Document:

Exhibit 4.1

 
	

 

 

INDENTURE

Dated as of March 17, 2011

Among

GRIFFON CORPORATION,

THE GUARANTORS NAMED ON THE SIGNATURE PAGES
HERETO

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

71⁄8% SENIOR NOTES DUE 2018

	
  

 
	

 

 

CROSS-REFERENCE TABLE*

	
  

 	
  

 	
  

 	
  

 
	
 Trust Indenture
 Act Section

 	
  

 	
 Indenture Section

 
	

 

 	
  

 	

 

 
	
 310 

 	
 (a)(1)

 	
  

 	
 7.10

 
	
  

 	
 (a)(2)

 	
  

 	
 7.10

 
	
  

 	
 (a)(3)

 	
  

 	
 N.A.

 
	
  

 	
 (a)(4)

 	
  

 	
 N.A.

 
	
  

 	
 (a)(5)

 	
  

 	
 7.10

 
	
  

 	
 (b)

 	
  

 	
 7.10

 
	
  

 	
 (c)

 	
  

 	
 N.A.

 
	
 311

 	
 (a)

 	
  

 	
 7.11

 
	
  

 	
 (b)

 	
  

 	
 7.11

 
	
  

 	
 (c)

 	
  

 	
 N.A.

 
	
 312

 	
 (a)

 	
  

 	
 2.05

 
	
  

 	
 (b)

 	
  

 	
 12.03

 
	
  

 	
 (c)

 	
  

 	
 12.03

 
	
 313

 	
 (a)

 	
  

 	
 7.06

 
	
  

 	
 (b)(1)

 	
  

 	
 N.A.

 
	
  

 	
 (b)(2)

 	
  

 	
 7.06; 7.07

 
	
  

 	
 (c)

 	
  

 	
 7.06; 12.02

 
	
  

 	
 (d)

 	
  

 	
 7.06

 
	
 314

 	
 (a)

 	
  

 	
 4.03; 4.04; 12.02; 12.05

 
	
  

 	
 (b)

 	
  

 	
 N.A.

 
	
  

 	
 (c)(1)

 	
  

 	
 12.04

 
	
  

 	
 (c)(2)

 	
  

 	
 12.04

 
	
  

 	
 (c)(3)

 	
  

 	
 N.A.

 
	
  

 	
 (d)

 	
  

 	
 N.A.

 
	
  

 	
 (e)

 	
  

 	
 12.05

 
	
  

 	
 (f)

 	
  

 	
 N.A.

 
	
 315

 	
 (a)

 	
  

 	
 7.01

 
	
  

 	
 (b)

 	
  

 	
 7.05; 12.02

 
	
  

 	
 (c)

 	
  

 	
 7.01

 
	
  

 	
 (d)

 	
  

 	
 7.01

 
	
  

 	
 (e)

 	
  

 	
 6.14

 
	
 316

 	
 (a)(last
 sentence)

 	
  

 	
 2.09

 
	
  

 	
 (a)(1)(A)

 	
  

 	
 6.05

 
	
  

 	
 (a)(1)(B)

 	
  

 	
 6.04

 
	
  

 	
 (a)(2)

 	
  

 	
 N.A.

 
	
  

 	
 (b)

 	
  

 	
 6.07

 
	
  

 	
 (c)

 	
  

 	
 2.12; 9.04

 
	
 317

 	
 (a)(1)

 	
  

 	
 6.08

 
	
  

 	
 (a)(2)

 	
  

 	
 6.12

 
	
  

 	
 (b)

 	
  

 	
 2.04

 
	
 318

 	
 (a)

 	
  

 	
 12.01

 
	
  

 	
 (b)

 	
  

 	
 N.A.

 
	
  

 	
 (c)

 	
  

 	
 12.01

 

N.A. means not
applicable.

* This Cross-Reference Table is not part of the Indenture.

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 
	
  

 	
  

 	
  

 	
  

 
	
 DEFINITIONS AND INCORPORATION BY REFERENCE

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Section 1.01

 	
 Definitions

 	
  

 	
 1

 
	
 Section 1.02

 	
 Other
 Definitions

 	
  

 	
 29

 
	
 Section 1.03

 	
 Incorporation
 by Reference of Trust Indenture Act

 	
  

 	
 30

 
	
 Section 1.04

 	
 Rules of
 Construction

 	
  

 	
 30

 
	
 Section 1.05

 	
 Acts of
 Holders

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 
	
  

 	
  

 	
  

 	
  

 
	
 THE NOTES

 
	
  

 	
  

 	
  

 	
  

 
	
 Section 2.01

 	
 Form and
 Dating; Terms

 	
  

 	
 32

 
	
 Section 2.02

 	
 Execution
 and Authentication

 	
  

 	
 34

 
	
 Section 2.03

 	
 Registrar
 and Paying Agent

 	
  

 	
 34

 
	
 Section 2.04

 	
 Paying Agent
 To Hold Money in Trust

 	
  

 	
 35

 
	
 Section 2.05

 	
 Holder Lists

 	
  

 	
 35

 
	
 Section 2.06

 	
 Transfer and
 Exchange

 	
  

 	
 35

 
	
 Section 2.07

 	
 Replacement
 Notes

 	
  

 	
 46

 
	
 Section 2.08

 	
 Outstanding
 Notes

 	
  

 	
 47

 
	
 Section 2.09

 	
 Treasury
 Notes

 	
  

 	
 47

 
	
 Section 2.10

 	
 Temporary
 Notes

 	
  

 	
 47

 
	
 Section 2.11

 	
 Cancellation

 	
  

 	
 48

 
	
 Section 2.12

 	
 Defaulted
 Interest

 	
  

 	
 48

 
	
 Section 2.13

 	
 CUSIP or
 ISIN Numbers

 	
  

 	
 48

 
	
 Section 2.14

 	
 Additional
 Interest

 	
  

 	
 48

 
	
  

 
	
 ARTICLE III

 
	
  

 
	
 REDEMPTION

 
	
  

 
	
 Section 3.01

 	
 Notices To
 Trustee

 	
  

 	
 49

 
	
 Section 3.02

 	
 Selection of
 Notes To Be Redeemed or Purchased

 	
  

 	
 49

 
	
 Section 3.03

 	
 Notice of
 Redemption

 	
  

 	
 49

 
	
 Section 3.04

 	
 Effect of
 Notice of Redemption

 	
  

 	
 50

 
	
 Section 3.05

 	
 Deposit of
 Redemption or Purchase Price

 	
  

 	
 51

 
	
 Section 3.06

 	
 Notes
 Redeemed or Purchased in Part

 	
  

 	
 51

 
	
 Section 3.07

 	
 Optional
 Redemption

 	
  

 	
 51

 
	
 Section 3.08

 	
 Mandatory
 Redemption

 	
  

 	
 52

 
	
 Section 3.09

 	
 Offers To
 Repurchase by Application of Excess Proceeds

 	
  

 	
 52

 

-i-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 
	
  

 
	
 COVENANTS

 
	
  

 
	
 Section 4.01

 	
 Payment of
 Notes

 	
  

 	
 54

 
	
 Section 4.02

 	
 Maintenance
 of Office or Agency

 	
  

 	
 54

 
	
 Section 4.03

 	
 Reports and
 Other Information

 	
  

 	
 55

 
	
 Section 4.04

 	
 Compliance
 Certificate

 	
  

 	
 56

 
	
 Section 4.05

 	
 Taxes

 	
  

 	
 56

 
	
 Section 4.06

 	
 Stay,
 Extension and Usury Laws

 	
  

 	
 56

 
	
 Section 4.07

 	
 Limitation
 on Restricted Payments

 	
  

 	
 56

 
	
 Section 4.08

 	
 Dividend and
 Other Payment Restrictions Affecting Restricted Subsidiaries

 	
  

 	
 62

 
	
 Section 4.09

 	
 Limitation
 on Incurrence of Indebtedness and Issuance of Disqualified Stock and
 Preferred Stock

 	
  

 	
 63

 
	
 Section 4.10

 	
 Asset Sales

 	
  

 	
 69

 
	
 Section 4.11

 	
 Transactions
 with Affiliates

 	
  

 	
 71

 
	
 Section 4.12

 	
 Liens

 	
  

 	
 72

 
	
 Section 4.13

 	
 Corporate Existence

 	
  

 	
 73

 
	
 Section 4.14

 	
 Offer To
 Repurchase Upon Change of Control

 	
  

 	
 73

 
	
 Section 4.15

 	
 Subsidiary
 Guarantees

 	
  

 	
 75

 
	
 Section 4.16

 	
 Suspension
 of Covenants

 	
  

 	
 76

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 
	
  

 
	
 SUCCESSORS

 
	
  

 
	
 Section 5.01

 	
 Merger,
 Consolidation or Sale of All or Substantially All Assets

 	
  

 	
 77

 
	
 Section 5.02

 	
 Successor
 Corporation Substituted

 	
  

 	
 78

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 
	
  

 
	
 DEFAULTS AND REMEDIES

 
	
  

 
	
 Section 6.01

 	
 Events of
 Default

 	
  

 	
 79

 
	
 Section 6.02

 	
 Acceleration

 	
  

 	
 81

 
	
 Section 6.03

 	
 Other Remedies

 	
  

 	
 81

 
	
 Section 6.04

 	
 Waiver of
 Past Defaults

 	
  

 	
 81

 
	
 Section 6.05

 	
 Control by
 Majority

 	
  

 	
 82

 
	
 Section 6.06

 	
 Limitation
 on Suits

 	
  

 	
 82

 
	
 Section 6.07

 	
 Rights of
 Holders of Notes To Receive Payment

 	
  

 	
 82

 
	
 Section 6.08

 	
 Collection
 Suit by Trustee

 	
  

 	
 83

 
	
 Section 6.09

 	
 Restoration
 of Rights and Remedies

 	
  

 	
 83

 
	
 Section 6.10

 	
 Rights and
 Remedies Cumulative

 	
  

 	
 83

 
	
 Section 6.11

 	
 Delay or
 Omission Not Waiver

 	
  

 	
 83

 
	
 Section 6.12

 	
 Trustee May
 File Proofs of Claim

 	
  

 	
 83

 
	
 Section 6.13

 	
 Priorities

 	
  

 	
 84

 
	
 Section 6.14

 	
 Undertaking
 for Costs

 	
  

 	
 84

 

-ii-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 
	
  

 
	
 TRUSTEE

 
	
  

 
	
 Section 7.01

 	
 Duties of
 Trustee

 	
  

 	
 85

 
	
 Section 7.02

 	
 Rights of
 Trustee

 	
  

 	
 86

 
	
 Section 7.03

 	
 Individual
 Rights of Trustee

 	
  

 	
 87

 
	
 Section 7.04

 	
 Trustee’s
 Disclaimer

 	
  

 	
 87

 
	
 Section 7.05

 	
 Notice of
 Defaults

 	
  

 	
 87

 
	
 Section 7.06

 	
 Reports by
 Trustee to Holders of the Notes

 	
  

 	
 87

 
	
 Section 7.07

 	
 Compensation
 and Indemnity

 	
  

 	
 88

 
	
 Section 7.08

 	
 Replacement
 of Trustee

 	
  

 	
 89

 
	
 Section 7.09

 	
 Successor
 Trustee by Merger, etc.

 	
  

 	
 89

 
	
 Section 7.10

 	
 Eligibility;
 Disqualification

 	
  

 	
 90

 
	
 Section 7.11

 	
 Preferential
 Collection of Claims Against Issuer

 	
  

 	
 90

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 
	
  

 
	
 LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 
	
  

 
	
 Section 8.01

 	
 Option To
 Effect Legal Defeasance or Covenant Defeasance

 	
  

 	
 90

 
	
 Section 8.02

 	
 Legal
 Defeasance and Discharge

 	
  

 	
 90

 
	
 Section 8.03

 	
 Covenant
 Defeasance

 	
  

 	
 91

 
	
 Section 8.04

 	
 Conditions
 to Legal or Covenant Defeasance

 	
  

 	
 91

 
	
 Section 8.05

 	
 Deposited
 Money and Government Securities To Be Held in Trust; Other Miscellaneous
 Provisions

 	
  

 	
 93

 
	
 Section 8.06

 	
 Repayment to
 Issuer

 	
  

 	
 93

 
	
 Section 8.07

 	
 Reinstatement

 	
  

 	
 93

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 
	
  

 
	
 AMENDMENT, SUPPLEMENT AND WAIVER

 
	
  

 
	
 Section 9.01

 	
 Without
 Consent of Holders of Notes

 	
  

 	
 94

 
	
 Section 9.02

 	
 With Consent
 of Holders of Notes

 	
  

 	
 95

 
	
 Section 9.03

 	
 Compliance
 with Trust Indenture Act

 	
  

 	
 96

 
	
 Section 9.04

 	
 Revocation
 and Effect of Consents

 	
  

 	
 96

 
	
 Section 9.05

 	
 Notation on
 or Exchange of Notes

 	
  

 	
 97

 
	
 Section 9.06

 	
 Trustee To
 Sign Amendments, etc.

 	
  

 	
 97

 
	
 Section 9.07

 	
 Payment for
 Consent

 	
  

 	
 97

 
	
 ARTICLE X

 
	
  

 
	
 GUARANTEES

 
	
  

 
	
 Section
 10.01

 	
 Guarantee

 	
  

 	
 98

 
	
 Section
 10.02

 	
 Limitation
 on Guarantor Liability

 	
  

 	
 99

 
	
 Section
 10.03

 	
 Execution
 and Delivery

 	
  

 	
 100

 

-iii-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 Section
 10.04

 	
 Subrogation

 	
  

 	
 100

 
	
 Section
 10.05

 	
 Benefits
 Acknowledged

 	
  

 	
 100

 
	
 Section
 10.06

 	
 Release of
 Guarantees

 	
  

 	
 100

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 
	
  

 
	
 SATISFACTION AND DISCHARGE

 
	
  

 
	
 Section 11.01

 	
 Satisfaction
 and Discharge

 	
  

 	
 101

 
	
 Section
 11.02

 	
 Application
 of Trust Money

 	
  

 	
 102

 
	
  

 
	
 ARTICLE XII

 
	
  

 	
  

 	
  

 	
  

 
	
 MISCELLANEOUS

 
	
  

 
	
 Section
 12.01

 	
 Trust
 Indenture Act Controls

 	
  

 	
 102

 
	
 Section
 12.02

 	
 Notices

 	
  

 	
 102

 
	
 Section
 12.03

 	
 Communication
 by Holders of Notes with Other Holders of Notes

 	
  

 	
 104

 
	
 Section
 12.04

 	
 Certificate
 and Opinion as to Conditions Precedent

 	
  

 	
 104

 
	
 Section
 12.05

 	
 Statements
 Required in Certificate or Opinion

 	
  

 	
 104

 
	
 Section
 12.06

 	
 Rules by
 Trustee and Agents

 	
  

 	
 104

 
	
 Section
 12.07

 	
 No Personal
 Liability of Directors, Officers, Employees and Stockholders

 	
  

 	
 105

 
	
 Section
 12.08

 	
 Governing
 Law

 	
  

 	
 105

 
	
 Section
 12.09

 	
 Waiver of
 Jury Trial

 	
  

 	
 105

 
	
 Section
 12.10

 	
 Force
 Majeure

 	
  

 	
 105

 
	
 Section
 12.11

 	
 No Adverse
 Interpretation of Other Agreements

 	
  

 	
 105

 
	
 Section
 12.12

 	
 Successors

 	
  

 	
 105

 
	
 Section
 12.13

 	
 Severability

 	
  

 	
 105

 
	
 Section
 12.14

 	
 Counterpart
 Originals

 	
  

 	
 106

 
	
 Section
 12.15

 	
 Table of
 Contents, Headings, etc.

 	
  

 	
 106

 
	
 Section
 12.16

 	
 U.S.A.
 Patriot Act

 	
  

 	
 106

 
	
  

 	
  

 	
  

 	
  

 
	
 EXHIBITS

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Exhibit A

 	
 Form of Note

 	
  

 	
  

 
	
 Exhibit B

 	
 Form of
 Certificate of Transfer

 	
  

 	
  

 
	
 Exhibit C

 	
 Form of
 Certificate of Exchange

 	
  

 	
  

 
	
 Exhibit D

 	
 Form of
 Supplemental Indenture To Be Delivered by Subsequent Guarantors

 	
  

 	
  

 

-iv-

                    INDENTURE,
dated as of March 17, 2011 among Griffon Corporation, a Delaware corporation
(the “Issuer”), the Guarantors (as defined herein) listed on the
signature pages hereto and Wells Fargo Bank, National Association, a national
banking association, as Trustee.

W I T N E S S E T H

                    WHEREAS,
the Issuer has duly authorized the creation of an issue of (a)
$550,000,000 aggregate principal amount of 71⁄8% Senior Notes due 2018 (the
“Initial Notes”) and (b) if and when issued as provided in the
Registration Rights Agreement in a Registered Exchange Offer in exchange for
any Initial Notes or otherwise registered under the Securities Act and issued
in the form of Exhibit A, the Issuer’s 71⁄8% Senior Notes due 2018 (the “Exchange
Notes” and, together with the Initial Notes and any Additional Notes, the “Notes”).
The Initial Notes, the Exchange Notes and any Additional Notes shall be treated
as a single class for all purposes under this Indenture, including waivers,
amendments, redemptions and offers to purchase.

                    WHEREAS,
the Issuer and each of the Guarantors has duly authorized the execution and
delivery of this Indenture.

                    NOW,
THEREFORE, the Issuer, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of
the Notes.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

	
  

 	
  

 
	
 Section 1.01

 	
 Definitions.

 

                    “144A
Global Note” means a Global Note substantially in the form of Exhibit A
hereto, bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary or
its nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes sold or to be sold in reliance on Rule 144A.

                    “Acquired
Indebtedness” means, with respect to any specified Person,

	
  

 	
  

 
	
  

 	
           (1)
 Indebtedness of any other Person existing at the time such other Person is
 merged with or into or became a Restricted Subsidiary of such specified
 Person, including Indebtedness assumed or incurred in connection with, or in
 contemplation of, such other Person merging with or into or becoming a
 Restricted Subsidiary of such specified Person, and

 
	
  

 	
  

 
	
  

 	
           (2)
 Indebtedness secured by a Lien encumbering any asset acquired by such specified
 Person.

