Document:

Exhibit 4.2

 

 

 

SAMSONITE
CORPORATION, as Issuer,

 

 

and

 

 

THE BANK OF
NEW YORK, as Trustee

 

 

 

INDENTURE

 

Dated as of June 9, 2004

 

 

 

8-7/8% Senior
Subordinated Notes due 2011

 

 

 

 

CROSS-REFERENCE
TABLE

 

	
  TIA

  Section

  	
   

  	
   

  	
  Indenture

  Section

  
	
   

  	
   

  	
   

  
	
  310

  	
  (a)(1)

  	
   

  	
  7.10

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  
	
   

  	
  (b)

  	
   

  	
  7.08; 7.10;
  10.02

  
	
   

  	
  (b)(1)

  	
   

  	
  7.10

  
	
   

  	
  (b)(9)

  	
   

  	
  7.10

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  311

  	
  (a)

  	
   

  	
  7.11

  
	
   

  	
  (b)

  	
   

  	
  7.11

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  
	
  312

  	
  (a)

  	
   

  	
  2.05

  
	
   

  	
  (b)

  	
   

  	
  10.03

  
	
   

  	
  (c)

  	
   

  	
  10.03

  
	
  313

  	
  (a)

  	
   

  	
  7.06

  
	
   

  	
  (b)(1)

  	
   

  	
  7.06

  
	
   

  	
  (b)(2)

  	
   

  	
  7.06

  
	
   

  	
  (c)

  	
   

  	
  10.02

  
	
   

  	
  (d)

  	
   

  	
  7.06

  
	
  314

  	
  (a)

  	
   

  	
  4.02; 4.04;
  10.02

  
	
   

  	
  (b)

  	
   

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
   

  	
  10.04; 10.05

  
	
   

  	
  (c)(2)

  	
   

  	
  10.04; 10.05

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  
	
   

  	
  (d)

  	
   

  	
  N.A.

  
	
   

  	
  (e)

  	
   

  	
  10.05

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  
	
  315

  	
  (a)

  	
   

  	
  7.01; 7.02

  
	
   

  	
  (b)

  	
   

  	
  7.05; 10.02

  
	
   

  	
  (c)

  	
   

  	
  7.01

  
	
   

  	
  (d)

  	
   

  	
  6.05; 7.01;
  7.02

  
	
   

  	
  (e)

  	
   

  	
  6.11

  
	
  316

  	
  (a) (last
  sentence)

  	
   

  	
  10.06

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  
	
   

  	
  (a)(2)

  	
   

  	
  8.02

  
	
   

  	
  (b)

  	
   

  	
  6.07

  
	
   

  	
  (c)

  	
   

  	
  8.04

  
	
  317

  	
  (a)(1)

  	
   

  	
  6.08

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  
	
   

  	
  (b)

  	
   

  	
  7.12

  
	
  318

  	
  (a)

  	
   

  	
  10.01

  
					

 

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 1

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
  Definitions.

  	
   

  
	
  Section 1.02.

  	
  Other Definitions.

  	
   

  
	
  Section
  1.03.

  	
  Incorporation by Reference of Trust
  Indenture Act.

  	
   

  
	
  Section 1.04.

  	
  Rules of Construction.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
   

  	
   

  	
   

  
	
  THE
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.01.

  	
  Dating; Incorporation of Form in Indenture.

  	
   

  
	
  Section
  2.02.

  	
  Execution and Authentication; Amount.

  	
   

  
	
  Section 2.03.

  	
  Registrar and Paying Agent.

  	
   

  
	
  Section 2.04.

  	
  Paying Agent To Hold Assets in Trust.

  	
   

  
	
  Section 2.05.

  	
  Securityholder Lists.

  	
   

  
	
  Section 2.06.

  	
  Transfer and Exchange.

  	
   

  
	
  Section 2.07.

  	
  Replacement Securities.

  	
   

  
	
  Section 2.08.

  	
  Outstanding Securities.

  	
   

  
	
  Section 2.09.

  	
  Temporary Securities.

  	
   

  
	
  Section 2.10.

  	
  Cancellation.

  	
   

  
	
  Section 2.11.

  	
  Defaulted Interest.

  	
   

  
	
  Section 2.12.

  	
  Deposit of Moneys.

  	
   

  
	
  Section 2.13.

  	
  CUSIP Number.

  	
   

  
	
  Section
  2.14.

  	
  Book-Entry Provisions for Global
  Securities.

  	
   

  
	
  Section 2.15.

  	
  Special Transfer Provisions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  	
   

  
	
   

  	
   

  	
   

  
	
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
  Notices to Trustee.

  	
   

  
	
  Section
  3.02.

  	
  Selection by Trustee of Securities 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.

  	
  Securities Redeemed in Part.

  	
   

  
	
  Section 3.07.

  	
  Optional Redemption.

  	
   

  

 

i

 

	
  ARTICLE
  4

  	
   

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
  Payment of Securities.

  	
   

  
	
  Section 4.02.

  	
  SEC Reports.

  	
   

  
	
  Section 4.03.

  	
  Waiver of Stay, Extension or Usury Laws.

  	
   

  
	
  Section 4.04.

  	
  Compliance Certificate.

  	
   

  
	
  Section 4.05.

  	
  Taxes.

  	
   

  
	
  Section
  4.06.

  	
  Limitation on Incurrence of Additional
  Indebtedness.

  	
   

  
	
  Section
  4.07.

  	
  Limitation on Preferred Stock of Restricted
  Subsidiaries.

  	
   

  
	
  Section 4.08.

  	
  Limitation on Restricted Payments.

  	
   

  
	
  Section 4.09.

  	
  Limitation on Certain Asset Sales.

  	
   

  
	
  Section
  4.10.

  	
  Limitation on Transactions with Affiliates.

  	
   

  
	
  Section
  4.11.

  	
  Limitation on Other Senior Subordinated
  Debt.

  	
   

  
	
  Section 4.12.

  	
  Payments for Consent.

  	
   

  
	
  Section 4.13.

  	
  Corporate Existence.

  	
   

  
	
  Section 4.14.

  	
  Change of Control.

  	
   

  
	
  Section 4.15.

  	
  Maintenance of Office or Agency.

  	
   

  
	
  Section 4.16.

  	
  Limitation on Liens.

  	
   

  
	
  Section
  4.17.

  	
  Limitation on Emerging Market Subsidiaries.

  	
   

  
	
  Section
  4.18.

  	
  Limitation on Restricted Subsidiary
  Dividends; Restriction on Sale and Issuance of Subsidiary Stock.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  	
   

  
	
   

  	
   

  	
   

  
	
  SUCCESSOR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.01.

  	
  Limitation on Consolidation, Merger and
  Sale of Assets.

  	
   

  
	
  Section 5.02.

  	
  Successor Person Substituted.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  	
   

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
  Events of Default.

  	
   

  
	
  Section 6.02.

  	
  Acceleration.

  	
   

  
	
  Section 6.03.

  	
  Other Remedies.

  	
   

  
	
  Section
  6.04.

  	
  Waiver of Past Defaults and Events of
  Default.

  	
   

  
	
  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.

  	
   

  
	
  Section 6.09.

  	
  Trustee May File Proofs of Claim.

  	
   

  
	
  Section 6.10.

  	
  Priorities.

  	
   

  
	
  Section 6.11.

  	
  Undertaking for Costs.

  	
   

  

 

ii

 

	
  ARTICLE
  7

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
  Duties of Trustee.

  	
   

  
	
  Section 7.02.

  	
  Rights of Trustee.

  	
   

  
	
  Section 7.03.

  	
  Individual Rights of Trustee.

  	
   

  
	
  Section 7.04.

  	
  Trustee’s Disclaimer.

  	
   

  
	
  Section 7.05.

  	
  Notice of Defaults.

  	
   

  
	
  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 Consolidation, Merger
  or Conversion.

  	
   

  
	
  Section 7.10.

  	
  Eligibility; Disqualification.

  	
   

  
	
  Section
  7.11.

  	
  Preferential Collection of Claims Against Company.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  	
   

  
	
   

  	
   

  	
   

  
	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
  Without Consent of Holders.

  	
   

  
	
  Section 8.02.

  	
  With Consent of Holders.

  	
   

  
	
  Section 8.03.

  	
  Compliance with Trust Indenture Act.

  	
   

  
	
  Section 8.04.

  	
  Revocation and Effect of Consents.

  	
   

  
	
  Section
  8.05.

  	
  Notation on or Exchange of Securities.

  	
   

  
	
  Section 8.06.

  	
  Trustee To Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  	
   

  
	
   

  	
   

  	
   

  
	
  DISCHARGE OF INDENTURE; DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
  Discharge of Indenture.

  	
   

  
	
  Section 9.02.

  	
  Legal Defeasance.

  	
   

  
	
  Section 9.03.

  	
  Covenant Defeasance.

  	
   

  
	
  Section
  9.04.

  	
  Conditions to Defeasance or Covenant
  Defeasance.

  	
   

  
	
  Section
  9.05.

  	
  Deposited Money and U.S. Government
  Obligations To Be Held in Trust; Other Miscellaneous Provisions.

  	
   

  
	
  Section 9.06.

  	
  Reinstatement.

  	
   

  
	
  Section 9.07.

  	
  Moneys Held by Paying Agent.

  	
   

  
	
  Section 9.08.

  	
  Moneys Held by Trustee.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBORDINATION OF SECURITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  10.01.

  	
  Securities Subordinate to Senior Debt.

  	
   

  
	
  Section
  10.02.

  	
  Payment Over of Proceeds upon Dissolution,
  etc.

  	
   

  
	
  Section
  10.03.

  	
  Suspension of Payment When Senior Debt in
  Default.

  	
   

  

 

iii

 

	
  Section 10.04.

  	
  Trustee’s Relation to Senior Debt.

  	
   

  
	
  Section
  10.05.

  	
  Subrogation to Rights of Holders of Senior
  Debt.

  	
   

  
	
  Section
  10.06.

  	
  Provisions Solely To Define Relative
  Rights.

  	
   

  
	
  Section
  10.07.

  	
  Trustee To Effectuate Subordination.

  	
   

  
	
  Section
  10.08.

  	
  No Waiver of Subordination Provisions.

  	
   

  
	
  Section 10.09.

  	
  Notice to Trustee.

  	
   

  
	
  Section
  10.10.

  	
  Reliance on Judicial Order or Certificate
  of Liquidating Agent.

  	
   

  
	
  Section
  10.11.

  	
  Rights of Trustee as a Holder of Senior
  Debt; Preservation of Trustee’s Rights.

  	
   

  
	
  Section 10.12.

  	
  Article Applicable to Paying Agents.

  	
   

  
	
  Section 10.13.

  	
  No Suspension of Remedies.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11

  	
   

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
  Trust Indenture Act 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 and
  Opinion.

  	
   

  
	
  Section
  11.06.

  	
  When Treasury Securities Disregarded.

  	
   

  
	
  Section 11.07.

  	
  Rules by Trustee and Agents.

  	
   

  
	
  Section 11.08.

  	
  Business Days; Legal Holidays.

  	
   

  
	
  Section 11.09.

  	
  Governing Law.

  	
   

  
	
  Section
  11.10.

  	
  No Adverse Interpretation of Other
  Agreements.

  	
   

  
	
  Section 11.11.

  	
  No Recourse Against Others.

  	
   

  
	
  Section 11.12.

  	
  Successors.

  	
   

  
	
  Section 11.13.

  	
  Multiple Counterparts.

  	
   

  
	
  Section 11.14.

  	
  Table of Contents, Headings, etc.

  	
   

  
	
  Section 11.15.

  	
  Separability.

  	
   

  
	
  Section 11.16.

  	
  Judgment Currency.

  	
   

  
	
  Section 11.17.

  	
  Waiver of Jury Trial.

  	
   

  
	
  Section 11.18.

  	
  Force Majeure.

  	
   

  

 

 

EXHIBITS

 

	
  Exhibit A

  	
  -

  	
  Form
  of Security

  	
   

  
	
  Exhibit B

  	
  -

  	
  Form of Legend for Global Securities

  	
   

  
	
  Exhibit C

  	
  -

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

  	
   

  
	
  Exhibit D

  	
  -

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

  	
   

  

 

iv

 

INDENTURE,
dated as of June 9, 2004, between SAMSONITE CORPORATION, a Delaware
corporation, as issuer (the “Company”), and THE BANK OF NEW YORK, a New York
banking corporation, as Trustee (the “Trustee”).

 

Each party
agrees as follows for the benefit of the other parties and for the equal and
ratable benefit of the Holders of the Company’s 8-7/8% Senior Subordinated
Notes due 2011 (the “Securities”).

 

ARTICLE 1

 

DEFINITIONS
AND INCORPORATION BY REFERENCE

 

Section 1.01.                             Definitions.

 

“Acquired
Indebtedness” means Indebtedness of a Person (including an Unrestricted
Subsidiary) existing at the time such Person becomes a Restricted Subsidiary or
assumed in connection with the acquisition of assets from such Person.

 

“Additional
Interest” is defined as set forth in the Registration Rights Agreement.

 

“Additional
Securities” means Securities issued after the date of this Indenture in accordance
with Section 2.02.

 

“Affiliate”
means, with respect to any Person, a Person who, directly or indirectly,
through one or more intermediaries controls, or is controlled by, or is under
common control with, such other 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,
however, that the ownership of at least 10% of the voting power of the
Common Stock of a Person, either directly or indirectly, shall be deemed
control.

 

“Agent” means
any Registrar, Paying Agent, co-registrar or agent for service of notices and
demands.

 

“Asset Sale”
means the sale, transfer or other disposition (other than to the Company or any
of its Restricted Subsidiaries (other than any Emerging Market Subsidiary)) in
any single transaction or series of related transactions involving assets with
a fair market value in excess of $1,000,000 of (a) any Capital Stock of or
other equity interest in any Restricted Subsidiary of the Company other than in
a transaction where the Company or such Restricted Subsidiary receives therefor
one or more properties with a fair market value equal to the fair market value
of the Capital Stock issued, transferred or disposed of by the Company or the Restricted
Subsidiary (with such fair market values being determined by the Board of
Directors of the Company), (b) all or substantially all of the assets of
the Company or of any Restricted Subsidiary thereof, (c) real property or
(d) all or substantially all of the assets of any division, line of
business or comparable business segment of the Company or of any Restricted Subsidiary
thereof; provided that Asset Sales shall not include (x) sales,
leases, conveyances, transfer or other dispositions to the Company or to a
Restricted Subsidiary to any other Person if, after giving effect to such sale,
lease, conveyance, transfer or other disposition, such other Person becomes a Restricted
Subsidiary (other than any Emerging Market Subsidiary), (y) the

 

 

sale of all or substantially
all of the assets of the Company or a Restricted Subsidiary in a transaction
complying with Section 5.01, in which case only the assets not so sold shall be
deemed an Asset Sale, or (z) any sale, issuance or other disposition of
Capital Stock or assets of any Joint Venture Subsidiary in compliance with Section
4.18.

 

“Asset Sale
Proceeds” means, with respect to any Asset Sale, (i) cash received by the
Company or any Restricted Subsidiary from such Asset Sale (including cash
received as consideration for the assumption of liabilities incurred in
connection with or in anticipation of such Asset Sale), after
(a) provision for all income or other taxes, estimated in good faith by
the Company, measured by or resulting from such Asset Sale, (b) payment of
all brokerage commissions, underwriting, accounting, legal and other fees and
expenses related to such Asset Sale, (c) provision for minority interest
holders in any Restricted Subsidiary as a result of such Asset Sale and
(d) deduction of appropriate amounts to be provided by the Company or a
Restricted Subsidiary as a reserve, in accordance with GAAP, against any liabilities
associated with the assets sold or disposed of in such Asset Sale and retained
by the Company or a Restricted Subsidiary after such Asset Sale, including,
without limitation, pension and other post-employment benefit liabilities and
liabilities related to environmental matters or against any indemnification
obligations associated with the assets sold or disposed of in such Asset Sale,
and (ii) promissory notes and other non-cash consideration received by the
Company or any Restricted Subsidiary from such Asset Sale or other disposition
upon the liquidation or conversion of such notes or non-cash consideration into
cash.

 

“Available
Asset Sale Proceeds” means, with respect to any Asset Sale, the aggregate Asset
Sale Proceeds from such Asset Sale that have not been applied in accordance
with clause (iii)(a) or (b) and that have not yet been the subject of
an Excess Proceeds Offer in accordance with clause (iii)(c) of Section 4.09(a).

 

“Board of
Directors” means the board of directors of the Company or any authorized committee
thereof (a “Board Committee”); provided that the term “Board of
Directors” as used in the definition of “Change of Control” shall not include
any Board Committee.

 

“Board
Resolution” means a copy of a resolution certified pursuant to an Officers’
Certificate to have been duly adopted by the Board of Directors of the Company
to be in full force and effect, and delivered to the Trustee.

 

“Borrowing
Base Amount” means, as of any date, an amount equal to the greater of (x) the
sum of:

 

(1)           85% of the aggregate
book value of all accounts receivable (defined as trade receivable, notes and
other receivables as reflected on the balance sheet of the Company) of the
Company and its Restricted Subsidiaries as of the end of the most recent fiscal
quarter preceding such date; plus

 

(2)           60% of the aggregate
book value of all inventory owned by the Company and its Restricted
Subsidiaries as of the end of the most recent fiscal quarter preceding such
date, less

 

(3)           the aggregate amount
of Liens permitted by clause (y) of the definition of “Permitted Liens”,

 

2

 

and (y) the
Borrowing Base Amount calculated in accordance with clause (x) above as of
January 31, 2004, and in each case, calculated on a consolidated
basis and in accordance with GAAP.

 

“Capital
Stock” means (i) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however designated)
of capital stock, including each class of common stock and preferred stock of
such Person and warrants or options to purchase any of the foregoing and
(ii) with respect to any Person that is not a corporation, any and all partnership
or other equity interests of such Person.

 

“Capitalized
Lease Obligation” means, as to any Person, the obligation of such Person to pay
rent or other amounts under a lease to which such Person is a party that is
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 (i) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or any member
nation of the European Union or issued by any agency thereof and backed by the
full faith and credit of the United States or any member nation of the European
Union, in each case maturing within one year from the date of acquisition
thereof; (ii) 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 S&P or Moody’s;
(iii) 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; (iv) certificates of
deposit or bankers’ acceptances maturing within one year from the date of acquisition
thereof issued by any commercial 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
capital and surplus of not less than $250,000,000; (v) repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clause (i) above entered into with any bank
meeting the qualifications specified in clause (iv) above; and
(vi) investments in money market funds which invest substantially all of
their assets in securities of the types described in clauses (i) through
(v) above.

 

“Change of
Control” means, with respect to the Company, the occurrence of any of the
following:  (i) any Person (including
a Person’s Affiliates), other than a Permitted Holder, becomes the beneficial
owner (as defined under Rule 13d-3 or any successor rule or regulation
promulgated under the Exchange Act) of 50% or more of the total voting power of
the Company’s Common Stock unless, as a result of such transaction, the
ultimate direct or indirect ownership of the Company is substantially the same
immediately after such transaction as it was immediately prior to such transaction,
(ii) there shall be consummated any consolidation or merger of the Company
in which the Company is not the continuing or surviving corporation or pursuant
to which the Common Stock of the Company would be converted into cash,
securities or other property, other than a merger or consolidation of the
Company in which the holders of the Common Stock of the Company outstanding
immediately prior to the consolidation or merger hold, directly or indirectly,
at least a majority of the voting power of the Common Stock of the surviving
corporation immediately after such consolidation or merger or (iii) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors of the Company (together with any new
directors whose election by such Board of Directors or whose nomination for
election by the shareholders of the Company has been approved by a majority of
the directors then still in office who either were directors at

 

3

 

the beginning of such period or
whose election or recommendation for election was previously so approved) cease
to constitute a majority of the Board of the Directors of the Company.

 

“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”
means the party named as such in the first paragraph of this Indenture until a
successor replaces such party pursuant to Article 5 of this Indenture and
thereafter means the successor obligor on the Securities.

 

“Company
Request” means any written request signed in the name of the Company by the
Chief Executive Officer, the President, any Vice President, the Chief Financial
Officer or the Treasurer and attested to by the Secretary or any Assistant Secretary
of the Company.

 

“Consolidated
EBITDA” means, for any Person and its Restricted Subsidiaries, for any period,
an amount equal to the sum of Consolidated Net Income for such period, plus, to
the extent deducted from the revenues of such Person and its Restricted
Subsidiaries in determining Consolidated Net Income, (i) the provision for
taxes for such period based on income or profits and any provision for taxes
utilized in computing a loss in Consolidated Net Income above, plus
(ii) Consolidated Interest Expense (including, for this purpose, dividends
on the Convertible Preferred Stock and any Redeemable Dividends in each case
only to the extent that such dividends were deducted in determining
Consolidated Net Income), plus (iii) Consolidated Non-Cash Charges, plus
(iv) without duplication, for any four quarter period that includes one or
more fiscal quarters of fiscal year 2004 or fiscal year 2005, cash restructuring
charges to the extent actually incurred during each such applicable quarter; provided
that with respect to fiscal year 2005, such cash restructuring charge shall not
exceed $8,300,000 in an aggregate amount, and minus (vi) without
duplication, the amount of all cash payments made by such Person or any of its
Restricted Subsidiaries during such period to the extent such payments relate
to Consolidated Non-Cash Charges that were added back in determining
Consolidated EBITDA for such period or any prior period, all as determined on a
consolidated basis for such Person and its Restricted Subsidiaries in
accordance with GAAP.

 

“Consolidated
Fixed Charge Coverage Ratio” on any date of determination (the “Transaction
Date”) means, with respect to any Person, the ratio of (i) the aggregate
amount of Consolidated EBITDA of such Person for the Reference Period to
(ii) the aggregate amount of Consolidated Fixed Charges of such Person
during the Reference Period; provided, that for purposes of such
computation, in calculating Consolidated EBITDA and Consolidated Fixed Charges,
(a) the transaction giving rise to the need to calculate the Consolidated
Fixed Charge Coverage Ratio will be assumed to have occurred (on a pro forma
basis) on the first day of the Reference Period; (b) the incurrence of any
Indebtedness (other than Indebtedness incurred under any revolving credit or
similar facility to the extent that the proceeds were used to finance working
capital requirements in the ordinary course of business) or the issuance of any
Disqualified Capital Stock or Preferred Stock during the Reference Period or
subsequent thereto and on or prior to the Transaction Date (and the application
of the proceeds therefrom (other than a repayment of Indebtedness outstanding
under a revolving credit or similar facility to the extent that the proceeds
were used to finance working capital requirements in the ordinary course of business)
to the extent used to retire Indebtedness or Preferred Stock) will be assumed
to have occurred (on a pro forma basis) on the first day of such Reference
Period; (c) Consolidated Interest Expense attributable to any Indebtedness
(whether existing or being incurred) bearing a floating interest rate shall be
computed as if the rate in effect on the Transaction Date had been 

 

4

 

the applicable rate for the
entire period, unless such Person or any of its Subsidiaries is a party to an
Interest Rate Agreement (which shall remain in effect for the 12-month period
after the Transaction Date) that has the effect of fixing the interest rate on
the date of computation, in which case such rate (whether higher or lower)
shall be used; (d) the repayment of any Indebtedness (other than under a
revolving credit or similar facility to the extent that the proceeds were used
to finance working capital requirements in the ordinary course of business), Disqualified
Capital Stock or Preferred Stock during the Reference Period or subsequent
thereto and on or prior to the Transaction Date with the proceeds of any sale
or other disposition of assets or properties referred to in clause
(f) below will be assumed to have occurred (on a pro forma basis) on the
first day of the Reference Period; (e) the acquisition during the
Reference Period or subsequent thereto and on or prior to the Transaction Date
of any other Person which, as a result of such acquisition, becomes a
Subsidiary, will be assumed to have occurred (on a pro forma basis) on the
first day of the Reference Period; and (f) any sale or other disposition
of assets or properties constituting an existing business (whether existing as
a separate entity, subsidiary, division, unit or otherwise) outside the
ordinary course of business occurring during the Reference Period or subsequent
thereto and on or prior to the Transaction Date will be assumed to have
occurred (on a pro forma basis) on the first day of the Reference Period.

 

“Consolidated
Fixed Charges” of any Person for any period means (without duplication) the sum
of (i) Consolidated Interest Expense of such Person for such period
(excluding amortization or write-off of deferred financing fees and expenses)
and (ii) without duplication, Redeemable Dividends of such Person and its
Restricted Subsidiaries (whether in cash or otherwise (except dividends payable
solely in shares of Qualified Capital Stock)) with respect to Disqualified
Capital Stock and Preferred Stock accrued during such period in accordance with
GAAP (but in the case of such Preferred Stock, only to the extent that the
aggregate amount of dividends paid or accrued from and after the Issue Date exceeds
the aggregate net cash proceeds to such Person from the issuance and sale of
such Preferred Stock), in each case excluding items eliminated in consolidation
of such Person and its Restricted Subsidiaries; provided, that dividends
accrued or paid on the Convertible Preferred Stock shall not be included in the
calculation of Consolidated Fixed Charges.

 

“Consolidated
Interest Expense” means, with respect to any Person, for any period, the
aggregate amount of interest which, in conformity with GAAP, would be set forth
opposite the caption “interest expense” or any like caption on an income statement
for such Person and its Restricted Subsidiaries on a consolidated basis,
including, but not limited to, Redeemable Dividends, whether paid or accrued,
on Restricted Subsidiary Preferred Stock, imputed interest included in Capitalized
Lease Obligations, all commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers’ acceptance financing, the net
costs associated with hedging obligations, amortization of other financing fees
and expenses, the interest portion of any deferred payment obligation,
amortization of discount or premium, if any, and all other non-cash interest
expense (other than interest amortized to cost of sales) plus, without
duplication, all net capitalized interest for such period and all interest
incurred or paid under any guarantee of Indebtedness (including a guarantee of
principal, interest or any combination thereof) of any Person, plus the amount
of all dividends or distributions paid on Disqualified Capital Stock (other
than dividends paid or payable in shares of Capital Stock of the Company),
minus interest income for such period.

 

“Consolidated
Net Income” means, with respect to any Person, for any period, the aggregate of
the net income (or loss) of such Person and its Restricted Subsidiaries for
such period, on a consolidated basis, determined in accordance with GAAP; provided,
however, that (a) the net income of any Person including of any
Emerging Market Subsidiary or Unrestricted Subsidiary (each, an “Other Person”)
in which the Person in question or any of its Restricted Subsidiaries has less
than a

 

5

 

100% interest (which interest
does not cause the net income of such Other Person to be consolidated into the
net income of the Person in question in accordance with GAAP) shall be included
only to the extent of the amount of dividends or distributions paid to the Person
in question or to any of its Restricted Subsidiaries, (b) the net income
of any Restricted Subsidiary of the Person in question that is subject to any
restriction or limitation on the payment of dividends or the making of other
distributions (other than pursuant to the Securities) shall be excluded to the
extent of such restriction or limitation, (c) any net gain or net loss
resulting from an Asset Sale by the Person in question or any of its Restricted
Subsidiaries other than in the ordinary course of business shall be excluded,
(d) extraordinary, unusual or non-recurring gains and losses shall be
excluded, (e) gains and losses associated with discontinued and terminated
operations shall be excluded, (f) any Consolidated Non-Cash Charges constituting
impairment charges resulting from the application of Statements of Financial
Accounting Standards No. 142 and No. 144 and the amortization of intangibles
arising pursuant to Statement of Financial Accounting Standards No. 141 shall
be excluded and (g) Consolidated Non-Cash Charges constituting compensation
expense determined in accordance with GAAP shall be excluded.

