustee or the either Issuer has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act.

 

If none of the
foregoing boxes is checked, the Trustee or Registrar shall not be obligated to
register this Note in the name of any person other than the Holder hereof
unless and until the conditions to any such transfer of registration set forth
herein and in Section 2.15 of the Indenture shall have been satisfied.

 

	
  Dated:

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name
  appears on

  the other side of this Note)

  	
   

  

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

TO BE
COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE: To be executed by
  an executive officer

  

 

A-14

 

[OPTION OF HOLDER TO ELECT PURCHASE]

 

If you want to
elect to have this Note purchased by the Issuer pursuant to Section 4.10
or 4.22 of the Indenture, check the appropriate box:

 

Section 4.10  o

 

Section 4.22  o

 

If you want to
elect to have only part of this Note purchased by the Issuer pursuant to
Section 4.10 or 4.22 of the Indenture, state the amount you elect to have
purchased:

 

	
  $

  	
   

  	
   

  

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOTICE:

  	
  The signature on this assignment must

  correspond with the name as it appears

  upon the face of the within Note in every

  particular without alteration or

  enlargement or any change whatsoever

  and be guaranteed by the endorser’s

  bank or broker.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  
							

 

A-15

 

EXHIBIT B

 

[FORM OF 9%
SENIOR SECURED EXCHANGE NOTE]

 

ALTRA INDUSTRIAL MOTION, INC.

 

9% SENIOR SECURED NOTES DUE 2011

 

CUSIP No.

	
  No.

  	
   

  	
  $

  

 

Altra
Industrial Motion, Inc., a Delaware corporation, for value received promise to
pay to
                           ,
or registered assigns, the principal sum of
                           DOLLARS
($[          ]) on
December 1, 2011.

 

Interest Rate:
9%

 

Interest
Payment Dates: June 1 and December 1, commencing June 1, 2005.

 

Record Dates: May
15 and November 15

 

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

 

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

 

	
   

  	
  ALTRA INDUSTRIAL MOTION,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:                        ,
2004

 

B-1

 

TRUSTEE CERTIFICATE OF AUTHENTICATION

 

This is one of
the 9% Senior Secured Notes due 2011 referred to in the within-mentioned
Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST
  COMPANY,

  N.A, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
           , 2004

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  

 

B-2

 

(REVERSE
OF SECURITY)

 

9%
SENIOR SECURED NOTES DUE 2011

 

1.                                       Interest.

 

Altra Industrial Motion,
Inc., a Delaware corporation (the “Issuer”), promises to pay interest on
the principal amount of this Note at the rate per annum shown above. Interest
on the Notes will accrue from the most recent date on which interest has been
paid or, if no interest has been paid, from and including the date of issuance.
The Issuer will pay interest semi-annually in arrears on each Interest Payment
Date, commencing June 1, 2005. Interest will be computed on the basis of a
360-day year comprised of twelve 30-day months.

 

2.                                       Method
of Payment.

 

The Issuer shall pay
interest on the Notes to the Persons who are the registered Holders at the
close of business on the Record Date immediately preceding the Interest Payment
Date even if the Notes are cancelled on registration of transfer or
registration of exchange after such Record Date, and on or before such Interest
Payment Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Issuer shall pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public
and private debts (“U.S. Legal Tender”). However, the Issuer may pay
principal and interest by check payable in such U.S. Legal Tender. The Issuer
may deliver any such interest payment to the Paying Agent or to a Holder at the
Holder’s registered address.

 

3.                                       Paying
Agent and Registrar.

 

Initially, The Bank of New
York (the “Trustee”) will act as Paying Agent and Registrar. The Issuer
may change any Paying Agent, Registrar or co-Registrar without notice to the
Holders. The Company may act as Paying Agent or Registrar.

 

4.                                       Indenture.

 

The Notes and the Guarantees
were issued under an Indenture, dated as of November 30, 2004 (the “Indenture”),
among the Issuer, the Guarantors named therein, the Trustee and the Collateral
Agent. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S. Code
§§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture until such time as the Indenture is qualified under the TIA, and thereafter
as in effect on the date on which the Indenture is qualified under the TIA. Notwithstanding
anything to the contrary herein, the Notes are subject to all such terms, and
Holders of Notes are referred to in the Indenture and the TIA for a statement
of such terms. The Notes are senior secured obligations of the Issuer. Each
Holder, by accepting a Note, agrees to be bound by all of the terms and
provisions of the Indenture, as the same may be amended from time to time. Capitalized
terms herein are used as defined in the Indenture unless otherwise defined
herein.

 

B-3

 

5.                                       Redemption
on or After December 1, 2008.

 

(a)                                  Optional
Redemption. Except as described below, the Notes are not redeemable before
December 1, 2008. On or after December 1, 2008, the Company may
redeem the Notes, at its option, in whole or in part, upon not less than 30 nor
more than 60 days’ notice, at the following redemption prices (expressed
as percentages of the principal amount thereof) if redeemed during the
twelve-month period commencing on December 1 of the year set forth below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2008

  	
   

  	
  104.500

  	
  %

  
	
  2009

  	
   

  	
  102.250

  	
  %

  
	
  2010 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

In addition, the Company must pay accrued and
unpaid interest and Additional Interest, if any, on the Notes redeemed to the
date of redemption (subject to the right of the Holders of the relevant record
date to receive interest due on the relevant interest payment date).

 

(b)                                 Optional Redemption
upon Equity Offerings. In addition, at any time, or from time to time,
until December 1, 2007, the Company may, at its option, use an amount not
to exceed the net cash proceeds of one or more Equity Offerings to redeem up to
35% of the aggregate principal amount of the Notes (which includes Additional
Notes, if any) originally issued under the Indenture at a redemption price of
109% of the aggregate principal amount thereof, plus accrued and unpaid
interest and Additional Interest, thereon, if any, to the date of redemption; provided
that:

 

(1)                                  at
least 65% of the original principal amount of Notes (which includes Additional
Notes, if any) issued under the Indenture remains outstanding immediately after
any such redemption; and

 

(2)                                  the
Company makes such redemption not more than 120 days after the
consummation of any such Equity Offering.

 

(c)                                  Notice of
Redemption. Notice of redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the redemption date to each
Holder of Notes to be redeemed at such Holder’s registered address. If fewer
than all of 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 reasonable determines to be fair and
appropriate; provided that no partial redemption will reduce the
principal amount of a Note not redeemed to a denomination of less than $1,000;
and provided, further, that any such partial redemption made with
the proceeds of an Equity Offering will be made only on a pro  rata
basis or on as nearly a pro  rata basis as practicable (subject to
the procedures of the DTC or any other depository) unless such method is
otherwise prohibited. Notes in denominations of $1,000 or more may be redeemed
in part.

 

Except as set forth in the
Indenture, if monies for the redemption of the Notes called for redemption
shall have been deposited with the Paying Agent for redemption on such
redemption date sufficient to pay such redemption price plus accrued and unpaid
interest and

 

B-4

 

Additional
Interest, if any, the Notes called for redemption will cease to bear interest
from and after such redemption date, and the only remaining right of the
Holders of such Notes will be to receive payment of the redemption price plus
accrued and unpaid interest and Additional Interest, if any, as of the
redemption date upon surrender to the Paying Agent of the Notes redeemed.

 

6.                                       Offers
to Purchase.

 

Sections 4.10 and 4.22 of
the Indenture provide that after certain Asset Sales and upon the occurrence of
a Change of Control and subject to further limitations contained therein, the
Issuer will make an offer to purchase the Notes in accordance with the
procedures set forth in the Indenture.

 

7.                                       Denominations;
Transfer; Exchange.

 

The Notes are in registered
form, without coupons, in denominations of $1,000 and integral multiples
thereof. A Holder shall register the transfer of 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, fees or similar governmental charges payable in connection therewith
as permitted by the Indenture. The Registrar need not register the transfer of
or exchange of any Notes or portions thereof selected for redemption.

 

8.                                       Persons
Deemed Owners.

 

The registered Holder of a
Note shall be treated as the owner of such Note for all purposes.

 

9.                                       Unclaimed
Money.

 

If money for the payment of
principal or interest remains unclaimed for two years, the Trustee and the
Paying Agent may pay the money without interest thereon back to the Issuer. After
that, 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 Issuer at any time
deposit with the Trustee U.S. Legal Tender or U.S. Government Obligations
sufficient to pay the principal of and interest on the Notes to redemption or
Maturity and comply with the other provisions of the Indenture relating
thereto, the Issuer shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, except for the rights of
Holders to receive payments in respect of the principal of, and premium, if
any, interest and Additional Interest, if any, on the Notes when such payments
are due from the deposits referred to above.

 

11.                                 Amendment;
Supplement; Waiver.

 

Subject to certain
exceptions, the Indenture, the Collateral Agreements, the Notes or the
Guarantees may be amended or supplemented with the written consent of the
Holders of at least a majority in aggregate principal amount of the Notes then
outstanding, and

 

B-5

 

any
existing Default or Event of Default or noncompliance with any provision may be
waived with the written consent of the Holders of a majority in aggregate
principal amount of the Notes then outstanding. Without consent of any Holder,
the parties thereto may amend or supplement the Indenture, the Collateral
Agreements, the Notes or the Guarantees to, among other things, cure any ambiguity,
defect or inconsistency, provide for uncertificated Notes or Guarantees in
addition to or in place of certificated Notes or Guarantees, comply with the
TIA, or comply with Article Five of the Indenture or make any other change
that does not adversely affect in any material respect the rights of any Holder
of a Note.

 

12.                                 Restrictive
Covenants.

 

The Indenture imposes
certain limitations on the ability of the Issuer and the Restricted
Subsidiaries to, among other things, incur additional Indebtedness or Liens,
make payments in respect of their Capital Stock or certain Indebtedness, enter
into transactions with Affiliates, create dividend or other payment
restrictions affecting Subsidiaries, merge or consolidate with any other
Person, sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its assets. Such limitations are subject to a number of
important qualifications and exceptions. The Issuer must annually report to the
Trustee on compliance with such limitations.

 

13.                                 Successors.

 

When a successor assumes, in
accordance with the Indenture, all the obligations of its predecessor under the
Indenture, the Collateral Agreements, the Notes and the Guarantees, the
predecessor will be released from those obligations.

 

14.                                 Defaults
and Remedies.

 

If an Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding may declare all the
Notes to be due and payable in the manner, at the time and with the effect
provided in the Indenture. Holders of Notes may not enforce the Indenture
except as provided in the Indenture. The Trustee is not obligated to enforce
the Indenture or the Notes unless it has received indemnity satisfactory to it.
The Indenture permits, subject to certain limitations therein provided, Holders
of a majority in aggregate principal amount of the Notes then outstanding to
direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of Notes notice of any continuing Default or Event of
Default (except a Default in payment of principal or interest) if it determines
that withholding notice is in their interest.

 

15.                                 Trustee
Dealings with Issuer.

 

Subject to the terms of the
TIA and the Indenture, the Trustee under the Indenture, in its individual or
any other capacity, may become the owner or pledgee of the Notes and may
otherwise deal with the Issuer, the Subsidiaries or their respective Affiliates
as if it were not the Trustee.