 

                    “Additional
Interest” means all additional interest then owing pursuant
to the Registration Rights Agreement.

                    “Additional
Notes” means any additional Notes (other than Exchange Notes) issued after
the Issue Date having identical terms and conditions to the Initial Notes,
except for issue date, issue price, first interest payment date and rights
under a related registration rights agreement, if any, in an unlimited amount
(so long as not otherwise prohibited by the terms of this Indenture, including,
without limitation, Section 4.09 hereof). 

                    “Affiliate”
of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
Person. For purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control
with”), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities,
by agreement or otherwise. No Person (other than the Issuer or any Subsidiary
of the Issuer) in whom a Receivables Subsidiary makes an Investment in connection
with a financing of accounts receivable will be deemed to be an Affiliate of
the Issuer or any of its Subsidiaries solely by reason of such Investment.

                    “Applicable Premium” means, with
respect to any Note on any Redemption Date, the greater of:

	
  

 	
  

 
	
  

 	
           (1)
 1.0% of the principal amount of such Note; and

 
	
  

 	
  

 
	
  

 	
           (2)
 the excess, if any, of (a) the present value at such Redemption Date of
 (i) the redemption price of such Note at April 1, 2014 (such
 redemption price being set forth in the table appearing above under the
 caption “Optional Redemption”), plus (ii) all required interest payments
 due on such Note through April 1, 2014 (excluding accrued but unpaid interest
 to the Redemption Date), computed using a discount rate equal to the Treasury
 Rate as of such Redemption Date plus 50 basis points; over (b) the
 then-outstanding principal amount of such Note.

 

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

                    “Asset
Sale” means:

	
  

 	
  

 
	
  

 	
           (1)
 the sale, conveyance, transfer or other disposition, whether in a single
 transaction or a series of related transactions, of property or assets of the
 Issuer or any of the Restricted Subsidiaries (each referred to in this
 definition as a “disposition”); or

 
	
  

 	
  

 
	
  

 	
           (2)
 the issuance or sale of Equity Interests of any Restricted Subsidiary,
 whether in a single transaction or a series of related transactions (other
 than Preferred Stock of Restricted Subsidiaries issued in compliance with
 Section 4.09 hereof);

 
	
  

 	
  

 
	
 in each
 case, other than:

 
	
  

 	
  

 
	
  

 	
           (a)
 any disposition of Cash Equivalents or Investment Grade Securities or
 obsolete, damaged or worn out equipment or assets no longer used or useful,
 in each case, in the ordinary course of business or any disposition of
 inventory, equipment, accounts receivable or goods (or other assets) held for
 sale in the ordinary course of business;

 
	
  

 	
  

 
	
  

 	
           (b)
 the disposition of all or substantially all of the assets of the Issuer in a
 manner permitted pursuant to the provisions described under Section 5.01
 hereof or any disposition that constitutes a Change of Control pursuant to
 this Indenture;

 
	
  

 	
  

 
	
  

 	
           (c)
 the making of any Restricted Payment or Permitted Investment that is
 permitted to be made, and is made, under Section 4.07 hereof;

 

-2-

	
  

 	
  

 
	
  

 	
           (d)
 any disposition of assets or issuance or sale of Equity Interests of any
 Restricted Subsidiary in any transaction or series of related transactions
 with an aggregate fair market value of less than $10.0 million;

 
	
  

 	
  

 
	
  

 	
           (e)
 any disposition of property or assets or issuance of securities by a
 Restricted Subsidiary of the Issuer to the Issuer or by the Issuer or a
 Restricted Subsidiary of the Issuer to another Restricted Subsidiary of the
 Issuer; 

 
	
  

 	
  

 
	
  

 	
           (f)
 to the extent allowable under Section 1031 of the Internal Revenue Code of
 1986, any exchange of like property (excluding any boot thereon) for use in a
 Similar Business;

 
	
  

 	
  

 
	
  

 	
           (g)
 the lease, assignment or sublease of any real or personal property in the
 ordinary course of business;

 
	
  

 	
  

 
	
  

 	
           (h)
 foreclosures, condemnations or any similar actions on assets;

 
	
  

 	
  

 
	
  

 	
           (i)
 any financing transaction with respect to property built or acquired by the
 Issuer or any Restricted Subsidiary after the Issue Date, including Sale and
 Lease-Back Transactions permitted by this Indenture;

 
	
  

 	
  

 
	
  

 	
           (j)
 licenses or sub-licenses of intellectual property in the ordinary course of
 business; 

 
	
  

 	
  

 
	
  

 	
           (k)
 the creation of any Lien permitted under this Indenture;

 
	
  

 	
  

 
	
  

 	
           (l)
 any issuance or sale of Equity Interests in, or Indebtedness or other
 securities of, an Unrestricted Subsidiary;

 
	
  

 	
  

 
	
  

 	
           (m)
 the surrender or waiver of contract rights or settlement, release or
 surrender of a contract, tort or other litigation claim in the ordinary
 course of business; and

 
	
  

 	
  

 
	
  

 	
           (n)
 a disposition of accounts receivable and related assets by a Receivables
 Subsidiary in a Qualified Receivables Financing.

 

                    “Bankruptcy
Law” means Title 11, U.S. Code or any similar federal or state law for the
relief of debtors.

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

                    “Capital
Stock” means:

	
  

 	
  

 
	
  

 	
           (1)
 in the case of a corporation, corporate stock;

 
	
  

 	
  

 
	
  

 	
           (2)
 in the case of an association or business entity, any and all shares,
 interests, participations, rights or other equivalents (however designated)
 of corporate stock;

 
	
  

 	
  

 
	
  

 	
           (3)
 in the case of a partnership or limited liability company, partnership or
 membership interests (whether general or limited); and

 

-3-

	
  

 	
  

 
	
  

 	
           (4)
 any other interest or participation that confers on a Person the right to
 receive a share of the profits and losses of, or distributions of assets of,
 the issuing Person.

 

                    “Capitalized Lease Obligation”
means, at the time any determination thereof is to be made, the amount of the
liability in respect of a capital lease that would at such time be required to
be capitalized and reflected as a liability on a balance sheet (excluding the
footnotes thereto) in accordance with GAAP; provided that any
obligations of the Issuer or its Restricted Subsidiaries either existing on the
Issue Date or created prior to any recharacterization described below (i) that
were not included on the consolidated balance sheet of the Issuer as capital
lease obligations and (ii) that are subsequently recharacterized as capital
lease obligations due to a change in accounting treatment or otherwise, shall
for all purposes under this Indenture (including, without limitation, the
calculation of Consolidated Net Income and EBITDA) not be treated as capital
lease obligations, Capitalized Lease Obligations or Indebtedness.

                    “Cash
Equivalents” means:

	
  

 	
  

 
	
  

 	
           (1)
 United States dollars;

 
	
  

 	
  

 
	
  

 	
           (2)
 (a) euro, or any national currency of any participating member of the EMU; or

 
	
  

 	
  

 
	
  

 	
           (b)
 in the case of any Foreign Subsidiary that is a Restricted Subsidiary, such
 local currencies held by them from time to time in the ordinary course of
 business;

 
	
  

 	
  

 
	
  

 	
           (3)
 securities issued or directly and fully and unconditionally guaranteed or
 insured by the U.S. government or any agency or instrumentality thereof the
 securities of which are unconditionally guaranteed as a full faith and credit
 obligation of such government with maturities of 12 months or less from the
 date of acquisition;

 
	
  

 	
  

 
	
  

 	
           (4)
 marketable direct EEA Government Obligations with maturities of 12 months or
 less from the date of acquisition;

 
	
  

 	
  

 
	
  

 	
           (5)
 certificates of deposit, time deposits and eurodollar time deposits with
 maturities of one year or less from the date of acquisition, bankers’
 acceptances with maturities not exceeding one year and overnight bank deposits,
 in each case with any commercial bank having capital and surplus of not less
 than $500.0 million;

 
	
  

 	
  

 
	
  

 	
           (6)
 repurchase obligations for underlying securities of the types described in
 clauses (3), (4) and (5) entered into with any financial institution meeting
 the qualifications specified in clause (5) above;

 
	
  

 	
  

 
	
  

 	
           (7)
 commercial paper rated at least P-1 by Moody’s or at least A-1 by S&P and
 in each case maturing within 24 months after the date of creation thereof;

 
	
  

 	
  

 
	
  

 	
           (8)
 marketable short-term money market and similar securities having a rating of
 at least P-2 or A-2 from either Moody’s or S&P, respectively, and in each
 case maturing within 24 months after the date of creation thereof;

 
	
  

 	
  

 
	
  

 	
           (9)
 readily marketable direct obligations issued by any state, commonwealth or
 territory of the United States or any political subdivision or taxing
 authority thereof having one of the two highest ratings obtainable from
 either Moody’s or S&P (or reasonably equivalent ratings of 

 

-4-

	
  

 	
  

 
	
  

 	
 another
 internationally recognized ratings agency) with maturities of 24 months
 or less from the date of acquisition;

 
	
  

 	
  

 
	
  

 	
           (10)
 investment funds investing 95% of their assets in securities of the types
 described in clauses (1) through (9) above; and

 
	
  

 	
  

 
	
  

 	
           (11)
 in the case of any Restricted Subsidiaries organized or having its principal
 place of business outside of the United States, Investments of comparable
 tenor and credit quality to those described in the foregoing clauses (3)
 through (10) customarily utilized in countries in which such Restricted
 Subsidiary operates. 

 

                    Notwithstanding
the foregoing, “Cash Equivalents” shall include amounts denominated in
currencies other than those set forth in clauses (1) and (2) above, provided that such amounts are converted into any
currency listed in clauses (1) and (2) as promptly as practicable and in any
event within ten Business Days following the receipt of such amounts.

                    “Change
of Control” means the occurrence of any of the following:

	
  

 	
  

 
	
  

 	
           (1)
 the sale, lease or transfer, in one or a series of related transactions, of
 all or substantially all of the assets of the Issuer and its Subsidiaries,
 taken as a whole, to any Person;

 
	
  

 	
  

 
	
  

 	
           (2)
 any Person or group (within the meaning of Section 13(d)(3) or Section
 14(d)(2) of the Exchange Act, or any successor provision), including any
 group acting for the purpose of acquiring, holding or disposing of securities
 (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), is or
 becomes, in a single transaction or in a related series of transactions, the
 beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act, or
 any successor provision) directly or indirectly, of 50% or more of the total
 voting power of the Voting Stock of the Issuer;

 
	
  

 	
  

 
	
  

 	
           (3)
 the first day on which a majority of the members of the board of directors of
 the Issuer are not Continuing Directors; or

 
	
  

 	
  

 
	
  

 	
           (4)
 the adoption by the stockholders of the Issuer of a plan or proposal for the
 liquidation or dissolution of the Issuer.

 

                    “Clearstream”
means Clearstream Banking, Société Anonyme, and any successor thereto.

                    “Consolidated Depreciation and Amortization
Expense” means, with respect to any Person for any period, the total
amount of depreciation and amortization expense, including the amortization of
goodwill and other intangibles, deferred financing fees of such Person and its
Restricted Subsidiaries, for such period on a consolidated basis and otherwise
determined in accordance with GAAP.

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

	
  

 	
  

 
	
  

 	
           (1)
 consolidated interest expense of such Person and its Restricted Subsidiaries
 for such period, to the extent such expense was deducted (and not added back)
 in computing Consolidated Net Income, including (a) amortization of
 original issue discount resulting from the issuance of Indebtedness at less
 than par, (b) all commissions, discounts and other fees and charges 

 

-5-

	
  

 	
  

 
	
  

 	
 owed with respect
 to letters of credit or bankers acceptances, (c) non-cash interest payments
 (but excluding any non-cash interest expense attributable to the movement in
 the mark to market valuation of Hedging Obligations or other derivative
 instruments pursuant to GAAP), (d) the interest component of Capitalized
 Lease Obligations, and (e) net payments, if any, pursuant to interest rate
 Hedging Obligations with respect to Indebtedness, and excluding
 (x) amortization of deferred financing fees, debt issuance costs,
 commissions, fees and expenses and (y) any expensing of bridge, commitment
 and other financing fees; plus

 
	
  

 	
  

 
	
  

 	
           (2)
 consolidated capitalized interest of such Person and its Restricted
 Subsidiaries for such period, whether paid or accrued.

 

                    For
purposes of this definition, interest on a Capitalized Lease Obligation shall
be deemed to accrue at an interest rate reasonably determined by such Person to
be the rate of interest implicit in such Capitalized Lease Obligation in
accordance with GAAP.

                    “Consolidated
Net Income” means, with respect to any Person for any period, the aggregate
of the Net Income, of such Person and its Restricted Subsidiaries for such
period, on a consolidated basis, and otherwise determined in accordance with
GAAP; provided, however, that, without duplication,

	
  

 	
  

 
	
  

 	
           (1)
 any after-tax effect of extraordinary gains or losses (less all fees and
 expenses relating thereto) shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (2)
 the cumulative effect of a change in accounting principles during such period
 shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (3)
 any after-tax effect of income (loss) attributable to discontinued operations
 shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (4)
 any after-tax effect of gains or losses (less all fees and expenses relating
 thereto) attributable to asset dispositions other than in the ordinary course
 of business, as determined in good faith by the Issuer, shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (5)
 the Net Income (but not loss) for such period of any Person that is not a
 Subsidiary, or is an Unrestricted Subsidiary, or that is accounted for by the
 equity method of accounting, shall be excluded; provided that Consolidated Net Income of the Issuer shall
 be increased by the amount of dividends or distributions or other payments
 that are actually paid in cash (or to the extent converted into cash) to the
 referent Person, or a Restricted Subsidiary thereof in respect of such period
 by such Person and shall be decreased by the amount of any actual net losses
 that have been funded with cash from the Issuer or a Restricted Subsidiary
 during such period,

 
	
  

 	
  

 
	
  

 	
           (6)
 the Net Income (but not loss) for such period of any Restricted Subsidiary
 (other than any Guarantor) shall be excluded if the declaration or payment of
 dividends or similar distributions by that Restricted Subsidiary of its Net
 Income is not at the date of determination permitted, directly or indirectly,
 by the operation of the terms of its charter or any agreement, instrument,
 judgment, decree, order, statute, rule, or governmental regulation applicable
 to that Restricted Subsidiary or its stockholders, unless such restriction
 with respect to the payment of dividends or similar distributions has been
 legally waived; provided
 that Consolidated Net Income of the Issuer will be increased by the amount of
 dividends or other distributions or other payments 

 

-6-

	
  

 	
  

 
	
  

 	
 actually
 paid in cash (or to the extent converted into cash) to the Issuer or a
 Restricted Subsidiary thereof in respect of such period, to the extent not
 already included therein,

 
	
  

 	
  

 
	
  

 	
           (7)
 effects of adjustments (including the effects of such adjustments pushed down
 to the Issuer and its Restricted Subsidiaries) in the property and equipment,
 software and other intangible assets, deferred revenue and debt line items in
 such Person’s consolidated financial statements pursuant to GAAP resulting
 from the application of purchase accounting in relation to any consummated
 acquisition or the amortization or write-off of any amounts thereof, net of
 taxes, shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (8)
 any impairment charge or asset write-off, in each case, pursuant to GAAP and
 the amortization of intangibles arising pursuant to GAAP shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (9)
 any non-cash gains and losses due solely to fluctuations in currency values
 in accordance with GAAP shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (10)
 any fees, charges, costs and expenses incurred in connection with the
 Transaction shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (11)
 (a) the amount of any write-off of deferred financing costs or of
 indebtedness issuance costs and the amount of charges related to any premium
 paid in connection with repurchasing or refinancing indebtedness shall be
 excluded and (b) all nonrecurring expenses and charges relating to such
 repurchase or refinancing of indebtedness or relating to any incurrence of
 indebtedness, in each case, whether or not such transaction is consummated,
 shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (12)
 restructuring charges incurred in connection with the closing and
 restructuring of idle facilities and non-recurring restructuring charges
 incurred in connection with consolidation of facilities of Clopay Building
 Products Company shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (13)
 any severance or similar one-time compensation charges shall be excluded,

 
	
  

 	
  

 
	
  

 	
           (14)
 fees, expenses and charges relating to any offering of Equity Interests or
 Indebtedness of the Issuer or its Restricted Subsidiaries or any acquisition
 permitted by this Indenture shall be excluded, and

 
	
  

 	
  

 
	
  

 	
           (15)
 any non-cash compensation charge or expense, including such charge or expense
 arising from grants of stock options or restricted stock or other equity
 incentive programs for the benefit of officers, directors and employees of
 the Issuer or any Restricted Subsidiary of the Issuer shall be excluded.

 

                    Notwithstanding
the foregoing, for the purpose of Section 4.07 hereof only (other than clause
(3)(e) of Section 4.07(a) hereof), there shall be excluded from Consolidated
Net Income any income arising from any sale or other disposition of Restricted
Investments made by the Issuer and its Restricted Subsidiaries, any repurchases
and redemptions of Restricted Investments from the Issuer and its Restricted
Subsidiaries, any repayments of loans and advances which constitute Restricted
Investments by the Issuer or any of its Restricted Subsidiaries, any sale of
the stock of an Unrestricted Subsidiary or any interest payment, distribution
or dividend from an Unrestricted Subsidiary, in each case only to the extent
such amounts increase the amount of Restricted Payments permitted under clause
(3)(e) of Section 4.07(a) hereof.

-7-

                    “Contingent Obligations” means,
with respect to any Person, any obligation of such Person guaranteeing any
leases, dividends or other obligations that do not constitute Indebtedness (“primary obligations”) of any
other Person (the “primary obligor”)
in any manner, whether directly or indirectly, including, without limitation,
any obligation of such Person, whether or not contingent,

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 to purchase any such primary obligation or any property constituting direct
 or indirect security therefor,

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 to advance or supply funds

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 for the purchase or payment of any such primary obligation, or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 to maintain working capital or equity capital of the primary obligor or
 otherwise to maintain the net worth or solvency of the primary obligor, or

 
	
  

 	
  

 	
  

 
	
  

 	
           (3)
 to purchase property, securities or services primarily for the purpose of
 assuring the owner of any such primary obligation of the ability of the
 primary obligor to make payment of such primary obligation against loss in
 respect thereof.