 

“Consolidated
Non-Cash Charges” means, with respect to any Person for any period, the aggregate
depreciation, amortization and other non-cash items (which do not reflect an
accrual of a cash expense which may be incurred in the future) of such Person
and its Restricted Subsidiaries reducing Consolidated Net Income of such Person
and its Restricted Subsidiaries less any such non-cash items increasing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Tangible Assets” means, at any date, with respect to any Person, the
consolidated total assets of such Person and its Restricted Subsidiaries
determined in accordance with GAAP (calculated after giving pro forma effect to
any acquisition of assets on such date), less all goodwill, trade names,
trademarks, patents, unamortized debt discount, organization expense and other
similar intangibles properly classified as intangibles in accordance with GAAP.

 

“Convertible Preferred Stock” means the 2003 Convertible
Preferred Stock, par value $0.01 per share, of the Company.

 

“Corporate
Trust Office” means the office of the Trustee at which at any particular time
its corporate trust business shall be principally administered, which office at
the date of execution of this Indenture is specified in Section 11.02, or
such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Holders and the Company).

 

“Credit
Agreement” means (i) one or more credit agreements, loan agreements or
similar agreements providing for working capital advances, term loans, letter
of credit facilities or similar advances, loans, or facilities to the Company,
any Subsidiary, domestic or foreign, or any or all of such Persons, including
the Credit Agreement, dated as of July 31, 2003, among the Company and
Samsonite Europe N.V., as borrowers, General Electric Capital Corporation and
KBC Bank N.V., and certain other lenders party thereto from time to time, as
the same may be amended, modified, restated or supplemented from time to time
and (ii) any one or more agreements governing advances, loans or
facilities provided to refund, refinance, replace or renew (including
subsequent or successive refunding, refinancing, replacements and renewals)
Indebtedness under the agreement or agreements referred to in the foregoing
clause (i), as the same may be amended, modified, restated or supplemented from
time to time.

 

6

 

“Currency
Agreement” means any foreign exchange contract, currency swap agreement or
other similar agreement designed to address fluctuations in currency values.

 

“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, with respect to the Securities issued in the form of one or more Global
Securities, The Depository Trust Company or another Person designated as
Depository by the Company, which Person must be a clearing agency registered
under the Exchange Act.

 

“Designated
Senior Debt” means (i) Indebtedness under the Original Credit Agreement
(and any guarantees thereof), and (ii) any other Indebtedness constituting
Senior Debt which, at the time of determination, has an aggregate principal
amount of at least $25,000,000 (or accreted value of at least such amount in
the case of Indebtedness issued at a discount) and is specifically designated
as “Designated Senior Debt” by the Company and, so long as the Original Credit
Agreement is in effect, by the Representative under the Original Credit
Agreement, and certified as such in an Officers’ Certificate delivered to the
Trustee.

 

“Disqualified
Capital Stock” means any Capital Stock which, by its terms (or by the terms of
any security into which it is convertible or for which it is exchangeable), or
upon the happening of any event, matures (excluding any maturity as the result
of an optional redemption by the issuer thereof) or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
sole option of the holder thereof, in whole or in part, on or prior to the
final maturity date of the Securities. 
Without limitation of the foregoing, Disqualified Capital Stock shall be
deemed to include (i) any Preferred Stock of a Restricted Subsidiary of
the Company and (ii) any Preferred Stock of the Company, with respect to
either of which, under the terms of such Preferred Stock, by agreement or
otherwise, such Restricted Subsidiary or the Company is obligated to pay
current dividends or distributions in cash during the period prior to the
maturity date of the Securities; provided, however, that
Preferred Stock of the Company or any Restricted Subsidiary thereof that is
issued with the benefit of provisions requiring a change of control offer to be
made for such Preferred Stock in the event of a change of control of the
Company or such Restricted Subsidiary, which provisions have substantially the
same effect as the provisions of Section 4.14 shall not be deemed to be
Disqualified Capital Stock solely by virtue of such provisions; and provided,
further, that the Convertible Preferred Stock shall not be considered
Disqualified Capital Stock.

 

“Emerging
Market Subsidiary” means (i) any Initial Emerging Market Subsidiary,
(ii) any majority-owned Subsidiary of the Company the principal operations
of which are not located in the United States, Canada or Western Europe that,
at the time of determination, shall be an Emerging Market Subsidiary (as
designated by the Board of Directors, as provided below) and (iii) any
majority-owned Subsidiary of an Emerging Market Subsidiary.  The Board of Directors may designate (1) any
Unrestricted Subsidiary of the Company to be an Emerging Market Subsidiary, and
(2) any Restricted Subsidiary of the Company (including any newly acquired or
newly formed Subsidiary at or prior to the time it is so formed or acquired) to
be an Emerging Market Subsidiary if it meets the geographic test set forth
above and (a) no Default or Event of Default is existing or will occur as
a consequence thereof, (b) with respect to previously existing Restricted
Subsidiaries, immediately after giving effect to such designation, on a pro
forma basis, the Company could incur at least $1.00 of additional Indebtedness
(other than Permitted Indebtedness) pursuant to Section 4.06 and (c) such
Restricted Subsidiary does not own any Capital Stock of, or own or hold any
Lien on any property of, the Company or any Restricted Subsidiary that is not a
Subsidiary of the Restricted Subsidiary to be so designated.  At the time that a previously existing
Restricted Subsidiary of the Company is designated

 

7

 

an Emerging Market Subsidiary,
the Company shall be deemed to make an “Investment” in such Emerging Market Subsidiary
in an amount equal to its Pro Rata Interest in the fair market value of the net
assets of such Restricted Subsidiary.  A
Restricted Subsidiary of the Company shall not be considered to be a
“previously existing Restricted Subsidiary” for purposes of this definition if
such Restricted Subsidiary is designated to be an Emerging Market Subsidiary at
or prior to the time of the formation of such Restricted Subsidiary or at or
prior to the time such Restricted Subsidiary is acquired by the Company.  The Board of Directors may designate any
Emerging Market Subsidiary to be a Restricted Subsidiary, provided that
(i) no Default or Event of Default is existing or will occur as a
consequence thereof and (ii) either (x) immediately after giving effect to
such designation, on a pro forma basis, the Company could incur at least $1.00
of additional Indebtedness (other than Permitted Indebtedness) pursuant to
Section 4.06 or (y) the Consolidated Fixed Charge Coverage Ratio of the Company
immediately after giving effect to such designation, on a pro forma basis,
exceeds the Consolidated Fixed Charge Coverage Ratio of the Company immediately
prior (and without giving effect) to such designation.  Each such designation shall be evidenced by
the filing with the Trustee of a certified copy of the Board Resolution giving
effect to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.

 

“Equity
Offering” means a sale by the Company of shares of its Qualified Capital Stock.

 

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

 

“Exchange
Offer” means the Company’s offer to exchange the Exchange Securities for the
Initial Securities pursuant to the terms of the Registration Rights Agreement.

 

“Exchange
Securities” means (i) the 8-7/8% Senior Subordinated Notes due 2011, as
amended or supplemented from time to time in accordance with the terms hereof,
to be issued from time to time pursuant to the Indenture in connection with the
Exchange Offer and (ii) Additional Securities, if any, issued
(x) without the Private Placement Legend or (y) pursuant to a registration
rights agreement substantially similar to the Registration Rights Agreement.

 

“Foreign
Credit Agreement” means one or more Credit Agreements among one or more Foreign
Restricted Subsidiaries and the lenders party thereto.

 

“Foreign
Restricted Subsidiary” means a Restricted Subsidiary of the Company that is
incorporated or otherwise organized in a jurisdiction other than the United
States, any state thereof or the District of Columbia.

 

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

 

“Holder” or
“Securityholder” means the Person in whose name a Security is registered on the
Registrar’s books.

 

“Incur” means,
with respect to any Indebtedness or other obligation of any Person, to create,
issue, incur (by conversion, exchange or otherwise), assume, guarantee or
otherwise become liable in respect of such Indebtedness or other obligation or
the recording, as required pursuant to GAAP or otherwise, of any such
Indebtedness or other obligation on the balance sheet of such Person (and “incurrence,”
“incurred,” “incurrable” and “incurring” shall have meanings correlative to the
foregoing); provided that a change in GAAP that results in an obligation
of such Person that exists at

 

8

 

such time becoming Indebtedness
shall not be deemed an incurrence of such Indebtedness; provided, further,
that the amortization of original issue discount on Indebtedness issued with
original issue discount or the accumulation of distributions on Disqualified
Capital Stock shall not be deemed an incurrence of Indebtedness.

 

“Indebtedness”
means (without duplication), with respect to any Person, any indebtedness at
any time outstanding, secured or unsecured, contingent or otherwise, which is
for borrowed money (whether or not the recourse of the lender is to the whole
of the assets of such Person or only to a portion thereof) or evidenced by
bonds, notes, debentures or similar instruments or representing the balance
deferred and unpaid of the purchase price of any property (excluding, without
limitation, any balances that constitute accounts payable or trade payables and
other accrued liabilities or accrued expenses arising in the ordinary course of
business) if and to the extent any of the foregoing indebtedness would appear
as a liability upon a balance sheet of such Person prepared in accordance with
GAAP, and shall also include, to the extent not otherwise included,
(i) any Capitalized Lease Obligations, (ii) obligations secured by a
Lien to which the property or assets owned or held by such Person are subject,
whether or not the obligation or obligations secured thereby shall have been
assumed (provided, however, that if such obligation or
obligations shall not have been assumed, the amount of such Indebtedness shall
be deemed to be the lesser of the principal amount of the obligation or the
fair market value of the pledged property or assets), other than a Permitted
Lien securing an obligation that is not Indebtedness, (iii) guarantees of
items of other Persons which would be included within this definition for such
other Persons (whether or not such items would appear upon the balance sheet of
the guarantor), (iv) all obligations for the reimbursement of any obligor
on any letter of credit, banker’s acceptance or similar credit transaction,
(v) Disqualified Capital Stock of the Company or any Restricted Subsidiary
thereof and (vi) obligations of any such Person under any Interest Rate
Agreement or Currency Agreement applicable to any of the foregoing (if and to
the extent such Interest Rate Agreement or Currency Agreement obligations would
appear as a liability upon a balance sheet of such Person prepared in
accordance with GAAP).  The amount of
Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above and, with respect to
contingent obligations, the maximum liability upon the occurrence of the contingency
giving rise to the obligation, provided that (i) the amount
outstanding at any time of any Indebtedness issued with original issue discount
is the principal amount of such Indebtedness less the remaining unamortized portion
of the original issue discount of such Indebtedness at such time as determined
in conformity with GAAP and (ii) Indebtedness shall not include any liability
for federal, state, local or other taxes. 
Notwithstanding any other provision of the foregoing definition, any
trade payable arising from the purchase of goods or materials or for services
obtained in the ordinary course of business or contingent obligations arising
out of customary indemnification agreements with respect to the sale of assets
or securities shall not be deemed to be “Indebtedness” of the Company or any Restricted
Subsidiaries for purposes of this definition. 
Furthermore, guarantees of (or obligations with respect to letters of
credit supporting) Indebtedness otherwise included in the determination of such
amount shall not also be included.

 

“Indenture”
means this Indenture as amended, restated or supplemented from time to time.

 

“Initial
Emerging Market Subsidiary” means each of (i) Arife S.A.,
(ii) Samsonite Luggage (Ningbo) Co. Ltd., (iii) Samsonite Argentina
S.A., (iv) Samsonite Brasil Ltda., (v) Samsonite India Private
Limited, (vi) Samsonite Korea Limited, (vi) Samsonite Mercosur Limited,
(viii) Samsonite Mauritius Limited, and (ix) Lonberg Express S.A.

 

9

 

“Initial
Securities” means the 8-7/8% Senior Subordinated Notes due 2011, as amended or
supplemented from time to time in accordance with the terms hereof, issued from
time to time under this Indenture, bearing the Private Placement Legend.

 

“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) promulgated under the
Securities Act.

 

“Interest
Payment Date” means the stated maturity of any scheduled installment of
interest on the Securities.

 

“Interest Rate
Agreement” means, for any Person, any interest rate swap agreement, interest
rate cap agreement, interest rate collar agreement or other similar agreement.

 

“Invested
Capital” in an Emerging Market Subsidiary means the sum (without duplication)
of the aggregate net cash proceeds and non-cash consideration (other than
services) received by such Emerging Market Subsidiary from (a) the
issuance of any Qualified Capital Stock of such Emerging Market Subsidiary;
(b) the issuance of Disqualified Capital Stock or Indebtedness securities
of such Emerging Market Subsidiary to (and only so long as such securities are
beneficially owned by) the Company, a Restricted Subsidiary of the Company or
any other Person that beneficially owns 20% or more of the Qualified Capital
Stock of such Emerging Market Subsidiary (a “Significant Partner”); provided,
that proceeds from the issuance of Disqualified Capital Stock and Indebtedness
securities that are beneficially owned by a Significant Partner shall
constitute Invested Capital only to the extent that the ratio of (w) the Invested
Capital under the preceding clause (a) attributable to Capital Stock
beneficially owned by such Significant Partner to (x) the proceeds from the
issuance of Disqualified Capital Stock and Indebtedness of such Emerging Market
Subsidiary beneficially owned by such Significant Partner is not greater than
the ratio of (y) the Invested Capital under the preceding clause
(a) attributable to Capital Stock beneficially owned by the Company and
its Restricted Subsidiaries, taken as a whole, to (z) the proceeds from the issuance
of Disqualified Capital Stock and Indebtedness of such Emerging Market
Subsidiary beneficially owned by the Company and its Restricted Subsidiaries,
taken as a whole; and (c) the issuance of Disqualified Capital Stock or
Indebtedness securities of such Emerging Market Subsidiary convertible into
Qualified Capital Stock of such Emerging Market Subsidiary, in each case upon
such conversion thereof into Qualified Capital Stock of such Emerging Market
Subsidiary and that is not considered Invested Capital pursuant to clause
(b) above.  For purposes of this
definition, the amount attributable to non-cash consideration shall be the fair
value thereof determined in good faith by the Board of Directors of such
Emerging Market Subsidiary.

 

“Investment”
by any Person in any other Person means, directly or indirectly, any advance,
account receivable (other than an account receivable arising in the ordinary
course of business), loan or capital contribution to (by means of transfers of
property to others, payments for property or services for the account or use of
others or otherwise), the purchase of any stocks, bonds, notes, debentures,
partnership or joint venture interests or other securities of, the acquisition,
by purchase or otherwise, of all or substantially all of the business or assets
or stock or other evidence of beneficial ownership of, such other Person or the
making of any investment by such Person in any other Person.  Investments shall exclude extensions of
trade credit on commercially reasonable terms in accordance with normal trade
practices and repurchases or redemptions of the Securities or the Convertible
Preferred Stock by the Company or any other security or evidence of
Indebtedness issued by the Company. 
Notwithstanding the foregoing, the following shall not be considered
Investments by a Person in any other Person: (i) trade receivables and
prepaid expenses, in each case arising in the ordinary course of business; provided,
that such receivables and prepaid expenses would be recorded as assets of such
Person in accordance with GAAP, (ii) Investments received in connection
with the bankruptcy

 

10

 

or reorganization of suppliers
and customers or in good faith bona fide settlement of delinquent ordinary
course of business trade receivables of customers, (iii) endorsements for
collection or deposit in the ordinary course of business by such Person of bank
drafts and similar negotiable instruments of such other Person received as
payment for ordinary course of business trade receivables, (iv) an
Interest Rate Agreement or Currency Agreement with an unaffiliated Person provided
that such agreements comply with the requirements of clause (iv) of the
definition of Permitted Indebtedness, (v) Investments received as
consideration for, or customary indemnities given in connection with, an Asset
Sale in compliance with Section 4.09, and (vi) Investments for which the
sole consideration provided is Qualified Capital Stock.  The Company shall be deemed to make an
“Investment” in an amount equal to its Pro Rata Interest in the fair market
value of the net assets of any previously existing Restricted Subsidiary, at
the time that such Restricted Subsidiary is designated an Unrestricted
Subsidiary or an Emerging Market Subsidiary, as the case may be; and any
property transferred, directly or indirectly (whether by merger or otherwise)
to an Unrestricted Subsidiary or an Emerging Market Subsidiary, as the case may
be, from the Company or a Restricted Subsidiary after the time of such
designation shall be deemed an Investment valued at its fair market value at
the time of such transfer.  A Restricted
Subsidiary of the Company shall not be considered to be a “previously existing
Restricted Subsidiary” for purposes of this definition if such Restricted Subsidiary
is designated to be an Emerging Market Subsidiary or an Unrestricted Subsidiary,
as the case may be, at or prior to the time of the formation of such Restricted
Subsidiary or at or prior to the time such Restricted Subsidiary is acquired by
the Company.

 

“Issue Date”
means June 9, 2004.

 

“Joint Venture
Subsidiary” means a Restricted Subsidiary of the Company in which one or more
Persons who have provided or are providing operating assets or services to such
Restricted Subsidiary beneficially own not less than 50% of the Capital Stock
of such Restricted Subsidiary not owned by the Company or a Restricted
Subsidiary of the Company.

 

“Lien” means
any consensual 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).

 

“Maturity
Date” means June 1, 2011.

 

“Net Proceeds”
means (a) in the case of any sale of Capital Stock by the Company, the
aggregate net proceeds received by the Company, after payment of expenses,
commissions and the like incurred in connection therewith, whether such
proceeds are in cash or in property (valued at the fair market value thereof,
as determined in good faith by the Board of Directors, at the time of receipt)
and (b) in the case of any exchange, exercise, conversion or surrender of
outstanding securities of any kind for or into shares of Qualified Capital
Stock of the Company, the net book value of such outstanding securities on the
date of such exchange, exercise, conversion or surrender (plus any additional
amount required to be paid by the holder to the Company upon such exchange,
exercise, conversion or surrender, less any and all payments made to the
holders, e.g., on account of fractional shares and less all expenses incurred
by the Company in connection therewith).

 

“Non-Payment
Event of Default” means any event (other than a Payment Default) the occurrence
of which entitles one or more Persons to accelerate the maturity of any
Designated Senior Debt.

 

11

 

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

 

“Obligations”
means all obligations for principal, premium, interest (including post-petition
interest and, in the case of the Securities, any additional interest or
liquidated damages from time to time payable pursuant to the Registration
Rights Agreement), penalties, fees, costs, indemnifications, reimbursements,
repurchase, redemption, retirement or defeasance obligations, damages and other
liabilities and obligations payable under the documentation governing, or
otherwise relating to, any Indebtedness.

 

“Offer Period”
shall have the meaning specified in Section 4.09(b).

 

“Officer”
means the Chief Executive Officer, the President, any Vice President, the Chief
Financial Officer, the Treasurer, the Controller or the Secretary of the
Company, or any other officer designated by the Board of Directors, as the case
may be.

 

“Officers’
Certificate” means, with respect to any Person, a certificate signed by the
Chief Executive Officer, the President or any Vice President and the Chief
Financial Officer, the Controller or any Treasurer of such Person that shall
comply with applicable provisions of this Indenture.

 

“Opinion of
Counsel” means a written opinion from legal counsel which counsel is reasonably
acceptable to the Trustee.

 

“Original
Credit Agreement” means the referenced Credit Agreement described in clause (i) of
the definition of Credit Agreement dated on or as in effect on or about the
Issue Date, as the same may be amended, modified, restated or supplemented from
time to time, and any one replacement agreement or facility existing at any
time provided to refund, refinance, replace or renew (including subsequent or
successive refundings, refinancings, replacements and renewals) the Original
Credit Agreement; such replacement agreement or facility to be designated by
the Company and certified in an Officers’ Certificate delivered to the Trustee.

 

“Pari Passu
Debt” means any Indebtedness (secured or unsecured) of the Company that ranks pari passu in right of payment with the
Securities.

 

“Payment
Default” means any default, whether or not any requirement for the giving of notice,
the lapse of time or both, or any other condition to such default becoming an
event of default has occurred, in the payment of principal of (or premium, if
any) or interest on or any other amount payable in connection with Designated
Senior Debt.

 

“Permitted Denver Disposition” means the sale, disposition, lease or
transfer by the Company of the real estate it owns in Denver, Colorado on the
Issue Date.

 

“Permitted
Holders” means each of Ares Management LLC, Bain Capital (Europe) LLC, Ontario
Teachers’ Pension Plan Board and any Affiliate of any of the foregoing.

 

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

 

(i)            Indebtedness under
the Securities issued on the Issue Date under this Indenture;

 

12

 

(ii)           Indebtedness
incurred pursuant to any Credit Agreements (and the guarantees thereof) in an
aggregate principal amount at any time outstanding not to exceed the Borrowing
Base Amount;

 

(iii)          all other
Indebtedness of the Company and its Restricted Subsidiaries outstanding on the
Issue Date, including, without limitation, the Senior Notes;

 

(iv)          (a) Obligations
under Interest Rate Agreements of the Company covering Indebtedness of the
Company or any of its Restricted Subsidiaries; provided, however,
that such Interest Rate Agreements are entered into to protect the Company and
its Restricted Subsidiaries from fluctuations in interest rates on Indebtedness
otherwise permitted to be incurred hereunder and not for speculative purposes
to the extent the notional principal amount of such Interest Rate Agreement
does not exceed the principal amount of the Indebtedness to which such Interest
Rate Agreement relates and (b) Indebtedness under Currency Agreements incurred
by the Company in the ordinary course of business to the extent that such
obligations have been entered into to protect against fluctuations in currency
exchange rates and not for speculative purposes; provided, that in the
case of Currency Agreements which relate to Indebtedness, such Currency
Agreements do not increase the Indebtedness of the Company and the 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;

 

(v)           Indebtedness of a
Restricted Subsidiary of the Company to the Company or to a Restricted Subsidiary
of the Company for so long as such Indebtedness is owned by the Company or a
Restricted Subsidiary of the Company, in each case with no Lien securing such
Indebtedness held by a Person other than the Company or a Restricted Subsidiary
of the Company; provided that if as of any date any Person other than
the Company or a Restricted Subsidiary of the Company owns any such Indebtedness
or holds a Lien securing any such Indebtedness, such date shall be deemed the
incurrence of Indebtedness not constituting Permitted Indebtedness under this
clause (v);

 

(vi)          Indebtedness of the
Company to a Restricted Subsidiary of the Company for so long as such
Indebtedness is owned by a Restricted Subsidiary of the Company, in each case
with no Lien securing such Indebtedness; provided that (a) any
Indebtedness of the Company to any Restricted Subsidiary of the Company is
subordinated, pursuant to a written agreement, to the Company’s Obligations
under this Indenture and the Securities at least to the same extent that the
Securities are subordinated to Senior Debt, and (b) if as of any date any
Person other than a Restricted Subsidiary of the Company owns any such Indebtedness
or any Person holds a Lien securing any such Indebtedness, such date shall be
deemed the incurrence of Indebtedness not constituting Permitted Indebtedness
under this clause (vi);

 

(vii)         Purchase Money
Indebtedness and Capitalized Lease Obligations incurred to acquire property in
the ordinary course of business which Indebtedness and Capitalized Lease
Obligations do not in the aggregate exceed the greater of (x) $25,000,000
and (y) 5% of Consolidated Tangible Assets;

 

(viii)        Acquired
Indebtedness of any Restricted Subsidiaries, provided that such Indebtedness
was not incurred by a Person in connection with, or in anticipation or contemplation
of, such Person becoming a Restricted Subsidiary of the Company and provided,
further, that after giving effect to such incurrence or assumption of
such Acquired Indebtedness the Consolidated Fixed Charge Coverage Ratio of the
Company and its Restricted Subsidiaries,

 

13

 

taken as
whole, and the Restricted Subsidiary making such acquisition independently, are
at least equal to 2:00:1 as calculated in accordance with Section 4.06;

 

(ix)           Refinancing Indebtedness;

 

(x)            Indebtedness solely
in respect of performance bonds, surety agreements, documentary letters of
credit used for payment of goods consistent with past practice, or other guarantees
of performance (in each case other than an obligation for the payment of
borrowed money) incurred in the ordinary course of business;

 

(xi)           additional Indebtedness
of the Company and its Restricted Subsidiaries an aggregate principal amount at
any one time outstanding not to exceed the sum of (A) $50,000,000 and (B)
100% of the Net Proceeds actually received by the Company following the Issue
Date from the issue or sale of Qualified Capital Stock of the Company (other
than to the Company or any of its Subsidiaries) determined in accordance with
clause (a)(iii)(B) of Section 4.08 to the extent that (x) such Net
Proceeds have not been applied pursuant to clause (a)(iii)(B) to make
Restricted Payments or to make other investments, payments or exchanges
permitted pursuant to Section 4.08(b) or to make Permitted Investments (other
than Permitted Investments specified in clauses (i) and (iii) of the
definition thereof) and (y) (1) such Indebtedness is incurred within
180 days after the receipt of such Net Proceeds and (2) is designated as
Indebtedness incurred pursuant to this clause (xi) pursuant to an officers’
certificate on the date of the incurrence thereof, provided, however,
that the aggregate amount of Indebtedness incurred by Restricted Subsidiaries
pursuant to this clause (xi) may not exceed $50,000,000 outstanding at any one
time; and

 

(xii)          Indebtedness
incurred pursuant to any Foreign Credit Agreement in an aggregate principal
amount at any time outstanding not to exceed $35,000,000.

 

“Permitted
Investments” means, for any Person, Investments made on or after the Issue Date
consisting of:

 

(i)            Investments by the
Company, or by a Restricted Subsidiary thereof, in the Company or a Restricted
Subsidiary thereof;

 

(ii)           Cash Equivalents;

 

(iii)          Investments by the
Company, or by a Restricted Subsidiary thereof, in a Person (or in all or
substantially all of the business or assets of a Person) if as a result of such
Investment (a) such Person becomes a Restricted Subsidiary of the Company,
(b) such Person is merged, consolidated or amalgamated with or into, or
transfers or conveys substantially all of its assets to, or is liquidated into,
the Company or a Restricted Subsidiary thereof or (c) such business or
assets are owned by the Company or a Restricted Subsidiary;

 

(iv)          Investments in
Emerging Market Subsidiaries in the aggregate amount after the Issue Date not
to exceed $50,000,000;

 

(v)           reasonable and
customary loans made to employees not to exceed $500,000 to any employee, and
not to exceed $5,000,000 in the aggregate at any one time outstanding;

 

14

 

(vi)          an Investment that
is made by the Company or a Restricted Subsidiary thereof in the form of any
stock, bonds, notes, debentures, partnership or joint venture interests or
other securities that are issued by a third party to the Company or a Restricted
Subsidiary solely as partial consideration for the consummation of an Asset
Sale that is otherwise permitted under Section 4.09;

 

(vii)         accounts receivable
of the Company and its Restricted Subsidiaries generated in the ordinary course
of business;

 

(viii)        Investments deemed
to have been made as a result of the acquisition of a Person that at the time
of such acquisition held instruments constituting Investments that were not
acquired in contemplation of the acquisition of such Person; and

 

(ix)           additional
Investments of the Company and its Restricted Subsidiaries from time to time of
an amount not to exceed $20,000,000.