 

16.                                 No
Recourse Against Others.

 

No past, present or future
stockholder, director, officer, employee or incorporator, as such, of the
Issuer or the Guarantors shall have any liability for any obligation of

 

B-6

 

the
Issuer under the Notes, the Guarantees, the Collateral Agreements or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder of a Note 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.

 

17.                                 Guarantees.

 

Payment of principal and
interest and Additional Interest, if any, is unconditionally guaranteed,
jointly and severally, by each of the Guarantors.

 

18.                                 Authentication.

 

This Note shall not be valid
until the Trustee or Authenticating Agent manually signs the certificate of
authentication on this Note.

 

19.                                 Governing
Law.

 

THE LAWS OF THE STATE OF NEW
YORK SHALL GOVERN THIS NOTE, THE GUARANTEES, THE COLLATERAL AGREEMENTS AND THE
INDENTURE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.

 

20.                                 Waiver
of Jury Trial.

 

Each of the parties hereto
and the holders (by their acceptance of the Note) hereby irrevocably waives, to
the fullest extent permitted by law, any and all right to trial by jury in any
action or proceeding arising out of or in connection with the Indenture, this
Note, the Guarantees, the Collateral Agreements or the transactions
contemplated by the Indenture.

 

21.                                 Abbreviations
and Defined Terms.

 

Customary abbreviations may
be used in the name of a Holder of a Note 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), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

The Issuer will furnish to
any Holder of a Note upon written request and without charge a copy of the
Indenture. Requests may be made to: Altra Industrial Motion, Inc., 14 Hayward
Street, Quincy, Massachusetts 02171.

 

B-7

 

FORM OF
GUARANTEE

 

Each of the
undersigned and their respective successors under the Indenture (collectively,
the “Guarantors”) has jointly and severally with each of the other
Guarantors, irrevocably and unconditionally guaranteed, on a senior secured
basis to the extent set forth in the Indenture, dated as of November 30,
2004, by and among the Issuer, the Guarantors and The Bank of New York Trust
Company, N.A. as Trustee and Collateral Agent (the “Indenture”), 

(i) the due and punctual payment of the principal of, premium, if any, and
interest and Additional Interest, if any, on the Notes, whether at maturity, by
acceleration or otherwise, and the due and punctual performance of all other obligations
of the Issuer to the Holders or the Trustee all in accordance with the terms
set forth in Article Ten of the Indenture and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. Capitalized terms used herein have the
meanings assigned to them in the Indenture unless otherwise indicated.

 

THE
OBLIGATIONS OF THE UNDERSIGNED TO HOLDERS OF THE NOTES AND TO THE TRUSTEE
PURSUANT TO THIS NOTATION OF GUARANTEE (THE “GUARANTEE”) AND THE INDENTURE ARE
EXPRESSLY SET FORTH IN ARTICLE TEN OF THE INDENTURE AND REFERENCE IS
HEREBY MADE TO THE INDENTURE FOR THE PRECISE TERMS OF THE GUARANTEE AND ALL
OTHER PROVISIONS OF THE INDENTURE TO WHICH THE GUARANTEE RELATES. EACH HOLDER
OF A NOTE, BY ACCEPTING THE SAME, (A) AGREES TO AND SHALL BE BOUND BY SUCH
PROVISIONS AND (B) APPOINTS THE TRUSTEE ATTORNEY-IN-FACT FOR SUCH HOLDER FOR
SUCH PURPOSES.

 

This Guarantee
shall be governed by and construed in accordance with the laws of the State of
New York.

 

B-8

 

IN
WITNESS WHEREOF, each Guarantor has caused its Guarantee to be duly executed.

 

 

	
   

  	
   

  	
  [NAME OF GUARANTOR], as
  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

B-9

 

ASSIGNMENT FORM

 

If
you the Holder want to assign this Note, fill in the form below and have your
signature guaranteed:

I or we assign and transfer
this Note to:

 

	
   

  	
   

  
	
   

  
	
   

  
	
  (Print or type name, address and zip code and

  
	
  social security or tax ID number of assignee)

  

 

	
  and irrevocably appoint

  	
   

  
	
  agent to transfer this
  Note on the books of the Issuer. The agent may substitute another to act for
  him.

  

 

	
  Dated:

  	
   

  	
   

  	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name
  appears on

  the other side of this Note)

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
										

 

B-10

 

[OPTION OF HOLDER TO ELECT PURCHASE]

 

If
you want to elect to have this Note purchased by the Issuer pursuant to
Section 4.10 or 4.22 of the Indenture, check the appropriate box:

 

Section 4.10  o

 

Section 4.22
 o

 

If
you want to elect to have only part of this Note purchased by the Issuer
pursuant to Section 4.10 or 4.22 of the Indenture, state the amount you
elect to have purchased:

 

	
  $

  	
   

  
	
   

  
	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
   

  	
  NOTICE:

  	
  The
  signature on this assignment must

  correspond with the name as it appears

  upon the face of the within Note in every

  particular without alteration or

  enlargement or any change whatsoever

  and be guaranteed by the endorser’s

  bank or broker.

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  
										

 

 

 

B-11

 

EXHIBIT C

 

FORM OF LEGEND FOR GLOBAL NOTES

 

Any
Global Note authenticated and delivered hereunder shall bear a legend (which
would be in addition to any other legends required in the case of a Restricted
Security) in substantially the following form:

 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS NOTE IS NOT
EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS
A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

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

 

C-1

 

EXHIBIT D

 

Form of Certificate To Be

Delivered in Connection with

Transfers to Non-QIB Accredited Investors

 

                ,

 

The Bank of New York Trust
Company, N.A.

700 S. Flower Street, Ste.
500

Los Angeles, California
 90017

 

Re:                               9% Senior Secured Notes due 2011 (the
“Notes”) of Altra Industrial Motion, Inc. (the “Company”)

 

Ladies and Gentlemen:

 

In
connection with our proposed purchase of $aggregate principal amount at
maturity of the Notes, we confirm that:

 

1.                                       We have received a copy of the Offering
Circular (the “Offering Circular”), dated November 22, 2004,
relating to the Notes and such other information as we deem necessary in order
to make our investment decision. We acknowledge that we have read and agreed to
the matters stated in the section entitled “Notice to Investors” of the
Offering Circular.

 

2.                                       We understand that any subsequent transfer of
the Notes is subject to certain restrictions and conditions set forth in the
Indenture dated as of November 30, 2004 relating to the Notes (the “Indenture”)
and the undersigned agrees to be bound by, and not to resell, pledge or
otherwise transfer the Notes except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

3.                                       We understand that the offer and sale of the
Notes have not been registered under the Securities Act, and that the Notes may
not be offered or sold except as permitted in the following sentence. We agree,
on our own behalf and on behalf of any accounts for which we are acting as
hereinafter stated, that if we should sell or otherwise transfer any Notes
prior to the date which is within two years after the original issuance of the
Notes or the last date on which the Note is owned by the Company or any
affiliate of the Company, we will do so only (i) to the Company or any of
its subsidiaries, (ii) inside the United States in accordance with
Rule 144A under the Securities Act to a “qualified institutional buyer”
(as defined in Rule 144A under the Securities Act), (iii) inside the
United States to an institutional “accredited investor” (as defined below)
provided that, prior to such transfer, the transferee furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to you a signed letter
containing certain representations and agreements relating to the restrictions
on transfer of the Notes, substantially in the form of this letter,
(iv) outside the United States in accordance with Rule 904 of
Regulation S under the Securities Act, (v) pursuant to the exemption from
registration provided by Rule 144 under the Securities Act (if available)
or (vi) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person

 

D-1

 

purchasing any of the Notes
from us a notice advising such purchaser that resales of the Notes are
restricted as stated herein.

 

4.                                       We are not acquiring the Notes for or on
behalf of, and will not transfer the Notes to, any pension or welfare plan (as
defined in Section 3 of the Employee Retirement Income Security Act of
1974), except as permitted in the section entitled “Notice to Investors”
of the Offering Circular.

 

5.                                       We understand that, on any proposed resale of
any Notes, we will be required to furnish to you and the Company such
certification, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

 

6.                                       We are an institutional “accredited investor”
(as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D
under the Securities Act) and have such knowledge and experience in financial
and business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or their investment, as the case may
be.

 

7.                                       We are acquiring the Notes purchased by us
for our own account or for one or more accounts (each of which is an
institutional “accredited investor”) as to each of which we exercise sole
investment discretion.

 

8.                                       We are not acquiring Notes with a view to any
distribution thereof in a transaction that would violate the Securities Act or
the securities laws of any state of the United States or any other applicable
jurisdiction; provided that the disposition of our property and the property of
any accounts for which we are acting as fiduciary shall remain at all times
within our and their control.

 

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby, and we agree to notify you promptly if any of our
representations or warranties herein cease to be accurate and complete.

 

This
letter shall be governed by, and construed in accordance with, the laws of the
State of New York without regard to principles of conflicts of laws.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signature

  
					

 

D-2

 

EXHIBIT E

 

Form of Certificate To Be

Delivered in Connection with

Transfers Pursuant to Regulation S

 

The Bank of New York Trust
Company, N.A.

700 S. Flower Street, Ste.
500

Los Angeles, California
 90017

 

Re:                               9% Senior Secured Notes due 2011 (the
“Notes”) of Altra Industrial Motion, Inc. (the “Company”)

 

Ladies and Gentlemen:

 

In
connection with our proposed sale of $aggregate principal amount at maturity of
the Notes, we confirm that such sale has been effected pursuant to and in
accordance with Regulation S under the U.S. Securities Act of 1933, as amended
(the “Securities Act”), and, accordingly, we represent that:

 

1.                                       the offer of the Notes was not made to a
person in the United States;

 

2.                                       either (a) at the time the buy offer was
originated, the transferee was outside the United States or we and any person
acting on our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through the
facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged
with a buyer in the United States;

 

3.                                       no directed selling efforts have been made in
the United States in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S, as applicable;

 

4.                                       the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act; and

 

5.                                       we have advised the transferee of the
transfer restrictions applicable to the Notes.

 

E-1

 

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

E-2Exhibit 4.3

 

Execution
Draft

 

$165,000,000

 

Altra
Industrial Motion, Inc.

 

9%
Senior Secured Notes due 2011

 

 

REGISTRATION
RIGHTS AGREEMENT

 

November 30, 2004

 

JEFFERIES & COMPANY, INC.

11100 Santa Monica Boulevard

10th Floor

Los Angeles, California 90025

 

Ladies and Gentlemen:

 

ALTRA INDUSTRIAL MOTION,
INC., a Delaware corporation (the “Company”),
is issuing and selling to Jefferies & Company, Inc. (the “Initial
Purchaser”), upon the terms set forth in the Purchase Agreement dated November 22,
2004, by and among the Company, the Initial Purchaser and the subsidiary
guarantors named therein (the “Purchase Agreement”), $165,000,000
aggregate principal amount of 9% Senior Secured Notes due 2011 issued by the
Company (the “Notes”).  As an
inducement to the Initial Purchaser to enter into the Purchase Agreement, the
Company and the subsidiary guarantors listed in the signature pages hereto
agree with the Initial Purchaser, for the benefit of the Holders (as defined
below) of the Notes (including, without limitation, the Initial Purchaser), as
follows:

 

1.             Definitions

 

Capitalized
terms that are used herein without definition and are defined in the Purchase
Agreement shall have the respective meanings ascribed to them in the Purchase
Agreement.  As used in this Agreement,
the following terms shall have the following meanings:

 

Additional Interest:  See Section 4(a).