 

                    “Continuing
Directors” means, as of any date of determination, any member of the
board of directors of the Issuer who (1) was a member of such board of
directors on the date of this Indenture; or (2) was nominated for election or
elected to such board of directors with the approval of a majority of the
Continuing Directors who were members of such board of directors at the time of
such nomination or election.

                    “Convertible
Subordinated Notes” means the $100,000,000 aggregate
principal amount of 4.0% Convertible Subordinated Notes due 2017 issued by the
Issuer pursuant to an indenture dated December 21, 2009 between the Issuer and
American Stock Transfer & Trust Company, LLC, as trustee. 

                    “Corporate
Trust Office” means the principal office of the Trustee at which at any
time its corporate trust business shall be administered, which office at the
date hereof is located at 45 Broadway, 14th Floor, New York NY 10006,
Attention: Corporate Trust Services - Administrator for Griffon Corporation, or
such other address as the Trustee may designate from time to time by notice to
the Holders and the Issuer, or the principal corporate trust office of any
successor Trustee (or such address as such successor Trustee may designate from
time to time by notice to the Holders and the Issuer). 

                    “Credit
Facilities” means, with respect to the Issuer or any of its Restricted
Subsidiaries, one or more debt facilities, including the Senior Credit
Facilities and the New Credit Facility, or other financing arrangements
(including, without limitation, commercial paper facilities or indentures)
providing for revolving credit loans, term loans, letters of credit or other
long-term indebtedness, including any notes, mortgages, guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements or refundings
thereof and any indentures or credit facilities or commercial paper facilities
that replace, refund or refinance any part of the loans, notes, other credit
facilities or commitments thereunder, including any such replacement, refunding
or refinancing facility or indenture that increases the amount permitted to be
borrowed thereunder or alters the maturity thereof (provided that such increase in borrowings to the extent in
excess of the amount permitted under Section 4.09(b)(1) hereof is otherwise
permitted to be incurred under Section 4.09 hereof) or adds Restricted
Subsidiaries as additional borrowers or guarantors thereunder and whether by
the same or any other agent, lender or group of lenders.

-8-

                    “Custodian”
means the Trustee, as custodian with respect to the Notes in global form, or
any successor entity thereto.

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

                    “Definitive
Note” means a certificated Note registered in the name of the Holder
thereof and issued in accordance with Section 2.06(c) hereof, substantially in
the form of Exhibit A hereto, except that such Note shall not bear
the Global Note Legend and shall not have the “Schedule of Exchanges of Interests
in the Global Note” attached thereto.

                    “Depositary”
means, with respect to the Notes issuable or issued in whole or in part in
global form, the Person specified in Section 2.03 hereof as the Depositary with
respect to the Notes, and any and all successors thereto appointed as
Depositary hereunder and having become such pursuant to the applicable
provisions of this Indenture.

                    “Designated
Non-cash Consideration” means the fair market value of non-cash consideration
received by the Issuer or a Restricted Subsidiary in connection with an Asset
Sale that is so designated as Designated Non-cash Consideration pursuant to an
Officer’s Certificate, setting forth the basis of such valuation, executed by
the principal financial officer of the Issuer, less the amount of cash and Cash
Equivalents received in connection with a subsequent sale of or collection of
such Designated Non-cash Consideration.

                    “Disqualified
Stock” means, with respect to any Person, any Capital Stock of such Person
which, by its terms (or by the terms of any security into which it is
convertible or for which it is putable or exchangeable, except to the extent
such capital stock is exchanged into Indebtedness at the option of the Issuer
thereof and only subject to the terms of any debt instrument to which such
Person is a party), or upon the happening of any event, matures or is mandatorily
redeemable (other than solely as a result of a change of control or asset sale)
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
option of the holder thereof (other than solely as a result of a change of
control or asset sale), in whole or in part, in each case prior to the date 91
days after the earlier of the maturity date of the Notes or the date the Notes
are no longer outstanding; provided, however, that if such
Capital Stock is issued to any plan for the benefit of employees of the Issuer
or its Subsidiaries or by any such plan to such employees, such Capital Stock
shall not constitute Disqualified Stock solely because it may be required to be
repurchased by the Issuer or its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.

                    “Domestic
Restricted Subsidiary” means a Restricted Subsidiary incorporated or otherwise
organized or existing under the laws of the United States, any state thereof or
the District of Columbia.

                    “EBITDA” means, with respect to
any Person for any period, the Consolidated Net Income of such Person for such
period

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 increased (without duplication) by:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 provision for taxes based on income or profits or capital gains, including,
 without limitation, state, franchise and similar taxes and foreign
 withholding taxes of such Person paid or accrued during such period deducted
 (and not added back) in computing Consolidated Net Income; plus

 

-9-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b) Fixed
 Charges of such Person for such period to the extent the same was deducted
 (and not added back) in calculating such Consolidated Net Income; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (c)
 Consolidated Depreciation and Amortization Expense of such Person for such
 period to the extent the same were deducted (and not added back) in computing
 Consolidated Net Income; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (d) any
 expenses or charges (other than depreciation or amortization expense) related
 to any Equity Offering, Permitted Investment, acquisition, disposition, recapitalization
 or the incurrence of Indebtedness permitted to be incurred by this Indenture
 (including a refinancing thereof) (whether or not successful), including (i)
 such fees, expenses or charges related to the offering of the Notes and the
 Credit Facilities and (ii) any amendment or other modification of the Notes,
 and, in each case, deducted (and not added back) in computing Consolidated
 Net Income; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (e) the
 amount of any restructuring charge or reserve deducted (and not added back)
 in such period in computing Consolidated Net Income, including any one-time
 costs incurred in connection with acquisitions after the Issue Date and costs
 related to the closure and/or consolidation of facilities; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (f) any
 other non-cash charges, including any write offs or write downs, reducing
 Consolidated Net Income for such period (provided that if any such non-cash charges represent an
 accrual or reserve for potential cash items in any future period, the cash
 payment in respect thereof in such future period shall be subtracted from
 EBITDA to such extent, and excluding amortization of a prepaid cash item that
 was paid in a prior period); plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (g) any
 costs or expense incurred by the Issuer or a Restricted Subsidiary pursuant
 to any management equity plan or stock option plan or any other management or
 employee benefit plan or agreement or any stock subscription or shareholder
 agreement, to the extent that such cost or expenses are funded with cash
 proceeds contributed to the capital of the Issuer or net cash proceeds of an
 issuance of Equity Interest of the Issuer (other than Disqualified Stock)
 solely to the extent that such net cash proceeds are excluded from the
 calculation set forth in clause (3) of Section 4.07(a) hereof; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (h)
 any non-cash compensation expense recorded from grants of stock appreciation
 or similar rights, stock options, restricted stock or other rights; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 decreased by (without duplication) non-cash gains increasing Consolidated Net
 Income of such Person for such period, excluding any non-cash gains to the
 extent they represent the reversal of an accrual or reserve for a potential
 cash item that reduced EBITDA in any prior period, and

 
	
  

 	
  

 	
  

 
	
  

 	
           (3)
 increased or decreased by (without duplication):

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 any net gain or loss resulting in such period from Hedging Obligations and
 the application of Statement of Financial Accounting Standards No. 133; plus or minus,
 as applicable,

 

-10-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 any net gain or loss resulting in such period from currency translation gains
 or losses related to currency remeasurements of Indebtedness (including any
 net loss or gain resulting from Hedging Obligations for currency exchange
 risk), plus
 or minus,
 as applicable,

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (c)
 any net after-tax income (loss) from the early extinguishment of Indebtedness
 or Hedging Obligations or other derivative

 

all as
determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

                    “EEA
Government Obligation” means any direct non-callable obligation of any
European Union member for the payment of which obligation the full faith and
credit of the respective nation is pledged; provided that such nation has
a credit rating at least equal to that of the highest rated member nation of
the European Economic Area.

                    “EMU” means the economic and
monetary union as contemplated in the Treaty on European Union.

                    “Equity
Interests” means Capital Stock and all warrants, options or other rights to
acquire Capital Stock, but excluding any debt security that is convertible
into, or exchangeable for, Capital Stock.

                    “Equity
Offering” means any public or private sale of common stock or Preferred
Stock of the Issuer or any of its direct or indirect parent companies
(excluding Disqualified Stock), other than:

	
  

 	
  

 
	
  

 	
           (1)
 public offerings with respect to the Issuer’s or any direct or indirect
 parent company’s common stock registered on Form S-8; and

 
	
  

 	
  

 
	
  

 	
           (2)
 issuances to any Subsidiary of the Issuer.

 

                    “euro” means the single currency
of participating member states of the EMU. 

                    “Euroclear”
means Euroclear S.A./N.V., as operator of the Euroclear system, and any
successor thereto.

                    “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the SEC promulgated thereunder.

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

                    “Exchange
Offer Registration Statement” means the registration statement filed with
the SEC in connection with the Registered Exchange Offer.

                    “fair
market value”means, with respect to any asset or liability, the fair
market value of such asset or liability as determined by the Issuer in good
faith; provided that if the fair market value is equal to
or exceeds $25.0 million, such determination shall be made in good faith by the
board of directors of the Issuer.

-11-

                    “Fixed
Charge Coverage Ratio” means, with respect to any Person for any period,
the ratio of EBITDA of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the Issuer or any Restricted Subsidiary
incurs, assumes, guarantees, redeems, retires or extinguishes any Indebtedness
(other than Indebtedness incurred under any revolving credit facility or other
incurrence of Indebtedness for working capital purposes pursuant to working
capital facilities unless, in each case, such Indebtedness has been permanently
repaid and has not been replaced) or issues or redeems Disqualified Stock or
Preferred Stock subsequent to the commencement of the period for which the
Fixed Charge Coverage Ratio is being calculated but prior to or simultaneously
with the event for which the calculation of the Fixed Charge Coverage Ratio is
made (the “Fixed Charge Coverage Ratio Calculation Date”), then the
Fixed Charge Coverage Ratio shall be calculated giving pro forma effect to such
incurrence, assumption, guarantee, redemption, retirement or extinguishment of
Indebtedness, or such issuance or redemption of Disqualified Stock or Preferred
Stock, as if the same had occurred at the beginning of the applicable period. 

                    For
purposes of making the computation referred to above, Investments,
acquisitions, dispositions, mergers, consolidations and discontinued operations
(as determined in accordance with GAAP) that have been made by the Issuer or
any of its Restricted Subsidiaries during the reference period or subsequent to
such reference period and on or prior to or simultaneously with the Fixed
Charge Coverage Ratio Calculation Date shall be calculated on a pro forma basis assuming that all such
Investments, acquisitions, dispositions, mergers, consolidations and
discontinued operations (and the change in any associated Fixed Charges and the
change in EBITDA resulting therefrom) had occurred on the first day of the
reference period. If since the beginning of such period any Person that
subsequently became a Restricted Subsidiary or was merged with or into the
Issuer or any of its Restricted Subsidiaries since the beginning of such period
shall have made any Investment, acquisition, disposition, merger, consolidation
or discontinued operation that would have required adjustment pursuant to this
definition, then the Fixed Charge Coverage Ratio shall be calculated giving pro forma effect thereto for such period
as if such Investment, acquisition, disposition, merger, consolidation or
discontinued operation had occurred at the beginning of the applicable period. 

                    For
purposes of this definition, whenever pro
forma effect is to be given to a transaction, the pro forma calculations shall be made in good
faith by a responsible financial or accounting officer of the Issuer and shall
comply with Regulation S-X, except that the pro forma calculations may also
include reasonably identifiable and factually supportable operating expense
reductions for which the steps necessary for realization have been taken or are
reasonably expected to be completed within 12 months of the transaction and are
set forth in an Officer’s Certificate. For the avoidance of doubt, the actual
adjustments described in Adjusted EBITDA in the Offering Memorandum shall be
deemed to comply with the standards set forth in the immediately preceding
sentence. If any Indebtedness bears a floating rate of interest and is being
given pro forma effect, the
interest on such Indebtedness shall be calculated as if the rate in effect on
the Fixed Charge Coverage Ratio Calculation Date had been the applicable rate
for the entire period (taking into account any Hedging Obligations applicable
to such Indebtedness). Interest on a Capitalized Lease Obligation shall be
deemed to accrue at an interest rate reasonably determined by a responsible
financial or accounting officer of the Issuer to be the rate of interest
implicit in such Capitalized Lease Obligation in accordance with GAAP. For
purposes of making the computation referred to above, interest on any
Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based
upon the average daily balance of such Indebtedness during the applicable
period except as set forth in the first paragraph of this definition. Interest
on Indebtedness that may optionally be determined at an interest rate based
upon a factor of a prime or similar rate, a eurocurrency interbank offered
rate, or other rate, shall be deemed to have been based upon the rate actually
chosen, or, if none, then based upon such optional rate chosen as the Issuer
may designate. 

-12-

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

	
  

 	
  

 
	
  

 	
           (1)
 Consolidated Interest Expense of such Person for such period; 

 
	
  

 	
  

 
	
  

 	
           (2)
 all cash dividends or other distributions paid (excluding items eliminated in
 consolidation) on any series of Preferred Stock of such Person during such
 period; and 

 
	
  

 	
  

 
	
  

 	
           (3)
 all cash dividends or other distributions paid or accrued (excluding items
 eliminated in consolidation) on any series of Disqualified Stock of such
 Person during such period. 

 

                    “Foreign
Subsidiary” means, with respect to any Person, any Restricted Subsidiary
other than a Domestic Restricted Subsidiary. 

                    “GAAP”
means generally accepted accounting principles in the United States which are
in effect on the Issue Date. 

                    “Global
Note Legend” means the legend set forth in Section 2.06(f)(ii) hereof,
which is required to be placed on all Global Notes issued under this Indenture.

                    “Global
Notes” means, individually and collectively, each of the Restricted Global
Notes and the Unrestricted Global Notes, substantially in the form of Exhibit
A hereto, issued in accordance with Section 2.01, 2.06(b) or 2.06(d)
hereof. 

                    “Government
Securities” means securities that are: 

	
  

 	
  

 
	
  

 	
           (1)
 direct obligations of the United States of America for the timely payment of
 which its full faith and credit is pledged; or 

 
	
  

 	
  

 
	
  

 	
           (2)
 obligations of a Person controlled or supervised by and acting as an agency
 or instrumentality of the United States of America the timely payment of
 which is unconditionally guaranteed as a full faith and credit obligation by
 the United States of America. 

 

                    “guarantee”
means a guarantee (other than by endorsement of negotiable instruments for
collection in the ordinary course of business), direct or indirect, in any
manner (including letters of credit and reimbursement agreements in respect
thereof), of all or any part of any Indebtedness or other obligations. 

                    “Guarantee”
means the guarantee by any Guarantor of the Issuer’s Obligations under this
Indenture. 

                    “Guarantor”
means, each Restricted Subsidiary that Guarantees the Notes in accordance with
the terms of this Indenture. 

                    “Hedging
Obligations” means, with respect to any Person, the obligations of such
Person under: 

	
  

 	
  

 
	
  

 	
           (1)
 any interest rate protection agreements including, without limitation,
 interest rate swap agreements, interest rate cap agreements and interest rate
 collar agreements; 

 

-13-

	
  

 	
  

 
	
  

 	
           (2)
 any foreign exchange contracts, currency swap agreements or other agreements
 or arrangements designed to protect such Person against fluctuations in
 interest rates or foreign exchange rates; 

 
	
  

 	
  

 
	
  

 	
           (3)
 any commodity futures contract, commodity option or other similar arrangement
 or agreement designed to protect such Person against fluctuations in the
 prices of commodities; and 

 
	
  

 	
  

 
	
  

 	
           (4)
 indemnity agreements and arrangements entered into in connection with the
 agreements and arrangements described in clauses (1), (2) and (3). 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (1)
 any indebtedness (including principal and premium) of such Person, whether or
 not contingent: 

 

	
  

 	
  

 
	
  

 	
           (a)
 in respect of borrowed money; 

 
	
  

 	
  

 
	
  

 	
           (b)
 evidenced by bonds, notes, debentures or similar instruments or letters of
 credit or bankers’ acceptances (or, without duplication, reimbursement
 agreements in respect thereof); 

 
	
  

 	
  

 
	
  

 	
           (c)
 representing the balance deferred and unpaid of the purchase price of any
 property (including Capitalized Lease Obligations), except (i) any such
 balance that constitutes an accrued expense or trade payable or similar
 obligation to a trade creditor accrued in the ordinary course of business and
 (ii) any earn-out obligations until such obligation becomes a liability on
 the balance sheet of such Person in accordance with GAAP; or 

 
	
  

 	
  

 
	
  

 	
           (d)
 representing any Hedging Obligations; 

 

	
  

 	
  

 
	
  

 	
 if and to
 the extent that any of the foregoing Indebtedness (other than letters of
 credit and Hedging Obligations) would appear as a liability upon a balance
 sheet (excluding the footnotes thereto) of such Person prepared in accordance
 with GAAP; 

 
	
  

 	
  

 
	
  

 	
           (2)
 to the extent not otherwise included, any obligation by such Person to be
 liable for, or to pay, as obligor, guarantor or otherwise, on the obligations
 of the type referred to in clause (1) of a third Person (whether or not such
 items would appear upon the balance sheet of the such obligor or guarantor),
 other than by endorsement of negotiable instruments for collection in the
 ordinary course of business; and 

 
	
  

 	
  

 
	
  

 	
           (3)
to the extent not otherwise included, the obligations of the type referred to
in clause (1) of a third Person secured by a Lien on any asset owned by such
first Person, whether or not such Indebtedness is assumed by such first
Person; provided that if such Indebtedness has not been so assumed the amount
of such Indebtedness shall be the lesser of (A) the fair market value of such
asset at the date of determination and (B) the amount of the Indebtedness so
secured; 

 

-14-

 provided, however, that
notwithstanding the foregoing, Indebtedness shall be deemed not to include
Contingent Obligations incurred in the ordinary course of business and
obligations under or in respect of Qualified Receivables Financings. 