 

Notwithstanding
the foregoing, amounts available for Investments under clauses (iv) and
(ix) shall be increased by the aggregate amount of Returned Investments
received by the Company on or before the date of such Investment.

 

“Permitted
Liens” means (a) Liens for taxes, assessments or governmental charges or
claims either (i) not delinquent or (ii) contested in good faith by
appropriate proceedings and as to which the Company or any of its Restricted
Subsidiaries shall have set aside on its books such reserves as may be required
pursuant to GAAP; (b) 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 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;
(c) Liens incurred or deposits made in the ordinary course of business 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,
custom bonds, 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); (d) Liens arising by reason of any
judgment, decree or order of any court, but 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,
decree or order shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired; (e) survey
exceptions, 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 of the Company or
any of its Restricted Subsidiaries; (f) any interest or title of a lessor
under any operating lease or any Capitalized Lease Obligation permitted
pursuant to clause (vii) of the definition of “Permitted Indebtedness” or
Liens securing any such Capitalized Lease Obligation; provided that such Liens
do not extend to any property or assets which is not leased property subject to
such Capitalized Lease Obligation; (g) Liens securing Purchase Money
Indebtedness permitted pursuant to clause (vii) of the definition of
Permitted Indebtedness; provided, however, that (a) such
Indebtedness shall not exceed the cost of the property or assets acquired,
together with, in the case where such property or assets include real property
or fixtures, the cost of the construction thereof and improvements thereto, and
shall not be secured by any property or assets of the Company or any Restricted
Subsidiary of the Company other than such property and improvements thereto so
acquired or constructed and (b) the Lien securing such Indebtedness

 

15

 

shall be created within 180
days of such acquisition or construction or, in the case of a refinancing of
such Indebtedness, within 180 days of such refinancing; (h) 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; (i) 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; (j) 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; (k) Liens securing Interest Rate Agreements which Interest Rate
Agreements relate to Indebtedness that is otherwise permitted pursuant clause
(iv) of the definition of Permitted Indebtedness; (l) Liens securing
Currency Agreements that are permitted pursuant clause (iv) of the
definition of Permitted Indebtedness; (m) Liens securing Acquired
Indebtedness incurred in accordance with clause (viii) of the definition of
Permitted Indebtedness; provided  that:  (i) such Liens secured such Acquired Indebtedness at the
time of and prior to the incurrence of such Acquired Indebtedness by the
Company or a Restricted Subsidiary of the Company and were not granted in
connection with, or in anticipation of, the incurrence of such Acquired
Indebtedness by the Company or a Restricted Subsidiary of the Company; and
(ii) 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 secured the Acquired Indebtedness prior to the time such
Indebtedness became Acquired Indebtedness of the Company or a Restricted
Subsidiary of the Company and are no more favorable to the lien holders than
those securing the Acquired Indebtedness prior to the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company;
(n) Liens existing as of the Issue Date and securing Indebtedness
permitted to be outstanding under clause (iii) of the definition of the
term Permitted Indebtedness to the extent and in the manner such Liens are in
effect on the Issue Date; (o) Liens securing letters of credit permitted
under clause (x) of the definition of the term Permitted Indebtedness, provided,
however, that such Lien is only secured by cash or Cash Equivalents;
(p) Liens securing Indebtedness of Foreign Restricted Subsidiaries to the
extent such Indebtedness is permitted under clause (xii) of the definition of
the term Permitted Indebtedness; provided, however, that no asset of the
Company or any Domestic Restricted Subsidiary shall be subject to any such
Lien; (q) Liens in favor of the Company or a Restricted Subsidiary
of the Company securing Indebtedness permitted to be incurred pursuant to
clause (v) of the definition of Permitted Indebtedness; (r) leases,
subleases, licenses and sublicenses granted to others that do not materially
interfere with the ordinary course of business of the Company and its
Restricted Subsidiaries; (s) banker’s Liens, rights of setoff and similar
Liens with respect to cash and Cash Equivalents on deposit in one or more bank
accounts in the ordinary course of business; provided that such bank accounts
are not cash collateral accounts; (t) Liens arising from the filing of
Uniform Commercial Code financing statements regarding leases; (u) Liens
securing obligations with respect to operating leases and guarantees thereof;
provided that such Liens do not extend to or cover any property of the Company
or any of its Restricted Subsidiaries other than the property subject to such
leases, any property or rights (including rights under subleases) relating to
such leased property and the equity interests of the lessee in any such lease;
(v) deposits made in the ordinary course of business to secure liability
to insurance carriers; (w) rights of a licensor of intellectual property;
(x) Liens arising out of conditional sale, title retention, consignment or
similar arrangement for the sale of goods entered into by the Company or any of
its Restricted Subsidiaries in the ordinary course of business; (y) Liens
in favor of the Pension Benefit Guaranty Corporation (or any related entity)
with respect to collateral also securing Obligations under any Credit
Agreement; (z) Liens incurred in the ordinary course of business of the
Company or any Restricted Subsidiary of the Company with respect to Obligations
that (i) are not incurred in connection with the borrowing of money (other
than trade credit in the ordinary course of business) and (ii) do not in
the aggregate materially detract from the value of the property subject

 

16

 

thereto; and (aa) Liens
securing Refinancing Indebtedness which is incurred to refinance any Indebtedness
which has been secured by a Lien permitted under this Indenture and which has
been incurred in accordance with clause (ix) of the definition of Permitted Indebtedness;
provided, however, that such Liens: (i) are no less
favorable to the Holders and are not more favorable to the lien holders 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 Refinancing
Indebtedness.

 

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

 

“Plan” means
any employee benefit plan, retirement plan, deferred compensation plan, restricted
stock plan, health, life, disability or other insurance plan or program,
employee stock purchase plan, employee stock ownership plan, pension plan,
stock option plan or similar plan or arrangement of the Company or any
Restricted Subsidiary of the Company, or any successor plan thereof, and
“Plans” shall have a correlative meaning.

 

“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 redemption or upon liquidation.

 

“Private
Placement Legend” means the legend initially set forth on the Securities in the
form set forth on Exhibit A hereto.

 

“Pro Rata
Interest” of any Person in any other Person means a fraction, the numerator of
which is the amount of the equity or other ownership interest in such other
Person that is beneficially owned by such Person and its Restricted Subsidiaries,
and the denominator of which is the aggregate amount of all equity or other
ownership interests in such other Person that is outstanding (for this purpose,
equity or other ownership interests subject to presently exercisable options,
warrants or other rights to acquire such interests shall be deemed to be
outstanding and shall be included in both the numerator and denominator).  The Pro Rata Interest of any Person in any
item of income or expense or in the fair market value of the assets or liabilities
of any other Person means the amount obtained by multiplying (i) the
amount of such income or expense or the fair market value of the relevant asset
or liability, as the case may be, of such other Person by (ii) the Pro
Rata Interest of such Person in such other Person.

 

“Purchase
Money Indebtedness” of any Person means any Indebtedness incurred or assumed by
a Person to finance the cost (including the cost of construction) of an item of
real or personal property or on the improvement of such property, the principal
amount of which Indebtedness does not exceed the sum (i) 100% of such cost
and (ii) reasonable fees and expenses of such Person incurred in connection
therewith and provided that such Indebtedness is incurred or assumed
within 90 days of the acquisition of, or improvement to, such property.

 

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

 

“Qualified
Institutional Buyer” or “QIB” shall have the meaning specified in
Rule 144A promulgated under the Securities Act.

 

17

 

“Redeemable
Dividend” means, for any dividend or distribution with regard to Disqualified
Capital Stock or Preferred Stock, the quotient of the dividend or distribution
divided by the difference between one and the maximum statutory United States
federal income tax rate (expressed as a decimal number between 1 and 0) then
applicable to the issuer of such Disqualified Capital Stock or Preferred Stock,
as the case may be.

 

“Redemption
Date” when used with respect to any Security to be redeemed means the date
fixed for such redemption pursuant to this Indenture.

 

“Reference
Period” with regard to any Person means the four full fiscal quarters of such
Person ended on or immediately preceding any date upon which any determination
is to be made pursuant to the terms of the Securities or this Indenture; provided,
that if the Transaction Date in question is more than 90 days after the end of
such Person’s most recently completed fiscal year or more than 45 days after
the end of such Person’s most recently completed fiscal quarter (other than the
fourth fiscal quarter), then “Reference Period” shall mean the four full fiscal
quarters ended on the last day of such fiscal year or fiscal quarter, as the case
may be, unless financial information for a later period of four full fiscal
quarters is available.

 

“Refinancing
Indebtedness” means an extension, renewal, replacement, refinancing or
refunding of any Indebtedness which is Permitted Indebtedness (other than
pursuant to clauses (ii), (iv), (v), (vi), (vii), (x), (xi) and (xii) of the
definition thereof) or is otherwise incurred in accordance with Section 4.06
(such Indebtedness is collectively referred to as “Refinancing Indebtedness”); provided,
that (1) the maximum principal amount of the relevant Refinancing
Indebtedness (or, if such Refinancing Indebtedness (if not a revolving credit
or similar arrangement) does not require cash payments prior to maturity or is
otherwise issued at a discount, the original issue price of such Refinancing
Indebtedness) may not exceed (x) the maximum principal amount of the relevant
Indebtedness or Disqualified Capital Stock being extended, renewed, replaced,
refinanced or refunded, plus unpaid interest, prepayment penalties, redemption
premiums, fees, expenses and other amounts owing with respect thereto, plus
reasonable financing fees and other reasonable out-of-pocket expenses incurred
in connection therewith (collectively, “Refinancing Costs”), or (y) if such Indebtedness
or Disqualified Capital Stock being extended, renewed, replaced, refinanced or
refunded was issued at an original issue discount, the original issue price,
plus amortization of the original issue discount at the time of the incurrence
of the Refinancing Indebtedness plus Refinancing Costs, (2) if Pari Passu Debt
or Disqualified Capital Stock, such Refinancing Indebtedness has a Weighted
Average Life to Maturity and a final maturity that is equal to or greater than
the Pari Passu Debt or Disqualified Capital Stock being extended, renewed,
replaced, refinanced or refunded at the time of such extension, renewal, replacement,
refinancing or refunding, (3) with respect to Indebtedness or Disqualified
Capital Stock of the Company or any Restricted Subsidiaries, the relevant
Refinancing Indebtedness shall rank in right of payment with respect to the
Securities to an extent no less favorable in respect thereof to the holders of
Securities than the Indebtedness or Disqualified Capital Stock being
refinanced, extended, renewed, replaced or refunded and (4) Refinancing
Indebtedness incurred by a Restricted Subsidiary of the Company shall only be
used to refinance outstanding Indebtedness or Disqualified Capital Stock of
such Restricted Subsidiary or any other Restricted Subsidiary of the Company.

 

“Registration
Rights Agreement” means the Registration Rights Agreement dated as of
June 9, 2004 among the Company and Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and UBS
Securities LLC, as Initial Purchasers, relating to the Securities and any
similar registration rights agreement entered into from time to time in
connection with any Additional Securities.

 

18

 

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

 

“Related
Business” means (i) any line or lines of business or business activity
conducted by the Company, its Subsidiaries and Emerging Market Subsidiaries on
the Issue Date, including, without limitation, the licensing of brand names,
(ii) any line or lines of business or business activity reasonably related
thereto, and (iii) the manufacture, distribution, marketing, leasing
and/or sale of consumer travel and luggage products.

 

“Representative”
means the representative appointed by the holders of the applicable Designated
Senior Debt.

 

“Responsible
Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president,
assistant vice president, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by the persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of such person’s
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

 

“Restricted
Payment” means (i) the declaration or payment of any dividend or the
making of any other distribution (other than dividends or distributions payable
in Qualified Capital Stock) on shares of the Company’s Capital Stock,
(ii) the purchase, redemption, retirement or other acquisition for value of
any Capital Stock of the Company, or any warrants, rights or options to acquire
shares of Capital Stock of the Company, other than through the exchange of such
Capital Stock or any warrants, rights or options to acquire shares of any class
of such Capital Stock for Qualified Capital Stock or warrants, rights or
options to acquire Qualified Capital Stock, (iii) the making of any
principal payment on, or the purchase, defeasance, redemption, prepayment,
decrease or other acquisition or retirement for value, prior to any scheduled
final maturity, scheduled repayment or scheduled sinking fund payment, of, any
Subordinated Debt of the Company or its Subsidiaries, (iv) the making of
any Investment (other than a Permitted Investment) (provided that the
amount of any Investment for purposes of this clause (iv) shall be
calculated by subtracting the amount of any applicable Returned Investments, if
any, on any such Investment), (v) any designation of a Restricted
Subsidiary as an Unrestricted Subsidiary on the basis of the fair market value
of such Subsidiary utilizing standard valuation methodologies and approved by
the Board of Directors or (vi) forgiveness of any Indebtedness of an
Affiliate of the Company to the Company or a Restricted Subsidiary; provided,
however, that the term “Restricted Payment” does not include
(a) any defeasance, redemption, repurchase or other acquisition or
retirement for value, in whole or in part, of Indebtedness of the Company
payable solely in shares of Qualified Capital Stock or Subordinated Debt or
(b) the repayment or retirement of Subordinated Debt with the proceeds of
Refinancing Indebtedness incurred in accordance with clause (ix) of the
definition of Permitted Indebtedness. 
For purposes of determining the amount available to make Restricted
Payments pursuant to clause (a)(iii) of Section 4.08, the amount of any
Restricted Payments made pursuant to clauses (iv) or (v) above shall
be calculated after giving effect to any Returned Investments.

 

“Restricted
Security” has the meaning set forth in Rule 144(a)(3) promulgated under the Securities
Act; provided that the Trustee shall be entitled to request and
conclusively rely upon an Opinion of Counsel with respect to whether any Note
is a Restricted Security.

 

“Restricted
Subsidiary” means a Subsidiary of the Company other than an Unrestricted
Subsidiary and includes all of the Subsidiaries of the Company (other than the
Initial Emerging

 

19

 

Market Subsidiaries) existing
as of the Issue Date, subject, however, to clause (v) of Section 4.17
providing for Emerging Market Subsidiaries to constitute Restricted
Subsidiaries but only to the extent provided therein.  The Board of Directors of the Company may designate any
Unrestricted Subsidiary or any Person that is to become a Subsidiary as a
Restricted Subsidiary if immediately after giving effect to such action (and
treating any Acquired Indebtedness as having been incurred at the time of such
action), the Company could have incurred at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.06; provided
that the Company may not designate any Emerging Market Subsidiary to become a
Restricted Subsidiary unless such designation complies with the requirements set
forth in the definition of “Emerging Market Subsidiary” relating thereto.

 

“Returned
Investments” mean, with respect to all Investments made in Emerging Market
Subsidiaries or Unrestricted Subsidiaries pursuant to clauses (iv) or
(ix), respectively, of the definition of “Permitted Investments” or pursuant to
clauses (iv) or (v) of the definition of “Restricted Payment,” the
aggregate amount of (i) all payments made in respect of such Investments,
other than interest, dividends or other distributions not in the nature of a
return or repurchase of capital or a repayment of principal, that have been
paid or returned, without restriction, in cash to the Company and its
Restricted Subsidiaries and (ii) the Pro Rata Interest of the Company and
its Restricted Subsidiaries in the fair market value of the net assets of all
Emerging Market Subsidiaries or Unrestricted Subsidiaries, as the case may be,
that have been designated a Restricted Subsidiary of the Company after the
Issue Date, such fair market value to be determined as of the date of such
designation; provided, that amounts under the foregoing clause
(ii) with respect to each such Emerging Market Subsidiary or Unrestricted
Subsidiary, as the case may be, shall not constitute Returned Investments to
the extent that such amount exceeds the total amount of Investments by the
Company and its Restricted Subsidiaries in such Emerging Market Subsidiary or
Unrestricted Subsidiary, as the case may be. 
Notwithstanding the foregoing, Returned Investments shall be credited to
the amounts available for Investments pursuant to clauses (iv) or (ix) of
the definition of “Permitted Investments” or Investments made pursuant to the
provisions of clauses (iv) or (v) of the definition of “Restricted
Payment,” as the case may be, only to the extent that such Returned Investments
are in respect of Investments made pursuant to each such clause or provision.

 

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

 

“S&P”
means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. and its successors.

 

“SEC” means
the United States Securities and Exchange Commission as constituted from time
to time or any successor performing substantially the same functions.

 

“Securities”
means Initial Securities and Exchange Securities, including any Additional
Securities.

 

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

 

“Senior Debt”
means, the principal of, premium, if any, and interest (including, without
limitation, interest accruing or that would have accrued but for the filing of
a bankruptcy, reorganization or other insolvency proceeding whether or not such
interest constitutes an allowed claim in such proceeding) on, and any and all
other fees, expense reimbursement obligations, obligations in respect of letters
of credit, bankers’ acceptances and similar transactions, indemnities and other
amounts owing pursuant to the terms of all agreements, documents and
instruments providing for, creating, securing or evidencing or otherwise
entered into in connection with (a) all Indebtedness and Obligations

 

20

 

of the Company and its
Subsidiaries owed under each Credit Agreement (and any guarantees thereof),
(b) all obligations of the Company with respect to any Interest Rate
Agreement or Currency Agreement to the extent incurred pursuant to clause
(iv) of the definition of Permitted Indebtedness, (c) all obligations
of the Company to reimburse any bank or other person in respect of amounts paid
under letters of credit, acceptances or other similar instruments, (d) the
Senior Notes and all other Indebtedness of the Company which does not provide
that it is to rank pari passu with or subordinate to the Securities and
(e) all deferrals, renewals, extensions, replacements, refinancings and
refundings of, and amendments, modifications and supplements to, any of the
Senior Debt described above.  Notwithstanding
anything to the contrary in the foregoing, Senior Debt will not include
(i) Indebtedness of the Company to any of its Subsidiaries,
(ii) Indebtedness represented by the Securities, (iii) any Indebtedness
which by the express terms of the agreement or instrument creating, evidencing
or governing the same is junior or subordinate in right of payment to any item
of Senior Debt, (iv) any trade payable arising from the purchase of goods
or materials or for services obtained in the ordinary course of business or
(v) Indebtedness incurred in violation of this Indenture.

 

“Senior Notes”
means the euro-denominated Floating Rate Senior Notes due 2011 of the Company.

 

“Significant
Restricted Subsidiary” of the Company means any Restricted Subsidiary of the
Company which satisfies the requirements for being a “significant subsidiary”
as defined in Regulation S-X under the Securities Act and the Exchange Act.

 

“Subordinated
Debt” means Indebtedness of the Company or any Subsidiary that is subordinated
in right of payment by its express terms, or by the express terms of any
related document, to the Securities.

 

“Subsidiary”,
with respect to any Person, means (i) 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 (ii) 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.

 

“TIA” means
the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on
the date of this Indenture (except as provided in Section 8.03 hereof).

 

“Trustee”
means the party named as such in this Indenture until a successor replaces it
pursuant to this Indenture and thereafter means the successor.

 

“Unrestricted
Subsidiary” means (a) any Emerging Market Subsidiary, (b) any
Subsidiary of an Unrestricted Subsidiary or an Emerging Market Subsidiary and
(c) any Subsidiary of the Company which is classified after the Issue Date
as an Unrestricted Subsidiary or an Emerging Market Subsidiary by a resolution
adopted by the Board of Directors of the Company; provided that a
Subsidiary organized or acquired after the Issue Date may be so classified as
an Unrestricted Subsidiary only if such classification is in compliance with
Section 4.08; and provided, further, that a Subsidiary may not be
classified as an Emerging Market Subsidiary unless such classification would be
in compliance with Section 4.17 and the provisions of the definition of
“Emerging Market Subsidiary.”  The
Trustee shall be given prompt notice by the Company of each resolution adopted
by the Board of Directors of the Company under this provision, together with a
copy of each such resolution so adopted.

 

21

 

“U.S.
Government Obligations” means (a) securities that are direct obligations
of the United States of America for the payment of which its full faith and
credit are pledged or (b) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of the United States of America,
the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act) as custodian with respect to any
such U.S. Government Obligation or a specific payment of principal of or
interest on any such U.S. Government Obligation held by such custodian for the
account of the holder of such depository receipt; provided that (except
as required by law) such custodian is not authorized to make any deduction from
the amount payable to the holder of such depository receipt from any amount
received by the custodian in respect of the U.S. Government Obligation or a
specific payment of principal or interest on any such U.S. Government
Obligation held by such custodian for the account of the holder of such depository
receipt.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any date,
the number of years obtained by dividing (a) the then outstanding
aggregate principal amount of such Indebtedness into (b) the total of the
product obtained by multiplying (i) 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
(ii) 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 Restricted Subsidiary all of the outstanding voting
securities (other than directors’ qualifying shares) of which are owned,
directly or indirectly, by the Company.

 

Section 1.02.                             Other Definitions.

 

The
definitions of the following terms may be found in the sections indicated as follows:

 

	
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  “Acceleration
  Notice”

  	
   

  	
  6.02

  
	
  “Affiliate
  Transaction”

  	
   

  	
  4.10

  
	
  “Bankruptcy
  Law”

  	
   

  	
  6.01

  
	
  “Bankruptcy
  Proceeding”

  	
   

  	
  10.02

  
	
  “Business
  Day”

  	
   

  	
  11.08

  
	
  “Change of
  Control Offer”

  	
   

  	
  4.14

  
	
  “Change of
  Control Payment Date”

  	
   

  	
  4.14

  
	
  “Change of
  Control Purchase Price”

  	
   

  	
  4.14

  
	
  “Covenant
  Defeasance”

  	
   

  	
  9.03

  
	
  “Custodian”

  	
   

  	
  6.01

  
	
  “Event of
  Default”

  	
   

  	
  6.01

  
	
  “Excess
  Proceeds Offer”

  	
   

  	
  4.09

  
	
  “Global
  Securities”

  	
   

  	
  2.01

  
	
  “Initial
  Blockage Period”

  	
   

  	
  10.03

  
	
  “Judgment
  Currency”

  	
   

  	
  11.16

  
	
  “Legal
  Defeasance”

  	
   

  	
  9.02

  
	
  “Legal
  Holiday”

  	
   

  	
  11.08

  
	
  “Offer
  Period”

  	
   

  	
  4.09

  

 

22

 

	
  “Offshore
  Physical Securities”

  	
   

  	
  2.01

  
	
  “Paying
  Agent”

  	
   

  	
  2.03

  
	
  “Payment
  Blockage Period”

  	
   

  	
  10.03

  
	
  “Payment
  Restriction”

  	
   

  	
  4.18

  
	
  “Physical
  Securities”

  	
   

  	
  2.01

  
	
  “Purchase
  Date”

  	
   

  	
  4.09

  
	
  “Registrar”

  	
   

  	
  2.03

  
	
  “Required
  Currency”

  	
   

  	
  11.16

  
	
  “Reinvestment
  Date”

  	
   

  	
  4.09

  
	
  “Required
  Filing Dates”

  	
   

  	
  4.02

  
	
  “U.S.
  Physical Securities”

  	
   

  	
  2.01

  

 

 

Section 1.03.                             Incorporation by Reference of
Trust Indenture Act.

 

Whenever this
Indenture refers to a provision of the TIA, the portion of such provision
required to be incorporated herein in order for this Indenture to be qualified
under the TIA is incorporated by reference in and made a part of this
Indenture.  The following TIA terms used
in this Indenture have the following meanings:

 

“Commission”
means the SEC.

 

“indenture
securities” means the Securities.

 

“indenture
securityholder” means a Securityholder.

 

“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 Securities.

 

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

 

Section 1.04.                             Rules of Construction.

 

Unless the
context otherwise requires:

 

(1)           a term has the meaning assigned to it
herein, whether defined expressly or by reference;

 

(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 in the plural include the singular; and

 

23

 

(5)           words used herein implying any gender
shall apply to every gender.

 

ARTICLE 2

 

THE SECURITIES

 

Section 2.01.                             Dating; Incorporation of Form in
Indenture.

 

The Securities
and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A which is incorporated in and made part of this
Indenture.  The Securities may have
notations, legends or endorsements required by law, stock exchange rule or
usage.  The Company may use “CUSIP”
numbers in issuing the Securities.  The
Company shall approve the form of the Securities.  Each Security shall be dated the date of its authentication.

 

The terms and
provisions contained in the Securities shall constitute, and are hereby
expressly made, a part of this Indenture and, to the extent applicable, the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

 

The Securities
offered and sold in reliance on Rule 144A shall be issued initially in the
form of one or more permanent Global Securities in registered form,
substantially in the form set forth in Exhibit A (“Global Securities”),
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 on Exhibit B. 
The aggregate principal amount of any Global Security 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.

 

Securities
offered and sold in offshore transactions in reliance on Regulation S may
be issued in the form of certificated Securities in registered form set forth
in Exhibit A (the “Offshore Physical Securities”).  Securities offered and sold in reliance on
any other exemption from registration under the Securities Act other than as
described in the preceding paragraph shall be issued, and Securities offered
and sold in reliance on Rule 144A may be issued, in the form of
certificated Securities in registered form in substantially the form set forth
in Exhibit A (the “U.S. Physical Securities”).  The Offshore Physical Securities and the U.S. Physical Securities
are sometimes collectively herein referred to as the “Physical Securities.”

 

Section 2.02.                             Execution and Authentication;
Amount.

 

The Securities
shall be executed on behalf of the Company by two Officers of the Company or an
Officer and an Assistant Secretary of the Company.  Such signature may be either manual or facsimile.

 

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

 

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

 

24

 

The Trustee,
upon a Company Request shall authenticate (i) Initial Securities for original
issue on the Issue Date in the aggregate principal amount not to exceed
$205,000,000 and (ii) subject to Section 4.06, Additional Securities.  The Trustee, upon a Company Request, shall
authenticate Exchange Securities; provided that such Exchange Securities
shall be issuable only upon the valid surrender for cancellation of Initial
Securities of a like aggregate principal amount in accordance with an exchange
offer specified in any registration rights agreement relating to the Additional
Securities or to be offered in connection with any issuance of Additional
Securities pursuant to a registration statement filed pursuant to the
Securities Act.  Such Company Request
shall specify the amount of Securities to be authenticated and the date on
which the original issue of Securities is to be authenticated.  Any Additional Securities shall be part of
the same issue as the Initial Securities being issued on the Issue Date and
will vote on all matters as one class with the Initial Securities being issued
on the Issue Date, including, without limitation, waivers, amendments,
redemptions, Change of Control Offers and Excess Proceeds Offers.  For the purposes of this Indenture, except
for Section 4.06 hereof, references to the Securities include Additional
Securities, if any.

 

The Trustee
may appoint an authenticating agent to authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent has the same right as an Agent to deal with the
Company or an Affiliate.

 

The Securities
shall be issuable in fully registered form only, without coupons, in denominations
of $5,000 and any integral multiple of $1,000.

 

Section 2.03.                             Registrar and Paying Agent.