 

Advice:  See Section 6(w).

 

Agreement:  This Registration Rights Agreement, dated as
of the Closing Date, between the Company and the Initial Purchaser.

 

Applicable Period:  See Section 2(e).

 

Business Day:  A day that is not a Saturday, a Sunday or a
day on which banking institutions in the City of New York are authorized or
required by law or executive order to be closed.

 

 

Closing Date:
November 30, 2004.

 

Collateral Agreements:  Shall have the meaning set forth in the
Indenture.

 

Company:  See the introductory paragraph to this
Agreement.

 

Effectiveness Date:  The 210th day after the Issue
Date.

 

Effectiveness Period:  See Section 3(a).

 

Event Date:  See Section 4(b).

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.

 

Exchange Notes:  9% Senior Secured Notes due 2011 of the
Company, identical in all material respects to the Notes, including the
guarantees endorsed thereon, except for references to series and restrictive
legends.

 

Exchange Offer:  See Section 2(a).

 

Exchange Registration Statement:  See Section 2(a).

 

Filing Date:  The 120th day after the Issue
Date.

 

Holder:  Any registered holder of Registrable Notes.

 

Indemnified Party:  See Section 8(c).

 

Indemnifying Party:  See Section 8(c).

 

Indenture:  The Indenture, dated as of the Closing Date,
among the Company, the Subsidiary Guarantors and The Bank of New York Trust
Company, N.A., as trustee, pursuant to which the Notes are being issued, as
amended or supplemented from time to time in accordance with the terms hereof.

 

Initial Purchaser:  See the introductory paragraph to this
Agreement.

 

Initial Shelf Registration:  See Section 3(a).

 

Inspectors:  See Section 6(o).

 

Issue Date:  November 30, 2004

 

Lien: Shall
have the meaning set forth in the Indenture.

 

Losses:  See Section 8(a).

 

NASD:  National Association of Securities Dealers, Inc.

 

2

 

Notes:  See the introductory paragraph to this
Agreement.

 

Participating Broker-Dealer:  See Section 2(e).

 

Person:  An individual, trustee, corporation,
partnership, limited liability company, joint stock company, trust, unincorporated
association, union, business association, firm, government or agency or
political subdivision thereof, or other legal entity.

 

Private Exchange:  See Section 2(f).

 

Private Exchange Notes:  See Section 2(f).

 

Prospectus:  The prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable Notes
covered by such Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

 

Purchase Agreement:  See the introductory paragraph to this
Agreement.

 

Records:  See Section 6(o).

 

Registrable Notes:  (i) Notes, (ii) Private Exchange
Notes and (iii) Exchange Notes received in the Exchange Offer, in each
case, that may not be sold without restriction under federal or state
securities laws.

 

Registration Statement:  Any registration statement of the Company and
the Subsidiary Guarantors filed with the SEC under the Securities Act
(including, but not limited to, the Exchange Registration Statement, the Shelf
Registration and any subsequent Shelf Registration) that covers any of the
Registrable Notes pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits and all material incorporated
by reference or deemed to be incorporated by reference in such registration
statement.

 

Rule 144:  Rule 144 promulgated under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule (other than Rule 144A) or regulation hereafter adopted
by the SEC providing for offers and sales of securities made in compliance
therewith resulting in offers and sales by subsequent holders that are not
affiliates of an issuer or such securities being free of the registration and
prospectus delivery requirements of the Securities Act.

 

Rule 144A:  Rule 144A promulgated under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule (other than Rule 144) or regulation hereafter adopted by
the SEC.

 

3

 

Rule 415:  Rule 415 promulgated under the
Securities Act, as such Rule may be amended from time to time, or any
similar rule or regulation hereafter adopted by the SEC.

 

Rule 430A:  Rule 430A promulgated under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC.

 

SEC:  The Securities and Exchange Commission.

 

Securities:  The Notes, the Exchange Notes and the Private
Exchange Notes.

 

Securities Act:  The Securities Act of 1933, as amended, and
the rules and regulations of the SEC promulgated thereunder.

 

Shelf Notice:  See Section 2(j).

 

Shelf Registration:  See Section 3(b).

 

Subsequent Shelf Registration:  See Section 3(b).

 

Subsidiary Guarantor:  Each subsidiary of the Company that
guarantees the obligations of the Company under the Notes and the Indenture.

 

TIA:  The Trust Indenture Act of 1939, as amended.

 

Trustee:  The trustee under the Indenture and, if
applicable, the trustee under any indenture governing the Exchange Notes and
Private Exchange Notes (if any).

 

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

 

2.             Exchange Offer

 

(a)           Unless the Exchange Offer would not be permitted by applicable
laws or a policy of the SEC, the Company shall (and shall cause each Subsidiary
Guarantor to) (i) use commercially reasonable efforts to prepare and file
with the SEC promptly after the date hereof and by the Filing Date, a
registration statement (the “Exchange Registration Statement”) on an
appropriate form under the Securities Act with respect to an offer (the “Exchange
Offer”) to the Holders of Notes to issue and deliver to such Holders, in
exchange for the Notes, a like principal amount of Exchange Notes, (ii) use
commercially reasonable efforts to cause the Exchange Registration Statement to
become effective as promptly as practicable after the filing thereof and on or
before the Effectiveness Date, (iii) use its best efforts to keep the
Exchange Registration Statement effective until the consummation of the
Exchange Offer in accordance with its terms, and (iv) commence the
Exchange Offer and use its best efforts to issue on or prior to 30 Business
Days after the date on which the Exchange Registration Statement is declared
effective, Exchange Notes in exchange for all Notes tendered prior thereto in
the Exchange Offer.  The Exchange Offer
shall not be subject to any

 

4

 

conditions, other than
that the Exchange Offer does not violate applicable law or any applicable
interpretation of the staff of the SEC.

 

(b)           The Exchange Notes shall be issued under, and entitled to the
benefits of, (i) the Indenture or a trust indenture that is identical to
the Indenture (other than such changes as are necessary to comply with any
requirements of the SEC to effect or maintain the qualifications thereof under
the TIA) and (ii) the Collateral Agreements.

 

(c)           Interest on the Exchange Notes and Private Exchange Notes will
accrue (i) from the later of (A) the last interest payment date on
which interest was paid on the Notes surrendered in exchange therefor, or (B) if
the Notes are surrendered for exchange on a date in a period which includes the
record date for an interest payment date to occur on or after the date of such
exchange and as to which interest was paid, the date of such interest payment
date; or (ii) if no interest has been paid on the Notes, from the Issue
Date.  Each Exchange Note and Private
Exchange Note shall bear interest at the rate set forth thereon; provided,
that interest with respect to the period prior to the issuance thereof shall
accrue at the rate or rates borne by the Notes from time to time during such
period.

 

(d)           The Company may require each Holder as a condition to
participation in the Exchange Offer to represent (i) that any Exchange
Notes received by it will be acquired in the ordinary course of its business, (ii) that
at the time of the commencement and consummation of the Exchange Offer such Holder
has not entered into any arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Notes in violation of the provisions of the Securities Act, (iii) that
if such Holder is an “affiliate” of the Company within the meaning of Rule 405
of the Securities Act, it will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable to it, (iv) if
such Holder is not a broker-dealer, that it is not engaged in, and does not
intend to engage in, the distribution of the Notes and (v) if such Holder
is a Participating Broker-Dealer (as defined below), that it will deliver a
Prospectus in connection with any resale of the Exchange Notes.

 

(e)           The Company shall (and shall cause each Subsidiary Guarantor to)
include within the Prospectus contained in the Exchange Registration Statement
a section entitled “Plan of Distribution” reasonably acceptable to the
Initial Purchaser which shall contain a summary statement of the positions
taken or policies made by the staff of the SEC with respect to the potential “underwriter”
status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of Exchange Notes received by such broker-dealer in the
Exchange Offer for its own account in exchange for Notes that were acquired by
it as a result of market-making or other trading activity (a “Participating
Broker-Dealer”), whether such positions or policies have been publicly
disseminated by the staff of the SEC or such positions or policies, in the
judgment of the Initial Purchaser, represent the prevailing views of the staff
of the SEC.  Such “Plan of

 

5

 

Distribution” section shall
also allow, to the extent permitted by applicable policies and regulations of
the SEC, the use of the Prospectus by all Persons subject to the prospectus
delivery requirements of the Securities Act, including, to the extent so
permitted, all Participating Broker-Dealers, and include a statement describing
the manner in which Participating Broker-Dealers may resell the Exchange
Notes.  The Company shall use its best
efforts to keep the Exchange Registration Statement effective and to amend and
supplement the Prospectus contained therein, in order to permit such Prospectus
to be lawfully delivered by all Persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such Persons must
comply with such requirements in order to resell the Exchange Notes; provided
that such period shall not exceed the lesser of 180 days and the date on which
all persons subject to the prospectus delivery requirements of the Securities
Act have sold all Exchange Notes held by them (the “Applicable Period”).

 

(f)            If, upon consummation of the
Exchange Offer, the Initial Purchaser holds any Notes acquired by it and having
the status of an unsold allotment in the initial distribution, the Company
(upon the written request from the Initial Purchaser) shall, simultaneously
with the delivery of the Exchange Notes in the Exchange Offer, issue and
deliver to the Initial Purchaser, in exchange (the “Private Exchange”)
for the Notes held by the Initial Purchaser, a like principal amount of Notes
that are identical to the Exchange Notes except for the existence of
restrictions on transfer thereof under the Securities Act and securities laws
of the several states of the United States (the “Private Exchange Notes”)
(and which are issued pursuant to the same indenture as the Exchange
Notes).  The Private Exchange Notes shall
bear the same CUSIP number as the Exchange Notes.

 

(g)           In connection with the Exchange Offer, the Company shall (and
shall cause each Subsidiary Guarantor to):

 

(i)            mail to each Holder a copy of the
Prospectus forming part of the Exchange Registration Statement, together with
an appropriate letter of transmittal that is an exhibit to the Exchange
Registration Statement, and any related documents;

 

(ii)           keep the Exchange Offer open for not less than 20 Business Days
after the date notice thereof is mailed to the Holders (or longer if required
by applicable law);

 

(iii)          utilize the services of a depository for the Exchange Offer with
an address in the Borough of Manhattan, the City of New York, which may be the
Trustee or an affiliate thereof;

 

(iv)          permit Holders to withdraw tendered Registrable Notes at any time
prior to the close of business, New York time, on the last Business Day on
which the Exchange Offer shall remain open; and

 

6

 

(v)           otherwise comply in all material respects with all applicable
laws.