                    “Indenture”
means this Indenture, as amended or supplemented from time to time in
accordance with Article 9 hereof. 

                    “Independent
Financial Advisor” means an accounting, appraisal, investment banking firm
or consultant of nationally recognized standing that is, in the good faith
judgment of the Issuer, qualified to perform the task for which it has been
engaged. 

                    “Indirect
Participant” means a Person who holds a beneficial interest in a Global
Note through a Participant. 

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

                    “Initial
Purchasers” means Deutsche Bank Securities Inc., J.P. Morgan Securities
LLC, Goldman, Sachs & Co., HSBC Securities (USA) Inc., and Wells Fargo
Securities, LLC. 

                    “interest”
means, with respect to the Notes, interest and Additional Interest, if any, on
the Notes (regardless of whether so stated). 

                    “Interest
Payment Date” means April 1 and October 1 of each year to stated maturity. 

                    “Investment
Grade Rating” means a rating equal to or higher that Baa3 (or equivalent)
by Moody’s and BBB- (or equivalent) by S&P or an equivalent rating by any
Successor Rating Agency 

                    “Investments”
means, with respect to any Person, all investments by such Person in other
Persons (including Affiliates) in the form of loans (including guarantees),
advances or capital contributions (excluding accounts receivable, trade credit,
advances to customers, commission, travel and similar advances to officers and
employees, in each case made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities issued by any other Person and investments that are required by GAAP
to be classified on the balance sheet (excluding the footnotes) of the Issuer
in the same manner as the other investments included in this definition to the
extent such transactions involve the transfer of cash or other property. For
purposes of the definition of “Unrestricted Subsidiary” and Section 4.07
hereof: 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
“Investments” shall include the portion (proportionate to the Issuer’s equity
interest in such Subsidiary) of the fair market value of the net assets of a
Subsidiary of the Issuer at the time that such Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to continue
to have a permanent “Investment” in an Unrestricted Subsidiary in an amount
(if positive) equal to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 the Issuer’s “Investment” in such Subsidiary at the time of such
 redesignation; less

 

-15-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 the portion (proportionate to the Issuer’s equity interest in such
 Subsidiary) of the fair market value of the net assets of such Subsidiary at
 the time of such redesignation; and 

 
	
  

 	
  

 
	
  

 	
           (2)
 any property transferred to or from an Unrestricted Subsidiary shall be
 valued at its fair market value at the time of such transfer. 

 

                    “Issue
Date” means March 17, 2011. 

                    “Issuer”
has the meaning set forth in the preamble to this Indenture, until a successor
replaces it and, thereafter, means the successor, in accordance with Section
5.01. 

                    “Issuer
Order” means a written request or order signed on behalf of the Issuer by
an Officer of the Issuer, and delivered to the Trustee. 

                    “Legal
Holiday” means a Saturday, a Sunday or a day on which commercial banking
institutions are not required to be open in the State of New York. 

                    “Lien”
means, with respect to any asset, any mortgage, lien (statutory or otherwise),
pledge, hypothecation, charge, security interest, preference, priority or
encumbrance of any kind in respect of such asset, whether or not filed,
recorded or otherwise perfected under applicable law, including any conditional
sale or other title retention agreement, any lease in the nature thereof, any
option or other agreement to sell or give a security interest in and any filing
of or agreement to give any financing statement under the Uniform Commercial
Code (or equivalent statutes) of any jurisdiction; provided that in no event
shall an operating lease be deemed to constitute a Lien. 

                    “Moody’s”
means Moody’s Investors Service, Inc. and any successor to its rating agency
business. 

                    “Net
Book Value” means, with respect to any Domestic Restricted Subsidiary, the
net book value of the total assets of such Restricted Subsidiary determined in
accordance with GAAP but excluding book value attributable to (i) an Investment
in another Domestic Restricted Subsidiary (A) that is a Guarantor or (B) to the
extent the assets of such other Domestic Restricted Subsidiary are otherwise
included in the determination of aggregate Net Book Value pursuant to Section
4.15 hereof, (ii) an investment in a Foreign Subsidiary, (iii) deferred taxes,
(iv) deferred financing costs, (v) intercompany indebtedness and (vi) assets
that are no longer used or useful in the business of such Domestic Restricted
Subsidiary (as determined by the Issuer in good faith). 

                    “Net
Income” means, with respect to any Person, the net income (loss) of such
Person, determined on a consolidated basis in accordance with GAAP and before
any reduction in respect of Preferred Stock dividends. 

                    “Net
Proceeds” means the aggregate cash proceeds received by the Issuer or any
of its Restricted Subsidiaries in respect of any Asset Sale, net of (1) the
direct costs relating to such Asset Sale, including legal, accounting and
investment banking fees, and brokerage and sales commissions, any relocation
expenses incurred as a result thereof, (2) taxes paid or payable as a result
thereof (after taking into account any available tax credits or deductions and
any tax sharing arrangements), (3) amounts required to be applied to the
repayment of principal, premium, if any, and interest on Secured Indebtedness
required (other than required by clause (1) of Section 4.10(b) hereof) to be
paid as a result of such transac-

-16-

tion, (4) in
the case of any Asset Sale by a Restricted Subsidiary that is not a Guarantor,
payments to holders of Equity Interests in such Restricted Subsidiary (other
than Equity Interests held by the Issuer or any of its Restricted Subsidiaries)
to the extent that such payment is required to permit the distribution of
proceeds in respect of the disposed Equity Interests in such Restricted
Subsidiary held by the Issuer or any of its Restricted Subsidiaries and (5) any
deduction of appropriate amounts to be provided by the Issuer or any of the
Restricted Subsidiaries as a reserve in accordance with GAAP against any
liabilities associated with the asset disposed of in such transaction and
retained by the Issuer or any of the Restricted Subsidiaries after such sale or
other disposition thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations (fixed or contingent) associated with such
transaction. 

                    “New
Credit Facility” means the cash-flow revolving credit facility in an
aggregate principal amount of up to $200 million that the Issuer intends to
enter into as promptly as possible following the offering of the Notes as
described in the Offering Memorandum. 

                    “Non-U.S.
Person” means a Person who is not a U.S. Person. 

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

                    “Obligations”
means any principal, interest (including any interest accruing subsequent to
the filing of a petition in bankruptcy, reorganization or similar proceeding at
the rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable state, federal or foreign
law), penalties, fees, indemnifications, reimbursements (including
reimbursement obligations with respect to letters of credit and banker’s
acceptances), damages and other liabilities, and guarantees of payment of such
principal, interest, penalties, fees, indemnifications, reimbursements, damages
and other liabilities, payable under the documentation governing any
Indebtedness; provided that
Obligations with respect to the Notes shall not include fees or indemnification
obligations in favor of the Trustee and other third parties other than the
Holders. 

                    “Offering
Memorandum” means the offering memorandum, dated March 14, 2011, relating
to the sale of the Notes. 

                    “Officer”
means the Chairman of the Board, the Chief Executive Officer, the Chief
Financial Officer, the President, any Executive Vice President, Senior Vice
President or Vice President, the Treasurer, any Assistant Treasurer, the
Controller or the Secretary of the Issuer. 

                    “Officer’s
Certificate” means a certificate signed on behalf of the Issuer by an
Officer of the Issuer that meets the requirements set forth in this Indenture
and is delivered to the Trustee. 

                    “Opinion
of Counsel” means a written opinion from legal counsel who is reasonably
acceptable to the Trustee. The counsel may be an employee of or counsel to the
Issuer or the Trustee. 

                    “Pari
Passu Indebtedness” means, with respect to the Issuer or any Guarantor,
Indebtedness of the Issuer or such Guarantor unless, with respect to any item
of Indebtedness, the instrument creating or evidencing the same or pursuant to
which the same is outstanding or any other agreement governing the terms of
such Indebtedness expressly provides that such Indebtedness shall be
subordinated in right of payment to any other item of Indebtedness of the
Issuer or such Guarantor. Notwithstanding the foregoing, “Pari Passu
Indebtedness” shall not include: 

-17-

	
  

 	
  

 
	
  

 	
           (i)
 Indebtedness of the Issuer owed to any Restricted Subsidiary of the Issuer or
 Indebtedness of any such Restricted Subsidiary owed to the Issuer or any
 other Restricted Subsidiary of such Restricted Subsidiary; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 Indebtedness incurred in violation of this Indenture. 

 

                    “Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively
(and, with respect to DTC, shall include Euroclear and Clearstream). 

                    “Permitted
Asset Swap” means the concurrent purchase and sale or exchange of
Replacement Assets or a combination of Replacement Assets and cash or Cash
Equivalents between the Issuer or any of its Restricted Subsidiaries and
another Person; provided, that any cash or Cash Equivalents received must be
applied in accordance with Section 4.10 hereof.  

	
  

 	
  

 
	
  

 	
           “Permitted
 Investments” means: 

 
	
  

 	
  

 
	
  

 	
           (1)
 any Investment in the Issuer or any of its Restricted Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (2)
 any Investment in cash and Cash Equivalents; 

 
	
  

 	
  

 
	
  

 	
           (3)
 any Investment by the Issuer or any of its Restricted Subsidiaries in a
 Person that is engaged in a Similar Business if as a result of such
 Investment: 

 

	
  

 	
  

 
	
  

 	
           (a)
 such Person becomes a Restricted Subsidiary; or 

 
	
  

 	
  

 
	
  

 	
           (b)
 such Person, in one transaction or a series of related transactions, is
 merged or consolidated with or into, or transfers or conveys substantially
 all of its assets to, or is liquidated into, the Issuer or a Restricted
 Subsidiary, 

 

	
  

 	
  

 
	
  

 	
 and, in each
 case, any Investment held by such Person; provided, that such Investment was not acquired
 by such Person in contemplation of such acquisition, merger, consolidation or
 transfer;

 
	
  

 	
  

 
	
  

 	
           (4)
 any Investment in securities or other assets not constituting cash or Cash
 Equivalents and received in connection with an Asset Sale made pursuant to
 the provisions of Section 4.10 hereof or any other disposition of assets not
 constituting an Asset Sale; 

 
	
  

 	
  

 
	
  

 	
           (5)
 any Investment existing on the Issue Date and any extension, modification or
 renewal of any Investments existing on the Issue Date, but only to the extent
 not involving additional advances, contributions or other Investments of cash
 or other assets or other decreases thereof (other than as a result of the
 accrual or accretion of interest or original issue discount or the issuance
 of pay-in-kind securities, in each case, pursuant to the terms of such
 Investment as in effect on the Issue Date); 

 
	
  

 	
  

 
	
  

 	
           (6)
 any Investment acquired by the Issuer or any of its Restricted Subsidiaries
 in compromise of, or in respect of, obligations of, claims against or dispute
 with, any Person (other than the Issuer or any Restricted Subsidiary or
 Affiliate), including, but not limited to: 

 

-18-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 in exchange for any other Investment or accounts receivable held by the
 Issuer or any such Restricted Subsidiary in connection with or as a result of
 a bankruptcy, workout, reorganization or recapitalization of the issuer of
 such other Investment or accounts receivable; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 as a result of a foreclosure by the Issuer or any of its Restricted
 Subsidiaries with respect to any secured Investment or other transfer of
 title with respect to any secured Investment in default; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (7)
 Hedging Obligations permitted under clause (10) of Section 4.09(b) hereof; 

 
	
  

 	
  

 
	
  

 	
           (8)
 Investments made with the net cash proceeds of, or the payment for which
 consists of, Equity Interests (exclusive of Disqualified Stock) of the
 Issuer, or any of its direct or indirect parent companies; provided, however,
 in each case, that such cash proceeds or such Equity Interests, as the case
 may be, will not increase the amount available for Restricted Payments under
 clause (3) of Section 4.07(a) hereof; 

 
	
  

 	
  

 
	
  

 	
           (9)
 guarantees of Indebtedness permitted under Section 4.09 hereof; 

 
	
  

 	
  

 
	
  

 	
           (10)
 any transaction to the extent it constitutes an Investment that is permitted
 and made in accordance with the provisions of Section 4.11(b) hereof (except
 transactions described in clauses (2) and (4) of Section 4.11(b) hereof); 

 
	
  

 	
  

 
	
  

 	
           (11)
 any Investment by the Issuer or any Restricted Subsidiary in a Receivables
 Subsidiary or any Investment by a Receivables Subsidiary in any other Person
 in connection with a Qualified Receivables Financing; provided, however
 that any Investment in a Receivables Subsidiary is in the form of a purchase
 money note, contribution of additional receivables or an Equity Interest; 

 
	
  

 	
  

 
	
  

 	
           (12)
 additional Investments having an aggregate fair market value, taken together
 with all other Investments made pursuant to this clause (12) that are at that
 time outstanding (without giving effect to the sale of an Unrestricted
 Subsidiary to the extent the proceeds of such sale do not consist of cash or
 marketable securities), not to exceed $75.0 million (with the fair market
 value of each Investment being measured at the time made and without giving
 effect to subsequent changes in value); 

 
	
  

 	
  

 
	
  

 	
           (13)
 loans and advances to, or guarantees of Indebtedness of, officers, directors
 and employees in an amount not to exceed $2.5 million at any time
 outstanding; 

 
	
  

 	
  

 
	
  

 	
           (14)
 loans and advances to officers, directors and employees for business-related
 travel expenses, moving expenses and other similar expenses, in each case
 incurred in the ordinary course of business consistent with past practice; 

 
	
  

 	
  

 
	
  

 	
           (15)
 advances to customers or suppliers in the ordinary course of business that
 are, in conformity with GAAP, recorded as accounts receivable, prepaid
 expenses or deposits on the balance sheet of the Issuer or the Restricted
 Subsidiaries and endorsements for collection or deposit arising in the
 ordinary course of business; 

 
	
  

 	
  

 
	
  

 	
           (16)
 lease, utility and other similar deposits in the ordinary course of business;
 

 

-19-

	
  

 	
  

 
	
  

 	
           (17)
 Investments consisting of the licensing or contribution of intellectual
 property pursuant to joint marketing arrangements with other Persons, in each
 case in the ordinary course of business; and 

 
	
  

 	
  

 
	
  

 	
           (18)
 Investments consisting of purchases and acquisitions of inventory, supplies,
 materials and equipment or purchases of contract rights or licenses or leases
 of intellectual property, in each case in the ordinary course of business. 

 
	
  

 	
  

 
	
  

 	
           “Permitted
 Liens” means, with respect to any Person: 

 
	
  

 	
  

 
	
  

 	
           (1)
 pledges or deposits by such Person under workers’ compensation laws,
 unemployment insurance laws or similar legislation, or good faith deposits in
 connection with bids, tenders, contracts (other than for the payment of
 Indebtedness) or leases to which such Person is a party, or deposits to
 secure public or statutory obligations of such Person or deposits of cash or
 U.S. government bonds to secure surety or appeal bonds to which such Person
 is a party, or deposits as security for contested taxes or import duties or
 for the payment of rent, in each case incurred in the ordinary course of
 business; 

 
	
  

 	
  

 
	
  

 	
           (2)
 Liens, imposed by law, such as carriers’, warehousemen’s and mechanics’
 Liens, in each case for sums not yet overdue for a period of more than 30
 days or being contested in good faith by appropriate proceedings or other
 Liens arising out of judgments or awards against such Person with respect to
 which such Person shall then be proceeding with an appeal or other
 proceedings for review and for which adequate reserves with respect thereto
 are maintained on the books of such Person in accordance with GAAP; 

 
	
  

 	
  

 
	
  

 	
           (3)
 Liens for taxes, assessments or other governmental charges not yet overdue
 for a period of more than 30 days or payable or subject to penalties for
 nonpayment or which are being contested in good faith by appropriate
 proceedings diligently conducted, and for which adequate reserves with
 respect thereto are maintained on the books of such Person in accordance with
 GAAP; 

 
	
  

 	
  

 
	
  

 	
           (4)
 Liens to secure public or statutory obligations, surety, stay, appeal,
 indemnity, bid, performance and similar bonds or with respect to other
 regulatory requirements or letters of credit issued pursuant to the request
 of and for the account of such Person in the ordinary course of its business;
 

 
	
  

 	
  

 
	
  

 	
           (5)
 survey exceptions, encumbrances, easements or reservations of, or rights of
 others for, licenses, rights-of-way, sewers, electric lines, telegraph and
 telephone lines and other similar purposes, or zoning or other restrictions
 as to the use of real properties or Liens incidental, to the conduct of the
 business of such Person or to the ownership of its properties which were not
 incurred in connection with Indebtedness and which do not in the aggregate
 materially adversely affect the value of said properties or materially impair
 their use in the operation of the business of such Person; 

 
	
  

 	
  

 
	
  

 	
           (6)
 Liens securing Indebtedness permitted to be incurred pursuant to clause (4)
 or (18) of Section 4.09(b) hereof; provided that such Liens incurred pursuant to clause (18) extend
 only to the assets of Foreign Subsidiaries; 

 

-20-

	
  

 	
  

 
	
  

 	
           (7)
 Liens existing on the Issue Date (other than Liens in favor of secured
 parties under the Senior Credit Facilities); 

 
	
  

 	
  

 
	
  

 	
           (8)
 Liens on property or shares of stock of a Person at the time such Person
 becomes a Subsidiary; provided, however, such Liens are not
 created or incurred in connection with, or in contemplation of, such other
 Person becoming such a Subsidiary; provided further, however,
 that such Liens may not extend to any other property owned by the Issuer or
 any of its Restricted Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (9)
 Liens on property at the time the Issuer or a Restricted Subsidiary acquired
 the property, including any acquisition by means of a merger or consolidation
 with or into the Issuer or any of its Restricted Subsidiaries; provided,
 however, that such Liens are not created or incurred in connection
 with, or in contemplation of, such acquisition; provided further,
 however, that the Liens may not extend to any other property owned by
 the Issuer or any of its Restricted Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (10)
 Liens securing Indebtedness or other obligations of a Restricted Subsidiary
 owing to the Issuer or another Restricted Subsidiary permitted to be incurred
 in accordance with Section 4.09 hereof; 