 

The Company
shall maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (“Registrar”), an office or agency located in the
Borough of Manhattan, City of New York, State of New York where Securities may
be presented for payment (“Paying Agent”) and an office or agency where notices
and demands to or upon the Company in respect of the Securities and this
Indenture may be served.  The Registrar
shall keep a register of the Securities and of their transfer and
exchange.  The Company may have one or
more co-registrars and one or more additional paying agents.  Neither the Company nor any Affiliate may
act as Paying Agent.  The Company may
change any Paying Agent, Registrar or co-registrar without notice to any
Securityholder.

 

The Company
shall enter into an appropriate agency agreement with any Registrar or Paying
Agent not a party to this Indenture. 
The agreement shall implement the provisions of this Indenture that
relate to such Agent.  The Company shall
notify the Trustee of the name and address of any such Agent.  If the Company fails to maintain a Registrar
or Paying Agent, or agent for service of notices and demands, or fails to give
the foregoing notice, the Trustee shall act as such.  The Company initially appoints the Trustee as Registrar, Paying
Agent and agent for service of notices and demands in connection with the
Securities.

 

Section 2.04.                             Paying Agent To Hold Assets in Trust.

 

On or before
each due date of the principal of and interest on any Securities, the Company
shall deposit with the Paying Agent a sum sufficient to pay such principal and
interest so becoming due.  The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee, and the Trustee may at any time during the continuance of any Payment
Default or Non-Payment Event of Default, upon written request to a Paying
Agent, require such Paying Agent to

 

25

 

forthwith pay to the Trustee
all sums so held in trust by such Paying Agent together with a complete
accounting of such sums.  Upon doing so,
the Paying Agent shall have no further liability for such money.

 

Section 2.05.                             Securityholder Lists.

 

The Trustee
shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Securityholders.  If the Trustee is not the Registrar, the Company
shall furnish to the Trustee on or before each June 1 and December 1
in each year, and at such other times as the Trustee may request in writing, a
list as of the applicable record date and in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Securityholders.

 

Section 2.06.                             Transfer and Exchange.

 

When a
Security is presented to the Registrar with a request to register the transfer
thereof, the Registrar shall register the transfer as requested if the
requirements of applicable law are met and, when Securities are presented to
the Registrar with a request to exchange them for an equal principal amount of
Securities of other authorized denominations, the Registrar shall make the
exchange as requested provided that every Security presented or
surrendered for registration of transfer or exchange shall be duly endorsed, or
be accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar duly executed by the Holder thereof or his attorney
duly authorized in writing.  To permit
transfers and exchanges, upon surrender of any Security for registration of
transfer at the office or agency maintained pursuant to Section 2.03
hereof, the Company shall execute and the Trustee shall authenticate Securities
at the Registrar’s request.  Any
exchange or transfer shall be without charge, except that the Company may
require payment by the Holder of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation to a transfer or exchange,
but this provision shall not apply to any exchange pursuant to Sections 2.09,
3.06 or 8.05 hereof.  The Trustee shall
not be required to register transfers of Securities or to exchange Securities
for a period of 15 days before mailing notice to Holders of a redemption of
Securities.  The Trustee shall not be
required to exchange or register transfers of any Securities called or being
called for redemption in whole or in part, except the unredeemed portion of any
Security being redeemed in part.

 

Section 2.07.                             Replacement Securities.

 

If a mutilated
Security is surrendered to the Trustee or if the Holder of a Security presents
evidence to the satisfaction of the Company and the Trustee that the Security
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the New York Uniform Commercial Code as in effect on the
date of this Indenture are met.  An
indemnity bond shall be required that is sufficient in the judgment of 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 Security is replaced.  In every case of destruction, loss or theft,
the applicant shall also furnish to the Company and to the Trustee evidence to
their satisfaction of the destruction, loss or the theft of such Security and
the ownership thereof.  The Company and
the Trustee may charge for its expenses in replacing a Security.  Every replacement Security is an additional
obligation of the Company.

 

26

 

Section 2.08.                             Outstanding Securities.

 

Securities
outstanding at any time are all Securities authenticated by the Trustee except
for those cancelled by it, those delivered to it for cancellation, and those
described in this Section 2.08 as not outstanding.

 

If a Security
is replaced pursuant to Section 2.07, it ceases to be outstanding until
the Company and the Trustee receive proof satisfactory to each of them that the
replaced Security is held by a bona fide purchaser.

 

If a Paying
Agent holds on a Redemption Date or Maturity Date money sufficient to pay the
principal of, premium, if any, and accrued interest on Securities payable on
that date, then on and after that date such Securities cease to be outstanding
and interest on them ceases to accrue.

 

Subject to
Section 11.06, a Security does not cease to be outstanding solely because
the Company or an Affiliate holds the Security.

 

Section 2.09.                             Temporary Securities.

 

Until
definitive Securities are ready for delivery, the Company may prepare and the
Trustee shall, upon receipt of a Company Request, authenticate temporary
Securities.  Temporary Securities shall
be substantially in the form, and shall carry all rights, of definitive
Securities but may have variations that the Company considers appropriate for
temporary Securities.  Without unreasonable
delay, the Company shall prepare and the Trustee shall authenticate definitive
Securities in exchange for temporary Securities presented to it.

 

Section 2.10.                             Cancellation.

 

The Company at
any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall
forward to the Trustee any Securities surrendered to them for transfer,
exchange or payment.  The Trustee shall
cancel and retain or, upon written request of the Company, may dispose of or
return to the Company in accordance with its normal practice, all Securities
surrendered for transfer, exchange, payment or cancellation.  Subject to Section 2.07 hereof, the
Company may not issue new Securities to replace Securities in respect of which
it has previously paid all principal, premium and interest accrued thereon, or
delivered to the Trustee for cancellation.

 

Section 2.11.                             Defaulted Interest.

 

If the Company
defaults in a payment of interest on the Securities, it shall pay the defaulted
amounts, plus any interest payable on defaulted amounts pursuant to
Section 4.01 hereof, to the persons who are Securityholders on a
subsequent special record date.  The
Company shall fix the special record date and payment date in a manner
satisfactory to the Trustee and provide the Trustee at least 20 days notice of
the proposed amount of default interest to be paid and the special payment
date.  At least 15 days before the
special record date, the Company shall mail or cause to be mailed to each
Securityholder at his address as it appears on the Securities register
maintained by the Registrar a notice that states the special record date, the
payment date (which shall be not less than five nor more than ten days after
the special record date), and the amount to be paid.  In lieu of the foregoing procedures, the Company may pay
defaulted interest in any other lawful manner satisfactory to the Trustee.

 

27

 

Section 2.12.                             Deposit of Moneys.

 

Prior to
10:00 a.m., New York City time, on each Interest Payment Date and Maturity
Date, the Company shall have deposited with the Paying Agent in immediately
available funds money sufficient to make cash payments, if any, due on such
Interest Payment Date or Maturity Date, as the case may be, in a timely manner
which permits the Trustee to remit payment to the Holders on such Interest Payment
Date or Maturity Date, as the case may be.

 

Section 2.13.                             CUSIP Number.

 

The Company in
issuing the Securities may use a “CUSIP” number(s), and if so, the Trustee
shall use the CUSIP number(s) in notices of redemption 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(s)
printed in the notice or on the Securities, and that reliance may be placed
only on the other identification numbers printed on the Securities.  The Company shall promptly inform the
Trustee of any change in the CUSIP number(s).

 

Section 2.14.                             Book-Entry Provisions for Global
Securities.

 

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

 

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

 

(b)           Transfers of Global Securities shall
be limited to transfer in whole, but not in part, to the Depository, its successors
or their respective nominees.  Interests
of beneficial owners in the Global Securities may be transferred or exchanged
for Physical Securities in accordance with the rules and procedures of the
Depository and the provisions of Section 2.15.  In addition, Physical Securities shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global
Securities if (i) the Depository notifies the Company that it is unwilling
or unable to continue as Depository for any Global Security and a successor depositary
is not appointed by the Company within 90 days of such notice or
(ii) an Event of Default has occurred and is continuing and the Registrar
has received a written request from the Depository to issue Physical
Securities.

 

(c)           In connection with any transfer or
exchange of a portion of the beneficial interest in any Global Security to beneficial
owners pursuant to paragraph (b), the Registrar shall (if one or more
Physical Securities are to be issued) reflect on its books and records the date
and a decrease in the principal amount of the Global Security in an amount
equal to the principal amount of the beneficial interest in the Global Security
to be transferred, and the Company shall execute, and the Trustee shall upon
receipt of a written order from the Company authenticate and make available for
delivery, one or more Physical Securities of like tenor and amount.

 

28

 

(d)           In connection with the transfer of
Global Securities as an entirety to beneficial owners pursuant to paragraph (b),
the Global Securities 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 writing
in exchange for its beneficial interest in the Global Securities, an equal aggregate
principal amount of Physical Securities of authorized denominations.

 

(e)           Any Physical Security constituting a
Restricted Security delivered in exchange for an interest in a Global Security
pursuant to paragraph (b), (c) or (d) shall, except as otherwise
provided by paragraphs (a)(i)(x) and (c) of Section 2.15,
bear the Private Placement Legend.

 

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

 

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 Security 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 Security constituting a Restricted Security,
whether or not such Security bears the Private Placement Legend, if
(x) the requested transfer is subsequent to a date which is two years after
the later of the Issue Date and the last date on which the Company or any of
its Affiliates was the owner of such Security 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 C hereto or (2) in
the case of a transfer to a Non-U.S. Person (including a QIB), the proposed
transferor has delivered to the Registrar a certificate substantially in the
form of Exhibit D hereto; and

 

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

 

whereupon
(a) the Registrar shall reflect on its books and records the date and (if
the transfer does not involve a transfer of outstanding Physical Securities) a
decrease in the principal amount of a Global Security in an amount equal to the
principal amount of the beneficial interest in a Global Security to be
transferred, and (b) the Company shall execute and the Trustee shall
authenticate and make available for delivery one or more Physical Securities of
like tenor and amount.

 

(b)           Transfers to QIBs.  The following provisions shall apply with
respect to the registration of any proposed transfer of a Security 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 Security stating, or has otherwise
advised the Company and the Registrar in writing, that the sale has been made
in

 

29

 

 compliance with the provisions of
Rule 144A to a transferee who has signed the certification provided for on
the form of Security stating, or has otherwise advised the Company and the
Registrar in writing, that it is purchasing the Security for its own account or
an account with respect to which it exercises sole investment discretion and
that it and any such account is a 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 Securities to be transferred consist of
Physical Securities which after transfer are to be evidenced by an interest in
the Global Security, upon receipt by the Registrar of instructions given in
accordance with the Depository’s 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 Security in an amount equal to the principal
amount of the Physical Securities to be transferred, and the Trustee shall
cancel the Physical Securities so transferred.

 

(c)           Private Placement Legend.  Upon the transfer, exchange or replacement
of Securities not bearing the Private Placement Legend, the Registrar shall
deliver Securities that do not bear the Private Placement Legend.  Upon the transfer, exchange or replacement
of Securities bearing the Private Placement Legend, the Registrar shall deliver
only Securities that bear the Private Placement Legend unless (i) the
circumstances contemplated by paragraph (a)(i)(x) of this
Section 2.15 exist, (ii) there is delivered to the Registrar an Opinion
of Counsel reasonably satisfactory to the Company 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 or
(iii) such Security has been sold pursuant to an effective registration
statement under the Securities Act.

 

(d)           General.  By its acceptance of any Security bearing
the Private Placement Legend, each Holder of such a Security acknowledges the
restrictions on transfer of such Security set forth in this Indenture and in
the Private Placement Legend and agrees that it will transfer such Security
only as provided in this Indenture, and each Holder agrees to indemnify the
Company and the Trustee against any liability resulting from the transfer of
such Holder’s Security in violation of the provisions hereof or of applicable
federal or state securities laws.

 

The Registrar
shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.14 hereof 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 notice to the Registrar.

 

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

 

30

 

ARTICLE 3

 

REDEMPTION

 

Section 3.01.                             Notices to Trustee.

 

If the Company
elects to redeem Securities pursuant to Section 3.07, (i) at least 60
days prior to the Redemption Date in the case of a partial redemption,
(ii) at least 45 days prior to the Redemption Date in the case of a total
redemption or (iii) during such other period as the Trustee may agree to,
the Company shall notify the Trustee in writing of the Redemption Date, the
principal amount of Securities to be redeemed and the redemption price, and
deliver to the Trustee an Officers’ Certificate stating that such redemption
will comply with the conditions contained in Section 3.07 hereof, as
appropriate.

 

Section 3.02.                             Selection by Trustee of
Securities To Be Redeemed.

 

In the event
that fewer than all of the Securities are to be redeemed, the Trustee shall
select the Securities to be redeemed, if the Securities are listed on a
national securities exchange, in accordance with the rules of such exchange or,
if the Securities are not so listed, on either a pro rata basis or by lot, or
such other method as it shall deem fair and equitable; provided, however,
that a redemption pursuant to Section 3.07(b) shall be made by the
Trustee on a pro rata basis, unless such method is prohibited.  The Trustee shall promptly notify the
Company of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount thereof to be
redeemed.  The Trustee may select for redemption
portions of the principal of Securities that have denominations larger than
$5,000.  Securities and portions thereof
the Trustee selects shall be redeemed in amounts of $5,000 or whole multiples
of $1,000.  For all purposes of this
Indenture unless the context otherwise requires, provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption.

 

Section 3.03.                             Notice of Redemption.

 

At least 30
days, and no more than 60 days, before a Redemption Date, the Company shall
mail, or cause to be mailed, a notice of redemption by first-class mail to each
Holder of Securities to be redeemed at his or her last address as the same
appears on the registry books maintained by the Registrar pursuant to
Section 2.03 hereof.

 

The notice
shall identify the Securities to be redeemed (including the CUSIP number(s)
thereof) and shall state:

 

(1)           the Redemption Date;

 

(2)           the redemption
price;

 

(3)           if any Security is
being redeemed in part, the portion of the principal amount of such Security to
be redeemed and that, after the Redemption Date and upon surrender of such
Security, a new Security or Securities in principal amount equal to the
unredeemed portion will be issued;

 

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

 

31

 

(5)           that Securities
called for redemption must be surrendered to the Paying Agent to collect the
redemption price;

 

(6)           that unless the
Company defaults in making the redemption payment, interest on Securities
called for redemption ceases to accrue on and after the Redemption Date;

 

(7)           the paragraph of the
Securities pursuant to which the Securities are being redeemed; and

 

(8)           the aggregate
principal amount of Securities that are being redeemed.

 

At the
Company’s request, the Trustee shall give the notice of redemption in the
Company’s name and at the Company’s sole expense.

 

Section 3.04.                             Effect of Notice of Redemption.

 

Once the
notice of redemption described in Section 3.03 is mailed, Securities
called for redemption become due and payable on the Redemption Date and at the
redemption price, including any premium, plus interest accrued to the Redemption
Date.  Upon surrender to the Paying
Agent, such Securities shall be paid at the redemption price, including any
premium, plus interest accrued to the Redemption Date, provided that if
the Redemption Date is after a regular interest payment record date and on or
prior to the Interest Payment Date, the accrued interest shall be payable to
the Holder of the redeemed Securities registered on the relevant record date,
and provided, further, that if a Redemption Date is a Legal
Holiday, payment shall be made on the next succeeding Business Day and no
interest shall accrue for the period from such Redemption Date to such
succeeding Business Day.

 

Section 3.05.                             Deposit of Redemption Price.

 

On or prior to
10:00 A.M., New York City time, on each Redemption Date, the Company shall
deposit with the Paying Agent in immediately available funds money sufficient
to pay the redemption price of and accrued interest on all Securities to be
redeemed on that date other than Securities or portions thereof called for
redemption on that date which have been delivered by the Company to the Trustee
for cancellation.

 

On and after
any Redemption Date, if money sufficient to pay the redemption price of and
accrued interest on Securities called for redemption shall have been made available
in accordance with the preceding paragraph, the Securities called for redemption
will cease to accrue interest and the only right of the Holders of such
Securities will be to receive payment of the redemption price of and, subject
to the first proviso in Section 3.04, accrued and unpaid interest on such
Securities to the Redemption Date.  If
any Security called for redemption shall not be so paid, interest will be paid,
from the Redemption Date until such redemption payment is made, on the unpaid principal
of the Security and any interest not paid on such unpaid principal, in each
case, at the rate and in the manner provided in the Securities.

 

Section 3.06.                             Securities Redeemed in Part.

 

Upon surrender
of a Security that is redeemed in part, the Trustee shall authenticate for a
Holder a new Security equal in principal amount to the unredeemed portion of
the Security surrendered.

 

32

 

Section 3.07.                             Optional Redemption.

 

(a)           The Company may redeem the Securities,
in whole or in part, at any time on or after June 1, 2008 at the following
redemption prices (expressed as a percentage of principal amount), together, in
each case, with accrued and unpaid interest to the Redemption Date, if redeemed
during the twelve-month period beginning on June 1 of each year listed
below:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2008

  	
   

  	
  104.438

  	
  %

  
	
  2009

  	
   

  	
  102.219

  	
  %

  
	
  2010 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           Notwithstanding the foregoing, on or
prior to June 1, 2007, the Company may, at its option, use the Net Proceeds of
one or more Equity Offerings to redeem for cash up to an aggregate of 35% of
the aggregate principal amount of the Securities at a redemption price equal to
108.875% of the aggregate principal amount so redeemed, plus accrued and unpaid
interest thereon to the Redemption Date; provided, however, at
least 65% of the principal amount of Securities issued under this Indenture
remains outstanding immediately after any such redemption and the Company makes
such redemption not more than 90 days after the receipt from the Company of the
proceeds of each such Equity Offering.

 

ARTICLE 4

 

COVENANTS

 

Section 4.01.                             Payment of Securities.

 

The Company
shall pay the principal of and interest (including all Additional Interest (as
defined in the Registration Rights Agreement) as provided in the Registration
Rights Agreement) on the Securities on the dates and in the manner provided in
the Securities and this Indenture.  An installment
of principal of or interest on the Securities shall be considered paid on the
date it is due if the Trustee or Paying Agent holds on that date on or prior to
the time required by Section 2.12 money designated for and sufficient to pay
the installment.  Interest will be
computed on the basis of a 360-day year comprised of twelve 30-day months and,
for periods not involving a full calendar month, the actual number of days
elapsed (but not to exceed 30 days). 
The Company shall deliver written notice to the Trustee of any Additional
Interest owed.

 

The Company
shall pay interest on overdue principal (including post-petition interest in a
proceeding under any Bankruptcy Law), and overdue interest, to the extent
lawful, at the rate specified in the Securities.

 

Section 4.02.                             SEC Reports.

 

(a)           The Company will file with the SEC
all information, documents and reports to be filed with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act and will provide the Trustee
and the Securityholders with copies of all such information, documents and
reports within 15 days of filing thereof with the SEC; provided that if
the Company is not required to file such information,

 

33

 

documents or reports with the
SEC, it will nonetheless continue to furnish (i) all quarterly and annual
financial information that would be required to be contained in a filing with
the SEC on forms 10-Q and 10-K if the Company were required to file such forms,
including a “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” if required by the SEC at such time and, with respect to
the annual information only, a report thereon by the Company’s certified independent
accountants; and (ii) all current reports that would be required to be
filed with the SEC on Form 8-K if the Company were required to file such
reports, to the Trustee and the Securityholders, in each case, within 15 days
of the date on which filing with the SEC would have been required.  The Company shall also comply with the provisions
of TIA § 314(a).  Delivery of such reports,
information and documents to the Trustee is for informational purposes only and
the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from 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).

 

(b)           The Company will, upon request,
provide to any Holder of Securities or any prospective transferee of any such
Holder any information concerning the Company (including financial statements)
necessary in order to permit such Holder to sell or transfer Securities in compliance
with Rule 144 and Rule 144A under the Securities Act.

 

(c)           Following the consummation of the
exchange offer contemplated by the Registration Rights Agreement, whether or
not required by the rules and regulations of the Commission, 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) and make such
information available to securities analysts and prospective investors upon
request.

 

Section 4.03.                             Waiver of Stay, Extension or Usury
Laws.

 

The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead (as a defense or otherwise) 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 which would prohibit or forgive the Company from
paying all or any portion of the principal of, premium, if any, and/or interest
on the Securities 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 covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

 

Section 4.04.                             Compliance Certificate.

 

(a)           The Company shall deliver to the
Trustee, within 120 days after the end of each fiscal year, an Officers’
Certificate (one of the signers of which shall be the principal executive
officer, principal financial officer or principal accounting officer of the
Company) stating that a review of the activities of the Company and its
Subsidiaries during such fiscal year or fiscal quarter, as the case may be, has
been made under the supervision of the signing Officers with a view to
determining whether each has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge each has
kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and is not in default in the performance or observance of any of
the terms, provisions and conditions

 

34

 

hereof (or, if a Default or
Event of Default shall have occurred, describing all or such Defaults or Events
of Default of which he or she may have knowledge and what action each is taking
or proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Securities
is prohibited or if such event has occurred, a description of the event and
what action each is taking or proposes to take with respect thereto.

 

(b)           The Company will, so long as any of
the Securities are outstanding, deliver to the Trustee, within five Business
Days of any Officer becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.

 

Section 4.05.                             Taxes.

 

The Company
shall, and shall cause each of its Subsidiaries to, pay prior to delinquency
all material taxes, assessments, and governmental levies except as contested in
good faith and by appropriate proceedings.

 

Section 4.06.                             Limitation on Incurrence of
Additional Indebtedness.

 

The Company
will not, and will not permit any Restricted Subsidiary of the Company to,
directly or indirectly incur any Indebtedness (including Acquired Indebtedness)
other than Permitted Indebtedness.  Notwithstanding the foregoing limitations, the Company and its
Restricted Subsidiaries may incur Indebtedness if (a) after giving effect
to the incurrence of such Indebtedness and the receipt and application of the
proceeds thereof, the Company’s Consolidated Fixed Charge Coverage Ratio
(determined on a pro forma basis for the last four full fiscal quarters of the
Company for which financial information is available at the date of determination)
is at least equal to 2:00:1; but no Restricted Subsidiary may incur
Indebtedness which is not Permitted Indebtedness unless its Consolidated Fixed
Charge Coverage Ratio is at least equal to 3:00:1; provided, however,
that if the Indebtedness which is the subject of a determination under this
provision is Acquired Indebtedness, or Indebtedness incurred in connection with
the simultaneous acquisition of any Person, business, property or assets, then
such ratio shall be determined by giving effect (on a pro forma basis, as if
the transaction had occurred at the beginning of the four quarter period) to
both the incurrence or assumption of such Acquired Indebtedness or such other
Indebtedness by the Company or such Restricted Subsidiary and the inclusion in
the Company’s or such Restricted Subsidiary’s Consolidated EBITDA of the Consolidated
EBITDA of the acquired Person, business, property or assets; and provided,
further, that in the event that the Consolidated EBITDA of the acquired
Person, business, property or assets reflects an operating loss, no amounts
shall be deducted from the Company’s or such Restricted Subsidiary’s
Consolidated EBITDA in making the determinations described above and
(b) no Default or Event of Default shall have occurred and be continuing
at the time or as a consequence of the incurrence of such Indebtedness.

 

Section 4.07.                             Limitation on Preferred Stock of
Restricted Subsidiaries.

 

The Company
will not permit any Restricted Subsidiary to issue any Preferred Stock (except
to the Company or to a Restricted Subsidiary) or permit any Person (other than
the Company or a Restricted Subsidiary) to hold any such Preferred Stock unless
the Company or such Restricted Subsidiary would be entitled to incur or assume
Indebtedness in compliance with Section 4.06 in an aggregate principal
amount equal to the aggregate liquidation value of the Preferred Stock to be issued.

 

35

 

Section 4.08.                             Limitation on Restricted Payments.

 

(a)           The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, make any
Restricted Payment if at the time of such Restricted Payment and immediately
after giving effect thereto:

 

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

 

(ii)           the Company could
not incur $1.00 of additional Indebtedness (other than Permitted Indebtedness)
in compliance with Section 4.06; or

 

(iii)          the aggregate
amount of Restricted Payments declared or made after the Issue Date (the amount
expended for such purposes, if other than in cash, being the fair market value
of such property as determined by the Board of Directors of the Company in good
faith) exceeds the sum of (A) 50% of the Company’s Consolidated Net Income
for the period (taken as one accounting period) commencing with the first full
fiscal quarter of the Company which commenced after the Issue Date to and including
the fiscal quarter of the Company ended immediately prior to the date of each
calculation (or in the event Consolidated Net Income is a deficit minus 100% of
such deficit), plus (B) 100% of the aggregate Net Proceeds and the fair
market value of securities or other property received by the Company from the
issue or sale, after the Issue Date (other than Net Proceeds to the extent such
Net Proceeds have been used to incur Indebtedness pursuant to clause (xi) of
the definition of Permitted Indebtedness), of Qualified Capital Stock (other
than Capital Stock of the Company issued to any Restricted Subsidiary of the
Company) of the Company or any Indebtedness or other securities of the Company
convertible into or exercisable or exchangeable for Qualified Capital Stock of
the Company which have been so converted or exercised or exchanged, as the case
may be, plus (C) without duplication, the sum of:  (1) the aggregate Net Proceeds and the
fair market value of securities or other property received by the Company with
respect to Investments (other than Permitted Investments) made subsequent to
the Issue Date whether through interest payments, principal payments, dividends
or other distributions or payments; (2) the aggregate Net Proceeds and the
fair market value of securities or other property received by the Company or
any of its Restricted Subsidiaries from the disposition of all or any portion
of such Investments (other than to a Subsidiary of the Company); and
(3) upon redesignation of an Unrestricted Subsidiary as a Restricted
Subsidiary, the fair market value of such Subsidiary; provided, however,
that the sum of clauses (1), (2) and (3) of this subclause (C) shall not
exceed the aggregate amount of all such Investments made subsequent to the
Issue Date; plus (D) $25,000,000, provided, that the amount of
Restricted Payments permitted by this clause (D) shall not be reduced by
any negative amounts that occur under clause (A) above.