 

(h)           As soon as practicable after the close of the Exchange Offer or
the Private Exchange, as the case may be, the Company shall (and shall cause
each Subsidiary Guarantor to):

 

(i)            accept for exchange all Registrable
Notes validly tendered pursuant to the Exchange Offer or the Private Exchange,
as the case may be, and not validly withdrawn;

 

(ii)           deliver to the Trustee for cancellation all Registrable Notes so
accepted for exchange; and

 

(iii)          cause the Trustee to authenticate and deliver promptly to each
Holder tendering such Registrable Notes, 
Exchange Notes or Private Exchange Notes, as the case may be, equal in
principal amount to the Notes of such Holder so accepted for exchange.

 

(i)            The Exchange Notes and the Private
Exchange Notes may be issued under (i) the Indenture or (ii) an
indenture identical to the Indenture (other than such changes as are necessary
to comply with any requirements of the SEC to effect or maintain the
qualification thereof under the TIA), which in either event will provide that
the Exchange Notes will not be subject to the transfer restrictions set forth
in the Indenture, that the Private Exchange Notes will be subject to the
transfer restrictions set forth in the Indenture, and that the Exchange Notes,
the Private Exchange Notes and the Notes, if any, will be deemed one class of
security (subject to the provisions of the Indenture) and entitled to participate
in all the security granted by the Company pursuant to the Collateral
Agreements and in any Subsidiary Guarantee (as such terms are defined in the
Indenture) on an equal and ratable basis.

 

(j)            If: 
(i) prior to the consummation of the Exchange Offer, the Holders of
a majority in aggregate principal amount of Registrable Notes determines in its
or their reasonable judgment that (A) the Exchange Notes would not, upon
receipt, be tradeable by the Holders thereof without restriction under the
Securities Act and the Exchange Act and without material restrictions under
applicable Blue Sky or state securities laws, or (B) the interests of the
Holders under this Agreement, taken as a whole, would be materially adversely
affected by the consummation of the Exchange Offer; (ii) applicable
interpretations of the staff of the SEC would not permit the consummation of
the Exchange Offer prior to the Effectiveness Date; (iii) subsequent to
the consummation of the Private Exchange, any Holder of Private Exchange Notes
so requests; (iv) the Exchange Offer is not consummated within 30 Business
Days from the date the Exchange Registration Statement was declared effective;
or (v) in the case of (A) any Holder not permitted by applicable law
or SEC policy to participate in the Exchange Offer, (B) any Holder
participating in the Exchange Offer that receives Exchange Notes that may not
be sold without restriction under state and federal securities laws

 

7

 

(other than due solely to
the status of such Holder as an affiliate of the Company within the meaning of
the Securities Act) or (C) any broker-dealer that holds Notes acquired
directly from the Company or any of its affiliates and, in each such case
contemplated by this clause (v), such Holder notifies the Company within six
months of consummation of the Exchange Offer, then the Company shall promptly
(and in any event within five Business Days) deliver to the Holders (or in the
case of an occurrence of any event described in clause (v) of this Section 2(j),
to any such Holder) and the Trustee notice thereof (the “Shelf Notice”)
and shall as promptly as possible thereafter (but in no event more than 45 days
after delivery of the Shelf Notice) file an Initial Shelf Registration pursuant
to Section 3.

 

3.             Shelf Registration

 

If
a Shelf Notice is delivered pursuant to Section 2(j), then this Section 3
shall apply to all Registrable Notes. 
Otherwise, upon consummation of the Exchange Offer in accordance with Section 2,
the provisions of Section 3 shall apply solely with respect to (i) Notes
held by any Holder thereof not permitted to participate in the Exchange Offer, (ii) Notes
held by any broker-dealer that acquired such Notes directly from the Company or
any of its affiliates and (iii) Exchange Notes that are not freely
tradeable as contemplated by Section 2(j)(v) hereof, provided
in each case that the relevant Holder has duly notified the Company within six
months of the Exchange Offer as required by Section 2(j)(v).

 

(a)           Initial Shelf Registration. 
The Company shall (and shall cause each Subsidiary Guarantor to), as
promptly as practicable, file with the SEC a Registration Statement for an
offering to be made on a continuous basis pursuant to Rule 415 covering
all of the Registrable Notes (the “Initial Shelf Registration”).  If the Company (and any Subsidiary Guarantor)
has not yet filed an Exchange Registration Statement, the Company shall (and
shall cause each Subsidiary Guarantor to) file with the SEC the Initial Shelf
Registration on or prior to the Filing Date and shall use its best efforts to
cause such Initial Shelf Registration to be declared effective under the
Securities Act on or prior to the Effectiveness Date.  Otherwise, the Company shall (and shall cause
each Subsidiary Guarantor to) use its best efforts to file with the SEC the
Initial Shelf Registration within 30 days of the delivery of the Shelf Notice
and shall use its best efforts to cause such Shelf Registration to be declared
effective under the Securities Act as promptly as practicable thereafter (but
in no event more than 45 days after delivery of the Shelf Notice).  The Initial Shelf Registration shall be on Form S-1
or another appropriate form permitting registration of such Registrable Notes
for resale by Holders in the manner or manners reasonably designated by them
(including, without limitation, one or more underwritten offerings).  The Company and Subsidiary Guarantors shall
not permit any securities other than the Registrable Notes to be included in
any Shelf Registration.  The Company
shall (and shall cause each Subsidiary Guarantor to) use its best efforts to
keep the Initial Shelf Registration continuously effective under the Securities
Act until the date which is 24 months from the Closing Date (subject to
extension pursuant to the last paragraph of Section 6(w) (the “Effectiveness
Period”), or such shorter period

 

8

 

ending when (i) all
Registrable Notes covered by the Initial Shelf Registration have been sold in
the manner set forth and as contemplated in the Initial Shelf Registration, (ii) a
Subsequent Shelf Registration covering all of the Registrable Notes covered by
and not sold under the Initial Shelf Registration or an earlier Subsequent
Shelf Registration has been declared effective under the Securities Act or (iii) there
cease to be any outstanding Registrable Notes.

 

(b)           Subsequent Shelf Registrations. 
If the Initial Shelf Registration or any Subsequent Shelf Registration
(as defined below) ceases to be effective for any reason at any time during the
Effectiveness Period (other than because of the sale of all of the securities
registered thereunder), the Company shall (and shall cause each Subsidiary
Guarantor to) use its best efforts to obtain the prompt withdrawal of any order
suspending the effectiveness thereof, and in any event shall within 30 days of
such cessation of effectiveness amend such Shelf Registration in a manner to
obtain the withdrawal of the order suspending the effectiveness thereof, or
file (and cause each Subsidiary Guarantor to file) an additional “shelf”
Registration Statement pursuant to Rule 415 covering all of the
Registrable Notes (a “Subsequent Shelf Registration”).  If a Subsequent Shelf Registration is filed,
the Company shall (and shall cause each Subsidiary Guarantor to) use its best
efforts to cause the Subsequent Shelf Registration to be declared effective as
soon as practicable after such filing and to keep such Subsequent Shelf
Registration continuously effective for a period equal to the number of days in
the Effectiveness Period less the aggregate number of days during which the
Initial Shelf Registration or any Subsequent Shelf Registration was previously
continuously effective.  As used herein
the term “Shelf Registration” means the Initial Shelf Registration and
any Subsequent Shelf Registrations

 

(c)           Supplements and Amendments. 
The Company shall promptly supplement and amend any Shelf Registration
if required by the rules, regulations or instructions applicable to the
registration form used for such Shelf Registration or if required by the
Securities Act.

 

(d)           Provision of Information. 
No Holder of Registrable Notes shall be entitled to include any of its
Registrable Notes in any Shelf Registration pursuant to this Agreement unless
such Holder furnishes to the Company and the Trustee in writing, within 20 days
after receipt of a written request therefor, such information as the Company
and the Trustee after conferring with counsel with regard to information relating
to Holders that would be required by the SEC to be included in such Shelf
Registration or Prospectus included therein, may reasonably request for
inclusion in any Shelf Registration or Prospectus included therein, and no such
Holder shall be entitled to Additional Interest pursuant to Section 4
hereof unless and until such Holder shall have provided such information.

 

9

 

4.             Additional Interest

 

(a)           The Company and each Subsidiary Guarantor acknowledges and agrees
that the Holders of Registrable Notes will suffer damages if the Company or any
Subsidiary Guarantor fails to fulfill its material obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the
extent of such damages with precision. Accordingly, the Company and the
Subsidiary Guarantors agree to pay additional cash interest on the Notes (“Additional
Interest”) under the circumstances and to the extent set forth below (each
of which shall be given independent effect):

 

(i)            if (A) neither the Exchange
Registration Statement nor the Initial Shelf Registration has been filed on or
prior to the Filing Date or (B) notwithstanding that the Exchange Offer
has or will be consummated, the Company is required to file a Shelf
Registration Statement and such Shelf Registration Statement in not filed on or
prior to the date required under Section 3 of this Registration Rights
Agreement, then Additional Interest shall accrue on the Notes over and above
any stated interest at a rate of 0.25% per annum of the principal amount of
such Notes for the first 90 days immediately following the Filing Date, such
Additional Interest rate increasing by an additional 0.25% per annum at the
beginning of each subsequent 90-day period;

 

(ii)           if (A) neither the Exchange Registration Statement nor the
Initial Shelf Registration is declared effective on or prior to the
Effectiveness Date or (B) notwithstanding that the Exchange Offer
has or will be consummated, the Company is required to file a Shelf
Registration Statement and such Shelf Registration Statement is not declared
effective by the SEC on or prior to the 90th day following the date such Shelf
Registration Statement was filed, then, commencing on the day after either such
required effective date,
Additional Interest shall accrue on the Notes over and above any stated
interest at a rate of 0.25% per annum of the principal amount of such Notes for
the first 90 days immediately following the Effectiveness Date, such Additional
Interest rate increasing by an additional 0.25% per annum at the beginning of
each subsequent 90-day period;

 

(iii)          if (A) the Company (and any Subsidiary Guarantor) has not
exchanged Exchange Notes for all Notes validly tendered in accordance with the
terms of the Exchange Offer on or prior to the 30th Business Day
after the Effectiveness Date or (B) if applicable, a Shelf Registration
has been declared effective and such Shelf Registration ceases to be effective
at any time prior to the second anniversary of the Closing Date (other than
such time as all Notes have been disposed of thereunder) and is not declared
effective again within 30 days, then Additional Interest shall accrue on the
Notes, over and above any stated interest, at a rate of 0.25% per annum of the
principal amount of such Notes for the first 90 days commencing on (x) the 31st
Business Day after the Effectiveness Date, in the case of (A)

 

10

 

above, or (y) the day such
Shelf Registration ceases to be effective in the case of (B) above, such
Additional Interest rate increasing by an additional 0.25% per annum at the
beginning of each such subsequent 90-day period;

 

provided, however, that Additional
Interest will not accrue under more than one of the foregoing clauses (i), (ii) or
(iii) at any one time; provided  further,  that the maximum Additional Interest rate on
the Notes may not exceed at any one time in the aggregate 1.00% per annum; and provided
further, that (1) upon the filing of the Exchange Registration
Statement or Initial Shelf Registration (in the case of (i) above), (2) upon
the effectiveness of the Exchange Registration Statement or Initial Shelf
Registration (in the case of (ii) above), or (3) upon the exchange of
Exchange Notes for all Notes tendered (in the case of (iii)(A) above), or
upon the effectiveness of a Shelf Registration which had ceased to remain
effective (in the case of (iii)(B) above), Additional Interest on the
Notes as a result of such clause (or the relevant subclause thereof), as the
case may be, shall cease to accrue.