 
	
  

 	
  

 
	
  

 	
           (11)
 Liens securing Hedging Obligations; 

 
	
  

 	
  

 
	
  

 	
           (12)
 Liens on 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; 

 
	
  

 	
  

 
	
  

 	
           (13)
 leases, subleases, licenses or sublicenses granted to others in the ordinary
 course of business which do not materially interfere with the ordinary
 conduct of the business of the Issuer or any of its Restricted Subsidiaries
 and do not secure any Indebtedness; 

 
	
  

 	
  

 
	
  

 	
           (14)
 Liens arising from Uniform Commercial Code financing statement filings
 regarding operating leases or consignments entered into by the Issuer and its
 Restricted Subsidiaries in the ordinary course of business; 

 
	
  

 	
  

 
	
  

 	
           (15)
 Liens in favor of the Issuer or any Guarantor; 

 
	
  

 	
  

 
	
  

 	
           (16)
 Liens on equipment of the Issuer or any of its Restricted Subsidiaries
 granted in the ordinary course of business to the Issuer’s clients; 

 
	
  

 	
  

 
	
  

 	
           (17)
 Liens to secure any refinancing, refunding, extension, renewal or replacement
 (or successive refinancing, refunding, extensions, renewals or replacements)
 as a whole, or in part, of any Indebtedness secured by any Lien referred to
 in the foregoing clauses (6), (7), (8) and (9) and any Lien permitted by
 Section 4.12(a)(2)(C); provided, however, that (a) such new
 Lien shall be limited to all or part of the same property that secured the
 original Lien (plus improvements on such property), and (b) the Indebtedness
 secured by such Lien at such time is not increased to any amount greater than
 the sum of (i) the outstanding principal amount or in the case of
 Indebtedness described under clauses (6), (7), (8) and (9) only, if greater,
 committed amount of the Indebtedness described under clauses (6), (7), (8)
 and (9) at the time the original Lien became a Permitted 

 

-21-

	
  

 	
  

 
	
  

 	
 Lien under
 this Indenture, and (ii) an amount necessary to pay any fees and expenses,
 including premiums, related to such refinancing, refunding, extension,
 renewal or replacement; 

 
	
  

 	
  

 
	
  

 	
           (18)
 deposits made in the ordinary course of business to secure liability to
 insurance carriers; 

 
	
  

 	
  

 
	
  

 	
           (19)
 other Liens securing obligations incurred in the ordinary course of business
 which obligations do not exceed at any one time outstanding the greater of
 (x) $40.0 million and (y) 4.0% of Tangible Assets of the Issuer and its
 Restricted Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (20)
 Liens securing judgments for the payment of money not constituting an Event
 of Default under Section 6.01(5) hereof so long as such Liens are adequately
 bonded and any appropriate legal proceedings that may have been duly
 initiated for the review of such judgment have not been finally terminated or
 the period within which such proceedings may be initiated has not expired; 

 
	
  

 	
  

 
	
  

 	
           (21)
 Liens in favor of customs and revenue authorities arising as a matter of law
 to secure payment of customs duties in connection with the importation and
 exportation of goods in the ordinary course of business; 

 
	
  

 	
  

 
	
  

 	
           (22)
 Liens (i) of a collection bank arising under Section 4-210 of the Uniform
 Commercial Code (or any comparable or successor provision) on items in the course
 of collection, (ii) attaching to commodity trading accounts or other
 commodity brokerage accounts incurred in the ordinary course of business, and
 (iii) in favor of banking institutions arising as a matter of law encumbering
 deposits (including the right of setoff) and which are within the general
 parameters customary in the banking industry; 

 
	
  

 	
  

 
	
  

 	
           (23)
Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 4.09 hereof; provided that such Liens do not extend
to any assets other than those that are the subject of such repurchase
agreement; 

 
	
  

 	
  

 
	
  

 	
           (24)
 Liens encumbering reasonable customary initial deposits and margin deposits
 and similar Liens attaching to commodity trading accounts or other brokerage
 accounts incurred in the ordinary course of business and not for speculative
 purposes; 

 
	
  

 	
  

 
	
  

 	
           (25)
 Liens that are contractual rights of set-off (i) relating to the
 establishment of depository relations with banks not given in connection with
 the issuance of Indebtedness, (ii) relating to pooled deposit or sweep
 accounts of the Issuer or any of its Restricted Subsidiaries to permit
 satisfaction of overdraft or similar obligations incurred in the ordinary
 course of business of the Issuer and its Restricted Subsidiaries or (iii)
 relating to purchase orders and other agreements entered into with customers
 of the Issuer or any of its Restricted Subsidiaries in the ordinary course of
 business; 

 
	
  

 	
  

 
	
  

 	
           (26)
 Liens on accounts receivable and related assets contemplated by a Qualified
 Receivables Financing; 

 
	
  

 	
  

 
	
  

 	
           (27)
Liens on property or assets securing Indebtedness used to defease or to
satisfy and discharge the Notes in their entirety; provided that the
incurrence of such Indebtedness and such defeasance or satisfaction and
discharge were not prohibited by this Indenture; 

 

-22-

	
  

 	
  

 
	
  

 	
           (28)
 Non-recourse Liens on the Equity Interests of an Unrestricted Subsidiary to
 secure Obligations of such Unrestricted Subsidiary; and 

 
	
  

 	
  

 
	
  

 	
           (29)
 Liens on Equity Interests deemed to exist in connection with any options, put
 and call arrangements, rights of first refusal and similar rights relating to
 Investments in Persons that are not Subsidiaries under this Indenture. 

 

                    For
purposes of this definition, the term “Indebtedness” shall be deemed to include
interest on such Indebtedness. 

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

                    “Preferred
Stock” means any Equity Interest with preferential rights of payment of
dividends or upon liquidation, dissolution, or winding up. 

                    “Private
Placement Legend” means the legend set forth in Section 2.06(f)(i) hereof
to be placed on all Notes issued under this Indenture, except where otherwise
permitted by the provisions of this Indenture. 

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

                    “Qualified
Receivables Financing” means any transaction or series of transactions
entered into by the Issuer or any of its Restricted Subsidiaries pursuant to
which the Issuer or any of its Restricted Subsidiaries sells, conveys or
otherwise transfers to (i) a Receivables Subsidiary (in the case of a transfer
by the Issuer or any of its Restricted Subsidiaries) and (ii) any other Person
(in the case of a transfer by a Receivables Subsidiary), or grants a security
interest in, any accounts receivable (whether now existing or arising in the
future) of the Issuer or any of its Restricted Subsidiaries, and any assets
related thereto including, without limitation, all collateral securing such
accounts receivable, all contracts and all guarantees or other obligations in
respect of such accounts receivable, proceeds of such accounts receivable and
other assets which are customarily transferred or in respect of which security
interests are customarily granted. 

                    “Rating
Agencies” mean Moody’s and S&P; provided that if S&P,
Moody’s or any Successor Rating Agency (as defined below) shall cease to be in
the business of providing rating services for debt securities generally, the
Issuer shall be entitled to replace any such Rating Agency or Successor Rating
Agency, as the case may be, which has ceased to be in the business of providing
rating services for debt securities generally with a security rating agency
which is in the business of providing rating services for debt securities
generally and which is nationally recognized in the United States (such rating
agency, a “Successor Rating Agency”). 

                    “Receivables
Subsidiary” means a Subsidiary of the Issuer (or another Person formed for
the purposes of engaging in a Qualified Receivables Financing with the Issuer
or its Restricted Subsidiaries in which the Issuer or any Restricted Subsidiary
of the Issuer makes an Investment and to which the Issuer or any Restricted
Subsidiary of the Issuer transfers accounts receivable and related assets)
which engages in no activities other than in connection with the financing of
accounts receivable of the Issuer and its Restricted Subsidiaries, all proceeds
thereof and all rights (contractual or other), collateral and other assets
relating thereto, and any business or activities incidental or related to such
business, and 

-23-

which is
designated by the board of directors of the Issuer (as provided below) as a
Receivables Subsidiary and: 

	
  

 	
  

 
	
  

 	
           (a)
 no portion of the Indebtedness or any other obligations (contingent or
 otherwise) of which (i) is guaranteed by the Issuer or any of its Restricted
 Subsidiaries (excluding guarantees of obligations (other than the principal
 of, and interest on, Indebtedness) pursuant to Standard Securitization
 Undertakings), (ii) is recourse to or obligates the Issuer or any other
 Subsidiary of the Issuer in any way other than pursuant to Standard
 Securitization Undertakings, or (iii) subjects any property or asset of the
 Issuer or any other Subsidiary of the Issuer, directly or indirectly,
 contingently or otherwise, to the satisfaction thereof, other than pursuant
 to Standard Securitization Undertakings, 

 
	
  

 	
  

 
	
  

 	
           (b)
 with which neither the Issuer nor any of its Restricted Subsidiaries has any
 material contract, agreement, arrangement or understanding other than on
 terms which the Issuer reasonably believes to be no less favorable to the
 Issuer or such Restricted Subsidiary than those that might be obtained at the
 time from Persons that are not Affiliates of the Issuer, and 

 
	
  

 	
  

 
	
  

 	
           (c)
 to which neither the Issuer nor any of its Restricted Subsidiaries has any
 obligation to maintain or preserve such entity’s financial condition or cause
 such entity to achieve certain levels of operating results. 

 

                    Any
such designation by the board of directors of the Issuer shall be evidenced to
the Trustee by filing with the Trustee a certified copy of the resolution of
the board of directors of the Issuer giving effect to such designation and an
Officer’s Certificate certifying that such designation complied with the
foregoing conditions. 

                    “Record
Date” for the interest payable on any applicable Interest Payment Date
means March 15 or September 15 (whether or not a Business Day) next preceding
such Interest Payment Date. 

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

                    “Registration
Rights Agreement” means (a) the Registration Rights Agreement with respect
to the Notes dated as of the Issue Date among the Issuer, the Guarantors and
the Initial Purchasers and (b) other similar registration rights agreements relating
to any Additional Notes. 

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

                    “Regulation
S Global Note” means a Global Note substantially in the form of Exhibit A
hereto, bearing the Global Note Legend and the Private Placement Legend and
deposited with or on behalf of, and registered in the name of, the Depositary
or its nominee, issued in a denomination equal to the outstanding principal
amount of the Notes sold or to be sold in reliance on Rule 903.  

                    “Replacement
Assets” means (a) substantially all the assets of a business, (b) Capital
Stock in any Person that results in the Issuer or another of the Restricted
Subsidiaries, as the case may be, owning an amount of the Capital Stock of such
Person such that it constitutes a Restricted Subsidiary or 

-24-

(c) any other
property or assets, in the case of each of clauses (a) through (c), used or
useful in a Similar Business. 

                    “Responsible
Officer” means, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any vice president,
assistant vice president, trust officer, assistant 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
Definitive Note” means a Definitive Note bearing the Private Placement
Legend. 

                    “Restricted
Global Note” means a Global Note bearing the Private Placement Legend. 

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

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

                    “Restricted
Subsidiary” means, at any time, any direct or indirect Subsidiary of the
Issuer (including any Foreign Subsidiary) that is not then an Unrestricted
Subsidiary; provided, however, that upon the occurrence of an
Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such
Subsidiary shall be included in the definition of “Restricted Subsidiary.” 

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

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

                    “Rule
903” means Rule 903 promulgated under the Securities Act. 

                    “Rule
904” means Rule 904 promulgated
under the Securities Act.  

                    “S&P”
means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and
any successor to its rating agency business. 

                    “Sale
and Lease-Back Transaction” means any arrangement providing for the leasing
by the Issuer or any of its Restricted Subsidiaries of any real or tangible
personal property, which property has been or is to be sold or transferred by
the Issuer or such Restricted Subsidiary to a third Person in contemplation of
such leasing. 

                    “SEC”
means the U.S. Securities and Exchange Commission. 

                    “Secured
Indebtedness” means any Indebtedness of the Issuer or any of its Restricted
Subsidiaries secured by a Lien. 

                    “Secured
Leverage Ratio” means, as of the date of determination, the ratio of (a)
the Secured Indebtedness of the Issuer and its Restricted Subsidiaries as of
such date of determination (determined after giving pro forma effect to such
incurrence of Indebtedness, and each other incurrence, as-

-25-

sumption,
guarantee, redemption, retirement and extinguishment of Indebtedness as of such
date of determination) to (b) EBITDA of the Issuer and its Restricted
Subsidiaries for the most recently ended four fiscal quarters ending
immediately prior to such date for which internal financial statements are
available. For purposes of determining the “Secured Leverage Ratio,” “EBITDA”
shall be subject to the adjustments applicable to “EBITDA” as provided for in
the definition of “Fixed Charge Coverage Ratio.” 

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

                    “Senior
Credit Facilities” means the Credit Facility under each of the Credit
Agreement dated as of March 31, 2008, as amended, by and among, Telephonics
Corporation, as borrower, Gritel Holding Co., Inc. as holdings, the lenders
party thereto, and JPMorgan Chase Bank, N.A., as administrative agent and the
Amended and Restated Credit Agreement dated as of September 30, 2010, as
amended, by and among, Clopay Ames True Temper Holding Corp., as borrower,
Clopay Ames True Temper LLC, as holdings, certain subsidiaries of the borrower
as guarantors, the lenders party thereto, and JPMorgan Chase Bank, N.A., as
administrative agent, in each case, including any guarantees, collateral
documents, instruments and agreements executed in connection therewith, and any
amendments, supplements, modifications, extensions, renewals, restatements,
refundings or refinancings thereof and any indentures or credit facilities or
commercial paper facilities with banks or other institutional lenders or
investors that replace, refund or refinance any part of the loans, notes, other
credit facilities or commitments thereunder, including any such replacement,
refunding or refinancing facility or indenture that increases the amount
borrowable thereunder or alters the maturity thereof (provided that such
increase in borrowings is permitted under Section 4.09). 

                    “Shelf
Registration Statement” means a registration statement filed by the Issuer
in connection with the offer and sale of Initial Notes pursuant to the
Registration Rights Agreement. 

                    “Significant
Subsidiary” means any Restricted Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the Issue
Date. 

                    “Similar
Business” means any business conducted or proposed to be conducted by the
Issuer and its Restricted Subsidiaries on the Issue Date or any business that
is similar, reasonably related, incidental or ancillary thereto. 

                    “Standard
Securitization Undertakings” means representations, warranties, covenants,
indemnities and guarantees of performance entered into by the Issuer or any
Subsidiary of the Issuer which the Issuer has determined in good faith to be
customary in an accounts receivable securitization transaction. 

                    “Subordinated
Indebtedness” means, with respect to the Notes or the Guarantee of a
Guarantor, 

	
  

 	
  

 
	
  

 	
           (1)
 any Indebtedness of the Issuer which is by its terms subordinated in right of
 payment to the Notes, and 

 
	
  

 	
  

 
	
  

 	
           (2)
 any Indebtedness of any Guarantor which is by its terms subordinated in right
 of payment to the Guarantee of such entity of the Notes or the Guaranteed a
 Guarantor. 

 

-26-

	
  

 	
  

 	
  

 
	
  

 	
           “Subsidiary”
 means, with respect to any Person: 

 
	
  

 	
  

 	
  

 
	
  

 	
           (1)
 any corporation, association, or other business entity (other than a
 partnership, joint venture, limited liability company or similar entity) of
 which more than 50% of the total voting power of shares of Capital Stock
 entitled (without regard to the occurrence of any contingency) to vote in the
 election of directors, managers or trustees thereof is at the time of
 determination owned or controlled, directly or indirectly, by such Person or
 one or more of the other Subsidiaries of that Person or a combination thereof
 or is consolidated under GAAP with such Person at such time; and 

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 any partnership, joint venture, limited liability company or similar entity
 of which 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (x)
 more than 50% of the capital accounts, distribution rights, total equity and
 voting interests or general or limited partnership interests, as applicable,
 are owned or controlled, directly or indirectly, by such Person or one or more
 of the other Subsidiaries of that Person or a combination thereof whether in
 the form of membership, general, special or limited partnership or otherwise,
 and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (y)
 such Person or any Restricted Subsidiary of such Person is a controlling general
 partner or otherwise controls such entity. 

 

                    “Tangible
Assets” means the aggregate amount of assets (less applicable reserves and
other properly deductible items) after deducting therefrom all goodwill, trade
names, trademarks, patents, unamortized debt discount and expense (to the
extent included in said aggregate amount of assets) and other like intangibles,
all as set forth in the most recent consolidated balance sheet of the Issuer
and its Restricted Subsidiaries and computed in accordance with GAAP. Tangible
Assets shall be calculated after giving effect to the transaction giving rise
to the need to calculate Tangible Assets. 

                    “Total
Assets” means the total assets of the Issuer and its Restricted Subsidiaries
on a consolidated basis, as shown on the most recent consolidated balance sheet
of the Issuer and its Restricted Subsidiaries and computed in accordance with
GAAP. Total Assets shall be calculated after giving effect to the transaction
giving rise to the need to calculate Total Assets. 

                    “Transaction”
means the transactions contemplated by the issuance of the Notes and the
amendments to the terms of the Senior Credit Facilities as in effect on the
Issue Date and the other related transactions, including entry into the New
Credit Facility, to be consummated in connection with the foregoing on or
shortly following the Issue Date. 

                    “Treasury
Rate” means, as of any Redemption Date, the yield to maturity as of such
Redemption Date of United States Treasury securities with a constant maturity
(as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business
Days prior to the Redemption Date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) most nearly
equal to the period from the Redemption Date to April 1, 2014; provided,
however, that if the period from the Redemption Date to April 1, 2014 is
less than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year will be used. 

-27-

                    “Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S.C
§§ 77aaa-77bbbb). 

                    “Trustee”
means Wells Fargo Bank, National Association, as trustee, until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder. 

                    “Unrestricted
Definitive Note” means one or more Definitive Notes that do not bear and
are not required to bear the Private Placement Legend. 