 

(b)           Notwithstanding the foregoing, if no
other Default or Event of Default shall have occurred and be continuing or
shall occur as a consequence thereof, the provisions set forth in the
immediately preceding paragraph will not prohibit (A) payments with respect
to the purchase or redemption of Capital Stock or Subordinated Debt of the
Company made by exchange for, or out of the proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company or an Emerging
Market Subsidiary) of, Qualified Capital Stock; (B) payments in respect of
any redemption, repurchase, acquisition, cancellation or other retirement for
value of shares of Capital Stock of the Company or options, stock appreciation
or similar rights, in each case held by officers, directors or employees of the
Company or any of its Subsidiaries (or former officers, directors or employees)
(or their estates or beneficiaries under their estates) or by an employee
benefit plan, upon death, disability, retirement or termination of employment
of any such Person pursuant to the terms of any employee

 

36

 

benefit plan or any other
agreement under which shares of Capital Stock or stock appreciation or similar
rights were issued or acquired, and the purchase of shares of Capital Stock by
the Company or any Restricted Subsidiary for the purpose of contributing such
shares to any employee benefit plan (provided, that all such payments
and purchases referred to in this clause (B) may not exceed $2,000,000 in any
calendar year, with any unused amounts in any calendar year being carried over
to the next succeeding calendar year; provided that in no event shall
such amount exceed $4,000,000 in any single calendar year); (C) the
payment of any dividend within 60 days after the date of its declaration if
such dividend could have been paid on the date of its declaration in compliance
with the foregoing provisions; (D) any purchase or defeasance of
Subordinated Debt upon a Change of Control or an Asset Sale to the extent
required by this Indenture or other agreement or instrument pursuant to which
such Subordinated Debt was issued, but only if the Company (i) in the case
of a Change of Control, has complied with its obligations under Section 4.14 or
(ii) in the case of an Asset Sale, has applied the Asset Sale Proceeds
from such Asset Sale in accordance with Section 4.09; or (E) on or after
July 31, 2008, payments of regular cash dividends on the Convertible Preferred
Stock, payable quarterly in arrears, at the rate per annum set forth in the
certificate of designations relating to the Convertible Preferred Stock, as in
effect on the Issue Date; Each Restricted Payment made or paid in accordance
with this paragraph (b) shall be counted (without duplication) for purposes
of computing amounts utilized for Restricted Payments pursuant to clause
(a)(iii) of the immediately preceding paragraph.  No payments made or paid pursuant to clause (C) of this paragraph
shall be counted for purposes of computing amounts utilized for Restricted
Payments pursuant to clause (a)(iii) of the immediately preceding
paragraph to the extent such amount was already counted for such purposes.

 

Section 4.09.                             Limitation on Certain Asset Sales.

 

(a)           The Company will not, and will not
cause or permit any of its Restricted Subsidiaries to, consummate an Asset Sale
or series of related Asset Sales unless (i) the Company or such Restricted
Subsidiary, as the case may be, receives consideration at least equal to the
fair market value thereof on the date the Company or Restricted Subsidiary (as
applicable) entered into the agreement to consummate such Asset Sale (as
determined in good faith by the Company’s Board of Directors, and evidenced by
a Board Resolution of such Board of Directors); (ii) not less than 75% of
the consideration received by the Company or its Restricted Subsidiaries, as
the case may be, is in the form of cash or Cash Equivalents other than in the
case where the Company is exchanging all or substantially all of the assets or
one or more properties operated by the Company (including by way of the
transfer of capital stock) for all or substantially all of the assets (including
by way of the transfer of capital stock) constituting one or more properties
operated by another Person, provided that at least 75% of the consideration
received by the Company (50% with respect to Emerging Market Subsidiaries) in
such exchange, other than the properties, is in the form of cash or Cash
Equivalents; and (iii) the Asset Sale Proceeds received by the Company or
such Restricted Subsidiary are applied, at its option, (a) first, to the
extent the Company elects, or is required, to prepay, repay, reduce credit
commitments, or purchase or cash collateralize Indebtedness under any then
existing Senior Debt of the Company or any Indebtedness of any Restricted
Subsidiary (other than Indebtedness owed to the Company or an Affiliate of the
Company), in each case, within 270 days following the receipt of the Asset
Sale Proceeds from any Asset Sale; (b) second, to the extent of the
balance of Asset Sale Proceeds after application as described above, to the
extent the Company elects, to make an investment in assets (including Capital
Stock or other securities purchased in connection with the acquisition of
Capital Stock or property of another Person) used or useful in businesses
similar or ancillary to the business of the Company or Restricted Subsidiary as
conducted at the time of such Asset Sale, provided that such Investment
occurs or the Company or a Restricted Subsidiary enters into contractual
commitments to make such investment, subject only to customary conditions
(other than the obtaining of financing), on or prior to

 

37

 

the 270th day following receipt
of such Asset Sale Proceeds (the “Reinvestment Date”) and Asset Sales Proceeds
contractually committed are so applied within 360 days following the receipt of
such Asset Sale Proceeds; and/or (c) third, if on the Reinvestment Date
with respect to any Asset Sale, the Available Asset Sale Proceeds exceed
$10,000,000, the Company shall apply an amount equal to such Available Asset
Sale Proceeds to an offer to repurchase the Securities, at a purchase price in
cash equal to 100% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of repurchase (an “Excess Proceeds Offer”).

 

(b)           If the Company is required to make an
Excess Proceeds Offer, the Company shall mail, within 30 days following the
Reinvestment Date, a notice to the registered holders stating, among other
things:  (1) that such holders have
the right to require the Company to apply the Available Asset Sale Proceeds to
repurchase such Securities at a purchase price in cash equal to 100% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date
of purchase; (2) the purchase date (the “Purchase Date”), which shall be
no earlier than 30 days and not later than 60 days from the date such notice is
mailed; (3) the instructions, determined by the Company, that each holder
must follow in order to have such Securities repurchased; and (4) the
calculations used in determining the amount of Available Asset Sale Proceeds to
be applied to the repurchase of such Securities.  The Excess Proceeds Offer shall remain open for a period of 20
Business Days following its commencement (the “Offer Period”).  The notice, which shall govern the terms of
the Excess Proceeds Offer, shall also state:

 

(1)           that the Excess
Proceeds Offer is being made pursuant to this Section 4.09 and the length of
time the Excess Proceeds Offer will remain open;

 

(2)           the purchase price
and the Purchase Date;

 

(3)           that any Security
not tendered or accepted for payment will continue to accrue interest;

 

(4)           that any Security
accepted for payment pursuant to the Excess Proceeds Offer shall cease to
accrue interest on and after the Purchase Date;

 

(5)           that Holders
electing to have a Security purchased pursuant to any Excess Proceeds Offer
will be required to surrender the Security, with the form entitled “Option of
Holder to Elect Purchase” on the reverse of the Security completed, to the
Company, a depositary, if appointed by the Company, or a Paying Agent at the
address specified in the notice at least three Business Days before the
Purchase Date;

 

(6)           that Holders will be
entitled to withdraw their election if the Company, depositary or Paying Agent,
as the case may be, receives, not later than the expiration of the Offer Period,
a facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Security the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have the Security
purchased;

 

(7)           that, if the
aggregate principal amount of Securities surrendered by Holders exceeds the
Available Asset Sale Proceeds, the Company shall select the Securities to be purchased
on a pro rata basis (with such adjustments as may be deemed appropriate by the
Company so that only Securities in denominations of $5,000, or integral
multiples of $1,000, shall be purchased); and

 

38

 

(8)           that Holders whose
Securities were purchased only in part will be issued new Securities equal in
principal amount to the unpurchased portion of the Securities surrendered.

 

(c)           On or before the Purchase Date, the
Company shall, to the extent lawful, accept for payment, on a pro rata basis to
the extent necessary, Securities or portions thereof tendered pursuant to the
Excess Proceeds Offer, deposit with the Paying Agent U.S. legal tender
sufficient to pay the purchase price plus accrued interest, if any, on the
Securities to be purchased and deliver to the Trustee an Officers’ Certificate
stating that such Securities or portions thereof were accepted for payment by
the Company in accordance with the terms of this Section 4.09.  The Paying Agent shall promptly (but in any
case not later than 5 days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Security tendered
by such Holder and accepted by the Company for purchase, and the Company shall
promptly issue a new Security, and the Trustee shall authenticate and mail or
make available for delivery such new Security to such Holder equal in principal
amount to any unpurchased portion of the Security surrendered.  Any Security not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof.  The Company will publicly announce the
results of the Excess Proceeds Offer on the Purchase Date.  If an Excess Proceeds Offer is not fully
subscribed, the Company may retain that portion of the Available Asset Sale
Proceeds not required to repurchase Securities.

 

(d)           Notwithstanding the foregoing:

 

(i)            the Company and any
Restricted Subsidiary of the Company may, in the ordinary course of business,
convey, sell, lease, transfer or otherwise dispose of assets and license brand
names in the ordinary course of business;

 

(ii)           the Company may
convey, sell, lease, transfer or otherwise dispose of assets pursuant to and in
accordance with Section 5.01;

 

(iii)          the Company and its
Restricted Subsidiaries may (a) sell damaged, worn out or other obsolete
property in the ordinary course of business or other property no longer necessary
for the proper conduct of the business or (b) abandon such property if it
cannot, through reasonable efforts, be sold;

 

(iv)          the Company and its
Restricted Subsidiaries may consummate the Permitted Denver Disposition; and

 

(v)           the provisions of
this Section 4.09 shall apply only with respect to the amount by which the
aggregate Asset Sale Proceeds from all conveyances, sales, leases, transfers
and other dispositions of assets by the Company and its Restricted Subsidiaries
not otherwise permitted exceeds $10,000,000 in any fiscal year of the Company.

 

Section 4.10.                             Limitation on Transactions with
Affiliates.

 

(a)           The Company will not, and will not
cause or permit any of its Restricted Subsidiaries to, directly or indirectly,
enter into any transaction or series of related transactions (including,
without limitation, the sale, purchase, exchange or lease of assets, property
or services) with any Affiliate of the Company (an “Affiliate Transaction”) or
extend, renew, waive or otherwise modify the terms of any Affiliate Transaction
entered into prior to the Issue Date unless (i) such Affiliate Transaction
is between or among the Company and its Restricted Subsidiaries; or
(ii) such Affiliate Transaction is entered into in good faith and the
terms of such Affiliate Transaction are fair and reasonable to

 

39

 

the Company or such Restricted
Subsidiary, as the case may be.  In any
Affiliate Transaction involving an amount or having a value in excess of
$5,000,000 which is not permitted under clause (i) above, the Company must
obtain a Board Resolution of the Board of Directors determining that such
Affiliate Transaction complies with clause (ii) above.  In transactions with a value in excess of
$10,000,000 which are not permitted under clause (i) above, the
Company must obtain a written opinion as to the fairness of such a transaction,
from a financial point of view to the Company or such Restricted Subsidiary, as
the case may be, from an independent accounting, appraisal or investment
banking firm.

 

(b)           Notwithstanding the foregoing, the
provisions set forth in paragraph (a) above will not apply to:  (i) Restricted Payments that are not
prohibited under Section 4.08; (ii) transactions permitted by, and
complying with, the provisions described under Section 5.01;
(iii) transactions in the ordinary course of business (including expense
advances) between the Company or any of its Restricted Subsidiaries or
Unrestricted Subsidiaries, on the one hand, and any employee thereof, on the
other hand; (iv) employment contracts existing on the Issue Date and employment
contracts approved by the Board of Directors of the Company the terms of which
are consistent with past practice; (v) the granting and performance of
registration rights for shares of Capital Stock of the Company under a written
registration rights agreement approved by a majority of directors of the
Company that are disinterested with respect to such transaction;
(vi) transactions with Affiliates solely in their capacity as holders of
Indebtedness or Capital Stock of the Company or any of its Restricted
Subsidiaries or Unrestricted Subsidiaries, where such Affiliates are treated no
more favorably than holders of such Indebtedness or such Capital Stock
generally; (vii) any Permitted Investments; (viii) reasonable fees
and compensation paid to, and indemnity provided on behalf of, officers,
directors, employees or consultants of the Company or any Subsidiary of the Company
as determined in good faith by the Company’s Board of Directors;
(ix) transactions exclusively between or among the Company and any of its
Subsidiaries, provided such transactions are not otherwise prohibited by
this Indenture; (x) any agreement as in effect as of the Issue Date or any
amendment thereto or any transaction contemplated thereby (including pursuant
to any amendment thereto) or in any replacement agreement thereto so long as
any such amendment or replacement agreement is not more disadvantageous to the
holders of the Securities in any material respect than the original agreement as
in effect on the Issue Date; (xi) any payment, issuance of securities or
other payments, awards or grants, in cash or otherwise, pursuant to, or the
funding of, employment arrangements and Plans approved by the Board of
Directors; (xii) the grant of stock options or similar rights to employees
and directors of the Company and its Subsidiaries (or any adjustment or
amendment thereto) pursuant to Plans and employment contracts and stock option,
stock bonus, restricted stock and similar agreements approved by the Board of
Directors; (xiii) loans or advances to officers, directors or employees of
the Company or its Restricted Subsidiaries not in excess of $5,000,000 at any
one time outstanding; and (xiv) the payment to the Permitted Holders and
any of their Affiliates of annual management, consulting, monitoring and
advisory fees in an aggregate amount in any fiscal year not to exceed
$2.5 million and related reasonable expenses.

 

Section 4.11.                             Limitation on Other Senior
Subordinated Debt.

 

(a)           The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, incur, contingently
or otherwise, any Indebtedness that is both (i) subordinate in right of
payment to any Senior Debt of the Company or its Restricted Subsidiaries, as
the case may be, and (ii) senior in right of payment to the
Securities.  For purposes of this
Section 4.11, Indebtedness is deemed to be senior in right of payment to
the Securities if it is not explicitly subordinate in right of payment to
Senior Debt at least to the same extent as the Securities are subordinate to
Senior Debt.

 

40

 

(b)           For purposes of this
Section 4.11, the phrase “subordinate in right of payment” means debt
subordination only and not lien subordination, and accordingly,
(i) unsecured indebtedness shall not be deemed to be subordinate in right
of payment to secured indebtedness merely by virtue of the fact that it is
unsecured and (ii) junior liens, second liens and other contractual arrangements
that provide for priorities among holders of the same or different issues of
indebtedness with respect to any collateral or the proceeds of collateral shall
not constitute subordination in right of payment.

 

Section 4.12.                             Payments for Consent.

 

Neither the
Company nor any of its Subsidiaries shall, directly or indirectly, pay or cause
to be paid any consideration, whether by way of interest, fee or otherwise, to
any Holder of any Securities for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities
unless such consideration is offered to be paid or agreed to be paid to all
Holders of the Securities which so consent, waive or agree to amend in the time
frame set forth in solicitation documents relating to such consent, waiver or
agreement.

 

Section 4.13.                             Corporate Existence.

 

Subject to
Article 5 hereof, the Company shall do or cause to be done all things necessary
to preserve and keep in full force and effect its corporate existence, and
the corporate, partnership or other existence of each Restricted Subsidiary, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of each Restricted Subsidiary and the rights (charter
and statutory), licenses and franchises of the Company and its Restricted
Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Restricted Subsidiaries, if the
Board of Directors shall determine 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 4.14.                             Change of Control.

 

(a)           The Company shall notify the Trustee
within five Business Days after the Company knows, or reasonably should know,
of the occurrence of a Change of Control. 
Within 15 Business Days after the Company knows or reasonably should
know, of the occurrence of each Change of Control, the Company will make an
offer to purchase (the “Change of Control Offer”) the outstanding Securities at
a purchase price equal to 101% of the principal amount thereof plus any accrued
and unpaid interest thereon to the Change of Control Payment Date (such
applicable purchase price being hereinafter referred to as the “Change of
Control Purchase Price”) in accordance with the procedures set forth in this
Section 4.14.

 

(b)           Prior to the mailing of the notice
referred to above, but in any event within 30 days following the date on which
the Company has actual knowledge of a Change of Control, the Company covenants
that if the purchase of the Securities would violate or constitute a default
under any then outstanding Senior Debt, then the Company will, to the extent
needed to permit such purchase of Securities, either (i) repay in full all
Indebtedness on the basis required by such Senior Debt or (ii) obtain the
requisite consents under the agreements, documents and instrument(s) governing
such Senior Debt to permit the repurchase of the Securities as provided in
paragraph (a) above.  The Company
will first comply with the covenant in the preceding sentence before it will be
required to repurchase Securities pursuant to the provisions described in this
Section 4.14; provided that the Company’s failure to comply with the
covenant described in the preceding sentence will constitute an

 

41

 

Event of Default described in
clause (3) under Section 6.01 (after the notice and passage of time referred
to therein).

 

(c)           The Company will within 15 days after
it knows, or reasonably should know, of the Change of Control (i) cause a
notice of the Change of Control Offer to be sent at least once to the Dow Jones
News Service or similar business news service in the United States and
(ii) send by first-class mail, postage prepaid, to the Trustee and to each
Holder of the Securities, at the address appearing in the register maintained
by the Registrar of the Securities, a notice stating:

 

(i)            that the Change of
Control Offer is being made pursuant to this Section 4.14 and that all Securities
tendered will be accepted for payment, and otherwise subject to the terms and
conditions set forth herein;

 

(ii)           the Change of Control
Purchase Price and the purchase date (which shall be a Business Day no earlier
than 20 Business Days nor more than 60 Business Days from the date such notice
is mailed (the “Change of Control Payment Date”));

 

(iii)          that any Security
not tendered will continue to accrue interest;

 

(iv)          that, unless the
Company defaults in the payment of the Change of Control Purchase Price, any
Securities accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest after the Change of Control Payment Date;

 

(v)           that Holders
accepting the offer to have their Securities purchased pursuant to a Change of
Control Offer will be required to surrender the Securities to the Paying Agent
at the address specified in the notice prior to the close of business on the
Business Day preceding the Change of Control Payment Date;

 

(vi)          that Holders will be
entitled to withdraw their acceptance if the Paying Agent receives, not later
than the close of business on the third Business Day preceding the Change of Control
Payment Date, a facsimile transmission or letter setting forth the name of the
Holder, the title of the Securities delivered for purchase, the principal
amount of the Securities delivered for purchase, and a statement that such
Holder is withdrawing his election to have such Securities purchased;

 

(vii)         that Holders whose
Securities are being purchased only in part will be issued new Securities equal
in principal amount to the unpurchased portion of the Securities surrendered, provided
that each Security purchased and each such new Security issued shall be in an
original principal amount in denominations of $5,000 and integral multiples of
$1,000;

 

(viii)        a summary of any
other procedures that a holder must follow to accept a Change of Control Offer
or effect withdrawal of such acceptance; and

 

(ix)           the name and
address of the Paying Agent.

 

(d)           On the Change of Control Payment
Date, the Company shall, to the extent lawful, (i) accept for payment
Securities or portions thereof tendered pursuant to the Change of Control
Offer, (ii) deposit with the Paying Agent money sufficient to pay the purchase
price of all Securities or portions thereof so tendered and (iii) deliver
or cause to be delivered to the Trustee Securities so accepted together with an
Officers’ Certificate stating the Securities or portions thereof tendered to
the

 

42

 

Company.  The Paying Agent shall promptly mail to each
Holder of Securities so accepted payment in an amount equal to the purchase
price for such Securities, and the Company shall execute and issue, and the
Trustee shall promptly authenticate and mail to such Holder, a new Security
equal in principal amount to any unpurchased portion of the Securities
surrendered; provided that each such new Security shall be issued in an
original principal amount in denominations of $5,000 and integral multiples of
$1,000.

 

(e)           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 purchase of Securities pursuant to a Change
of Control Offer.

 

Section 4.15.                             Maintenance of Office or Agency.

 

The Company
shall maintain an office or agency where Securities may be surrendered for
registration of transfer or exchange or for presentation for payment and where
notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served.  The
Company shall give prompt 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 address of the Trustee as set forth in Section 11.02.

 

The Company
may also from time to time designate one or more other offices or agencies
where the Securities may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations.  The Company shall give prompt written notice
to the Trustee of such designation or rescission and of any change in the
location of any such other office or agency.

 

The Company
hereby initially designates the Corporate Trust Office of the Trustee set forth
in Section 11.02 as such office of the Company.

 

Section 4.16.                             Limitation on Liens.

 

The Company
will not, and will not permit any Restricted Subsidiary to, directly or
indirectly, create, incur, assume or suffer to exist any Lien (other than
Permitted Liens) upon any of its property or assets, whether now owned or
hereafter acquired, that secures Subordinated Debt or Pari Passu Debt on any
asset or property of the Company or any Restricted Subsidiary, or any income or
profits therefrom, or assign or convey any right to receive income therefrom,
unless:  (1) in the case of Liens
securing Indebtedness subordinated to the Securities, the Securities are
secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens; or (2) in all other cases, the Securities are
equally and ratably secured, except that the foregoing shall not apply to:  (i) Liens securing the Securities,
(ii) Liens securing Senior Debt and the related guarantees of such Senior
Debt; and (iii) Permitted Liens.

 

Section 4.17.                             Limitation on Emerging Market
Subsidiaries.

 

(i) The
Company or a Wholly-Owned Subsidiary must designate Persons at all times
constituting a majority of the directors (or members of the governing body) of,
and at all times have the power to direct the management and policies of, each
Emerging Market Subsidiary; (ii) the Company will not, and will not permit
any of its Subsidiaries to, directly or indirectly own any Capital

 

43

 

Stock or other ownership
interests in an Emerging Market Subsidiary unless the Company and its Subsidiaries
or Emerging Market Subsidiaries own, in the aggregate, Capital Stock or other
ownership interests such that the Emerging Market Subsidiary at all times
satisfies the conditions necessary for a Person to be a Subsidiary of the
Company under the definition of “Subsidiary” in this Indenture; (iii) the
Company will not permit any Emerging Market Subsidiary to incur Indebtedness or
issue Disqualified Capital Stock (other than Indebtedness or Disqualified
Capital Stock issued to or held by a Subsidiary of such Emerging Market
Subsidiary or to another Emerging Market Subsidiary or any Subsidiary of
another Emerging Market Subsidiary) if, immediately after giving effect thereto
(including the redemption, repurchase, repayment or retirement of Indebtedness
or Disqualified Capital Stock with the proceeds thereof), the aggregate outstanding
principal amount of Indebtedness and liquidation or redemption value (whichever
is the greater) of Disqualified Capital Stock (other than Capital Stock issued
to the Company or a Restricted Subsidiary and other than Indebtedness that constitutes
Invested Capital) of all Emerging Market Subsidiaries on a combined
consolidated basis would exceed the greater of (A) $50,000,000 and
(B) the product of (x) the greater of (A) the combined consolidated
stockholders’ equity (calculated in accordance with GAAP) of all Emerging
Market Subsidiaries and (B) the aggregate amount, determined on a combined
consolidated basis, of Invested Capital (whether by the Company or a Subsidiary
of the Company or any other Person or Persons) in all Emerging Market
Subsidiaries and (y) 2.5; (iv) the Company will not permit any Emerging
Market Subsidiary to directly or indirectly (A) make any material Investment or
(B) engage to any material extent in, any line or lines of business activity,
in each case, other than in a Related Business; and (v) each Emerging
Market Subsidiary will be deemed to be a Restricted Subsidiary for purposes of
Section 4.09 and the definitions as applicable thereto but only to the extent
such definitions are used therein and only to the extent not specifically
excluded therefrom.

 

Section 4.18.                             Limitation on Restricted
Subsidiary Dividends; Restriction on Sale and Issuance of Subsidiary
Stock.

 

The Company
may not, and may not permit any of its Restricted Subsidiaries to, directly or
indirectly, create or assume any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary of the Company to pay dividends or make
other distributions on the Capital Stock of any Restricted Subsidiary of the
Company or pay any obligation to the Company or any of its Restricted Subsidiaries
that is the parent of such Restricted Subsidiary or otherwise transfer assets
or make or pay loans or advances to the Company or any of its Restricted
Subsidiaries that is the parent of such Restricted Subsidiary (collectively,
“Payment Restrictions”), except Payment Restrictions existing under
(i) this Indenture and the Securities and Senior Notes or Refinancing Indebtedness
incurred to refinance the Securities or Senior Notes; provided, that
such encumbrances and restrictions are no more restrictive than those contained
in this Indenture, as the case may be, as in effect on the Issue Date,
(ii) Indebtedness incurred under clause (ii) of the definition of
“Permitted Indebtedness,” or Indebtedness (other than Permitted Indebtedness)
incurred under Section 4.06, provided, that such encumbrances and
restrictions are no more restrictive than those set forth in the Original
Credit Agreement as in effect on the Issue Date, (iii) Indebtedness
incurred under clause (xi) of the definition of Permitted Indebtedness or by
Foreign Restricted Subsidiaries in accordance with Section 4.06, provided,
that any such encumbrances or restrictions are ordinary and customary with
respect to the type of Indebtedness being incurred under the relevant
circum-stances and do not, in the good faith judgment of the Board of Directors
of the Company, materially impair the Company’s ability to make payments on the
Securities, (iv) Indebtedness existing on the Issue Date or Refinancing
Indebtedness incurred to refinance such existing Indebtedness; provided,
that such encumbrances and restrictions are no more restrictive than those
contained in the agreements governing Indebtedness existing on the Issue Date
as in effect on the Issue Date, (v) leasing agreements as in effect on the
Issue Date and

 

44

 

(vi) any agreement of a
Person acquired by the Company or a Restricted Subsidiary of the Company, which
restrictions existed at the time of acquisition, were not put in place in
anticipation of such acquisition and are not applicable to any Person or
property, other than the Person or any property of the Person so acquired.  Notwithstanding the foregoing,
(a) customary provisions restricting subletting or assignment of any lease
or license entered into the ordinary course of business consistent with past
practice and (b) Liens permitted under Section 4.16 on assets securing
Indebtedness incurred in accordance with Section 4.06 shall not in and of
themselves be considered a Payment Restriction.  The Company will not sell, and will not permit any of its Restricted
Subsidiaries to issue or sell, any shares of Capital Stock of any Restricted
Subsidiary of the Company to any Person other than the Company or a Restricted
Subsidiary of the Company; provided, that the Company and its Restricted
Subsidiaries may sell all (but not less than all) of the outstanding shares of
Capital Stock of any Restricted Subsidiary of the Company held by them in a
single transaction or a series of substantially contemporaneous transactions if
the provisions described under Section 4.09 are complied with.  Notwithstanding the foregoing, the issuance
or sale of shares of Capital Stock of any Restricted Subsidiary of the Company
shall not violate the provisions above if (i) such shares are issued or
sold in connection with (x) the formation or capitalization of a Restricted
Subsidiary which, at the time of such issuance or sale and after giving effect
thereto, is a Joint Venture Subsidiary or (y) a single transaction or a
series of substantially contemporaneous transactions whereby such Restricted
Subsidiary becomes a Restricted Subsidiary of the Company by reason of the
acquisition of securities or assets from another Person or (ii) such
shares constitute directors’ qualifying shares not exceeding one percent of the
outstanding Capital Stock of such Restricted Subsidiary.

 

ARTICLE 5

 

SUCCESSOR
CORPORATION

 

Section 5.01.                             Limitation on Consolidation,
Merger and Sale of Assets.

 

The Company
will not, in a single transaction or series of related transactions, consolidate
with or merge with or into, or sell, assign, transfer, lease, convey or
otherwise dispose of all or substantially all of its assets to, another Person
unless (i) either (1) the Company is the survivor of such merger,
consolidation, sale, assignment, transfer, lease, conveyance or other disposition,
or (2) the surviving or transferee Person is a corporation, partnership or
trust organized and existing under the laws of the United States, any state
thereof or the District of Columbia and such surviving or transferee Person
expressly assumes by supplemental indenture all the obligations of the Company
under the Securities and this Indenture; (ii) immediately after giving
effect to such transaction and the use of proceeds therefrom (on a pro forma
basis, including any Indebtedness incurred or anticipated to be incurred in
connection with such transaction), the Company or the surviving or transferee
Person is able to incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.06; (iii) immediately
after giving effect to such transaction (including any Indebtedness incurred or
anticipated to be incurred in connection with the transaction) no Default or
Event of Default has occurred and is continuing; and (iv) the Company has
delivered to the Trustee an Officers’ Certificate and Opinion of Counsel, each
stating that such consolidation, merger, sale, assignment, transfer, lease or
other disposition complies with this Indenture, that the surviving Person
agrees by supplemental Indenture to be bound thereby, and that all conditions
precedent in this Indenture relating to such transaction have been
satisfied.  For purposes of the
foregoing, the transfer (by lease, assignment, sale or otherwise, in a single
transaction or series of related transactions) of all or substantially all of
the properties and assets of one or more Restricted Subsidiaries the Capital
Stock of which constitutes all

 

45

 

or substantially all of the
properties and assets of the Company will be deemed to be the transfer of all
or substantially all of the properties and assets of the Company.  Notwithstanding the foregoing clauses
(ii) and (iii), but subject to clauses (i) and (iv) thereof,
(a) the Company may consolidate with, merge into or transfer all or part
of its properties and assets to any Restricted Subsidiary so long as all assets
of the Company immediately prior to such transaction are owned by such
Restricted Subsidiary immediately after the consummation thereof, and
(b) the Company may merge with an Affiliate that is a corporation that has
no material assets or liabilities and that was incorporated solely for the
purpose of (A) reincorporating the Company in the same or another jurisdiction
of the United States, any state thereof or the District of Columbia or (B) the
creation of a holding company of the Company.