 

(b)           The Company shall notify the Trustee within three Business Days
after each and every date on which an event occurs in respect of which
Additional Interest is required to be paid (an “Event Date”).  Any amounts of Additional Interest due
pursuant to clause (a)(i), (a)(ii) or (a)(iii) of this Section 4
will be payable in cash, on the dates and in the manner provided in the
Indenture and whether or not any cash interest would then be payable on such
date, commencing with the first such semi-annual date occurring after any such
Additional Interest commences to accrue. 
The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Notes, multiplied
by a fraction, the numerator of which is the number of days such Additional
Interest rate was applicable during such period (determined on the basis of a
360-day year comprised of twelve 30-day months and, in the case of a partial
month, the actual number of days elapsed), and the denominator of which is 360.

 

5.             Hold-Back Agreements

 

The
Company agrees that it will not effect any public or private sale or
distribution (including a sale pursuant to Regulation D under the Securities
Act) of any securities the same as or similar to those covered by a
Registration Statement filed pursuant to Section 2 or 3 hereof (other than
Additional Notes (as defined in the Indenture) issued under the Indenture), or
any securities convertible into or exchangeable or exercisable for such
securities, during the 10 days prior to, and during the 90-day period beginning
on, the effective date of any Registration Statement filed pursuant to Sections
2 and 3 hereof unless the Holders of a majority of the aggregate principal
amount of the Registrable Notes to be included in such Registration Statement
consent, if the managing underwriter thereof (if any) so requests in writing.

 

6.             Registration
Procedures

 

In
connection with the filing of any Registration Statement pursuant to Sections 2
or 3 hereof, the Company shall (and shall cause each Subsidiary Guarantor to)
effect such

 

11

 

registrations to permit the sale of such
securities covered thereby in accordance with the intended method or methods of
disposition thereof, and pursuant thereto and in connection with any
Registration Statement filed by the Company hereunder, the Company shall (and
shall cause each Subsidiary Guarantor to):

 

(a)           Prepare and file with the SEC as soon as practicable after the
date hereof but in any event on or prior to the Filing Date, the Exchange
Registration Statement or if the Exchange Registration Statement is not filed
because of the circumstances contemplated by Section 2(j), a Shelf
Registration as prescribed by Section 3, and use its commercially
reasonable efforts to cause each such Registration Statement to become
effective and remain effective as provided herein; provided that, if (1) a
Shelf Registration is filed pursuant to Section 3 or (2) a Prospectus
contained in an Exchange Registration Statement filed pursuant to Section 2
is required to be delivered under the Securities Act by any Participating
Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period
relating thereto, before filing any Registration Statement or Prospectus or any
amendments or supplements thereto the Company shall (and shall cause each
Subsidiary Guarantor to), if requested, furnish to and afford the Holders of
the Registrable Notes to be registered pursuant to such Shelf Registration
Statement, each Participating Broker-Dealer, the managing underwriters, if any,
and each of their respective counsel, a reasonable opportunity to review copies
of all such documents (including copies of any documents to be incorporated by
reference therein and all exhibits thereto) proposed to be filed (in each case
at least five Business Days prior to such filing).  The Company and each Subsidiary Guarantor
shall not file any such Registration Statement or Prospectus or any amendments
or supplements thereto in respect of which the Holders must provide information
for the inclusion therein without the Holders being afforded an opportunity to
review such documentation if the holders of a majority in aggregate principal
amount of the Registrable Notes covered by such Registration Statement, or any
such Participating Broker-Dealer, as the case may be, the managing
underwriters, if any, or any of their respective counsel shall reasonably
object in writing on a timely basis. A Holder shall be deemed to have
reasonably objected to such filing if such Registration Statement, amendment,
Prospectus or supplement, as applicable, as proposed to be filed, contains an
untrue statement of a material fact or omits to state any material fact necessary
to make the statements therein not misleading or fails to comply with the
applicable requirements of the Securities Act.

 

(b)           Provide an indenture trustee for the Registrable Notes, the
Exchange Notes or the Private Exchange Notes, as the case may be, and cause the
Indenture (or other indenture relating to the Registrable Notes) to be
qualified under the TIA not later than the effective date of the first
Registration Statement; and in connection therewith, to effect such changes to
such indenture as may be required for such indenture to be so qualified in
accordance with the terms of the TIA; and execute, and use its best efforts to
cause such trustee to execute, all documents as may be required to effect such
changes, and all other forms and documents required to be filed with the SEC to
enable such indenture to be so qualified in a timely manner.

 

12

 

(c)           Prepare and file with the SEC such pre-effective amendments and
post-effective amendments to each Shelf Registration or Exchange Registration
Statement, as the case may be, as may be necessary to keep such Registration
Statement continuously effective for the Effectiveness Period or the Applicable
Period, as the case may be; cause the related Prospectus to be supplemented by
any Prospectus supplement required by applicable law, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; and comply with the provisions of the Securities
Act and the Exchange Act applicable to them with respect to the disposition of
all securities covered by such Registration Statement as so amended or in such
Prospectus as so supplemented and with respect to the subsequent resale of any
securities being sold by a Participating Broker-Dealer covered by any such
Prospectus.  The Company and each
Subsidiary Guarantor shall not, during the Applicable Period, voluntarily take
any action that would result in selling Holders of the Registrable Notes covered
by a Registration Statement or Participating Broker-Dealers seeking to sell
Exchange Notes not being able to sell such Registrable Notes or such Exchange
Notes during that period, unless such action is required by applicable law, rule or
regulation or permitted by this Agreement.

 

(d)           Furnish to such selling Holders and Participating Broker-Dealers
who so request in writing (i) upon the Company’s receipt, a copy of the
order of the SEC declaring such Registration Statement and any post effective
amendment thereto effective, (ii) such reasonable number of copies of such
Registration Statement and of each amendment and supplement thereto (in each
case including any documents incorporated therein by reference and all
exhibits), (iii) such reasonable number of copies of the Prospectus
included in such Registration Statement (including each preliminary Prospectus)
and each amendment and supplement thereto, and such reasonable number of copies
of the final Prospectus as filed by the Company and each Subsidiary Guarantor
pursuant to Rule 424(b) under the Securities Act, in conformity with
the requirements of the Securities Act and each amendment and supplement
thereto, and (iv) such other documents (including any amendments required
to be filed pursuant to clause (c) of this Section), as any such Person
may reasonably request in writing. The Company and the Subsidiary Guarantors
hereby consent to the use of the Prospectus by each of the selling Holders of
Registrable Notes or each such Participating Broker-Dealer, as the case may be,
and the underwriters or agents, if any, and dealers, if any, in connection with
the offering and sale of the Registrable Notes covered by, or the sale by
Participating Broker-Dealers of the Exchange Notes pursuant to, such Prospectus
and any amendment or supplement thereto.

 

(e)           If (1) a Shelf Registration is filed pursuant to Section 3,
or (2) a Prospectus contained in an Exchange Registration Statement filed
pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period relating thereto, the Company shall notify in writing the
selling Holders of Registrable Notes, or each such Participating Broker-Dealer,
as the case may be, the managing underwriters, if any, and each of their
respective counsel promptly (but

 

13

 

in any event within two
Business Days) (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration
Statement or any post-effective amendment, when the same has become effective
(including in such notice a written statement that any Holder may, upon
request, obtain, without charge, one conformed copy of such Registration
Statement or post-effective amendment including financial statements and
schedules, documents incorporated or deemed to be incorporated by reference and
exhibits), (ii) of the issuance by the SEC of any stop order suspending
the effectiveness of a Registration Statement or of any order preventing or
suspending the use of any Prospectus or the initiation of any proceedings for
that purpose, (iii) if at any time when a Prospectus is required by the
Securities Act to be delivered in connection with sales of the Registrable
Notes the representations and warranties of the Company and any Subsidiary
Guarantor contained in any agreement (including any underwriting agreement)
contemplated by Section 6(n) hereof cease to be true and correct, (iv) of
the receipt by the Company or any Subsidiary Guarantor of any notification with
respect to the suspension of the qualification or exemption from qualification
of a Registration Statement or any of the Registrable Notes or the Exchange
Notes to be sold by any Participating Broker-Dealer for offer or sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose, (v) of the happening of any event, the existence of any condition
or any information becoming known that makes any statement made in such
Registration Statement or related Prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect
or that requires the making of any changes in, or amendments or supplements to,
such Registration Statement, Prospectus or documents so that, in the case of
the Registration Statement and the Prospectus, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, (vi) of any
reasonable determination by the Company or any Subsidiary Guarantor that a
post-effective amendment to a Registration Statement would be appropriate and (vii) of
any request by the SEC for amendments to the Registration Statement or
supplements to the Prospectus or for additional information relating thereto.

 

(f)            Use its best efforts to prevent the
issuance of any order suspending the effectiveness of a Registration Statement
or of any order preventing or suspending the use of a Prospectus or suspending
the qualification (or exemption from qualification) of any of the Registrable
Notes or the Exchange Notes to be sold by any Participating Broker-Dealer, for
sale in any jurisdiction, and, if any such order is issued, to use its best
efforts to obtain the withdrawal of any such order at the earliest possible
date.

 

(g)           If (A) a Shelf Registration is filed pursuant to Section 3,
(B) a Prospectus contained in an Exchange Registration Statement filed
pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period or (C)

 

14

 

 

reasonably requested in
writing by the managing underwriters, if any, or the Holders of a majority in
aggregate principal amount of the Registrable Notes being sold in connection
with an underwritten offering, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment such information or revisions to
information therein relating to such underwriters or selling Holders as the
managing underwriters, if any, or such Holders or any of their respective counsel
reasonably request in writing to be included or made therein and (ii) make
all required filings of such Prospectus supplement or such post-effective
amendment as soon as practicable after the Company has received notification of
the matters to be incorporated in such Prospectus supplements or post-effective
amendment.