                    “Unrestricted
Global Note” means a permanent Global Note, substantially in the form of
Exhibit A attached hereto, that bears the Global Note Legend and that has the
“Schedule of Exchanges of Interests in the Global Note” attached thereto, and
that is deposited with or on behalf of and registered in the name of the
Depositary, representing Notes that do not bear the Private Placement Legend.  

                    “Unrestricted
Subsidiary” means: 

	
  

 	
  

 
	
  

 	
           (1)
 any Subsidiary of the Issuer which at the time of determination is an
 Unrestricted Subsidiary (as designated by the Issuer, as provided below); and
 

 
	
  

 	
  

 
	
  

 	
           (2)
 any Subsidiary of an Unrestricted Subsidiary. 

 

                    The
Issuer may designate any Subsidiary of the Issuer (including any existing
Subsidiary and any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Equity Interests or Indebtedness of, or owns or holds any Lien on any
property of, the Issuer or any Subsidiary of the Issuer (other than solely any
Subsidiary of the Subsidiary to be so designated); provided that 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 any Unrestricted Subsidiary must be an entity of which the Equity Interests
 entitled to cast at least a majority of the votes that may be cast by all
 Equity Interests having ordinary voting power for the election of directors
 or Persons performing a similar function are owned, directly or indirectly,
 by the Issuer; 

 
	
  

 	
  

 
	
  

 	
           (2)
 such designation complies with Section 4.07 hereof; and 

 
	
  

 	
  

 
	
  

 	
           (3)
 each of: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (a)
 the Subsidiary to be so designated; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 its Subsidiaries 

 

has not at the
time of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Issuer or any Restricted Subsidiary. 

                    The
Issuer may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided that, immediately after giving effect to such designation, no
Default shall have occurred and be continuing and the Issuer could incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test described in Section 4.09(a) hereof. 

-28-

                    Any
such designation by the Issuer shall be notified by the Issuer to the Trustee
by promptly filing with the Trustee a copy of the resolution of the board of
directors of the Issuer or any committee thereof giving effect to such
designation and an Officer’s Certificate certifying that such designation
complied with the foregoing provisions. 

                    “U.S.
Person” means a U.S. person as defined in Rule 902(k) promulgated under the
Securities Act. 

                    “Voting
Stock” of any Person as of any date means the Capital Stock of such Person
that is at the time entitled to vote in the election of the board of directors
of such Person. 

                    “Weighted
Average Life to Maturity” means, when applied to any Indebtedness,
Disqualified Stock or Preferred Stock, as the case may be, at any date, the
quotient obtained by dividing: 

	
  

 	
  

 
	
  

 	
           (1)
 the sum of the products of the number of years from the date of determination
 to the date of each successive scheduled principal payment of such
 Indebtedness or redemption or similar payment with respect to such
 Disqualified Stock or Preferred Stock multiplied by the amount of such
 payment; by 

 
	
  

 	
  

 
	
  

 	
           (2)
 the sum of all such payments. 

 

                    “Wholly-Owned
Subsidiary” of any Person means a Subsidiary of such Person, 100% of the
outstanding Equity Interests of which (other than directors’ qualifying shares)
shall at the time be owned by such Person or by one or more Wholly-Owned
Subsidiaries of such Person. 

	
  

 	
  

 
	
 Section 1.02

 	
 Other
 Definitions. 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Term

 	
  

 	
  

 	
  

 	
 Defined in

 Section

 	
  

 
	

 

 	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 
	
 “Additional
 Interest Notice”

 	
  

 	
  

 	
 2.14

 	
  

 
	
 “Affiliate
 Transaction”

 	
  

 	
  

 	
 4.11

 	
  

 
	
 “Asset Sale
 Offer”

 	
  

 	
  

 	
 4.10

 	
  

 
	
 “Authentication
 Order”

 	
  

 	
  

 	
 2.02

 	
  

 
	
 “Change of
 Control Offer”

 	
  

 	
  

 	
 4.14

 	
  

 
	
 “Change of
 Control Payment”

 	
  

 	
  

 	
 4.14

 	
  

 
	
 “Change of
 Control Payment Date”

 	
  

 	
  

 	
 4.14

 	
  

 
	
 “Covenant
 Defeasance”

 	
  

 	
  

 	
 8.03

 	
  

 
	
 “DTC”

 	
  

 	
  

 	
 2.03

 	
  

 
	
 “Event of
 Default”

 	
  

 	
  

 	
 6.01

 	
  

 
	
 “Excess
 Proceeds”

 	
  

 	
  

 	
 4.10

 	
  

 
	
 “incur”

 	
  

 	
  

 	
 4.09

 	
  

 
	
 “Initial
 Lien”

 	
  

 	
  

 	
 4.12

 	
  

 
	
 “Legal
 Defeasance”

 	
  

 	
  

 	
 8.02

 	
  

 
	
 “Note
 Register”

 	
  

 	
  

 	
 2.03

 	
  

 
	
 “Offer
 Amount”

 	
  

 	
  

 	
 3.09

 	
  

 
	
 “Offer
 Period”

 	
  

 	
  

 	
 3.09

 	
  

 
	
 “Paying
 Agent”

 	
  

 	
  

 	
 2.03

 	
  

 
	
 “Purchase
 Date”

 	
  

 	
  

 	
 3.09

 	
  

 

-29-

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Term

 	
  

 	
  

 	
  

 	
 Defined in

 Section

 	
  

 
	

 

 	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 
	
 “Redemption
 Date”

 	
  

 	
  

 	
 3.07

 	
  

 
	
 “Refinancing
 Indebtedness”

 	
  

 	
  

 	
 4.09

 	
  

 
	
 “Registrar”

 	
  

 	
  

 	
 2.03

 	
  

 
	
 “Restricted
 Payments”

 	
  

 	
  

 	
 4.07

 	
  

 
	
 “Reversion
 Date”

 	
  

 	
  

 	
 4.16

 	
  

 
	
 “Successor
 Company”

 	
  

 	
  

 	
 5.01

 	
  

 
	
 “Successor
 Person”

 	
  

 	
  

 	
 5.01

 	
  

 
	
 “Suspended
 Covenants”

 	
  

 	
  

 	
 4.16

 	
  

 
	
 “Suspension
 Date”

 	
  

 	
  

 	
 4.16

 	
  

 
	
 “Suspension
 Period”

 	
  

 	
  

 	
 4.16

 	
  

 
	
 “Treasury
 Capital Stock”

 	
  

 	
  

 	
 4.07

 	
  

 

	
  

 	
  

 
	
 Section 1.03

 	
 Incorporation
 by Reference of Trust Indenture Act. 

 

                    Whenever
this Indenture expressly refers to a provision of the Trust Indenture Act, the
provision is incorporated by reference in and made a part of this Indenture. 

                    The
following Trust Indenture Act terms used in this Indenture have the following
meanings: 

                    “indenture
securities” means the Notes; 

                    “indenture
security holder” means a Holder of a Note; 

                    “indenture
to be qualified” means this Indenture; 

                    “indenture
trustee” or “institutional trustee” means the Trustee; and 

	
  

 	
  

 
	
  

 	
           “obligor”
 on the Notes and the Guarantees means the Issuer and the Guarantors,
 respectively, and any successor obligor upon the Notes and the Guarantees,
 respectively. 

 

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

	
  

 	
  

 
	
 Section 1.04

 	
 Rules of
 Construction. 

 

                    Unless
the context otherwise requires: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (c)
 “or” is not exclusive; 

 
	
  

 	
  

 
	
  

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

 

-30-

	
  

 	
  

 
	
  

 	
           (e)
 “will” shall be interpreted to express a command; 

 
	
  

 	
  

 
	
  

 	
           (f)
 provisions apply to successive events and transactions; 

 
	
  

 	
  

 
	
  

 	
           (g)
 references to sections of, or rules under, the Securities Act or the Exchange
 Act shall be deemed to include substitute, replacement or successor sections
 or rules adopted by the SEC from time to time; 

 
	
  

 	
  

 
	
  

 	
           (h)
 unless the context otherwise requires, any reference to an “Article,”
 “Section” or “clause” refers to an Article, Section or clause, as the case
 may be, of this Indenture; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (j)
 words used herein implying any gender shall apply to both genders; and 

 
	
  

 	
  

 
	
  

 	
           (k)
 the words “including,” “includes” and similar words shall be deemed to be
 followed by “without limitation.” 

 

	
  

 	
  

 
	
 Section 1.05

 	
 Acts of
 Holders. 

 

                    (a)
Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in
writing. Except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments or record or both are
delivered to the Trustee and, where it is hereby expressly required, to the
Issuer. Proof of execution of any such instrument or of a writing appointing
any such agent, or the holding by any Person of a Note, shall be sufficient for
any purpose of this Indenture and (subject to Section 7.01) conclusive in favor
of the Trustee and the Issuer, if made in the manner provided in this Section
1.05. 

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

                    (c)
The ownership of Notes shall be proved by the Note Register. 

                    (d)
Any request, demand, authorization, direction, notice, consent, waiver or other
action by the Holder of any Note shall bind every future Holder of the same
Note and the Holder of every Note issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, in respect of any action
taken, suffered or omitted by the Trustee or the Issuer in reliance thereon,
whether or not notation of such action is made upon such Note. 

-31-

                    (e)
The Issuer may, in the circumstances permitted by the Trust Indenture Act, set a
record date for purposes of determining the identity of Holders entitled to
give any request, demand, authorization, direction, notice, consent, waiver or
take any other act, or to vote or consent to any action by vote or consent
authorized or permitted to be given or taken by Holders. Unless otherwise
specified, if not set by the Issuer prior to the first solicitation of a Holder
made by any Person in respect of any such action, or in the case of any such
vote, prior to such vote, any such record date shall be the later of 30 days
prior to the first solicitation of such consent or the date of the most recent
list of Holders furnished to the Trustee prior to such solicitation. 

                    (f)
Without limiting the foregoing, a Holder entitled to take any action hereunder
with regard to any particular Note may do so with regard to all or any part of
the principal amount of such Note or by one or more duly appointed agents, each
of which may do so pursuant to such appointment with regard to all or any part
of such principal amount. Any notice given or action taken by a Holder or its
agents with regard to different parts of such principal amount pursuant to this
paragraph shall have the same effect as if given or taken by separate Holders
of each such different part. 

                    (g)
Without limiting the generality of the foregoing, a Holder, including DTC, that
is the Holder of a Global Note, may make, give or take, by a proxy or proxies
duly appointed in writing, any request, demand, authorization, direction,
notice, consent, waiver or other action provided in this Indenture to be made,
given or taken by Holders, and any Person that is the Holder of a Global Note,
including DTC, may provide its proxy or proxies to the beneficial owners of
interests in any such Global Note through such depositary’s standing
instructions and customary practices. 

                    (h)
The Issuer may fix a record date for the purpose of determining the Persons who
are beneficial owners of interests in any Global Note held by DTC entitled
under the procedures of such depositary to make, give or take, by a proxy or
proxies duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other action provided in this Indenture
to be made, given or taken by Holders. If such a record date is fixed, the
Holders on such record date or their duly appointed proxy or proxies, and only
such Persons, shall be entitled to make, give or take such request, demand,
authorization, direction, notice, consent, waiver or other action, whether or
not such Holders remain Holders after such record date. No such request,
demand, authorization, direction, notice, consent, waiver or other action shall
be valid or effective if made, given or taken more than 90 days after such
record date. 

ARTICLE II 

THE NOTES 

	
  

 	
  

 
	
 Section 2.01

 	
 Form and
 Dating; Terms.

 

                    (a)
General. The Notes and the Trustee’s certificate of authentication shall
be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rules or
usage in addition to those set forth on Exhibit A. Each Note shall be
dated the date of its authentication. The Notes shall be in minimum amounts of
$2,000 and integral multiples of $1,000 in excess of $2,000. 

                    (b)
Global Notes. Notes issued in global form shall be substantially in the form of
Exhibit A attached hereto (including the Global Note Legend thereon and
the “Schedule of Exchanges of Interests in the Global Note” attached thereto).
Notes issued in definitive form shall be substantially in  

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the form of Exhibit
A attached hereto (but without the Global Note Legend thereon and without
the “Schedule of Exchanges of Interests in the Global Note” attached thereto).
Each Global Note shall represent such aggregate principal amount of the
outstanding Notes as shall be specified in the “Schedule of Exchanges of
Interests in the Global Note” attached thereto and each shall provide that it
shall represent up to the aggregate principal amount of Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes
represented thereby may from time to time be reduced or increased, as
applicable, to reflect exchanges and redemptions and transfers of interests
therein. Any endorsement of a Global Note to reflect the amount of any increase
or decrease in the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Custodian, at the direction of the
Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06 hereof. 

                    Participants
shall have no rights under this Indenture or any Global Note with respect to
any Global Note held on their behalf by the Depositary or by the Trustee as
custodian for the Depositary, and the Depositary shall be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Note for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or
impair, as between the Depositary and its Participants, the Applicable
Procedures or the operation of customary practices of the Depositary governing
the exercise of the rights of a holder of a beneficial interest in any Global
Note. 

                    (c)
Terms. The aggregate principal amount of Initial Notes that may be
authenticated and delivered under this Indenture on the Issue Date is
$550,000,000, and the aggregate amount of Additional Notes that may be
authenticated and delivered under this Indenture is unlimited (so long as not
otherwise prohibited by the terms of this Indenture, including Section 4.09
hereof). In addition, Exchange Notes may be authenticated and delivered under
this Indenture for issue in a Registered Exchange Offer pursuant to the
Registration Rights Agreement in a like principal amount of the Initial Notes
or Additional Notes exchanged pursuant thereto or otherwise pursuant to an
effective registration statement under the Securities Act. 

                    The
terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Issuer, the Guarantors and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby. However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling. 

                    The
Notes shall be subject to repurchase by the Issuer pursuant to an Asset Sale
Offer as provided in Section 4.10 hereof or a Change of Control Offer as
provided in Section 4.14 hereof. The Notes shall not be redeemable, other than
as provided in Article 3. 

                    (d)
Euroclear and Clearstream Procedures Applicable. The provisions of the
“Operating Procedures of the Euroclear System” and “Terms and Conditions
Governing Use of Euroclear” and the “General Terms and Conditions of
Clearstream Banking” and “Customer Handbook” of Clearstream shall be applicable
to transfers of beneficial interests in the Regulation S Global Note that are
held by Participants through Euroclear or Clearstream. 

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 Section 2.02

 	
 Execution
 and Authentication. 

 

                    One
Officer shall execute the Notes on behalf of the Issuer by manual or facsimile
signature. 

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

                    A
Note shall not be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose until authenticated substantially in the form of
Exhibit A attached hereto, as the case may be, by the manual signature of the
Trustee. The signature shall be conclusive evidence that the Note has been duly
authenticated and delivered under this Indenture.  

                    On
the Issue Date, the Trustee shall, upon receipt of an Issuer Order (an “Authentication
Order”), authenticate and deliver the Initial Notes specified in such
Authentication Order. In addition, at any time, from time to time, the Trustee
shall upon receipt of an Authentication Order authenticate and deliver (i) any
Additional Notes for an aggregate principal amount specified in such
Authentication Order for such Additional Notes issued hereunder and (ii) the
Exchange Notes for issue in a Registered Exchange Offer pursuant to the
Registration Rights Agreement for a like principal amount of Initial Securities
exchanged pursuant thereto or otherwise pursuant to an effective registration
statement under the Securities Act. 

                    The
Trustee may appoint an authenticating agent acceptable to the Issuer to
authenticate Notes. Unless otherwise provided in such appointment, an
authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent shall have the same
rights as the Trustee to deal with Holders, the Issuer or an Affiliate of the
Issuer. 

	
  

 	
  

 
	
 Section 2.03

 	
 Registrar
 and Paying Agent. 

 

                    The
Issuer shall maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (the “Registrar”) and an office
or agency where Notes may be presented for payment (the “Paying Agent”).
The Registrar shall keep a register of the Notes (the “Note Register”)
and of their transfer and exchange. The Issuer may appoint one or more
co-registrars and one or more additional paying agents. The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional
paying agent. The Issuer may change any Paying Agent or Registrar without
notice to any Holder. The Issuer shall notify the Trustee in writing of the
name and address of any Agent not a party to this Indenture. If the Issuer
fails to appoint or maintain another entity as Registrar or Paying Agent, the
Trustee shall act as such. The Issuer or any of its Subsidiaries may act as
Paying Agent or Registrar. 

                    The
Issuer initially appoints The Depository Trust Company (“DTC”) to act as
Depositary with respect to the Global Notes. 

                    The
Issuer initially appoints the Trustee to act as the Paying Agent and Registrar
for the Notes and to act as Custodian with respect to the Global Notes. 

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 Section 2.04

 	
 Paying Agent
 To Hold Money in Trust. 

 

                    The
Issuer shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and shall notify the Trustee of any
default by the Issuer in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it
to the Trustee. The Issuer at any time may require a Paying Agent to pay all
money held by it relating to the Notes to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Issuer or a Subsidiary) shall have
no further liability for the money. If the Issuer or a Subsidiary acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. Upon any Event of
Default under Sections 6.01(6) or (7), the Trustee shall serve as Paying Agent
for the Notes. 

	
  

 	
  

 
	
 Section 2.05

 	
 Holder Lists.
 

 

                    The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of all Holders and
shall otherwise comply with Trust Indenture Act Section 312(a). If the Trustee
is not the Registrar, the Issuer shall furnish to the Trustee at least two
Business Days before each Interest Payment Date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Issuer shall otherwise comply with Trust Indenture Act Section
312(a). 

	
  

 	
  

 
	
 Section 2.06

 	
 Transfer and
 Exchange. 