 

Section 5.02.                             Successor Person Substituted.

 

Upon any
consolidation or merger, or any transfer of all or substantially all of the
assets of the Company in accordance with Section 5.01 above, the successor
corporation formed by such consolidation or into which the Company is merged or
to which such transfer is made shall succeed to, and be substituted for, and
may exercise every right and power of the Company under this Indenture with the
same effect as if such successor corporation had been named as the Company
herein, and thereafter the predecessor corporation shall be relieved of all
obligations and covenants under this Indenture and the Securities.

 

ARTICLE 6

 

DEFAULTS AND
REMEDIES

 

Section 6.01.                             Events of Default.

 

An “Event of
Default” occurs if

 

(1)           there is a failure
to pay the principal or premium, if any, on any Securities when such principal
becomes due and payable, at maturity, upon acceleration, redemption or
otherwise, whether or not such payment is prohibited by the provisions of
Article 10 hereof;

 

(2)           there is a failure
to pay interest on any Security when the same becomes due and payable and such
Default continues for a period of 30 days, whether or not such payment is
prohibited by the provisions of Article 10 hereof;

 

(3)           the Company defaults
in the observance or performance of any other covenant or agreement in the
Securities or this Indenture which default continues for a period of
60 days after the Company receives written notice thereof specifying the default
from the Trustee or the Holders of at least 25% in aggregate principal amount
of outstanding Securities;

 

(4)           there is a default
in the payment at final maturity of principal in an aggregate amount of
$15,000,000 or more with respect to any Indebtedness of the Company or any Restricted
Subsidiary thereof which default shall not be cured, waived or postponed
pursuant to an agreement with the holders of such Indebtedness within 60 days
after written notice, or the acceleration of any such Indebtedness aggregating
$15,000,000 or more which acceleration shall not be rescinded or annulled
within 30 days after written notice to the Company of such Default by the
Trustee or any Holder;

 

46

 

(5)           any final judgment
or judgments which can no longer be appealed for the payment of money in excess
of $15,000,000 shall be rendered against the Company or any Restricted
Subsidiary thereof, and shall not be discharged for a period of 60 consecutive
days during which a stay of enforcement of such judgment shall not be in
effect;

 

(6)           the Company or any
Significant Restricted Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

 

(A)          commences a voluntary
case,

 

(B)           consents to the
entry of an order for relief against it in an involuntary case,

 

(C)           consents to the
appointment of a Custodian of it or for all or substantially all of its
property,

 

(D)          makes a general
assignment for the benefit of its creditors, or

 

(E)           generally is not
paying its debts as they become due; or

 

(7)           a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)          is for relief against
the Company or any Significant Restricted Subsidiary in an involuntary case,

 

(B)           appoints a Custodian
of the Company or any Significant Restricted Subsidiary or for all or substantially
all of the property of the Company or any Significant Restricted Subsidiary, or

 

(C)           orders the
liquidation of the Company or any Significant Restricted Subsidiary,

 

and the order
or decree remains unstayed and in effect for 60 days.

 

The term
“Bankruptcy Law” means Title 11, U.S. Code or any similar Federal, state or foreign
law for the relief of debtors.  The term
“Custodian” means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.

 

The Trustee
may withhold notice to the Holders of the Securities of any Default (except in
payment of principal or premium, if any, or interest on the Securities) if the
Trustee considers it to be in the best interest of the Holders of the
Securities to do so.

 

Section 6.02.                             Acceleration.

 

Upon the
happening of any Event of Default specified in Section 6.01, the Trustee may,
and the Trustee upon the request of Holders of at least 25% in aggregate
principal amount of the Securities shall or the Holders of at least 25% in
aggregate principal amount of outstanding Securities may, declare the principal
of and accrued but unpaid interest, if any, on all the Securities to be due and
payable by notice in writing to the Company and the Trustee specifying the
respective Event of Default

 

47

 

and that it is a “notice of
acceleration” (the “Acceleration Notice”), and the same (i) shall (except
as provided in clause (ii) of this sentence) become immediately due
and payable or (ii) if there are any amounts outstanding under any of the
agreements, documents, and instruments constituting Designated Senior Debt,
will become due and payable upon the first to occur of an acceleration under
any of the agreements, documents, and instruments constituting Designated
Senior Debt or five Business Days after receipt by the Company and the
Representative of such Acceleration Notice (unless all Events of Default
specified in such Acceleration Notice have been cured or waived).  If an Event of Default described under
clauses (6) or (7) of Section 6.01 with respect to the Company occurs and is
continuing, then such amount will ipso facto become and be immediately due and
payable without any declaration or other act on the part of the Trustee or any
Holder of Securities; provided, however, that at any time after a
declaration of acceleration with respect to the Securities, the Holders of a
majority in principal amount of the Securities then outstanding (by notice to
the Trustee) may rescind and cancel such declaration and its consequences if
(i) the rescission would not conflict with any judgment or decree of a
court of competent jurisdiction, (ii) all existing Events of Default have
been cured or waived except nonpayment of principal or interest on the
Securities that has become due solely by such declaration of acceleration,
(iii) to the extent the payment of such interest is lawful, interest (at
the same rate specified in the Securities) on overdue installments of interest
and overdue principal which has become due otherwise than by such declaration
of acceleration has been paid, (iv) the Company has paid the Trustee its
reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances and (v) in the event of the cure or waiver of a
Default or Event of Default (with respect to the Company) of the type described
in Section 6.01(6) or (7), the Trustee has received an Officers’ Certificate
and an Opinion of Counsel that such Default or Event of Default has been cured
or waived.  The Holders of a majority in
principal amount of the Securities may waive any existing Default or Event of
Default under this Indenture, and its consequences, except a default in the
payment of the principal of or interest on any Securities.

 

Section 6.03.                             Other Remedies.

 

If an Event of
Default occurs and is continuing, the Trustee may (subject to Section 10
hereof) pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, or premium, if any, and interest on the
Securities or to enforce the performance of any provision of the Securities or
this Indenture and may take any necessary action requested of it as Trustee to
settle, compromise, adjust or otherwise conclude any proceedings to which it is
a party.

 

The Trustee
may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default.  No remedy is
exclusive of any other remedy.  All
available remedies are cumulative.

 

Section 6.04.                             Waiver of Past Defaults and Events
of Default.

 

Subject to
Sections 6.02, 6.07 and 8.02 hereof, the Holders of a majority in principal
amount of the Securities then outstanding have the right to waive any existing
Default or Event of Default or compliance with any provision of this Indenture
or the Securities.  Upon any such
waiver, such Default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

 

48

 

Section 6.05.                             Control by Majority.

 

The Holders of
a majority in principal amount of the Securities then outstanding may direct
the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee by this Indenture.  The Trustee,
however, may refuse to follow any direction that conflicts with law or this
Indenture or that the Trustee determines may be unduly prejudicial to the rights
of another Securityholder not taking part in such direction, and the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action so directed may not
lawfully be taken or if the Trustee in good faith shall, by a Responsible
Officer, determine that the proceedings so directed may involve it in personal
liability; provided that the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

 

Section 6.06.                             Limitation on Suits.

 

Subject to
Section 6.07 below, a Securityholder may not institute any proceeding or
pursue any remedy with respect to this Indenture or the Securities unless:

 

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

 

(2)           the Holders of at
least 25% in aggregate principal amount of the Securities then outstanding make
a written request to the Trustee to pursue the remedy;

 

(3)           such Holder or
Holders offer to the Trustee indemnity reasonably satisfactory to the Trustee
against any loss, liability or expense;

 

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

 

(5)           no direction
inconsistent with such written request has been given to the Trustee during
such 60 day period by the Holders of a majority in aggregate principal
amount of the Securities then outstanding.

 

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

 

Section 6.07.                             Rights of Holders To Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Security to
receive payment of principal of, or premium, if any, and interest of the
Security on or after the respective due dates expressed in the Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is (subject to Section 10 hereof) absolute and unconditional and shall
not be impaired or affected without the consent of such Holder.

 

Section 6.08.                             Collection Suit by Trustee.

 

If an Event of
Default in payment of principal, premium or interest specified in Section 6.01(1)
or (2) hereof occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company (or any other
obligor on the Securities) for the

 

49

 

whole amount of unpaid
principal and accrued interest remaining unpaid, together with interest on
overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate then
borne by the Securities, and such further amounts as shall be sufficient to
cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 6.09.                             Trustee May File Proofs of Claim.

 

The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim
for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Securityholders allowed in any
judicial proceedings relative to the Company (or any other obligor upon the
Securities), its creditors or its property and shall be entitled and empowered
to collect and receive any monies or other securities or property payable or
deliverable upon the conversion or exchange of the Securities or upon any such
claims and to distribute the same after deduction of its charges and expenses
to the extent that any such charges and expenses are not paid out of the estate
in any such proceedings and any custodian in any such judicial proceeding is
hereby authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof.

 

Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Securityholder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights
of any Holder thereof, or to authorize the Trustee to vote in respect of the
claim of any Securityholder in any such proceeding.

 

Section 6.10.                             Priorities.

 

If the Trustee
collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

 

FIRST:  to the Trustee for amounts due under
Section 7.07 hereof;

 

SECOND:  to Securityholders for amounts due and
unpaid on the Securities for principal, premium, if any, and interest as to
each, ratably, without preference or priority of any kind, according to the
amounts due and payable on the Securities; and

 

THIRD:  to the Company.

 

The Trustee
may fix a record date and payment date for any payment to Securityholders
pursuant to this Section 6.10.

 

Section 6.11.                             Undertaking for Costs.

 

In any suit
for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court
in its discretion may require the filing by any party litigant in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion
may assess reasonable costs, including reasonable attorneys’ fees and expenses,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or

 

50

 

defenses made by the party
litigant.  This Section 6.11 does
not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07
hereof or a suit by Holders of more than 10% in principal amount of the
Securities then outstanding.

 

ARTICLE 7

 

TRUSTEE

 

Section 7.01.                             Duties of Trustee.

 

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

 

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

 

(1)           The Trustee
undertakes to perform such duties and only such duties that are specifically
set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee.

 

(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; but in the case of any such certificates or opinions which
by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture (but need not
confirm or investigate the accuracy of mathematical calculations or other facts
stated therein).

 

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

 

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

 

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

 

(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 Sections 6.02
and 6.05 hereof.

 

(d)           No provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity satisfactory to it against such risk or liability is not reasonably
assured to it.

 

51

 

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

 

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

 

Section 7.02.                             Rights of Trustee.

 

Subject to
Section 7.01 hereof:

 

(1)           The Trustee may
conclusively rely and shall be protected in acting or refraining from acting on
any document reasonably 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.

 

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

 

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

 

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

 

(5)           The Trustee shall be
under no obligation to exercise any of the rights or powers vested in it by
this Indenture at the request or direction of any of the Securityholders pursuant
to this Indenture, unless such Securityholders shall have offered to the
Trustee reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction.

 

(6)           Whenever in the
administration of this Indenture the Trustee shall deem it desirable that a
matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence be herein specifically prescribed)
may, in the absence of bad faith on its part, conclusively rely upon an
Officers’ Certificate.

 

(7)           Any request or
direction of the Company mentioned herein shall be sufficiently evidenced by a
Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution.

 

(8)           In no event shall
the Trustee be responsible or liable for special, indirect, or consequential
loss or damage of any kind whatsoever (including, but not limited to, loss of
profit) irrespective of whether the Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(9)           The Trustee shall
not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written

 

52

 

notice of any
event which is in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Securities and this
Indenture.

 

(10)         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.

 

(11)         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 person authorized to sign an Officers’ Certificate, including
any person specified as so authorized in any such certificate previously
delivered and not superseded.

 

Section 7.03.                             Individual Rights of Trustee.

 

The Trustee in
its individual or any other capacity may become the owner or pledgee of Securities
and may make loans to, accept deposits from, perform services for or otherwise
deal with the Company, or any Affiliates thereof, with the same rights it would
have if it were not Trustee.  Any Agent
may do the same with like rights.  The
Trustee, however, shall be subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04.                             Trustee’s Disclaimer.

 

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

 

Section 7.05.                             Notice of Defaults.

 

If a Default
occurs and is continuing and if it is known to the Trustee, the Trustee shall
mail to each Securityholder notice of the Default within 90 days after it
occurs.  Except in the case of a Default
in payment of the principal of, or premium, if any, or interest on any Security
the Trustee may withhold the notice if and so long as the board of directors of
the Trustee, the executive committee or any trust committee of such board
and/or any of its Trust Officers in good faith determine(s) that withholding
the notice is in the interests of the Securityholders.

 

Section 7.06.                             Reports by Trustee to Holders.

 

If required by
TIA § 313(a), within 60 days after May 15 of any year, commencing the May
15 following the date of this Indenture, the Trustee shall mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA
§ 313(a).  The Trustee also shall
comply with TIA § 313(b)(2).  The
Trustee shall also transmit by mail all reports as required by TIA
§ 313(c) and TIA § 313(d).

 

Reports
pursuant to this Section 7.06 shall be transmitted by mail:

 

53

 

(1)           to all registered
Holders of Securities, as the names and addresses of such Holders appear on the
Registrar’s books; and

 

(2)           to such Holder of
Securities as have, within the two years preceding such transmission, filed
their names and addresses with the Trustee for that purpose.

 

A copy of each
report at the time of its mailing to Securityholders shall be filed with the
SEC and each stock exchange on which the Securities are listed.  The Company shall promptly notify the
Trustee when the Securities are listed on any securities exchange.

 

Section 7.07.                             Compensation and Indemnity.

 

The Company
shall pay to the Trustee from time to time such compensation as shall be agreed
in writing between the Company and the Trustee for its services hereunder
(which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust).  The Company shall reimburse the Trustee upon request for all
reasonable disbursements, expenses and advances incurred or made by it in
connection with its duties under this Indenture, including the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Company
shall indemnify each of the Trustee, any predecessor Trustee for, and hold them
harmless against, any and all loss, damage, claim, liability or reasonable
expense, including taxes (other than taxes based on the income of the Trustee)
incurred by it in connection with the acceptance or performance of its duties
under this Indenture including the reasonable costs and expenses of entering
against the Company (including this Section 7.07) and of defending itself
against any claim (whether asserted by any Securityholder or the Company) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder (including, without limitation, settlement costs).  The Trustee shall notify the Company in writing
promptly of any claim asserted against the Trustee for which it may seek
indemnity.  However, the failure by the
Trustee to so notify the Company shall not relieve the Company of its
obligations hereunder except to the extent the Company is prejudiced thereby.

 

Notwithstanding
the foregoing, the Company need not reimburse the Trustee for any expense or indemnify
it against any loss or liability incurred by the Trustee through its negligence
or bad faith.  To secure the payment
obligations of the Company in this Section 7.07, the Trustee shall have a
lien prior to the Securities on all money or property held or collected by the
Trustee except such money or property held in trust to pay principal of and
interest on particular Securities.  The
Trustee’s right to receive payment of any amounts due under this
Section 7.07 shall not be subordinate to any other liability or
indebtedness of the Company (even though the Securities may be so subordinated)
and the Securities shall be subordinate to the Trustee’s right to receive such
payment.  The obligations of the Company
under this Section 7.07 to compensate and indemnify the Trustee and each
predecessor Trustee and to pay or reimburse the Trustee and each predecessor
Trustee for expenses, disbursements and advances shall survive the resignation
or removal of any Trustee, any rejection or termination under any Bankruptcy
Law and the satisfaction and discharge of this Indenture.

 

When the
Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(6) or (7) hereof occurs, the expenses and the compensation
for the services are intended to constitute expenses of administration under
any Bankruptcy Law.

 

For purposes
of this Section 7.07, the term “Trustee” shall include any trustee appointed
pursuant to Article 9.

 

54

Section 7.08.                             Replacement of Trustee.

 

The Trustee may resign by so notifying the Company in writing.  The Holders of a majority in principal
amount of the outstanding Securities may remove the Trustee by notifying the removed
Trustee in writing and may appoint a successor Trustee with the Company’s
written consent which consent shall not be unreasonably withheld.  The Company may remove the Trustee at its
election if:

 

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

 

(2)                                  the
Trustee is adjudged a bankrupt or an insolvent under any Bankruptcy Law;

 

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

 

(4)                                  the
Trustee otherwise becomes incapable of acting; or

 

(5)                                  a
successor corporation becomes successor Trustee pursuant to Section 7.09
below.

 

If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

 

If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or
the Holders of a majority in principal amount of the outstanding Securities may
petition any court of competent jurisdiction at the expense of the Company for
the appointment of a successor Trustee.

 

If the Trustee fails to comply with Section 7.10 hereof, any
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Promptly following such delivery, the
retiring Trustee shall, subject to its rights under Section 7.07 hereof,
transfer all property held by it as Trustee to the successor Trustee, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under
this Indenture.  A successor Trustee
shall mail notice of its succession to each Securityholder.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company’s obligations under
Section 7.07 hereof shall continue for the benefit of the retiring
Trustee.

 

Section 7.09.                             Successor Trustee by
Consolidation, Merger or Conversion.

 

If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust assets to, another corporation,
subject to Section 7.10 hereof, the successor corporation without any
further act shall be the successor Trustee.

 

55

 

Section 7.10.                             Eligibility; Disqualification.

 

This Indenture shall always have a Trustee who satisfies the
requirements of TIA § 310(a)(1) and (2) in every respect.  The Trustee shall have a combined capital
and surplus of at least $100,000,000 as set forth in its most recent published
annual report of condition.  The Trustee
shall comply with TIA § 310(b), including the provision in
§ 310(b)(1); provided, however, that there shall be excluded
from the operation of TIA § 310(b)(1) any indenture or indentures under
which other securities, or certificates of interest or participation in other
securities, of the Company are outstanding, if the requirements for such
exclusion set forth in TIA § 310(b)(1) are met.

 

Section 7.11.                             Preferential Collection of
Claims Against Company.

 

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

 

ARTICLE 8

 

AMENDMENTS, SUPPLEMENTS AND WAIVERS

 

Section 8.01.                             Without Consent of Holders.

 

The Company, when authorized by a Board Resolution, and the Trustee may
amend or supplement this Indenture or the Securities without notice to or
consent of any Securityholder:

 

(1)                                  to
comply with Section 5.01 hereof;

 

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

 

(3)                                  to
comply with any requirements of the SEC under the TIA;

 

(4)                                  to
cure any ambiguity, defect or inconsistency, or to make any other change that
does not materially and adversely affect the rights of any Securityholder; or

 

(5)                                  to
make any other change that does not materially and adversely affect the rights
of any Securityholder.

 

The Trustee is hereby authorized to join with the Company in the
execution of any supplemental indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations
which may be therein contained; provided, however, that the
Company has delivered to the Trustee an Officers’ Certificate stating that such
amendment or supplement complies with the provisions of this Section 8.01
and; provided, further, that the Trustee shall not be obligated
to enter into any such supplemental indenture which adversely affects its own
rights, duties or immunities under this Indenture.

 

56

 

Section 8.02.                             With Consent of Holders.

 

The Company and the Trustee may modify or supplement this Indenture or
the Securities with the written consent of the Holders of not less than a
majority in aggregate principal amount of the outstanding Securities without
notice to any Securityholder.  The
Holders of not less than a majority in aggregate principal amount of the
outstanding Securities may waive compliance in a particular instance by the
Company with any provision of this Indenture or the Securities without notice
to any Securityholder.  Without the
consent of each Securityholder affected, however, an amendment, supplement or
waiver, including a waiver pursuant to Section 6.04, may not:

 

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

 

(2)                                  reduce
the rate of or change the time for payment of interest on any Security;

 

(3)                                  reduce
the principal of or premium on or change the stated maturity of any Security;

 

(4)                                  make
any Security payable in money other than that stated in the Security or change
the place of payment from New York, New York;

 

(5)                                  change
the amount or time of any payment required by the Securities or reduce the
premium payable upon any redemption of the Securities or change the time before
which no redemption may be made (other than provisions relating to
Section 4.09 or Section 4.14);

 

(6)                                  after
the time the Company is obligated to purchase Securities hereunder, amend,
change or modify in any material respect the obligation of the Company to make
and consummate a Change of Control Offer in the event of a Change of Control or
make and consummate an Excess Proceeds Offer with respect to any Asset Sale
that has been consummated or, after such Change of Control has occurred or such
Asset Sale has been consummated, modify any of the provisions or definitions
with respect thereto;

 

(7)                                  waive
a default in the payment of the principal of, or interest on, or redemption payment
with respect to, any Security (including any obligation to make a Change of
Control Offer or, after the Company’s obligation to purchase Securities arises
thereunder, an Excess Proceeds Offer or modify any of the provisions or
definitions with respect to such offers);

 

(8)                                  make
any changes in Sections 6.04 or 6.07 hereof or this sentence of
Section 8.02;

 

(9)                                  affect
the ranking of the Securities in a manner adverse to the Holders; or

 

(10)                            take
any other action otherwise prohibited by this Indenture to be taken without the
consent of each Holder affected thereby.

 

After an amendment, supplement or waiver under this Section 8.02
becomes effective, the Company shall mail to the Holders a notice briefly
describing the amendment, supplement or waiver.

 

57

 

Upon receipt of a Company Request, accompanied by a Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
receipt by the Trustee of evidence reasonably satisfactory to the Trustee of
the consent of the Securityholders as aforesaid and upon receipt by the Trustee
of the documents described in Section 8.06 hereof, the Trustee shall join
with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such supplemental indenture.

 

It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

 

Section 8.03.                             Compliance with Trust Indenture Act.

 

Every amendment to or supplement of this Indenture or the Securities
shall comply with the TIA as then in effect.

 

Section 8.04.                             Revocation and Effect of Consents.

 

Until an amendment, supplement, waiver or other action becomes
effective, a consent to it by a Holder of a Security is a continuing consent
conclusive and binding upon such Holder and every subsequent Holder of the same
Security or portion thereof, and of any Security issued upon the transfer
thereof or in exchange therefor or in place thereof, even if notation of the
consent is not made on any such Security. 
Any such Holder or subsequent Holder, however, may revoke the consent as
to his Security or portion of a Security, if the Trustee receives the notice of
revocation before the date the amendment, supplement, waiver or other action becomes
effective.

 

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.  If a record date
is fixed, then, notwithstanding the preceding paragraph, those Persons who were
Holders at such record date (or their duly designated proxies), and only such
Persons, shall be entitled to consent to such amendment, supplement, or waiver
or 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 90 days after
such record date unless the consent of the requisite number of Holders has been
obtained.

 

After an amendment, supplement, waiver or other action becomes
effective, it shall bind every Securityholder, unless it makes a change
described in any of clauses (1) through (9) of Section 8.02 hereof.  In that case the amendment, supplement,
waiver or other action shall bind each Holder of a Security who has consented
to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

 

Section 8.05.                             Notation on or Exchange of
Securities.

 

If an amendment, supplement, or waiver changes the terms of a Security,
the Trustee may request the Holder of the Security to deliver it to the
Trustee.  In such case, the Trustee
shall place an appropriate notation on the Security about the changed terms and
return it to the Holder.  Alternatively,
if the Company or the Trustee so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new security that
reflects the changed terms.  Failure to
make 

 

58

 

the appropriate notation or issue a new Security shall not affect the
validity and effect of such amendment supplement or waiver.

 

Section 8.06.                             Trustee To Sign Amendments, etc.

 

The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article 8 if the amendment, supplement or waiver does not
adversely affect the rights, duties, liabilities or immunities of the
Trustee.  If it does, the Trustee may,
but need not, sign it.  In signing or
refusing to sign such amendment, supplement or waiver the Trustee shall be entitled
to receive and, subject to (and to the extent provided in) Section 7.01
hereof, shall be fully protected in relying upon an Officers’ Certificate and
an Opinion of Counsel stating that such amendment, supplement or waiver is
authorized or permitted by this Indenture and that such amendment, supplement
or waiver constitutes the legal, valid and binding obligation of the Company,
enforceable in accordance with its terms (subject to customary enforceability
exceptions).  The Company may not sign
an amendment or supplement until the Board of Directors of the Company approves
it.  In signing any amendment, supplement
or waiver, the Trustee shall be entitled to receive an indemnity reasonably satisfactory
to it.

 

ARTICLE 9

 

DISCHARGE OF INDENTURE; DEFEASANCE

 

Section 9.01.                             Discharge of Indenture.

 

The Company may terminate its obligations under the Securities and this
Indenture, except the obligations referred to in the last paragraph of this Section 9.01,
if (A)(i) there shall have been cancelled by the Trustee or delivered to
the Trustee for cancellation all Securities theretofore authenticated and
delivered (other than any Securities that are asserted to have been destroyed,
lost or stolen and that shall have been replaced as provided in
Section 2.07 hereof) or (ii) all Securities not theretofore delivered
to the Trustee for cancellation (1) have become due and payable or (2) will become
due and payable within one year, or are to be called for redemption within one
year, under arrangements reasonably satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at the expense, of the
Company, 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 Securities not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on the Securities
to the date of maturity or redemption, as the case may be, 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;
(B) the Company has paid all sums payable by it hereunder or deposited all
required sums with the Trustee; and (C) 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.

 

After such delivery the Trustee upon request shall acknowledge in
writing the discharge of the Company’s obligations under the Securities and
this Indenture except for those surviving obligations specified below.

 

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company in Sections 7.07, 9.05 and 9.06 hereof shall
survive.

 

59

 

Section 9.02.                             Legal Defeasance.

 

The Company may at its option, by Board Resolution, be discharged from
its obligations with respect to the Securities on the date the conditions set
forth in Section 9.04 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 Securities and to have
satisfied all its other obligations under such Securities and this Indenture
insofar as such Securities are concerned (and the Trustee, at the expense of
the Company, shall, subject to Section 9.06 hereof, execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder:  (A) the rights of Holders of outstanding
Securities to receive solely from the trust funds described in
Section 9.04 hereof and as more fully set forth in such Section, payments
in respect of the principal of, premium, if any, and interest on such
Securities when such payments are due, (B) the Company’s obligations with
respect to such Securities under Sections 2.02, 2.03, 2.04, 2.05, 2.06,
2.07, 2.08 and 4.15 hereof, (C) the rights, powers, trusts, duties, and
immunities of the Trustee hereunder (including claims of, or payments to, the
Trustee under or pursuant to Section 7.07 hereof) and (D) this
Article 9.  Subject to compliance
with this Article 9, the Company may exercise its option under this
Section 9.02 with respect to the Securities notwithstanding the prior
exercise of its option under Section 9.03 below with respect to the Securities.