 

(h)           Prior to any public offering of Registrable Notes or any delivery
of a Prospectus contained in the Exchange Registration Statement by any
Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, use its best efforts to register or qualify, and to
cooperate with the selling Holders of Registrable Notes or each such
Participating Broker-Dealer, as the case may be, the underwriters, if any, and
their respective counsel in connection with the registration or qualification
(or exemption from such registration or qualification) of such Registrable
Notes or Exchange Notes, as the case may be, for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any selling Holder, Participating Broker-Dealer or any managing underwriter or
underwriters, if any, reasonably request in writing; provided that where
Exchange Notes held by Participating Broker-Dealers or Registrable Notes are
offered other than through an underwritten offering, the Company and each
Subsidiary Guarantor agree to cause its counsel to perform Blue Sky
investigations and file any registrations and qualifications required to be
filed pursuant to this Section 6(h), keep each such registration or
qualification (or exemption therefrom) effective during the period such
Registration Statement is required to be kept effective and do any and all
other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of the Exchange Notes held by Participating
Broker-Dealers or the Registrable Notes covered by the applicable Registration
Statement; provided that neither the Company nor any Subsidiary
Guarantor shall be required to (A) qualify generally to do business in any
jurisdiction where it is not then so qualified, (B) take any action that
would subject it to general service of process in any such jurisdiction where
it is not then so subject or (C) subject itself to taxation in any such
jurisdiction where it is not then so subject.

 

(i)            If (A) a Shelf Registration is
filed pursuant to Section 3 or (B) a Prospectus contained in an
Exchange Registration Statement filed pursuant to Section 2 is requested
to be delivered under the Securities Act by any Participating Broker-Dealer who
seeks to sell Exchange Notes during the Applicable Period, cooperate with the
selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Notes to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository

 

15

 

Trust Company, and enable
such Registrable Notes to be in such denominations and registered in such names
as the managing underwriter or underwriters, if any, or Holders may reasonably
request.

 

(j)            Use its commercially reasonable
efforts to cause the Registrable Notes covered by any Registration Statement to
be registered with or approved by such governmental agencies or authorities as
may be necessary to enable the seller or sellers thereof or the underwriter, if
any, to consummate the disposition of such Registrable Notes, except as may be
required solely as a consequence of the nature of such selling Holder’s
business, in which case the Company shall (and shall cause each Subsidiary
Guarantor to) cooperate in all reasonable respects with the filing of such Registration
Statement and the granting of such approvals; provided that neither the
Company nor any existing Subsidiary Guarantor shall be required to (A) qualify
generally to do business in any jurisdiction where it is not then so qualified,
(B) take any action that would subject it to general service of process in
any jurisdiction where it is not then so subject or (C) subject itself to
taxation in any such jurisdiction where it is not then so subject.

 

(k)           If (1) a Shelf Registration is filed pursuant to Section 3,
or (2) a Prospectus contained in an Exchange Registration Statement filed
pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, upon the occurrence of any event contemplated by paragraph
6(e)(v) or 6(e)(vi) hereof, as promptly as practicable, prepare and
file with the SEC, at the expense of the Company and the Subsidiary Guarantors,
a supplement or post-effective amendment to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Registrable Notes being
sold thereunder or to the purchasers of the Exchange Notes to whom such
Prospectus will be delivered by a Participating Broker-Dealer, such Prospectus
will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and, if SEC review is required, use its best efforts to cause such
post-effective amendment to be declared effective as soon as possible.

 

(l)            Use its best efforts to cause the
Registrable Notes covered by a Registration Statement to be rated with such
appropriate rating agencies, if so requested in writing by the Holders of a
majority in aggregate principal amount of the Registrable Notes covered by such
Registration Statement or the managing underwriter or underwriters, if any.

 

(m)          Prior to the initial issuance of the Exchange Notes, (i) provide
the Trustee with one or more certificates for the Registrable Notes in a form
eligible for deposit with The Depository Trust Company and (ii) provide a
CUSIP number for the Exchange Notes.

 

16

 

(n)           If a Shelf Registration is filed pursuant to Section 3, and
the Registrable Notes are being offered in an Underwritten Offering, enter into
such agreements (including an underwriting agreement in form, scope and
substance as is customary in underwritten offerings of debt securities similar
to the Notes, as may be appropriate in the circumstances) and take all such
other actions in connection therewith (including those reasonably requested in
writing by the managing underwriters, if any, or the Holders of a majority in
aggregate principal amount of the Registrable Notes being sold) in order to
expedite or facilitate the registration or the disposition of such Registrable
Notes, and in such connection, whether or not an underwriting agreement is
entered into and whether or not the registration is an Underwritten
Registration, (i) make such representations and warranties to the Holders
and the underwriters, if any, with respect to the business of the Company and
its subsidiaries as then conducted, and the Registration Statement, Prospectus
and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, in form, substance and scope as are customarily made by
issuers to underwriters in underwritten offerings of debt securities similar to
the Notes, as may be appropriate in the circumstances, and confirm the same if
and when reasonably required; (ii) obtain an opinion of counsel to the
Company and the Subsidiary Guarantors and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the
managing underwriters, if any, and the Holders of a majority in aggregate
principal amount of the Registrable Notes being sold), addressed to each
selling Holder and each of the underwriters, if any, covering the matters
customarily covered in opinions of counsel to the Company and the Subsidiary
Guarantors requested in underwritten offerings of debt securities similar to
the Notes, as may be appropriate in the circumstances; (iii) obtain “cold
comfort” letters and updates thereof (which letters and updates (in form, scope
and substance) shall be reasonably satisfactory to the managing underwriters)
from the independent certified public accountants of the Company and the
Subsidiary Guarantors (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed to each of
the underwriters, such letters to be in customary form and covering matters of
the type customarily covered in “cold comfort” letters in connection with
underwritten offerings of debt securities similar to the Notes, as may be
appropriate in the circumstances, and such other matters as reasonably
requested in writing by the underwriters; and (iv) deliver such documents
and certificates as may be reasonably requested in writing by the Holders of a
majority in aggregate principal amount of the Registrable Notes being sold and
the managing underwriters, if any, to evidence the continued validity of the
representations and warranties of the Company and its subsidiaries made
pursuant to clause (i) above and to evidence compliance with any
conditions contained in the underwriting agreement or other similar agreement
entered into by the Company or any Subsidiary Guarantor.

 

(o)           If (1) a Shelf Registration is filed pursuant to Section 3,
or (2) a Prospectus contained in an Exchange Registration Statement filed
pursuant to Section 2 is

 

17

 

required to be delivered
under the Securities Act by any Participating Broker-Dealer who seeks to sell
Exchange Notes during the Applicable Period, make available for inspection by
any selling Holder of such Registrable Notes being sold, or each such
Participating Broker-Dealer, as the case may be, any underwriter participating
in any such disposition of Registrable Notes, if any, and any attorney,
accountant or other agent retained by any such selling Holder or each such
Participating Broker-Dealer, as the case may be, or underwriter (collectively,
the “Inspectors”), at the offices where normally kept, during reasonable
business hours, all financial and other records and pertinent corporate
documents of the Company and its subsidiaries (collectively, the “Records”)
as shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the officers, directors and employees of
the Company and its subsidiaries to supply all information reasonably requested
in writing by any such Inspector in connection with such Registration
Statement.  Each Inspector shall agree in
writing that it will keep the Records confidential and not disclose any of the
Records unless (i) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in such Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction, (iii) the information in such Records is
public or has been made generally available to the public other than as a
result of a disclosure or failure to safeguard by such Inspector or (iv) disclosure
of such information is, in the reasonable written opinion of counsel for any
Inspector, necessary or advisable in connection with any action, claim, suit or
proceeding, directly or indirectly, involving or potentially involving such
Inspector and arising out of, based upon, related to, or involving this
Agreement, or any transaction contemplated hereby or arising hereunder.  Each selling Holder of such Registrable Notes
and each such Participating Broker-Dealer will be required to agree that
information obtained by it as a result of such inspections shall be deemed
confidential and shall not be used by it as the basis for any market
transactions in the securities of the Company unless and until such is made
generally available to the public.  Each
Inspector, each selling Holder of such Registrable Notes and each such Participating
Broker-Dealer will be required to further agree that it will, upon learning
that disclosure of such Records is sought in a court of competent jurisdiction,
give notice to the Company and, to the extent practicable, use its best efforts
to allow the Company, at its expense, to undertake appropriate action to
prevent disclosure of the Records deemed confidential at its expense.

 

(p)           Comply with all applicable rules and regulations of the SEC
and make generally available to the security holders of the Company with regard
to any Applicable Registration Statement earning statements satisfying the
provisions of section 11(a) of the Securities Act and Rule 158
thereunder (or any similar rule promulgated under the Securities Act) no
later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) (i) commencing
at the end of any fiscal quarter in which Registrable Notes are sold to
underwriters in a firm commitment or best efforts underwritten offering and (ii) if
not sold to underwriters in such an offering,

 

18

 

commencing on the first
day of the first fiscal quarter of the Company after the effective date of a
Registration Statement, which statements shall cover said 12-month periods.

 

(q)           Upon consummation of an Exchange Offer or Private Exchange, obtain
an opinion of counsel to the Company and the Subsidiary Guarantors (in form,
scope and substance reasonably satisfactory to the Initial Purchaser),
addressed to the Trustee for the benefit of all Holders participating in the
Exchange Offer or Private Exchange, as the case may be, to the effect that (i) the
Company and the Subsidiary Guarantors have duly authorized, executed and
delivered the Exchange Notes or the Private Exchange Notes, as the case may be,
and the Indenture, (ii) the Exchange Notes or the Private Exchange Notes,
as the case may be, and the Indenture constitute legal, valid and binding
obligations of the Company and the Subsidiary Guarantors, enforceable against the
Company and the Subsidiary Guarantors in accordance with their respective
terms, except as such enforcement may be subject to customary United States and
foreign exceptions and (iii) all obligations of the Company and the
Subsidiary Guarantors under the Exchange Notes or the Private Exchange Notes,
as the case may be, and the Indenture are secured by Liens on the assets
securing the obligations of the Company and the Subsidiary Guarantors under the
Notes, Indenture and Collateral Agreements to the extent and as discussed in
the Registration Statement.

 

(r)            If the Exchange Offer or a Private
Exchange is to be consummated, upon delivery of the Registrable Notes by the
Holders to the Company and the Subsidiary Guarantors (or to such other Person
as directed by the Company and the Subsidiary Guarantors) in exchange for the
Exchange Notes or the Private Exchange Notes, as the case may be, the Company
and the Subsidiary Guarantors shall mark, or caused to be marked, on such
Registrable Notes that the Exchange Notes or the Private Exchange Notes, as the
case may be, are being issued as substitute evidence of the indebtedness
originally evidenced by the Registrable Notes; provided that in no event
shall such Registrable Notes be marked as paid or otherwise satisfied.

 

(s)                                  Cooperate with each seller of
Registrable Notes covered by any Registration Statement and each underwriter,
if any, participating in the disposition of such Registrable Notes and their
respective counsel in connection with any filings required to be made with the
NASD.

 

(t)            Use its best efforts to cause all
Securities covered by a Registration Statement to be listed on each securities
exchange, if any, on which similar debt securities issued by the Company are
then listed.

 

(u)           Use its best efforts to take such other steps as may be reasonably
necessary to effect the registration of the Registrable Notes covered by a
Registration Statement contemplated hereby.