 

                    (a)
Transfer and Exchange of Global Notes. Except as otherwise set forth in
this Section 2.06, a Global Note may be transferred, in whole and not in part,
only to another nominee of the Depositary or to a successor Depositary or a
nominee of such successor Depositary. A beneficial interest in a Global Note
may not be exchanged for a Definitive Note unless (i) the Depositary (x)
notifies the Issuer that it is unwilling or unable to continue as Depositary
for such Global Note or (y) has ceased to be a clearing agency registered under
the Exchange Act and, in either case, a successor Depositary is not appointed
by the Issuer within 90 days; (ii) there shall have occurred and be continuing
an Event of Default with respect to the Notes, or (iii) the Issuer, at its
option, notifies the Trustee that it elects to cause the issuance of Definitive
Notes. Upon the occurrence of any of the preceding events in (i), (ii) or (iii)
above, Definitive Notes delivered in exchange for any Global Note or beneficial
interests therein will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the Depositary (in accordance with
its customary procedures). Global Notes also may be exchanged or replaced, in
whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or any
portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof,
shall be authenticated and delivered in the form of, and shall be, a Global
Note, except for Definitive Notes issued subsequent to any of the preceding
events in (i) or (ii) above and pursuant to Section 2.06(c) hereof. A Global
Note may not be exchanged for another Note other than as provided in this
Section 2.06(a); provided, however, beneficial interests in a
Global Note may be transferred and exchanged as provided in Section 2.06(b) or
(c) hereof. 

                    (b)
Transfer and Exchange of Beneficial Interests in the Global Notes. The
transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to 

-35-

the extent
required by the Securities Act. Transfers of beneficial interests in the Global
Notes also shall require compliance with either subparagraph (i) or (ii) below,
as applicable, as well as one or more of the other following subparagraphs, as
applicable: 

	
  

 	
  

 	
  

 
	
  

 	
           (i)
 Transfer of Beneficial Interests in the Same Global Note. Beneficial
 interests in any Restricted Global Note may be transferred to Persons who
 take delivery thereof in the form of a beneficial interest in the same
 Restricted Global Note in accordance with the transfer restrictions set forth
 in the Private Placement Legend and any Applicable Procedures; provided,
 however, that prior to the expiration of the Restricted Period,
 transfers of beneficial interests in the Regulation S Global Note may not be
 made to a U.S. Person or for the account or benefit of a U.S. Person (other
 than an Initial Purchaser). Beneficial interests in any Unrestricted Global
 Note may be transferred to Persons who take delivery thereof in the form of a
 beneficial interest in an Unrestricted Global Note. Except as may be required
 by any Applicable Procedures, no written orders or instructions shall be
 required to be delivered to the Registrar to effect the transfers described
 in this Section 2.06(b)(i). 

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii)
 All Other Transfers and Exchanges of Beneficial Interests in Global Notes.
 In connection with all transfers and exchanges of beneficial interests that
 are not subject to Section 2.06(b)(i) hereof, the transferor of such
 beneficial interest must deliver to the Registrar either (A) (1) a written order
 from a Participant or an Indirect Participant given to the Depositary in
 accordance with the Applicable Procedures directing the Depositary to credit
 or cause to be credited a beneficial interest in another Global Note in an
 amount equal to the beneficial interest to be transferred or exchanged and
 (2) instructions given in accordance with the Applicable Procedures
 containing information regarding the Participant account to be credited with
 such increase or (B) (1) if permitted under Section 2.06(a), a written order
 from a Participant or an Indirect Participant given to the Depositary in
 accordance with the Applicable Procedures directing the Depositary to cause
 to be issued a Definitive Note in an amount equal to the beneficial interest
 to be transferred or exchanged and (2) instructions given by the Depositary
 to the Registrar containing information regarding the Person in whose name
 such Definitive Note shall be registered to effect the transfer or exchange
 referred to in (1) above; provided that in no event shall Definitive
 Notes be issued upon the transfer or exchange of beneficial interests in the
 Regulation S Global Note prior to (A) the expiration of the Restricted Period
 and (B) the receipt by the Registrar of any certificates required pursuant to
 Rule 903. Upon satisfaction of all of the requirements for transfer or
 exchange of beneficial interests in Global Notes contained in this Indenture
 and the Notes or otherwise applicable under the Securities Act, the Trustee
 shall adjust the principal amount of the relevant Global Note(s) pursuant to
 Section 2.06(g) hereof. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (iii)
 Transfer of Beneficial Interests to Another Restricted Global Note. A
 beneficial interest in any Restricted Global Note may be transferred to a
 Person who takes delivery thereof in the form of a beneficial interest in
 another Restricted Global Note if the transfer complies with the requirements
 of Section 2.06(b)(ii) hereof and the Registrar receives the following: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)
 if the transferee will take delivery in the form of a beneficial interest in
 the 144A Global Note, then the transferor must deliver a certificate in the
 form of Exhibit B hereto, including the certifications in item (1)
 thereof; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 if the transferee will take delivery in the form of a beneficial interest in
 the Regulation S Global Note, then the transferor must deliver a certificate
 in the form of Exhibit B hereto, including the certifications in item
 (2) thereof. 

 

-36-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (iv)
 Transfer and Exchange of Beneficial Interests in a Restricted Global Note
 for Beneficial Interests in an Unrestricted Global Note. A beneficial
 interest in any Restricted Global Note may be exchanged by any holder thereof
 for a beneficial interest in an Unrestricted Global Note or transferred to a
 Person who takes delivery thereof in the form of a beneficial interest in an
 Unrestricted Global Note if the exchange or transfer complies with the
 requirements of Section 2.06(b)(ii) hereof and: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)
 such exchange or transfer is effected pursuant to a Registered Exchange Offer
 and the holder of the beneficial interest to be transferred, in the case of
 an exchange, or the transferee, in the case of a transfer, makes any and all
 certifications required in the applicable letter of transmittal (or is deemed
 to have made such certifications if delivery is made through the Applicable
 Procedures) as may be required by such Registration Rights Agreement; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B) such
 transfer is effected pursuant to a shelf registration statement; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 such transfer is effected by a broker-dealer pursuant to an exchange offer
 registration statement; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (D) the
 Registrar receives the following: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (1)
 if the holder of such beneficial interest in a Restricted Global Note
 proposes to exchange such beneficial interest for a beneficial interest in an
 Unrestricted Global Note, a certificate from such Holder substantially in the
 form of Exhibit C hereto, including the certifications in item (1)(a)
 thereof; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (2)
 if the holder of such beneficial interest in a Restricted Global Note
 proposes to transfer such beneficial interest to a Person who shall take
 delivery thereof in the form of a beneficial interest in an Unrestricted
 Global Note, a certificate from such holder in the form of Exhibit B
 hereto, including the certifications in item (4) thereof; 

 

and, in each
such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act. 

                    If
any such transfer is effected pursuant to subparagraph (B) or (D) above at a
time when an Unrestricted Global Note has not yet been issued, the Issuer shall
issue and, upon receipt of an Authentication Order in accordance with Section
2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the aggregate principal amount
of beneficial interests transferred pursuant to subparagraph (B) or (D) above. 

                    Beneficial
interests in an Unrestricted Global Note may not be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Note. 

-37-

                    (c)
Transfer or Exchange of Beneficial Interests for Definitive Notes. 

                    (i)
Beneficial Interests in Restricted Global Notes to Restricted Definitive
Notes. If any holder of a beneficial interest in a Restricted Global Note
proposes to exchange such beneficial interest for a Restricted Definitive Note
or to transfer such beneficial interest to a Person who takes delivery thereof
in the form of a Restricted Definitive Note, then, upon the occurrence of any
of the events in paragraph (i) or (ii) of Section 2.06(a) hereof and receipt by
the Registrar of the following documentation: 

	
  

 	
  

 
	
  

 	
           (A)
 if the holder of such beneficial interest in a Restricted Global Note
 proposes to exchange such beneficial interest for a Restricted Definitive
 Note, a certificate from such holder substantially in the form of Exhibit
 C hereto, including the certifications in item (2)(a) thereof; 

 
	
  

 	
  

 
	
  

 	
           (B)
 if such beneficial interest is being transferred to a QIB in accordance with
 Rule 144A, a certificate substantially in the form of Exhibit B
 hereto, including the certifications in item (1) thereof; 

 
	
  

 	
  

 
	
  

 	
           (C)
 if such beneficial interest is being transferred to a Non-U.S. Person in an
 offshore transaction in accordance with Rule 903 or Rule 904, a certificate
 substantially in the form of Exhibit B hereto, including the
 certifications in item (2) thereof; 

 
	
  

 	
  

 
	
  

 	
           (D)
 if such beneficial interest is being transferred pursuant to an exemption
 from the registration requirements of the Securities Act in accordance with
 Rule 144, a certificate substantially in the form of Exhibit B hereto,
 including the certifications in item (3)(a) thereof; 

 
	
  

 	
  

 
	
  

 	
           (E)
 if such beneficial interest is being transferred to the Issuer or any of its
 Restricted Subsidiaries, a certificate substantially in the form of Exhibit
 B hereto, including the certifications in item (3)(b) thereof; or 

 
	
  

 	
  

 
	
  

 	
           (F)
 if such beneficial interest is being transferred pursuant to an effective
 registration statement under the Securities Act, a certificate substantially
 in the form of Exhibit B hereto, including the certifications in item
 (3)(c) thereof, 

 

the Trustee
shall cause the aggregate principal amount of the applicable Global Note to be
reduced accordingly pursuant to Section 2.06(g) hereof, and the Issuer shall
execute and the Trustee shall authenticate and mail to the Person designated in
the instructions a Definitive Note in the applicable principal amount. Any
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c) shall be registered in such name
or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through instructions from
the Depositary and the Participant or Indirect Participant. The Trustee shall
mail such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial interest in
a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the
Private Placement Legend and shall be subject to all restrictions on transfer
contained therein. 

                    (ii)
Beneficial Interests in Regulation S Temporary Global Note to Definitive
Notes. Notwithstanding Sections 2.06(c)(i)(A) and (C) hereof, a beneficial
interest in the Regulation S Global Note may not be exchanged for a Definitive
Note or transferred to a Person who takes delivery thereof in the form of a
Definitive Note prior to (A) the expiration of the Restricted Period and (B)
the receipt by the Registrar of any certificates required pursuant to Rule
903(b)(3)(ii)(B) of the Securities Act, except in the 

-38-

case of a
transfer pursuant to an exemption from the registration requirements of the
Securities Act other than Rule 903 or Rule 904. 

                    (iii)
Beneficial Interests in Restricted Global Notes to Unrestricted Definitive
Notes. A holder of a beneficial interest in a Restricted Global Note may
exchange such beneficial interest for an Unrestricted Definitive Note or may
transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note only upon the occurrence of any of the
events in subsection (i) or (ii) of Section 2.06(a) hereof and if: 

	
  

 	
  

 	
  

 
	
  

 	
           (A)
 such exchange or transfer is effected pursuant to a Registered Exchange Offer
 and the holder of the beneficial interest to be transferred, in the case of
 an exchange, or the transferee, in the case of a transfer, makes any and all
 certifications required in the applicable letter of transmittal (or is deemed
 to have made such certifications if delivery is made through the Applicable
 Procedures) as may be required by such Registration Rights Agreement; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (B)
 such transfer is effected pursuant to a shelf registration statement; 

 
	
  

 	
  

 
	
  

 	
           (C)
 such transfer is effected by a broker-dealer pursuant to an exchange offer
 registration statement; or 

 
	
  

 	
  

 
	
  

 	
           (D)
 the Registrar receives the following: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (1)
 if the holder of such beneficial interest in a Restricted Global Note
 proposes to exchange such beneficial interest for an Unrestricted Definitive
 Note, a certificate from such holder substantially in the form of Exhibit
 C hereto, including the certifications in item (1)(b) thereof; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (2)
 if the holder of such beneficial interest in a Restricted Global Note
 proposes to transfer such beneficial interest to a Person who shall take
 delivery thereof in the form of an Unrestricted Definitive Note, a
 certificate from such holder substantially in the form of Exhibit B
 hereto, including the certifications in item (4) thereof; 

 

and, in each
such case set forth in this subparagraph (D) if the Registrar so requests or if
the Applicable Procedures so require, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer
contained herein and in the Private Placement Legend are no longer required in
order to maintain compliance with the Securities Act. 

                    (iv)
Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive
Notes. If any holder of a beneficial interest in an Unrestricted Global
Note proposes to exchange such beneficial interest for a Definitive Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Definitive Note, then, upon the occurrence of any of the events in
subsection (i) or (ii) of Section 2.06(a) hereof and satisfaction of the
conditions set forth in Section 2.06(b)(ii) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(g) hereof, and the Issuer shall execute
and the Trustee shall authenticate and mail to the Person designated in the
instructions a Definitive Note in the applicable principal amount. Any
Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iv) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from or 

-39-

through the
Depositary and the Participant or Indirect Participant. The Trustee shall mail
such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial interest
pursuant to this Section 2.06(c)(iv) shall not bear the Private Placement
Legend. 

                    (d)
Transfer and Exchange of Definitive Notes for Beneficial Interests. 

                    (i)
Restricted Definitive Notes to Beneficial Interests in Restricted Global
Notes. If any Holder of a Restricted Definitive Note proposes to exchange
such Note for a beneficial interest in a Restricted Global Note or to transfer
such Restricted Definitive Note to a Person who takes delivery thereof in the
form of a beneficial interest in a Restricted Global Note, then, upon receipt
by the Registrar of the following documentation: 

	
  

 	
  

 
	
  

 	
           (A)
 if the Holder of such Restricted Definitive Note proposes to exchange such
 Note for a beneficial interest in a Restricted Global Note, a certificate
 from such Holder substantially in the form of Exhibit C hereto,
 including the certifications in item (2)(b) thereof; 

 
	
  

 	
  

 
	
  

 	
           (B)
 if such Restricted Definitive Note is being transferred to a QIB in accordance
 with Rule 144A, a certificate substantially in the form of Exhibit B
 hereto, including the certifications in item (1) thereof; 

 
	
  

 	
  

 
	
  

 	
           (C)
 if such Restricted Definitive Note is being transferred to a Non-U.S. Person
 in an offshore transaction in accordance with Rule 903 or Rule 904, a
 certificate substantially in the form of Exhibit B hereto, including
 the certifications in item (2) thereof; 

 
	
  

 	
  

 
	
  

 	
           (D)
 if such Restricted Definitive Note is being transferred pursuant to an
 exemption from the registration requirements of the Securities Act in
 accordance with Rule 144, a certificate substantially in the form of Exhibit
 B hereto, including the certifications in item (3)(a) thereof; 

 
	
  

 	
  

 
	
  

 	
           (E)
 if such Restricted Definitive Note is being transferred to the Issuer or any
 of its Restricted Subsidiaries, a certificate substantially in the form of Exhibit
 B hereto, including the certifications in item (3)(b) thereof; or 

 
	
  

 	
  

 
	
  

 	
           (F)
 if such Restricted Definitive Note is being transferred pursuant to an
 effective registration statement under the Securities Act, a certificate
 substantially in the form of Exhibit B hereto, including the
 certifications in item (3)(c) thereof, 

 

the Trustee
shall cancel the Restricted Definitive Note, increase or cause to be increased
in a corresponding amount pursuant to Section 2.06(g) the aggregate principal
amount of, in the case of clause (A) above, the applicable Restricted Global
Note, in the case of clause (B) above, the applicable 144A Global Note, and in
the case of clause (C) above, the applicable Regulation S Global Note. 

                    (ii)
Restricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of a Restricted Definitive Note may exchange such Note for a
beneficial interest in an Unrestricted Global Note or transfer such Restricted
Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note only if: 

	
  

 	
  

 
	
  

 	
           (A)
 such exchange or transfer is effected pursuant to a Registered Exchange Offer
 and the holder of the beneficial interest to be transferred, in the case of
 an exchange, or the trans-

 

-40-

	
  

 	
  

 	
  

 
	
  

 	
 feree, in
 the case of a transfer, makes any and all certifications required in the applicable
 letter of transmittal (or is deemed to have made such certifications if
 delivery is made through the Applicable Procedures) as may be required by
 such Registration Rights Agreement; 

 
	
  

 	
  

 
	
  

 	
           (B)
 such transfer is effected pursuant to a shelf registration statement; 

 
	
  

 	
  

 
	
  

 	
           (C)
 such transfer is effected by a broker-dealer pursuant to an exchange offer
 registration statement; or 

 
	
  

 	
  

 
	
  

 	
  

 	
 (D) the
 Registrar receives the following: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (1)
 if the Holder of such Definitive Notes proposes to exchange such Notes for a
 beneficial interest in the Unrestricted Global Note, a certificate from such
 Holder substantially in the form of Exhibit C hereto, including the
 certifications in item (1)(c) thereof; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (2)
 if the Holder of such Definitive Notes proposes to transfer such Notes to a
 Person who shall take delivery thereof in the form of a beneficial interest
 in the Unrestricted Global Note, a certificate from such Holder substantially
 in the form of Exhibit B hereto, including the certifications in item
 (4) thereof; 

 

and, in each
such case set forth in this subparagraph (D), if the Registrar so requests or
if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act. 

                    Upon
satisfaction of the conditions of any of the subparagraphs in this Section
2.06(d)(ii), the Trustee shall cancel the Definitive Notes and increase or
cause to be increased in a corresponding amount pursuant to Section 2.06(g) the
aggregate principal amount of the Unrestricted Global Note. 

                    (iii)
Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global
Notes. A Holder of an Unrestricted Definitive Note may exchange such Note
for a beneficial interest in an Unrestricted Global Note or transfer such
Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note at any time. Upon receipt of
a request for such an exchange or transfer, the Trustee shall cancel the
applicable Unrestricted Definitive Note and increase or cause to be increased
in a corresponding amount pursuant to Section 2.06(g) the aggregate principal
amount of one of the Unrestricted Global Notes. 

                    If
any such exchange or transfer from a Definitive Note to a beneficial interest
is effected pursuant to subparagraph (ii)(B), (ii)(D) or (iii) above at a time
when an Unrestricted Global Note has not yet been issued, the Issuer shall
issue and, upon receipt of an Authentication Order in accordance with Section
2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of
Definitive Notes so transferred. 