 

Section 9.03.                             Covenant Defeasance.

 

At the option of the Company, pursuant to a Board Resolution, the
Company shall be released from its obligations under Sections 4.02 through
4.18 hereof, inclusive, and clause (ii) of Section 5.01 hereof with
respect to the outstanding Securities on and after the date the conditions set
forth in Section 9.04 hereof are satisfied (hereinafter, “Covenant
Defeasance”).  For this purpose, such
Covenant Defeasance means that 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 specified Section or portion thereof, whether directly or
indirectly by reason of any reference elsewhere herein to any such specified
Section or portion thereof or by reason of any reference in any such
specified Section or portion thereof to any other provision herein or in
any other document, but the remainder of this Indenture and the Securities
shall be unaffected thereby.

 

Section 9.04.                             Conditions to Defeasance or
Covenant Defeasance.

 

The following shall be the conditions to application of
Section 9.02 or Section 9.03 hereof to the outstanding Securities:

 

(1)                                  the
Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee satisfying the requirements of Section 7.10 hereof who
shall agree to comply with the provisions of this Article 9 applicable to
it) as funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of
the Securities, (A) money in an amount, or (B) U.S. Government
Obligations which through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later than the due
date of any payment, money in an amount, or (C) a combination thereof,
sufficient, in the opinion of a nationally-recognized firm of independent
public accountants expressed in a written certification thereof delivered to
the Trustee, to pay and discharge, and which shall be applied by the Trustee
(or other qualifying trustee) to pay and discharge, the principal of, premium,
if any, and accrued interest on the outstanding Securities at the maturity date
of such principal, premium,

 

60

 

if any, or interest, or on dates for payment and redemption of such
principal, premium, if any, and interest selected in accordance with the terms
of this Indenture and of the Securities;

 

(2)                                  no
Event of Default or Default with respect to the Securities shall have occurred
and be continuing on the date of such deposit, or shall have occurred and be
continuing at any time during the period ending on the 91st day after the date
of such deposit or, if longer, ending on the day following the expiration of
the longest preference period under any Bankruptcy Law applicable to the
Company in respect of such deposit (it being understood that this condition
shall not be deemed satisfied until the expiration of such period);

 

(3)                                  such
Legal Defeasance or Covenant Defeasance shall not cause the Trustee to have a
conflicting interest for purposes of the TIA with respect to any securities of
the Company;

 

(4)                                  such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute default under any other agreement or instrument to
which the Company is a party or by which it is bound;

 

(5)                                  the
Company shall have delivered to the Trustee an Opinion of Counsel stating that,
as a result of such Legal Defeasance or Covenant Defeasance, neither the trust
nor the Trustee will be required to register as an investment company under the
Investment Company Act of 1940, as amended;

 

(6)                                  in
the case of an election under Section 9.02 above, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (i) the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling to the effect that or (ii) there has been a change in any
applicable Federal income tax law with the effect that, and such opinion shall
confirm that, the Holders of the outstanding Securities or persons in their
positions will not recognize income, gain or loss for Federal income tax purposes
solely as a result of such Legal Defeasance and will be subject to Federal
income tax on the same amount and in the same amounts, in the same manner,
including as a result of prepayment, and at the same times as would have been
the case if such Legal Defeasance had not occurred;

 

(7)                                  in
the case of an election under Section 9.03 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders
of the outstanding Securities will not recognize income, gain or loss for
Federal income tax purposes as a result of such Covenant Defeasance and will be
subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Covenant Defeasance had not
occurred;

 

(8)                                  the
Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to either the Legal Defeasance under Section 9.02 above or the
Covenant Defeasance under Section 9.03 hereof (as the case may be) have
been complied with;

 

(9)                                  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 defeating, hindering, delaying or defrauding any creditors of the Company or
others; and

 

61

 

(10)                            the
Company shall have paid or duly provided for payment under terms mutually
satisfactory to the Company and the Trustee all amounts then due to the Trustee
pursuant to Section 7.07 hereof.

 

Notwithstanding the foregoing, the opinion of counsel required by
clause (6) above with respect to a defeasance need not be delivered if all
Securities not theretofore delivered to the Trustee for cancellation
(A) have become due and payable or (B) will 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.

 

Section 9.05.                             Deposited Money and U.S.
Government Obligations To Be Held in Trust; Other Miscellaneous
Provisions.

 

All money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee pursuant to Section 9.04 hereof in
respect of the outstanding Securities shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent as the
Trustee may determine, to the Holders of such Securities, of all sums due and
to become due thereon in respect of principal, premium, if any, and accrued
interest, but such money need not be segregated from other funds except to the
extent required by law.

 

The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 9.04 hereof or the principal, premium, if
any, and interest received in respect thereof other than any such tax, fee or
other charge which by law is for the account of the Holders of the outstanding
Securities.

 

Anything in this Article 9 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 9.04 hereof which, in the opinion of a nationally-recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

 

Section 9.06.                             Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with Section 9.01, 9.02 or 9.03
hereof by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company’s obligations under this Indenture
and the Securities shall be revived and reinstated as though no deposit had
occurred pursuant to this Article 9 until such time as the Trustee or
Paying Agent is permitted to apply all such money or U.S. Government Obligations
in accordance with Section 9.01 hereof; provided, however,
that if the Company has made any payment of principal of, premium, if any, or
accrued interest on any Securities because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.

 

62

 

Section 9.07.                             Moneys Held by Paying Agent.

 

In connection with the satisfaction and discharge of this Indenture,
all moneys then held by any Paying Agent under the provisions of this Indenture
shall, upon demand of the Company, be paid to the Trustee, or if sufficient
moneys have been deposited pursuant to Section 9.01 hereof, to the Company
and thereupon such Paying Agent shall be released from all further liability
with respect to such moneys.

 

Section 9.08.                             Moneys Held by Trustee.

 

Any moneys deposited with the Trustee or any Paying Agent or then held
by the Company in trust for the payment of the principal of, or premium, if
any, or interest on any Security that are not applied but remain unclaimed by
the Holder of such Security for two years after the date upon which the
principal of, or premium, if any, or interest on such Security shall have
respectively become due and payable shall be repaid to the Company upon Company
Request, or if such moneys are then held by the Company in trust, such moneys
shall be released from such trust; and the Holder of such Security entitled to
receive such payment shall thereafter, as an unsecured general creditor, look
only to the Company for the payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money shall thereupon cease; provided,
however, that the Trustee or any such Paying Agent, before being
required to make any such repayment, may, at the expense of the Company, either
mail to each Securityholder affected, at the address shown in the register of
the Securities maintained by the Registrar pursuant to Section 2.03
hereof, or cause to be published once a week for two successive weeks, in a
newspaper published in the English language, customarily published each
Business Day and of general circulation in the City of New York, New York, a
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such mailing or
publication, any unclaimed balance of such moneys then remaining will be repaid
to the Company.  After payment to the
Company or the release of any money held in trust by the Company, Securityholders
entitled to the money must look only to the Company for payment as general
creditors unless applicable abandoned property law designates another person.

 

ARTICLE 10

 

SUBORDINATION OF SECURITIES

 

Section 10.01.                       Securities Subordinate to Senior
Debt.

 

The Company covenants and agrees, and each Holder of Securities, by its
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article 10, the Indebtedness
represented by the Securities and the payment of the principal of, premium, if
any, and interest on the Securities and all other Obligations under the
Securities, this Indenture, and the Registration Rights Agreement are hereby
expressly made subordinate and subject in right of payment as provided in this
Article 10 to the prior indefeasible payment in full in cash of all
existing and future Senior Debt.

 

This Article 10 shall constitute a continuing offer to all Persons
who, in reliance upon such provisions, become holders of or continue to hold
Senior Debt; and such provisions are made for the benefit of the holders of
Senior Debt; and such holders are made obligees hereunder and they or each of
them may directly enforce such provisions.

 

63

 

Section 10.02.                       Payment Over of Proceeds upon
Dissolution, etc.

 

In the event of (a) any insolvency or bankruptcy case or
proceeding, or any receivership, liquidation, arrangement, reorganization or
other similar case or proceeding in connection therewith, relative to the
Company or to its creditors, as such, or to its assets, whether voluntary or
involuntary, or (b) any liquidation, dissolution or other winding-up of
the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any general assignment for the benefit of
creditors or other marshaling of assets or liabilities of the Company (except
in connection with the merger or consolidation of the Company or its
liquidation or dissolution following the transfer of substantially all of its
assets, upon the terms and conditions permitted under the circumstances
described under Section 5.01) (all and each of the foregoing being
referred to herein individually as a “Bankruptcy Proceeding” and collectively
as “Bankruptcy Proceedings”) the holders of Senior Debt will be entitled to receive
indefeasible payment and satisfaction in full in cash of all amounts due or
owing on or in respect of all Senior Debt before the holders of the Securities
are entitled to receive or retain any payment or distribution of any kind on
account of the Securities, or for or on account of the purchase or redemption
or other acquisition of Securities or on account of any Obligations under the
Securities, the Registration Rights Agreement or this Indenture.

 

In the event that, notwithstanding the foregoing, the Trustee or any
holder of Securities receives any payment or distribution of assets or
securities of the Company of any kind or character or any other payment or
distribution on account of the Securities, or for or on account of the purchase
or redemption or other acquisition of Securities or account of any Obligations
under the Securities, the Registration Rights Agreement or this Indenture,
whether in cash, property or securities, including, without limitation, by way
of set-off or otherwise, in respect of the Securities, or in respect of the
purchase or redemption or other acquisition of Securities, or in respect of any
Obligations under the Securities, the Registration Rights Agreement or this
Indenture before all Senior Debt is indefeasibly paid and satisfied in full in
cash, then such payment or distribution will be held by the recipient in trust
for the benefit of holders of Senior Debt and will be immediately paid over or
delivered by the Trustee or such holders of Securities to the holders of Senior
Debt or their representative or representatives to the extent necessary to make
payment in full in cash of all Senior Debt remaining unpaid, after giving
effect to any concurrent payment or distribution, or provision therefor, to or
for the holders of Senior Debt.

 

The consolidation of the Company with, or the merger of the Company with
or into, another Person or the liquidation or dissolution of the Company
following the conveyance, transfer or lease of its properties and assets
substantially as an entirety to another Person upon the terms and conditions
set forth in Article 5 hereof shall not be deemed a dissolution,
winding-up, liquidation, reorganization, assignment for the benefit of
creditors or marshaling of assets and liabilities of the Company for the
purposes of this Article 10 if the Person formed by such consolidation or
the surviving entity of such merger or the Person which acquires by conveyance,
transfer or lease such properties and assets substantially as an entirety, as
the case may be, shall, as a part of such consolidation, merger, conveyance,
transfer or lease, comply with the conditions set forth in such Article 5
hereof.

 

Section 10.03.                       Suspension of Payment When Senior
Debt in Default.

 

(a)                                  Unless
Section 10.02 hereof shall be applicable, no payment or distribution of
any assets or securities of the Company or any Subsidiary of any kind or
character (including, without limitation, cash, property and any payment or
distribution which may be payable or deliverable by reason of the payment of
any other Indebtedness of the Company being subordinated to the payment of the
Securities by the Company, other than Qualified Capital Stock of the Company or
subordinated 

 

64

 

debt
securities of the Company that require no payment of principal prior to the
stated maturity of the Securities and that are subordinated and junior in right
of payment to Senior Debt at least to the same extent as the Securities, with
terms no less favorable to the Company and the holders of the Designated Senior
Debt than the terms of the Securities and this Indenture) may be made by the
Company or any Subsidiary, including, without limitation, by way of set-off or
otherwise, for or on account of the Securities or any Obligations under the
Securities, the Registration Rights Agreement or this Indenture, or for or on
account of the purchase or redemption or other acquisition of Securities or any
other Obligations under the Securities, the Registration Rights Agreement or
this Indenture, and neither the Trustee nor any holder or owner of any
Securities shall take or receive from the Company or any Subsidiary, directly
or indirectly in any manner, any payment or distribution in respect of all or
any portion of Securities or for or on account of the purchase, redemption or
other acquisition of the Securities or in respect of any other Obligations
under the Securities, the Registration Rights Agreement or this Indenture,
which prohibition shall be applicable upon the occurrence and during the
continuation of a Payment Default and such prohibition shall continue until
such Payment Default is cured, waived in writing or ceases to exist.  At such time as the prohibition set forth in
the preceding sentence shall no longer be in effect, subject to the provisions
of the following paragraph (b), the Company shall resume making any and all
required payments in respect of the Securities, including any missed payments,
or any such other Obligations under the Securities, the Registration Rights
Agreement or this Indenture.

 

(b)                                 Unless
Section 10.02 hereof shall be applicable, upon the occurrence and during
the continuance of a Non-Payment Event of Default, no payment or distribution
of any assets or securities of the Company of any kind or character (including,
without limitation, cash, property and any payment or distribution which may be
payable or deliverable by reason of the payment of any other Indebtedness of
the Company being subordinated to the payment of the Securities by the Company,
other than Qualified Capital Stock of the Company or subordinated debt
securities of the Company that require no payment of principal prior to the
stated maturity of the Securities and that are subordinated and junior in right
of payment to Senior Debt at least to the same extent as the Securities, with
terms no less favorable to the Company and the holders of the Designated Senior
Debt than the terms of the Securities and this Indenture) may be made by the
Company or any Subsidiary, including, without limitation, by way of set-off or
otherwise, for or on account of the Securities or any Obligations under the
Securities, the Registration Rights Agreement or this Indenture, or for or on
account of the purchase or redemption or other acquisition of Securities or any
other Obligations under the Securities, the Registration Rights Agreement or this
Indenture, and neither the Trustee nor any holder or owner of any Securities
shall take or receive from the Company or any Subsidiary, directly or indirectly
in any manner, any payment or distribution in respect of all or any portion of
Securities, or for or on account of the purchase, redemption, or other
acquisition of the Securities, or in respect of any such other Obligations
under the Securities, the Registration Rights Agreement or this Indenture for a
period (a “Payment Blockage Period”) commencing on the date of receipt by the
Trustee of written notice from the Representative of such Non-Payment Event of
Default unless and until (subject to any blockage of payments that may then be
in effect under the preceding paragraph (a) of this Section 10.03)
the earliest of (w) more than 179 days shall have elapsed since the date of
receipt of such written notice by the Trustee, (x) such Non-Payment Event
of Default shall have been cured or waived in writing or shall have ceased to
exist, (y) such Designated Senior Debt shall have been paid in full in
cash or (z) such Payment Blockage Period shall have been terminated by
written notice to the Company or the Trustee from such Representative, after
which, in the case of clause (w), (x), (y) or (z), the Company shall resume
making any and all required payments in respect of the Securities, including
any missed payments.  Notwithstanding
any other provision of this Indenture, in no event shall any particular Payment
Blockage Period commenced in accordance with the provisions of this
Section 10.03(b) extend beyond the date 179 days after the date of
the receipt by the Trustee of the applicable

 

65

 

written notice referred to above given by the Representative to commence
such Payment Blockage Period (each such period commencing on such date of
receipt and ending after such 179 days after such date of receipt, being
referred to as an “Initial Blockage Period”). 
Any number of additional Payment Blockage Periods may be commenced
during any Initial Blockage Period or any other Payment Blockage Period; provided,
however, that no such additional Payment Blockage Period commenced
during an existing Payment Blockage Period shall extend beyond 179 days after
the date of receipt by the Trustee of the applicable written notice from the
Representative which commences such Initial Blockage Period.  After the expiration of any Payment Blockage
Period, no Payment Blockage Period may be commenced until at least 180
consecutive days have elapsed from the last day of such Payment Blockage
Period.  Notwithstanding any other
provision of this Indenture, no Non-Payment Event of Default with respect to
Designated Senior Debt which existed or was continuing on the date of the
commencement of any Payment Blockage Period initiated by the Representative
shall be, or be made, the basis for the commencement of a second Payment
Blockage Period initiated by the Representative, whether or not within the
Initial Blockage Period, unless such Non-Payment Event of Default shall have
been waived or cured for a period of not less than 90 consecutive days.

 

(c)                                  In
the event that, notwithstanding the foregoing, the Trustee or any holder of
Securities receives any payment or distribution of assets or securities of the
Company of any kind or character or any other payment or distribution on
account of the Securities, or for or on account of the purchase or redemption
or other acquisition of Securities, or on account of any Obligations under the
Securities, the Registration Rights Agreement or this Indenture, whether in
cash, property or securities, including, without limitation, by way of set-off
or otherwise, in respect of the Securities, or in respect of the purchase or
redemption or other acquisition of Securities, or in respect of any Obligations
under the Securities, the Registration Rights Agreement or this Indenture at a
time when such payment or distribution was prohibited by the provisions of this
Section 10.03, before all Senior Debt is indefeasibly paid and satisfied
in full in cash, then such payment or distribution will be held by the
recipient in trust for the benefit of holders of Senior Debt and will be
immediately paid over or delivered by the Trustee or such holders of Securities
to the Representative to the extent necessary to make payment in full in cash
of all Designated Senior Debt remaining unpaid, after giving effect to any
concurrent payment or distribution, or provision therefor, to or for the
holders of Designated Senior Debt.

 

Section 10.04.                       Trustee’s Relation to Senior Debt.

 

The Trustee and any Paying Agent shall be entitled to all the rights
set forth in this Article with respect to any Senior Debt which may at any
time be held by it in its individual or any other capacity to the same extent
as any other holder of Senior Debt, and nothing in this Indenture shall deprive
the Trustee or any Paying Agent of any of its rights as such holder.

 

With respect to the holders of Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article 10, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee.  The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt and the Trustee shall not be liable to any holder of Senior Debt (other
than for its willful misconduct or negligence) if it shall in good faith
mistakenly pay over or deliver to the Holders of Securities, the Company or any
other Person moneys or assets to which any holder of Senior Debt shall be
entitled by virtue of this Article 10 or otherwise.  Nothing in this Section 10.04 shall
affect the obligation of any other such Person, the Company, or the Holders to
hold such money or assets for the benefit of, and to pay such money or assets
over to, the holders of the Senior Debt or their applicable representative or
representatives.

 

66

 

Section 10.05.                       Subrogation to Rights of Holders
of Senior Debt.

 

Upon the payment in full in cash of all Senior Debt, the Holders of the
Securities shall be subrogated to the rights of the holders of such Senior Debt
to receive payments and distributions of cash, property and securities
applicable to the Senior Debt until the principal of, premium, if any and
interest on the Securities shall be paid in full.  For purposes of such subrogation, no payments or distributions to
the holders of Senior Debt of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article 10, and no payments over pursuant to the
provisions of this Article 10 to the holders of Senior Debt by Holders of
the Securities or the Trustee, shall, as among the Company, its creditors other
than holders of Senior Debt, and the Holders of the Securities, be deemed to be
a payment or distribution by the Company to or on account of the Senior Debt.

 

If any payment or distribution to which the Holders would otherwise
have been entitled but for the provisions of this Article 10 shall have
been applied, pursuant to the provisions of this Article 10, to the
payment in full in cash of all amounts owing under or in respect of the Senior
Debt of the Company, then and in such case the Holders shall be entitled to
receive from the holders of such Senior Debt at the time outstanding any
payments or distributions received by such holders of such Senior Debt in
excess of the amount sufficient to pay all amounts owing under or in respect of
such Senior Debt in full in cash.

 

Section 10.06.                       Provisions Solely To Define
Relative Rights.

 

The provisions of this Article 10 are and are intended solely for
the purpose of defining the relative rights of the Holders of the Securities on
the one hand and the holders of Senior Debt on the other hand.  Nothing contained in this Article 10 or
elsewhere in this Indenture or in the Securities is intended to or shall
(a) impair, as among the Company, its creditors other than holders of
Senior Debt, and the Holders of the Securities, the obligation of the Company,
which is absolute and unconditional, to pay to the Holders of the Securities
the principal of, premium, if any, and interest on the Securities as and when the
same shall become due and payable in accordance with their terms; or
(b) affect the relative rights against the Company of the Holders of the
Securities and creditors of the Company other than the holders of Senior Debt;
or (c) prevent the Trustee or the Holder of any Security from exercising
all remedies otherwise permitted by applicable law upon a Default or an Event
of Default under this Indenture, subject to the rights of the holders of the
Designated Senior Debt under Section 6.02 hereof and subject to the
rights, if any, under this Article 10 of the holders of Senior Debt (1) in
any case, proceeding, dissolution, liquidation or other winding-up, assignment
for the benefit of creditors or other marshaling of assets and liabilities of
the Company referred to in Section 10.02 hereof, or in any other
applicable circumstances described in Section 10.02 to receive, pursuant
to and in accordance with such Section, cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder, or (2) under the
conditions and in the applicable circumstances specified in Section 10.03,
to prevent any payment or distribution prohibited by such Section or
enforce their rights pursuant to Section 10.03(c) hereof.

 

The failure to make a payment on account of principal of, premium, if
any, or interest on the Securities by reason of any provision of this
Article 10 shall not be construed as preventing the occurrence of a
Default or an Event of Default hereunder.

 

67

 

Section 10.07.                       Trustee To Effectuate Subordination.

 

Each Holder of a Security by his acceptance thereof agrees to be bound
by such provisions and authorizes and directs the Trustee, on his behalf, to
take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article and appoints the Trustee his attorney-in-fact
for any and all such purposes, including, in the event of any Bankruptcy
Proceedings or other dissolution, winding-up, liquidation or reorganization of
the Company whether in bankruptcy, insolvency, receivership proceedings, or
otherwise, the prompt and timely filing of a claim for the unpaid balance of
the indebtedness of the Company owing to such Holder in the form required in
such proceedings and the causing of such claim to be approved.  If the Trustee does not file such a claim
prior to 30 days before the expiration of the time to file such a claim, the
holders of Senior Debt, or any Representative, may, and hereby are authorized
to, file such a claim on behalf of Holders of the applicable Securities.

 

Section 10.08.                       No Waiver of Subordination
Provisions.

 

(a)                                  No
right of any present or future holder of any Senior Debt to enforce the
subordination provisions herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
non-compliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

 

(b)                                 Without
limiting the generality of subsection (a) of this Section 10.08,
the holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders of the Securities, without
incurring responsibility to the Holders of the Securities and without impairing
or releasing the subordination provided in this Article 10 or the
obligations hereunder of the Holders of the Securities to the holders of Senior
Debt, do any one or more of the following: 
(1) change the manner, place or terms of payment or extend the time of
payment of, or renew or alter, Senior Debt or any instrument evidencing the
same or any agreement under which Senior Debt is outstanding; (2) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Debt; (3) release any Person liable in any
manner for the collection or payment of Senior Debt; and (4) exercise or
refrain from exercising any rights against the Company and any other Person; provided,
however, that in no event shall any such actions limit the right of the
Holders of the Securities to take any action to accelerate the maturity of the
Securities pursuant to Article 6 hereof or to pursue any rights or
remedies hereunder or under applicable laws if the taking of such action does
not otherwise violate the terms of this Indenture.

 

Section 10.09.                       Notice to Trustee.

 

(a)                                  The
Company shall give prompt written notice to the Trustee of any fact known to
the Company which would prohibit the making of any payment to or by the Trustee
at its Corporate Trust Office in respect of the Securities.  Notwithstanding the provisions of this
Article 10 or any other provision of this Indenture, the Trustee shall not
be charged with knowledge of the existence of any facts which would prohibit
the making of any payment to or by the Trustee in respect of the Securities,
unless and until the Trustee shall have received written notice thereof from
the Company or a holder of Senior Debt or from any trustee, fiduciary,
representative, or agent therefor no later than one Business Day prior to such
payment; and, prior to the receipt of any such written notice, the Trustee, subject
to the provisions of this Section 10.09, and subject to the provisions of
Sections 7.01 and 7.02 hereof, shall be entitled in all respects to assume
that no such facts exist; provided, however,

 

68

 

that if the
Trustee shall not have received the notice referred to in this
Section 10.09 at least one Business Day prior to the date upon which by
the terms hereof any such payment may become payable for any purpose under this
Indenture (including, without limitation, the payment of the principal of,
premium, if any, or interest on any Security), then, anything herein contained
to the contrary notwithstanding but without limiting the rights and remedies of
the holders of Senior Debt or any trustee, fiduciary, representative, or agent
therefor as against the Holders of the Securities or any other Person, the
Trustee shall have full power and authority to receive such money and to apply
the same to the purpose for which such money was received and shall not be affected
by any notice to the contrary which may be received by it less than one
Business Day prior to such date; nor shall the Trustee be charged with
knowledge of the curing of any such applicable default in respect of Designated
Senior Debt or the elimination of the act or condition preventing any such
payment unless and until the Trustee shall have received an Officers’
Certificate to such effect (subject to the rights of the holders of the
Designated Senior Debt under Section 10.03 hereof).

 

(b)                                 Subject
to the provisions of Section 7.01 hereof, the Trustee shall be entitled to
rely (to the extent reasonable and in good faith) on the delivery to it of a
written notice to the Trustee and the Company by a Person representing itself
to be a holder of Senior Debt (or a trustee, fiduciary, representative, or
agent therefor) for purposes of establishing that such notice actually has been
given by a holder of Senior Debt (or a trustee, fiduciary, representative, or
agent therefor); provided, however, that failure to give such
notice to the Company shall not affect in any way the ability of the Trustee to
rely on such notice.  In the event that
the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of Senior Debt to participate in
any payment or distribution pursuant to this Article 10, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such Person under this
Article 10, and if such evidence is not furnished, the Trustee, acting in
good faith, may defer any payment to such Person pending judicial determination
as to the right of such Person to receive such payment.

 

Section 10.10.                       Reliance on Judicial Order or
Certificate of Liquidating Agent.

 

Upon any payment or distribution pursuant to this Article 10, the
Trustee, subject to the provisions of Section 7.01 hereof, and the Holders
shall be entitled to rely (to the extent reasonable and in good faith) upon any
order or decree entered by any court of competent jurisdiction in which any
applicable insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding-up or similar case or proceeding of the type referred to
in Section 10.02 is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution in
connection with such case or proceeding, delivered to the Trustee or to the
Holders, for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of Senior Debt and other Indebtedness
of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this
Article 10; provided that the foregoing shall apply only if such
court in which such case or proceeding is pending has been fully apprised of
the provisions of this Article 10.

 

Section 10.11.                       Rights of Trustee as a Holder of
Senior Debt; Preservation of Trustee’s Rights.

 

The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article 10 with respect to any Senior Debt which
may at any time be held by it, to the same extent as any other holder of Senior
Debt, and nothing in this Indenture shall deprive the Trustee of any of its 

 

69

 

rights as such holder.  Nothing
in this Article 10 shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 7.07 hereof.

 

Section 10.12.                       Article Applicable to Paying
Agents.

 

In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term “Trustee”
as used in this Article 10 shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article 10 in addition to or in place of
the Trustee.

 

Section 10.13.                       No Suspension of Remedies.