 

19

 

(v)           The Company may require each seller of Registrable Notes or
Participating Broker-Dealer as to which any registration is being effected to
furnish to the Company such information regarding such seller or Participating
Broker-Dealer and the distribution of such Registrable Notes as the Company
may, from time to time, reasonably request in writing.  The Company may exclude from such
registration the Registrable Notes of any seller who fails to furnish such
information within a reasonable time (which time in no event shall exceed 45
days, subject to Section 3(d)) hereof) after receiving such request.  Each seller of Registrable Notes or
Participating Broker-Dealer as to which any registration is being effected
agrees to furnish promptly to the Company all information required to be
disclosed in order to make the information previously furnished by such seller
not materially misleading.

 

(w)          Each Holder of Registrable Notes and each Participating
Broker-Dealer agrees by acquisition of such Registrable Notes or Exchange Notes
to be sold by such Participating Broker-Dealer, as the case may be, that, upon
receipt of any notice from the Company of the happening of any event of the
kind described in Section 6(e)(2)(ii), 6(e)(2)(iii), 6(e)(2)(iv),
6(e)(2)(v), or 6(e)(2)(vi), such Holder will forthwith discontinue disposition
of such Registrable Notes covered by a Registration Statement and such
Participating Broker-Dealer will forthwith discontinue disposition of such
Exchange Notes pursuant to any Prospectus and, in each case, forthwith
discontinue dissemination of such Prospectus until such Holder’s or
Participating Broker-Dealer’s receipt of the copies of the supplemented or
amended Prospectus contemplated by Section 6(k), or until it is advised in
writing (the “Advice”) by the Company and the Subsidiary Guarantors that
the use of the applicable Prospectus may be resumed, and has received copies of
any amendments or supplements thereto and, if so directed by the Company and
the Subsidiary Guarantors, such Holder or Participating Broker-Dealer, as the case
may be, will deliver to the Company all copies, other than permanent file
copies, then in such Holder’s or Participating Broker-Dealer’s possession, of
the Prospectus covering such Registrable Notes current at the time of the
receipt of such notice.  In the event the
Company and the Subsidiary Guarantors shall give any such notice, the
Applicable Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the
date when each Participating Broker-Dealer shall have received (x) the copies
of the supplemented or amended Prospectus contemplated by Section 6(k) or
(y) the Advice.

 

7.             Registration Expenses

 

(a)           All fees and expenses incident to the performance of or compliance
with this Agreement by the Company and the Subsidiary Guarantors shall be borne
by the Company and the Subsidiary Guarantors, whether or not the Exchange Offer
or a Shelf Registration is filed or becomes effective, including, without
limitation, (i) all registration and filing fees, including, without
limitation, (A) fees with respect to filings required to be made with the
NASD in connection with any Underwritten Offering and (B) fees and
expenses of compliance with state

 

20

 

securities or Blue Sky
laws as provided in Section 6(h) hereof (including, without
limitation, reasonable fees and disbursements of counsel in connection with
Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions (x) where the Holders are
located, in the case of the Exchange Notes, or (y) as provided in Section 6(h),
in the case of Registrable Notes or Exchange Notes to be sold by a
Participating Broker-Dealer during the Applicable Period)), (ii) printing
expenses, including, without limitation, expenses of printing Prospectuses if
the printing of Prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement or by
any Participating Broker-Dealer during the Applicable Period, as the case may
be, (iii) messenger, telephone and delivery expenses incurred in
connection with the performance of their obligations hereunder, (iv) fees
and disbursements of counsel for the Company, the Subsidiary Guarantors and,
subject to 7(b), the Holders, (v) fees and disbursements of all
independent certified public accountants referred to in Section 6
(including, without limitation, the expenses of any special audit and “cold
comfort” letters required by or incident to such performance), (vi) rating
agency fees and the fees and expenses incurred in connection with the listing
of the Securities to be registered on any securities exchange, (vii) Securities
Act liability insurance, if the Company and the Subsidiary Guarantors desire
such insurance, (viii) fees and expenses of all other Persons retained by
the Company and the Subsidiary Guarantors, (ix) fees and expenses of any “qualified
independent underwriter” or other independent appraiser participating in an
offering pursuant to Section 3 of Schedule E to the By-laws of the
NASD, but only where the need for such a “qualified independent underwriter”
arises due to a relationship with the Company and the Subsidiary Guarantors,
(x) internal expenses of the Company and the Subsidiary Guarantors (including,
without limitation, all salaries and expenses of officers and employees of the
Company or the Subsidiary Guarantors performing legal or accounting duties),
(xi) the expense of any annual audit, (xii) the fees and expenses of the
Trustee and the Exchange Agent and (xiii) the expenses relating to printing,
word processing and distributing all Registration Statements, underwriting
agreements, securities sales agreements, indentures and any other documents
necessary in order to comply with this Agreement.

 

(b)           The Company and the Subsidiary Guarantors shall reimburse the
Holders for the reasonable fees and disbursements of not more than one counsel
chosen by the Holders of a majority in aggregate principal amount of the
Registrable Notes to be included in any Registration Statement.  The Company and the Subsidiary Guarantors
shall pay all documentary, stamp, transfer or other transactional taxes
attributable to the issuance or delivery of the Exchange Notes or Private
Exchange Notes in exchange for the Notes; provided that the Company
shall not be required to pay taxes payable in respect of any transfer involved
in the issuance or delivery of any Exchange Note or Private Exchange Note in a
name other than that of the Holder of the Note in respect of which such
Exchange Note or Private Exchange Note is being issued.  The Company and the Subsidiary Guarantors
shall

 

21

 

reimburse the Holders for
fees and expenses (including reasonable fees and expenses of counsel to the
Holders) relating to any enforcement of any rights of the Holders under this
Agreement.

 

8.             Indemnification

 

(a)           Indemnification by the Company and
the Subsidiary Guarantors.  The Company and the Subsidiary Guarantors
jointly and severally agree to indemnify and hold harmless each Holder of Registrable
Notes, Exchange Notes or Private Exchange Notes and each Participating
Broker-Dealer selling Exchange Notes during the Applicable Period, each Person,
if any, who controls each such Holder (within the meaning of Section 15 of
the Securities Act or Section 20(a) of the Exchange Act) and the
officers, directors and partners of each such Holder, Participating
Broker-Dealer and controlling person, to the fullest extent lawful, from and
against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable costs of preparation and reasonable attorneys’
fees as provided in this Section 8) and expenses (including, without
limitation, reasonable costs and expenses incurred in connection with
investigating, preparing, pursuing or defending against any of the foregoing)
(collectively, “Losses”), as incurred, directly or indirectly caused by,
related to, based upon, arising out of or in connection with any untrue or
alleged untrue statement of a material fact contained in any Registration
Statement, Prospectus or form of prospectus, or in any amendment or supplement
thereto, or in any preliminary prospectus, or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were
made, not misleading, but only to the extent, that such Losses are finally
judicially determined by a court of competent jurisdiction in a final,
unappealable order, except insofar as such Losses are solely based upon
information relating to such Holder or Participating Broker-Dealer and
furnished in writing to the Company and the Subsidiary Guarantors (or reviewed
and approved in writing) by such Holder or Participating Broker-Dealer or their
counsel expressly for use therein; provided, however, that the Company
and the Subsidiary Guarantors will not be liable to any Indemnified Party (as
defined below) under this Section 8 to the extent Losses were solely
caused by an untrue statement or omission or alleged untrue statement or
omission that was contained or made in any preliminary prospectus and corrected
in the Prospectus or any amendment or supplement thereto if (i) the
Prospectus does not contain any other untrue statement or omission or alleged
untrue statement or omission of a material fact that was the subject matter of
the related proceeding, (ii) any such Losses resulted from an action,
claim or suit by any Person who purchased Registrable Notes or Exchange Notes
which are the subject thereof from such Indemnified Party and (iii) it is
established in the related proceeding that such Indemnified Party failed to
deliver or provide a copy of the Prospectus (as amended or supplemented) to
such Person with or prior to the confirmation of the sale of such Registrable
Notes or Exchange Notes sold to such Person if required by applicable law,
unless such failure to deliver or provide a copy of the Prospectus (as amended
or supplemented) was a result of noncompliance by the Company

 

22

 

with Section 6 of
this Agreement.  The Company and the
Subsidiary Guarantors also agree to indemnify underwriters, selling brokers,
dealer managers and similar securities industry professionals participating in
the distribution, their officers, directors, agents and employees and each
Person who controls such Persons (within the meaning of Section 5 of the
Securities Act or Section 20(a) of the Exchange Act) to the same
extent as provided above with respect to the indemnification of the Holders or
the Participating Broker-Dealer.

 

(b)           Indemnification by Holder. 
In connection with any Registration Statement, Prospectus or form of
prospectus, any amendment or supplement thereto, or any preliminary prospectus
in which a Holder is participating, such Holder shall furnish to the Company
and the Subsidiary Guarantors in writing such information as the Company and
the Subsidiary Guarantors reasonably request for use in connection with any
Registration Statement, Prospectus or form of prospectus, any amendment or
supplement thereto, or any preliminary prospectus and shall indemnify and hold
harmless the Company, the Subsidiary Guarantors, their respective directors and
each Person, if any, who controls the Company and the Subsidiary Guarantors
(within the meaning of Section 15 of the Securities Act and Section 20(a) of
the Exchange Act), and the directors, officers and partners of such controlling
persons, to the fullest extent lawful, from and against all Losses arising out
of or based upon any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, Prospectus or form of prospectus or in
any amendment or supplement thereto or in any preliminary prospectus, or any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading to the extent, but
only to the extent, that such losses are finally judicially determined by a
court of competent jurisdiction in a final, unappealable order to have resulted
solely from an untrue statement or alleged untrue statement of a material fact
or omission or alleged omission of a material fact contained in or omitted from
any information so furnished in writing by such Holder to the Company and the
Subsidiary Guarantors expressly for use therein.  Notwithstanding the foregoing, in no event
shall the liability of any selling Holder be greater in amount than such Holder’s
Maximum Contribution Amount (as defined below).

 

(c)           Conduct of Indemnification
Proceedings.  If any proceeding shall be brought or
asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the party or parties
from which such indemnity is sought (the “Indemnifying Party” or “Indemnifying
Parties”, as applicable) in writing; provided, that the failure to
so notify the Indemnifying Parties shall not relieve the Indemnifying Parties
from any obligation or liability except to the extent (but only to the extent)
that it shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal) that the Indemnifying Parties have been
prejudiced materially by such failure.

 

23

 

The
Indemnifying Party shall have the right, exercisable by giving written notice
to an Indemnified Party, within 20 Business Days after receipt of written
notice from such Indemnified Party of such proceeding, to assume, at its
expense, the defense of any such proceeding, provided, that an
Indemnified Party shall have the right to employ separate counsel in any such
proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or parties
unless:  (1) the Indemnifying Party
has agreed to pay such fees and expenses; or (2) the Indemnifying Party
shall have failed promptly to assume the defense of such proceeding or shall
have failed to employ counsel reasonably satisfactory to such Indemnified
Party; or (3) the named parties to any such proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying Party
or any of its affiliates or controlling persons, and such Indemnified Party
shall have been advised by counsel that there may be one or more defenses
available to such Indemnified Party that are in addition to, or in conflict
with, those defenses available to the Indemnifying Party or such affiliate or
controlling person (in which case, if such Indemnified Party notifies the
Indemnifying Parties in writing that it elects to employ separate counsel at
the expense of the Indemnifying Parties, the Indemnifying Parties shall not
have the right to assume the defense and the reasonable fees and expenses of
such counsel shall be at the expense of the Indemnifying Party; it being
understood, however, that, the Indemnifying Party shall not, in connection with
any one such proceeding or separate but substantially similar or related
proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than
one separate firm of attorneys (together with appropriate local counsel) at any
time for such Indemnified Party).

 

No
Indemnifying Party shall be liable for any settlement of any such proceeding
effected without its written consent, which shall not be unreasonably withheld,
but if settled with its written consent, or if there be a final judgment for
the plaintiff in any such proceeding, each Indemnifying Party jointly and
severally agrees, subject to the exceptions and limitations set forth above, to
indemnify and hold harmless each Indemnified Party from and against any and all
Losses by reason of such settlement or judgment.  The Indemnifying Party shall not consent to
the entry of any judgment or enter into any settlement that does not include as
an unconditional term thereof the giving by the claimant or plaintiff to each
Indemnified Party of a release, in form and substance reasonably satisfactory
to the Indemnified Party, from all liability in respect of such proceeding for
which such Indemnified Party would be entitled to indemnification hereunder
(whether or not any Indemnified Party is a party thereto).

 

(d)           Contribution. 
If the indemnification provided for in this Section 8 is
unavailable to an Indemnified Party or is insufficient to hold such Indemnified
Party harmless for any Losses in respect of which this Section 8 would
otherwise apply by its terms (other than by reason of exceptions provided in
this Section 8), then each applicable Indemnifying Party, in lieu of
indemnifying such Indemnified Party, shall have a joint and several obligation
to contribute to the amount paid or payable by such Indemnified Party as a
result of such Losses, in such proportion as is appropriate to reflect the
relative fault of the Indemnifying Party, on the one hand, and such Indemnified
Party, on the other hand, in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party, on the one hand,
and Indemnified Party, on the other hand, shall be determined by

 

24

 

reference to, among other
things, whether any untrue or alleged untrue statement of a material fact or
omission or alleged omission to state a material fact relates to information supplied
by such Indemnifying Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
any such statement or omission.  The
amount paid or payable by an Indemnified Party as a result of any Losses shall
be deemed to include any legal or other fees or expenses incurred by such party
in connection with any proceeding, to the extent such party would have been
indemnified for such fees or expenses if the indemnification provided for in Section 8(a) or
8(b) was available to such party.

 

The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation
or by other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 8(d),
a selling Holder shall not be required to contribute, in the aggregate, any
amount in excess of such Holder’s Maximum Contribution Amount.  A selling Holder’s “Maximum Contribution
Amount” shall equal the excess of (i) the aggregate proceeds received
by such Holder pursuant to the sale of such Registrable Notes or Exchange Notes
over (ii) the aggregate amount of damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission.  No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 8(d) are several in proportion to
the respective principal amount of the Registrable Securities held by each
Holder hereunder and not joint.  The
Company’s and Subsidiary Guarantors’ obligations to contribute pursuant to this
Section 8(d) are joint and several.

 

The
indemnity and contribution agreements contained in this Section 8 are in
addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

 

9.             Rules 144 and
144A

 

The
Company covenants that it shall (a) file the reports required to be filed
by it (if so required) under the Securities Act and the Exchange Act in a
timely manner and, if at any time the Company is not required to file such
reports, it will, upon the written request of any Holder of Registrable Notes,
make publicly available other information necessary to permit sales pursuant to
Rule 144 and 144A and (b) take such further action as any Holder may
reasonably request in writing, all to the extent required from time to time to
enable such Holder to sell Registrable Notes without registration under the
Securities Act pursuant to the exemptions provided by Rule 144 and Rule 144A.  Upon the request of any Holder, the Company
shall deliver to such Holder a written statement as to whether it has complied
with such information and requirements.

 

25

 

10.          Underwritten Registrations of Registrable Notes

 

If
any of the Registrable Notes covered by any Shelf Registration is to be sold in
an underwritten offering, the investment banker or investment bankers and
manager or managers that will manage the offering will be selected by the
Holders of a majority in aggregate principal amount of such Registrable Notes
included in such offering; provided, however, that such
investment banker or investment bankers and manager or managers must be
reasonably acceptable to the Company.

 

No
Holder of Registrable Notes may participate in any underwritten registration
hereunder unless such Holder (a) agrees to sell such Holder’s Registrable
Notes on the basis provided in any underwriting arrangements approved by the
Persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

 

11.          Miscellaneous

 

(a)           Remedies. In the event of a breach by
either the Company or any of the Subsidiary Guarantors of any of their
respective obligations under this Agreement, each Holder, in addition to being
entitled to exercise all rights provided herein, in the Indenture or, in the
case of the Initial Purchaser, in the Purchase Agreement, or granted by law,
including recovery of damages, will be entitled to specific performance of its
rights under this Agreement.  The Company
and the Subsidiary Guarantors agree that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by either the Company
or any of the Subsidiary Guarantors of any of the provisions of this Agreement
and hereby further agree that, in the event of any action for specific
performance in respect of such breach, the Company shall (and shall cause each
Subsidiary Guarantor to) waive the defense that a remedy at law would be
adequate.

 

(b)           No Inconsistent Agreements. 
The Company and each of the Subsidiary Guarantors have not entered, as
of the date hereof, and the Company and each of the Subsidiary Guarantors shall
not enter, after the date of this Agreement, into any agreement with respect to
any of its securities that is inconsistent with the rights granted to the
Holders of Securities in this Agreement or otherwise conflicts with the
provisions hereof.  The Company and each
of the Subsidiary Guarantors have not entered and will not enter into any
agreement with respect to any of its securities that will grant to any Person piggy-back
rights with respect to a Registration Statement.

 

(c)           Adjustments Affecting Registrable
Notes.  The Company shall not, directly or
indirectly, take any action with respect to the Registrable Notes as a class
that would adversely affect the ability of the Holders to include such
Registrable Notes in a registration undertaken pursuant to this Agreement.

 

26

 

(d)           Amendments and Waivers. 
The provisions of this Agreement may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, otherwise than with the prior written consent of the Holders of not less
than a majority in aggregate principal amount of the then outstanding
Registrable Notes in circumstances that would adversely affect any Holders of
Registrable Notes; provided, however, that Section 8 and
this Section 11(d) may not be amended, modified or supplemented
without the prior written consent of each Holder.  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Notes whose
securities are being tendered pursuant to the Exchange Offer or sold pursuant
to a Notes Registration Statement and that does not directly or indirectly
affect, impair, limit or compromise the rights of other Holders of Registrable
Notes may be given by Holders of at least a majority in aggregate principal
amount of the Registrable Notes being tendered or being sold by such Holders
pursuant to such Notes Registration Statement.

 

(e)           Notices. 
All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail,
next-day air courier or telecopier:

 

(i)            if to a Holder of Securities or to
any Participating Broker-Dealer, at the most current address of such Holder or
Participating Broker-Dealer, as the case may be, set forth on the records of
the registrar of the Notes, with a copy in like manner to the Initial Purchaser
as follows:

 

Jeffries &
Company, Inc.

11100 Santa Monica Boulevard

10th Floor

Los Angeles, California  90025

Facsimile No.:  (310) 575-5165

Attention:    Lloyd H. Feller, Esq.

 

with
a copy to:

 

Proskauer Rose
LLP

1585 Broadway

New York, New York  10036

Facsimile No.:  (212) 969-2900

Attention: Julie M. Allen, Esq.

 

(ii)           if to the Initial Purchaser, at the address specified in Section 11(e)(i);

 

(iii)          if to the Company or any Subsidiary Guarantor, as follows:

 

Altra
Industrial Motion, Inc.

14 Hayward Street

Quincy, Massachusetts  02171

 

27

 

Facsimile No. 
(617) 689-6202

Attention:  Michael L. Hurt

 

with
a copy to:

 

Weil Gotshal &
Manges, LLP

201 Redwood Shores Parkway

Redwood Shores, California  94065

Facsimile No.  (650) 802-3100

Attention:  Curtis L. Mo, Esq.

 

All
such notices and communications shall be deemed to have been duly given:  when delivered by hand, if personally
delivered; five Business Days after being deposited in the United States mail,
postage prepaid, if mailed, one Business Day after being deposited in the
United States mail, postage prepaid, if mailed; one Business Day after being
timely delivered to a next-day air courier guaranteeing overnight delivery; and
when receipt is acknowledged by the addressee, if telecopied.

 

Copies
of all such notices, demands or other communications shall be concurrently
delivered by the Person giving the same to the Trustee under the Indenture at
the address specified in such Indenture.

 

(f)            Successors and Assigns. 
This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties hereto, including, without
limitation and without the need for an express assignment, subsequent Holders
of Securities.

 

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

 

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

 

(i)            Governing Law. 
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAW.  THE COMPANY HEREBY IRREVOCABLY
SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH
OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE
BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY
ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY,
JURISDICTION OF THE AFORESAID COURTS. 
THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO UNDER

 

28

 

APPLICABLE LAW, TRIAL BY
JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY
CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. 
THE COMPANY IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY
DO SO UNDER APPLICABLE LAW, TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AT ITS
SAID ADDRESS, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY
HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER
JURISDICTION.

 

(j)            Severability. 
If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall
in no way be affected, impaired or invalidated, and the parties hereto shall
use their best efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such term,
provision, covenant or restriction.  It
is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions
without including any of such that may be hereafter declared invalid, illegal,
void or unenforceable.

 

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

 

(l)            Third Party Beneficiaries. 
Holders and Participating Broker-Dealers are intended third party
beneficiaries of this Agreement and this Agreement may be enforced by such
Persons.

 

(m)          Entire Agreement. 
This Agreement, together with the Purchase Agreement, the Indenture and
the Collateral Agreements, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect
of the subject matter contained herein and therein and any and all prior oral
or written agreements, representations, or warranties, contracts,
understanding, correspondence, conversations and memoranda between the Initial
Purchaser on the one hand and the Company and the Subsidiary Guarantors on the

 

29

 

other, or between or among
any agents, representatives, parents, subsidiaries, affiliates, predecessors in
interest or successors in interest with respect to the subject matter hereof
and thereof are merged herein and replaced hereby.

 

30

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

 

	
   

  	
  ALTRA INDUSTRIAL MOTION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN ENTERPRISE MPT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN ENTERPRISES MPT HOLDINGS,

  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERIDRIVES INTERNATIONAL, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOSTON GEAR LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Registration Rights
Agreement

 

 

	
   

  	
  FORMSPRAG LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE KILIAN COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KILIAN MANUFACTURING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NUTTALL GEAR LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC INTERNATIONAL

  HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

	
   

  	
  WARNER ELECTRIC LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WARNER ELECTRIC TECHNOLOGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 

ACCEPTED
AND AGREED TO:

 

JEFFERIES &
COMPANY, INC.

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
  M. Brent Stevens

  
	
  Title:

  	
  Executive Vice President

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