 

Nothing contained in this Article 10 shall limit the right of the
Trustee or the Holders of Securities to take any action to accelerate the
maturity of the Securities pursuant to Article 6 (subject to the rights of
the holders of the Designated Senior Debt under clause (ii) of the first
sentence of Section 6.02 hereof) or to pursue any rights or remedies
hereunder or under applicable law, subject to the rights, if any, under this
Article 10 of the holders, from time to time, of Senior Debt.

 

ARTICLE 11

 

MISCELLANEOUS

 

Section 11.01.                       Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies or conflicts with
another provision which is required to be included in this Indenture by the
TIA, the required provision shall control.

 

Section 11.02.                       Notices.

 

(a)                                  Any
notice or communication shall be given in writing and delivered in person, sent
by telecopier, facsimile, delivered by overnight commercial courier service or
mailed by registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

 

	
  If to the Company:

  	
   

  
	
   

  	
   

  
	
  Samsonite Corporation

  	
   

  
	
  11200 East 45th Avenue

  	
   

  
	
  Denver, Colorado  80239

  	
   

  
	
  Attention:

  	
  Chief Financial Officer with

  
	
   

  	
  a copy to General Counsel

  
	
  Facsimile:

  	
  (303) 373-6606

  
	
   

  	
   

  
	
  Copy to:

  	
   

  
	
   

  	
   

  
	
  Skadden, Arps, Slate, Meagher & Flom
  LLP

  	
   

  
	
  Four Times Square

  	
   

  
	
  New York, New York  10036

  	
   

  
			

 

70

 

	
  Attention:

  	
  Gregory A. Fernicola, Esq.

  
	
  Facsimile:

  	
  (212) 735-2000

  
	
   

  	
   

  
	
  If to the Trustee:

  	
   

  
	
   

  	
   

  
	
  The Bank of New York

  	
   

  
	
  101 Barclay Street

  	
   

  
	
  New York, New York  10286

  	
   

  
	
  Attention:

  	
  Corporate Trust Administration

  
	
  Facsimile:

  	
  (212) 815-5802

  
	
   

  	
   

  
	
  Copy to:

  	
   

  
	
   

  	
   

  
	
  BNY Western Trust Company, N.A.

  	
   

  
	
  700 South Flower Street, Suite 500

  	
   

  
	
  Los Angeles, California  90017

  	
   

  
	
  Facsimile:

  	
  (213) 630-6298

  
			

 

Such notices or communications shall be sufficiently given if so given
within the time prescribed in this Indenture.

 

The Company or the Trustee by written notice to the others may
designate additional or different addresses for subsequent notices or
communications.

 

Any notice or communication to the Company or the Trustee shall be
deemed to have been given or made as of the date actually received.

 

Any notice or communication mailed to a Securityholder shall be mailed
to him by first-class mail, postage prepaid, at his address shown on the
register kept by the Registrar.

 

(b)                                 Failure
to mail a notice or communication to a Securityholder or any defect in it shall
not affect its sufficiency with respect to other Securityholders.  If a notice or communication to a Securityholder
is mailed in the manner provided above, it shall be deemed duly given, whether
or not the addressee receives it.

 

In case by reason of the suspension of regular mail service, or by
reason of any other cause, it shall be impossible to mail any notice as
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.

 

Section 11.03.                       Communications by Holders with
Other Holders.

 

Securityholders may communicate pursuant to TIA § 312(b) with
other Securityholders with respect to their rights under this Indenture or the
Securities.  The Company, the Trustee,
the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 11.04.                       Certificate and Opinion as to
Conditions Precedent.

 

Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

 

71

 

(1)                                  an
Officers’ Certificate (which shall include the statements set forth in
Section 11.05 below) stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

(2)                                  an
Opinion of Counsel (which shall include the statements set forth in
Section 11.05 below) stating that, in the opinion of such counsel, all
such conditions precedent have been complied with.

 

Section 11.05.                       Statements Required in
Certificate and Opinion.

 

Each certificate and opinion with respect to compliance with a
condition or covenant provided for in this Indenture 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;

 

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

 

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

 

Section 11.06.                       When Treasury Securities
Disregarded.

 

In determining whether the Holders of the required aggregate principal
amount of Securities have concurred in any direction, waiver or consent, Securities
owned by the Company or by any Affiliate of the Company shall be disregarded,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Securities
which the Trustee actually knows are so owned shall be so disregarded.  Securities so owned which have been pledged
in good faith shall not be disregarded if the pledgee establishes to the
satisfaction of the Trustee the pledgee’s right so to act with respect to the
Securities and that the pledgee is not the Company or any Affiliate of the
Company.

 

Section 11.07.                       Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or meetings of
Securityholders.  The Registrar and
Paying Agent may make reasonable rules for their functions.

 

Section 11.08.                       Business Days; Legal Holidays.

 

A “Business Day” is a day that is not a Legal Holiday.  A “Legal Holiday” is a Saturday, a Sunday, a
federally-recognized holiday or a day on which banking institutions are not required
to be open in the City of New York.  If
a payment date is a Legal Holiday at a place of payment, payment may be made at
that place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period.

 

72

 

Section 11.09.                       Governing Law.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.  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
OR THE SECURITIES.

 

Section 11.10.                       No Adverse Interpretation of
Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan,
security or debt agreement of the Company or any Subsidiary thereof.  No such indenture, loan, security or debt agreement
may be used to interpret this Indenture.

 

Section 11.11.                       No Recourse Against Others.

 

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

 

Section 11.12.                       Successors.

 

All agreements of the Company in this Indenture and the Securities
shall bind its successors.  All
agreements of the Trustee, any additional trustee and any Paying Agents in this
Indenture shall bind its successor.

 

Section 11.13.                       Multiple Counterparts.

 

The parties may sign multiple counterparts of this Indenture.  Each signed counterpart shall be deemed an
original, but all of them together represent one and the same agreement.

 

Section 11.14.                       Table of Contents, Headings, etc.

 

The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

 

Section 11.15.                       Separability.

 

Each provision of this Indenture shall be considered separable and if
for any reason any provision which is not essential to the effectuation of the
basic purpose of this Indenture or the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

 

73

 

Section 11.16.                       Judgment Currency.

 

Any payment on account of any amount that is payable in U.S. dollars
with respect to the Securities (the “Required Currency”) which is made to or
for the account of any Holder or the Trustee in lawful currency of any other
jurisdiction (the “Judgment Currency”), whether as a result of any judgment or
order or the enforcement thereof or the liquidation of the Company or any
Restricted Subsidiary, shall constitute a discharge of the Company or such
Restricted Subsidiary’s obligation under this Indenture and the Securities, as
the case may be, only to the extent of the amount of the Required Currency
which such Holder or the Trustee, as the case may be, could purchase in the New
York foreign exchange markets with the amount of the Judgment Currency in
accordance with normal banking procedures at the rate of exchange prevailing on
the first business day following receipt of the payment in the Judgment
Currency.  If the amount of the Required
Currency that could be so purchased is less than the amount of the Required
Currency originally due to such Holder or the Trustee, as the case may be, the
Company shall indemnify and hold harmless the Holder or the Trustee, as the
case may be, from and against all loss or damage arising out of, or as a result
of, such deficiency.  This indemnity
shall constitute an obligation separate and independent from the other
obligations contained in this Indenture or the Securities, shall give rise to a
separate and independent cause of action, shall apply irrespective of any
indulgence granted by any Holder or the Trustee from time to time and shall
continue in full force and effect notwithstanding any judgment or order for a
liquidated sum in respect of an amount due hereunder or under any judgment or
order.

 

Section 11.17.                       Waiver of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES
OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.18.                       Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including,
without limitation strikes, work stoppages, accidents, acts of war or terrorism,
civil or military disturbances, nuclear or natural catastrophes or acts of God,
and interruptions, loss or malfunctions of utilities, communications or
computer (software and hardware) services; it being understood that the Trustee
shall use reasonable efforts which are consistent with accepted practices in
the banking industry to resume performance as soon as practicable under the
circumstances.

 

74

 

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

 

 

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Richard H. Wiley

  	
   

  
	
   

  	
   

  	
  Name: Richard H. Wiley

  
	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  L.C. Ross

  	
   

  
	
   

  	
   

  	
  Name: L.C. Ross

  
	
   

  	
   

  	
  Title: Vice President – Legal
  and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK, as Trustee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/  Ritu Khanna

  	
   

  
	
   

  	
   

  	
  Name: Ritu Khanna

  
	
   

  	
   

  	
  Title: Assistant Vice
  President

  

 

75

 

EXHIBIT A

 

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS.  NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANS-FERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION AND
SUBJECT TO COMPLIANCE WITH OTHER APPLICABLE LAWS.  THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE WHICH IS [IN
THE CASE OF RULE 144A NOTES: TWO YEARS] [IN THE CASE OF REGULATIONS NOTES:
FORTY DAYS] (OR SUCH SHORTER PERIOD THAT MAY HEREAFTER BE PROVIDED UNDER
RULE 144(K) (OR ANY SUCCESSOR PROVISION THEREOF) AS PERMITTING THE RESALE BY
NON-AFFILIATES OF RESTRICTED SECURITIES WITHOUT RESTRICTION) 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
THIS SECURITY) (THE “RESALE RESTRICTION TERMINATION DATE”), ONLY (A) TO THE
COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE
144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OF 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. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND OTHERWISE IN COMPLIANCE WITH OTHER APPLICABLE LAWS, SUBJECT TO THE
COMPANY’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.  THE LEGEND WILL BE REMOVED UPON THE REQUEST
OF A HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

 

A-1

 

	
  NO.

  	
   

  	
   

  	
  CUSIP NO.

  	
  [144A: 79604V AK1]

  
	
   

  	
   

  	
   

  	
   

  	
  [REGS: V79634 AD0]

  
	
   

  	
   

  	
   

  	
   

  	
  [EXCHANGE: 79604V AM7]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ISIN  [144A: US79604VAK17]

  
	
   

  	
   

  	
   

  	
  [REGS: USV79634AD06]

  
	
   

  	
   

  	
   

  	
  [EXCHANGE: US79604VAM72]

  

 

SAMSONITE CORPORATION

 

8-7/8% Senior Subordinated Note due 2011

 

$                              

 

SAMSONITE CORPORATION, a Delaware corporation (the “Company”), for
value received, promises to pay to CEDE & Co. or registered assigns the
principal sum of
                          
Dollars, on June 1, 2011.

 

Interest Payment Dates: 
June 1 and December 1

 

Record Dates:  May 15 and
November 15

 

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

 

A-2

 

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

 

	
   

  	
  SAMSONITE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-3

 

Trustee’s Certificate of Authentication

 

This is one of the 8-7/8% Senior Subordinated Notes due 2011 referred
to in the within-mentioned Indenture.

 

Dated:

 

	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-4

 

(REVERSE OF SECURITY)

 

8-7/8% Senior Subordinated Note due 2011

 

1.                                       Interest.  SAMSONITE CORPORATION, a Delaware
corporation (the “Company”), promises to pay interest on the principal amount
of this Security at the rate per annum shown above.  Interest on the Securities will accrue from the most recent date
on which interest has been paid or, if no interest has been paid, from the date
of original issuance of the Securities. 
The Company will pay interest semi-annually in arrears on each Interest
Payment Date, commencing December 1, 2004(1).  Interest will be computed on the basis of a 360-day year of
twelve 30-day months and, for periods not involving a full calendar month, the
actual number of days elapsed but not to exceed 30 days.

 

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

 

2.                                       Method of
Payment.  The Company shall pay
interest on the Securities (except defaulted interest) 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 Securities are cancelled on
registration of transfer or registration of exchange after such record date and
on or before such Interest Payment Date, except as provided in
Section 2.11 of the Indenture with respect to defaulted interest.  Holders must surrender Securities to a
Paying Agent to collect principal payments. 
The Company 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 Company may pay principal and interest by its check payable in such U.S.
Legal Tender.  The Company 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, a bank and trust company organized under New York Banking Law (the
“Trustee”), will act as Paying Agent and Registrar.  The Company may change any Paying Agent or Registrar without
notice to the Holders of the Securities. 
Neither the Company nor any of its Affiliates may act as Paying Agent
but may act as registrar or co-registrar.

 

4.                                       Indenture;
Restrictive Covenants.  The Company
issued this Security under an Indenture dated as of June 9, 2004 (the
“Indenture”) between the Company and the Trustee.  The terms of this Security 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) as in effect on the date of the
Indenture.  This Security is subject to
all such terms, and the Holder of this Security is referred to the Indenture
and said Trust Indenture Act for a statement of them.  All capitalized terms in this Security, unless otherwise defined,
have the meanings assigned to them by the Indenture.

 

(1)                                  Only with respect to the Securities issued on
the Issue Date.

 

A-5

 

The Securities are general unsecured obligations of the Company and,
subject to compliance with the terms of the Indenture, unlimited in aggregate
principal amount.  The Indenture imposes
certain restrictions on, among other things, the incurrence of indebtedness,
the issuance of preferred stock by the Company and its subsidiaries, mergers
and sale of assets, the payments of dividends on, or the repurchase of, capital
stock of the Company and its subsidiaries, certain other restricted payments by
the Company and its subsidiaries, certain transactions with, and investments
in, its affiliates, and a provision regarding change-of-control transactions.

 

5.                                       Subordination.  The Indebtedness evidenced by the Securities
is, to the extent and in the manner provided in the Indenture, subordinated and
subject in right of payment to the prior indefeasible payment in full of all
Senior Debt as defined in the Indenture and this Security is issued subject to
such provisions.  Each Holder of this
Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee, on behalf of such
Holder, to take such action as may be necessary or appropriate to effectuate
the subordination as provided in the Indenture and (c) appoints the
Trustee attorney-in-fact of such Holder for such purpose.

 

6.                                       Optional
Redemption.  The Company may redeem
the Securities, in the manner set forth in Section 3.07 of the Indenture.

 

7.                                       Notice of
Redemption.  Notice of redemption
will be mailed at least 30 days but not more than 60 days before the Redemption
Date to each Holder of Securities to be redeemed at such Holder’s registered
address.  In order to effect a
redemption with the proceeds of an Equity Offering, the Company shall send the
redemption notice not later than 90 days after the consummation of such Equity
Offering.  Securities in denominations
larger than $5,000 may be redeemed in part.

 

8.                                       Offers to
Purchase.  The Indenture requires
that certain proceeds from Asset Sales be used, subject to further limitations
contained therein, to make an offer to purchase certain amounts of Securities
in accordance with the procedures set forth in the Indenture.  The Company is also required to make an
offer to purchase Securities upon occurrence of a Change of Control in
accordance with procedures set forth in the Indenture.

 

9.                                       Denominations;
Transfer; Exchange.  The Securities
are in registered form, without coupons, in denominations of $5,000 and
integral multiples of $1,000.  A Holder
shall register the transfer of or exchange Securities in accordance with the
Indenture.  The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Securities during a period beginning 15 days before the
mailing of a redemption notice for any Securities or portions thereof selected
for redemption.

 

10.                                 Persons Deemed
Owners.  The registered Holder of
this Security shall be treated as the owner of it for all purposes.

 

11.                                 Unclaimed Money.  If money for the payment of principal,
premium or interest on any Security remains unclaimed for two years, the
Trustee and the Paying Agent will pay the money back to the Company at its
request.  After that, Holders entitled
to money must look to the Company for payment as general creditors unless an
“abandoned property” law designates another Person.

 

A-6

 

12.                                 Amendment,
Supplement and Waiver.  Subject to
certain exceptions, the Indenture or the Securities may be modified, amended or
supplemented by the Company and the Trustee with the consent of the Holders of
at least a majority in principal amount of the Securities then outstanding and
any existing default or compliance with any provision may be waived in a
particular instance with the consent of the Holders of a majority in principal
amount of the Securities then outstanding. 
Without the consent of Holders, the Company and the Trustee may amend
the Indenture or the Securities or supplement the Indenture for certain
specified purposes including, without limitation, providing for uncertificated
Securities in addition to certificated Securities, and curing any ambiguity,
defect or inconsistency, or making any other change that does not materially
and adversely affect the rights of any Holder.

 

13.                                 Successor Entity.  When a successor corporation assumes all the
obligations of its predecessor under the Securities and the Indenture and
immediately before and thereafter no Default exists and certain other
conditions are satisfied, the predecessor corporation will be released from
those obligations.

 

14.                                 Defaults and
Remedies.  Events of Default are set
forth in the Indenture.  Upon the
happening of any Event of Default specified in Section 6.01, the Trustee
may, and the Trustee upon the request of 25% in principal amount of the
Securities shall or the Holders of at least 25% in aggregate principal amount
of outstanding Securities may, declare the principal of and accrued but unpaid
interest, if any, on all the Securities to be due and payable by notice in
writing to the Company and the Trustee specifying the respective Event of
Default and that it is a “notice of acceleration” (the “Acceleration Notice”),
and the same (i) shall (except as provided in clause (ii) of this
sentence) become immediately due and payable or (ii) if there are any
amounts outstanding under any of the instruments constituting Designated Senior
Debt, will become due and payable upon the first to occur of an acceleration
under any of the instruments constituting Designated Senior Debt or five
Business Days after receipt by the Company and the Representative of such
Acceleration Notice (unless all Events of Default specified in such
Acceleration Notice have been cured or waived).  If an Event of Default described under clauses (6) or (7) of
Section 6.01 with respect to the Company occurs and is continuing, then
such amount will ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder of
Securities; provided, however, that at any time after a
declaration of acceleration with respect to the Securities, the Holders of a
majority in principal amount of the Securities then outstanding (by notice to
the Trustee) may rescind and cancel such declaration and its consequences if
(i) the rescission would not conflict with any judgment or decree of a
court of competent jurisdiction, (ii) all existing Events of Default have
been cured or waived except nonpayment of principal or interest on the
Securities that has become due solely by such declaration of acceleration,
(iii) to the extent the payment of such interest is lawful, interest (at
the same rate specified in the Securities) on overdue installments of interest
and overdue principal which has become due otherwise than by such declaration
of acceleration has been paid, (iv) the Company has paid the Trustee its
reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances and (v) in the event of the cure or waiver of a
Default or Event of Default (with respect to the Company) of the type described
in Section 6.01(6) or (7), the Trustee has received an Officers’
Certificate and an Opinion of Counsel that such Default or Event of Default has
been cured or waived.  The Holders of a
majority in principal amount of the Securities may waive any existing Default
or Event of Default under this Indenture, and its consequences, except a
default in the payment of the principal of or interest on any Securities.

 

A-7

 

15.                                 Trustee Dealings
With the Company.  The Trustee under
the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates,
and may otherwise deal with the Company or its Affiliates as if it were not
Trustee.

 

16.                                 No Recourse Against
Others.  A director, officer,
employee, stockholder or incorporator, as such, of the Company shall not have
any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such obligations
or their creations.  Each Securityholder
by accepting a Security waives and releases all such liability.  Such waiver and release are part of the
consideration for the issuance of the Securities.

 

17.                                 Defeasance and Covenant
Defeasance.  The Indenture contains
provisions for defeasance of the entire indebtedness on this Security (pursuant
to Section 9.02 of the Indenture) and for defeasance of certain covenants
in the Indenture (pursuant to Section 9.03 of the Indenture) upon
compliance by the Company with certain conditions set forth in the Indenture.

 

18.                                 Abbreviations.  Customary abbreviations may be used in the
name of a Holder of a Security 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).

 

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

 

20.                                 Indenture Controls.  If any provision of this Note limits, qualifies
or conflicts with the provisions of the Indenture, the provisions of the
Indenture shall control.

 

21.                                 Governing Law.  THE INDENTURE AND THE SECURITIES 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 CONFLICTS OF LAW.  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 THE INDENTURE OR THE SECURITIES.

 

THE COMPANY WILL FURNISH TO ANY HOLDER OF A SECURITY UPON WRITTEN
REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE, REQUESTS MAY BE MADE TO:

 

SAMSONITE CORPORATION, 11200 East 45th Avenue, Denver, Colorado 80239,
Attention:  General Counsel.

 

A-8

 

ASSIGNMENT

 

I or we assign to PLEASE INSERT SOCIAL SECURITY OR

	
  TAX I.D. NUMBER

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

(please print or type name and address)

 

the within Security and all rights thereunder, hereby irrevocably
constituting and appointing
                  
attorney to transfer the Security on the books of the Company with full power
of substitution in the premises.

 

Date:
                                        

 

 

NOTICE:  The signature on this
assignment must correspond with the name as it appears upon the face of the
within Security in every particular without alteration or enlargement or any
change whatsoever and be guaranteed by the endorser’s bank or broker.

 

	
  Signature Guarantee:

  	
   

  	
   

  

 

A-9

 

OPTION OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have all or any part of this Security purchased
by the Company pursuant to Section 4.09 or Section 4.14 of the
Indenture, check the appropriate box:

 

o                                    Section 4.09                                                                                o                                    Section 4.14

 

If you want to have only part of the Security purchased by the Company
pursuant to Section 4.09 or Section 4.14 of the Indenture, state the
amount you elect to have purchased:

 

	
  $

  	
   

  	
   

  
	
   

  
	
  Date: 

  	
   

  	
   

  
				

 

 

	
  Your Signature:

  	
   

  	
   

  
	
   

  
	
  (Sign exactly as your name appears on the
  face of this Security)

  
	
   

  
	
   

  	
   

  
	
  Signature Guaranteed

  
				

 

A-10

 

EXHIBIT B

 

FORM OF LEGEND FOR GLOBAL SECURITIES

 

Any Global Security 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 SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY.  THIS NOTE IS
NOT EXCHANGEABLE FOR SECURITIES 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 SECURITY (OTHER THAN A TRANSFER OF THIS
SECURITY 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 COMPANY OR
ITS 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 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.

 

B-1

 

EXHIBIT C

 

Form of Certificate to Be Delivered in

Connection with Transfers to Non-QIB Accredited Investors

 

                      ,
        

 

Re:                          Samsonite
Corporation (the “Company”) 8-7/8%

Senior Subordinated Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

In connection with our proposed purchase of $                      
aggregate principal amount of the Notes, we confirm that:

 

1.                                       We
understand that any subsequent transfer of the Notes is subject to certain
restrictions and conditions set forth in the Indenture dated as of June 9,
2004 relating to the Notes and the undersigned agrees to be bound by, and not
to resell, pledge or otherwise transfer the Securities except in compliance
with, such restrictions and conditions and the Securities Act of 1933, as amended
(the “Securities Act”).

 

2.                                       We
understand that 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 any Notes within two years after the original
issuance of the Notes, we will do so only (A) to the Company or any
subsidiary thereof, (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 144(A) (“Rule 144A”) to a
person we reasonably believe to be a “qualified institutional buyer” as defined
in Rule 144A that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that the transfer is
being made in reliance on Rule 144A, (D) outside the United States to
non-U.S. persons in compliance with Rule 904 of Regulation S under the
Securities Act, or (E) pursuant to another available exemption from the
registration requirements of the Securities Act and otherwise in compliance
with other applicable laws, and we further agree to provide to any person
purchasing any of the Notes from us a notice advising such purchaser that
resales of the Notes are restricted as stated herein.

 

3.                                       We
understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certifications, 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.\

 

4.                                       We
are an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7)
under the Securities Act) and have such knowledge and experience in financial
and business matters as 

 

C-1

 

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 its investment.

 

5.                                       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.

 

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.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  [Name of Transferee]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  

 

C-2

 

EXHIBIT D

 

Form of Certificate to Be Delivered in

Connection with Transfers Pursuant to Regulation S

 

                            ,
        

 

Re:                          Samsonite
Corporation (the “Company”) 8-7/8%

Senior Subordinated Notes due 2011 (the “Notes”)

 

Dear Sirs:

 

In connection with our proposed sale of
$                             
aggregate principal amount of the Notes, we confirm that such sale has been
effected pursuant to and in accordance with Regulation S under the 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;

 

(5)                                  we
understand that, on any proposed resale of any Notes, we will be required to
furnish to you and the Company such certifications, 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; and

 

(6)                                  we
have advised the transferee of the transfer restrictions applicable to the
Notes.

 

D-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 Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  

 

D-2QuickLinks
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EXHIBIT 4.1    
    

	COMMON STOCK	COMMON STOCK
	

IKAN	

 

(IKANOS LOGO)  

	INCORPORATED UNDER THE LAWS OF

THE STATE OF DELAWARE	 	CUSIP

SEE REVERSE

FOR CERTAIN

DEFINITIONS
	

THIS CERTIFIES THAT	

 	

 
	

(IKANOS LOGO)
	

is the record holder of	

 	

 

FULLY
PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $0.001 PAR VALUE PER SHARE, OF 

	
	 	 	 	

	
	 	IKANOS	 	

	
	 	 	 	

transferable
only on the books of the Corporation by the holder hereof in person or by duly authorized Attorney upon surrender of this certificate properly endorsed. This certificate is not valid
until countersigned by the Transfer Agent and Registrar. 

        WITNESS
the facsimile signatures of its duly authorized officers. 

Dated:

(IKANOS SEAL)  

	        CHIEF FINANCIAL OFFICER	 	CHAIRMAN AND CEO        

COUNTERSIGNED AND REGISTERED:

        [TRANSFER AGENT]  

TRANSFER AGENT AND REGISTRAR  

 BY  

 AUTHORIZED SIGNATURE  

 IKANOS COMMUNICATIONS, INC.  

        THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE PARTICIPATING, OPTIONAL OR
OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. SUCH REQUEST MUST BE MADE TO THE CORPORATION'S
SECRETARY AT THE PRINCIPAL EXECUTIVE OFFICE OF THE CORPORATION. 

        Keep
this Certificate in a safe place. If it is lost, stolen or destroyed, the Corporation will require a bond of indemnity as a condition to the issuance of a replacement certificate. 

        The
following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or
regulations: 

	TEN COM	 	-	 	as tenants in common
	TEN ENT	 	-	 	as tenants by the entireties
	JT TEN	 	-	 	as joint tenants with right

of survivorship and not as

tenants in common

	UNIF GIFT MIN ACT-	 	
	 	Custodian	 	
	 	 
	 	 	(Cust)	 	 	 	(Minor)	 	 
	under Uniform Gifts to Minors
	Act	 	
 (State)

	UNIF TRF MIN ACT-	 	
	 	Custodian (until age	 	
	 	)	 	 
	 	 	(Cust)	 	 	 	 	 	 	 	 
	 	 	
	 	under Uniform Transfers
	 	 	(Minor)	 	 	 	 	 	 	 	 
	 	 	to Minors Act                            	 	 	 	 
	 	 	                             (State)	 	 	 	 

        Additional abbreviations may also be used though not in the above list. 

For
Value Received,                        hereby sell, assign and transfer unto 

	 	 	PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE	 	 	 	 
	
	 	 
	/	 	 	 	/	 	 
	
	 	 

	    
	
 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE OF ASSIGNEE(S)
	

	

	

 Shares represented by the within Certificate, and do hereby irrevocably

	constitute and appoint	 	
	 	Attorney
	to transfer the said Shares on the books of the within named Corporation with full power of substitution in the premises.

	
Dated	

	
 	

	    
  

In presence of

    
    
	 	NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE WHATEVER.

Signature(s) Guaranteed 

	By	

	THE SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM) PURSUANT TO
S.E.C. RULE 17Ad-15.

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EXHIBIT 4.1

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