                    (e)
Transfer and Exchange of Definitive Notes for Definitive Notes. Upon
request by a Holder of Definitive Notes and such Holder’s compliance with the
provisions of this Section 2.06(e), the Registrar shall register the transfer
or exchange of Definitive Notes. Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes 

-41-

duly endorsed
or accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in
writing. In addition, the requesting Holder shall provide any additional
certifications, documents and information, as applicable, required pursuant to
the following provisions of this Section 2.06(e): 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (i)
 Restricted Definitive Notes to Restricted Definitive Notes. Any
 Restricted Definitive Note may be transferred to and registered in the name
 of Persons who take delivery thereof in the form of a Restricted Definitive
 Note if the Registrar receives the following: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 if the transfer will be made to a QIB in accordance with Rule 144A, then the
 transferor must deliver a certificate substantially in the form of Exhibit
 B hereto, including the certifications in item (1) thereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 if the transfer will be made pursuant to Rule 903 or Rule 904, then the
 transferor must deliver a certificate in the form of Exhibit B hereto,
 including the certifications in item (2) thereof; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 if the transfer will be made pursuant to any other exemption from the
 registration requirements of the Securities Act, then the transferor must
 deliver a certificate in the form of Exhibit B hereto, including the
 certifications required by item (3) thereof, if applicable. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii)
 Restricted Definitive Notes to Unrestricted Definitive Notes. Any
 Restricted Definitive Note may be exchanged by the Holder thereof for an
 Unrestricted Definitive Note or transferred to a Person or Persons who take
 delivery thereof in the form of an Unrestricted Definitive Note if: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 such exchange or transfer is effected pursuant to a Registered Exchange Offer
 and the holder of the beneficial interest to be transferred, in the case of
 an exchange, or the transferee, in the case of a transfer, makes any and all
 certifications required in the applicable letter of transmittal (or is deemed
 to have made such certifications if delivery is made through the Applicable
 Procedures) as may be required by such Registration Rights Agreement; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (B) such
 transfer is effected pursuant to a shelf registration statement; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (C) such
 transfer is effected by a broker-dealer pursuant to an exchange offer
 registration statement; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (D) the
 Registrar receives the following: 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (1)
 if the Holder of such Restricted Definitive Notes proposes to exchange such
 Notes for an Unrestricted Definitive Note, a certificate from such Holder
 substantially in the form of Exhibit C hereto, including the
 certifications in item (1)(d) thereof; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (2)
 if the Holder of such Restricted Definitive Notes proposes to transfer such
 Notes to a Person who shall take delivery thereof in the form of an 

 

-42-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Unrestricted
 Definitive Note, a certificate from such Holder substantially in the form of Exhibit
 B hereto, including the certifications in item (4) thereof;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 and, in each
 such case set forth in this subparagraph (D), if the Registrar so requests,
 an Opinion of Counsel in form reasonably acceptable to the Registrar to the
 effect that such exchange or transfer is in compliance with the Securities
 Act and that the restrictions on transfer contained herein and in the Private
 Placement Legend are no longer required in order to maintain compliance with
 the Securities Act.

 
	
  

 	
  

 
	
  

 	
           (iii)
 Unrestricted Definitive Notes to Unrestricted Definitive Notes. A
 Holder of Unrestricted Definitive Notes may transfer such Notes to a Person
 who takes delivery thereof in the form of an Unrestricted Definitive Note.
 Upon receipt of a request to register such a transfer, the Registrar shall
 register the Unrestricted Definitive Notes pursuant to the instructions from
 the Holder thereof.

 
	
  

 	
  

 
	
                     (f)
 Legends. The following legends shall appear on the face of all Global
 Notes and Definitive Notes issued under this Indenture unless specifically
 stated otherwise in the applicable provisions of this Indenture:

 
	
  

 
	
  

 	
  

 	
 (i) Private
 Placement Legend.

 
	
  

 	
  

 	
  

 
	
  

 	
           (A)
 Except as permitted by subparagraphs (B), (C) and (D) below, each Global Note
 and each Definitive Note (and all Notes issued in exchange therefor or
 substitution thereof) shall bear the legend in substantially the following
 form:

 
	
  

 	
  

 
	
  

 	
  

 	
 “THIS
 SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
 AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
 WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S.
 PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
 REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
 RULE 144A PROMULGATED UNDER THE SECURITIES ACT), OR (B) IT IS NOT A U.S.
 PERSON AND IS ACQUIRING THIS SECURITY IN AN OFF-SHORE TRANSACTION IN
 COMPLIANCE WITH RULE 904 PROMULGATED UNDER THE SECURITIES ACT, (2) AGREES
 THAT IT WILL NOT WITHIN ONE YEAR AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY
 RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE ISSUER OR ANY
 SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL
 BUYER IN COMPLIANCE WITH RULE 144A PROMULGATED UNDER THE SECURITIES ACT, (C)
 OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE
 904 PROMULGATED UNDER THE SECURITIES ACT (IF AVAILABLE), (D) PURSUANT TO THE
 EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 PROMULGATED UNDER THE
 SECURITIES ACT (IF AVAILABLE), (E) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM
 THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
 OPINION OF COUNSEL IF THE ISSUER SO REQUESTS), OR (F) PURSUANT TO AN
 EFFECTIVE REGISTRATION

 

-43-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 STATEMENT
 UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO
 WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
 THIS LEGEND. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED
 STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S
 PROMULGATED UNDER THE SECURITIES ACT.” 

 
	
  

 	
  

 	
  

 
	
  

 	
           (B)
 Notwithstanding the foregoing, any Global Note or Definitive Note issued
 pursuant to subparagraph (b)(iv), (c)(iii), (c)(iv), (d)(ii), (d)(iii),
 (e)(ii) or (e)(iii) of this Section 2.06 (and all Notes issued in exchange
 therefor or substitution thereof) shall not bear the Private Placement
 Legend. 

 
	
  

 	
  

 
	
  

 	
           (C)
 After a transfer of any Initial Notes during the period of the effectiveness
 of a Shelf Registration Statement with respect to such Initial Notes, all
 requirements pertaining to the Private Placement Legend on such Initial Notes
 shall cease to apply and the requirements that any such Initial Notes be
 issued in global form shall continue to apply. 

 
	
  

 	
  

 
	
  

 	
           (D)
 Upon the consummation of a Registered Exchange Offer with respect to the
 Initial Notes pursuant to which Holders of such Initial Notes are offered
 Exchange Notes in exchange for their Initial Notes, all requirements
 pertaining to Initial Notes that Initial Notes be issued in global form shall
 continue to apply, and Exchange Notes in global form without the Private
 Placement Legend shall be available to Holders that exchange such Initial
 Notes in such Registered Exchange Offer. 

 
	
  

 	
  

 
	
  

 	
           (ii)
 Global Note Legend. Each Global Note shall bear a legend in
 substantially the following form: 

 
	
  

 	
  

 
	
  

 	
  

 	
 “THIS GLOBAL
 NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
 NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
 HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
 THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
 PURSUANT TO SECTION 2.06(g) OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
 EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE
 INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
 CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
 NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
 CONSENT OF THE ISSUER. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
 FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
 WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
 DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
 DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
 SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
 REPRESENTATIVE OF THE DEPOSI-

 

-44-

	
  

 	
  

 
	
  

 	
 TORY TRUST
 COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE ISSUER OR ITS
 AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
 ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY
 BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
 TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.” 

 

                    (g)
Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to
or retained and canceled by the Trustee in accordance with Section 2.11 hereof.
At any time prior to such cancellation, if any beneficial interest in a Global
Note is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, the aggregate principal amount of such other Global
Note shall be increased in a corresponding amount pursuant to this Section
2.06(g) and an endorsement shall be made on such Global Note by the Trustee or
by the Depositary at the direction of the Trustee to reflect such increase. 

                    (h)
General Provisions Relating to Transfers and Exchanges. 

                    (i)
To permit registrations of transfers and exchanges, the Issuer shall execute
and the Trustee shall authenticate Global Notes and Definitive Notes upon
receipt of an Authentication Order in accordance with Section 2.02 hereof or at
the Registrar’s request. 

                    (ii)
No service charge shall be made to a holder of a beneficial interest in a
Global Note or to a Holder of a Definitive Note for any registration of
transfer or exchange, but the Issuer or the Trustee may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections
2.07, 2.10, 3.06, 3.09, 4.10, 4.14 and 9.05 hereof). 

                    (iii)
Neither the Registrar nor the Issuer shall be required to register the transfer
of or exchange any Note selected for redemption in whole or in part, except the
unredeemed portion of any Note being redeemed in part. 

                    (iv)
All Global Notes and Definitive Notes issued upon any registration of transfer
or exchange of Global Notes or Definitive Notes shall be the valid obligations
of the Issuer, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Global Notes or Definitive Notes surrendered upon
such registration of transfer or exchange. 

                    (v)
The Issuer shall not be required (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15
days before the day of the 

-45-

mailing of a
notice of redemption of Notes for redemption under Section 3.02 hereof and
ending at the close of business on the day of such mailing, (B) to register the
transfer of or to exchange any Note so selected for redemption or tendered (and
not withdrawn) for repurchase in connection with a Change of Control Offer or
an Asset Sale Offer in whole or in part, except the unredeemed portion of any
Note being redeemed in part or (C) to register the transfer of or to exchange a
Note between a Record Date and the next succeeding Interest Payment Date.

                    (vi)
Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Issuer may deem and treat the Person in whose name
any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of (and premium, if any) and interest on such
Notes and for all other purposes, and none of the Trustee, any Agent or the
Issuer shall be affected by notice to the contrary.

                    
(vii) Upon surrender for registration of transfer of any Note at the office or
agency of the Issuer designated pursuant to Section 4.02 hereof, the Issuer shall execute, and the Trustee shall
authenticate and mail, in the name of the designated transferee or transferees,
one or more replacement Notes of any authorized denomination or denominations
of a like aggregate principal amount.

                    
(viii) At the option of the Holder, subject to Section 2.06(a), Notes may be
exchanged for other Notes of any authorized denomination or denominations of a
like aggregate principal amount upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Global Notes or Definitive Notes are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and mail, the replacement Global Notes and Definitive Notes to
which the Holder making the exchange is entitled in accordance with the
provisions of Section 2.02 hereof.

                    
(ix) All certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.06 to effect a
registration of transfer or exchange may be submitted by facsimile.

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

                    Neither
the Trustee nor any Agent shall have any responsibility or liability for any
actions taken or not taken by the Depositary.

	
  

 	
  

 
	
 Section 2.07

 	
 Replacement Notes.

 

                    If
any mutilated Note is surrendered to the Trustee, the Registrar or the Issuer
and the Trustee receives evidence to their satisfaction of the ownership and
destruction, loss or theft of any Note, the Issuer shall issue and the Trustee,
upon receipt of an Authentication Order, shall authenticate a replacement Note
if the Trustee’s requirements are met. An indemnity bond must be supplied by
the Holder that is sufficient in the judgment of the Trustee and the Issuer to
protect the Issuer, the Trustee, any Agent and any authenticating agent from
any loss that any of them may suffer if a Note is replaced. At the Issuer’s
request, such Holder shall reimburse the Issuer for its expenses in replacing a
Note.

-46-

                    Every
replacement Note issued in accordance with this Section 2.07 is a contractual
obligation of the Issuer and shall be entitled to all of the benefits of this
Indenture equally and proportionately with all other Notes duly issued hereunder.

	
  

 	
  

 
	
 Section 2.08

 	
 Outstanding Notes.

 

                    The
Notes outstanding at any time are all the Notes authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note effected by the Trustee in
accordance with the provisions hereof, and those described in this Section 2.08
as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not
cease to be outstanding because the Issuer or an Affiliate of the Issuer holds
the Note.

                    If
a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding
unless the Trustee receives proof satisfactory to it that the replaced Note is
held by a bona fide purchaser.

                    If
the principal amount of any Note is considered paid under Section 4.01 hereof,
it ceases to be outstanding and interest on it ceases to accrue.

                    If
the Paying Agent (other than the Issuer, a Subsidiary or an Affiliate of any
thereof) holds, on a Redemption Date or maturity date, money sufficient to pay
Notes payable on that date, then on and after that date such Notes shall be
deemed to be no longer outstanding and shall cease to accrue interest.

	
  

 	
  

 
	
 Section 2.09

 	
 Treasury Notes.

 

                    In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Issuer, or by
any Affiliate of the Issuer, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
a Responsible Officer of the Trustee knows are so owned shall be so disregarded.
Notes 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 to deliver any such direction, waiver or consent with respect to the
pledged Notes and that the pledgee is not the Issuer or any obligor upon the
Notes or any Affiliate of the Issuer or of such other obligor.

	
  

 	
  

 
	
 Section 2.10

 	
 Temporary Notes.

 

                    Until
certificates representing Notes are ready for delivery, the Issuer may prepare
and the Trustee, upon receipt of an Authentication Order, shall authenticate
temporary Notes. Temporary Notes shall be substantially in the form of
certificated Notes but may have variations that the Issuer consider appropriate
for temporary Notes and as shall be reasonably acceptable to the Trustee.
Without unreasonable delay, the Issuer shall prepare and the Trustee shall
authenticate definitive Notes in exchange for temporary Notes.

                    Holders
and beneficial holders, as the case may be, of temporary Notes shall be
entitled to all of the benefits accorded to Holders, or beneficial holders,
respectively, of Notes under this Indenture.

-47-

	
  

 	
  

 
	
 Section 2.11

 	
 Cancellation.

 

                    The
Issuer at any time may deliver Notes to the Trustee for cancellation. The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment. The Trustee or, at
the direction of the Trustee, the Registrar or the Paying Agent and no one else
shall cancel all Notes surrendered for registration of transfer, exchange,
payment, replacement or cancellation and shall dispose of cancelled Notes in
accordance with its customary procedures (subject to the record retention
requirement of the Exchange Act). Certification of the disposal of all
cancelled Notes shall be delivered to the Issuer upon the Issuer’s written
request. The Issuer may not issue new Notes to replace Notes that it has paid
or that have been delivered to the Trustee for cancellation.

	
  

 	
  

 
	
 Section 2.12

 	
 Defaulted Interest.

 

                    If
the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
the defaulted interest in any lawful manner plus, to the extent lawful,
interest payable on the defaulted interest to the Persons who are Holders on a
subsequent special record date, in each case at the rate provided in the Notes
and in Section 4.01 hereof. The Issuer shall notify the Trustee in writing of
the amount of defaulted interest proposed to be paid on each Note and the date
of the proposed payment. The Trustee shall fix or cause to be fixed each such
special record date and payment date; provided that no such special
record date shall be less than 10 days prior to the related payment date for
such defaulted interest. The Trustee shall promptly notify the Issuer of such
special record date and in any event at least 20 days before such special
record date. At least 15 days before the special record date, the Issuer (or,
upon the written request of the Issuer, the Trustee in the name and at the
expense of the Issuer) shall mail or cause to be mailed, first-class postage
prepaid, to each Holder a notice at his or her address as it appears in the
Note Register that states the special record date, the related payment date and
the amount of such interest to be paid.

                    Subject
to the foregoing provisions of this Section 2.12 and for greater certainty,
each Note delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Note shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Note.

	
  

 	
  

 
	
 Section 2.13

 	
 CUSIP or
 ISIN Numbers

 

                    The
Issuer in issuing the Notes may use CUSIP and/or ISIN numbers (if then
generally in use) and, if so, the Trustee shall use CUSIP and/or ISIN numbers
in notices, including notices of redemption, exchange or offers to purchase as
a convenience to Holders; provided that any such notice may state that
no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice and that reliance may be
placed only on the other identification numbers printed on the Notes, and any
related redemption, exchange or offers to purchase shall not be affected by any
defect in or omission of such numbers. The Issuer will as promptly as
practicable notify the Trustee in writing of any change in the CUSIP and/or
ISIN numbers.

	
  

 	
  

 
	
 Section 2.14

 	
 Additional
 Interest

 

                    In the event
that the Issuer is required to pay Additional Interest to holders of Notes
pursuant to the Registration Rights Agreement, the Issuer will provide written
notice (“Additional Interest Notice”) to the Trustee of its obligation to pay
Additional Interest 15 days prior to the proposed payment 

-48-

date for the
Additional Interest to the extent reasonably practicable, but in no event later
than five Business Days prior to such proposed payment date, and the Additional
Interest Notice shall set forth the amount of Additional Interest to be paid by
the Issuer on such payment date. The Trustee shall not at any time be under any
duty or responsibility to any holder of Notes to determine the Additional
Interest, or with respect to the nature, extent, or calculation of the amount
of Additional Interest owed, or with respect to the method employed in such
calculation of the Additional Interest.

ARTICLE III

REDEMPTION

	
  

 	
  

 
	
 Section 3.01

 	
 Notices To Trustee.

 

                    If
the Issuer elects to redeem Notes pursuant to Section 3.07 hereof, it shall
furnish to the Trustee, at least 15 days before notice of redemption is
required to be mailed or caused to be mailed to Holders pursuant to Section
3.03 hereof but not more than 60 days before a Redemption Date, an Officer’s Certificate
setting forth (i) the paragraph or subparagraph of such Note and/or Section of
this Indenture pursuant to which the redemption shall occur, (ii) the
Redemption Date, (iii) the principal amount of the Notes to be redeemed and
(iv) the redemption price.

	
  

 	
  

 
	
 Section 3.02

 	
 Selection of Notes To Be
 Redeemed or Purchased.

 

                    If
less than all of the Notes are to be redeemed or purchased in an offer to
purchase at any time, the Trustee shall select the Notes to be redeemed or
purchased (a) if the Notes are listed on any national securities exchange,
in compliance with the requirements of the principal national securities
exchange on which the Notes are listed; (b) on a pro rata basis to the extent
practicable (or, in the case of Global Notes, the Trustee will select Notes for
redemption based on DTC’s method that most nearly approximates a pro rata
selection or by such other method that the Trustee shall deem fair and
appropriate) or (c) by lot or such other similar method in accordance with the
procedures of DTC. In the event of partial redemption or purchase by lot, the
particular Notes to be redeemed or purchased shall be selected, unless
otherwise provided herein, not less than 30 nor more than 60 days prior to the
redemption date by the Trustee from the outstanding Notes not previously called
for redemption or purchase.

                    The
Trustee shall promptly notify the Issuer in writing of the Notes selected for
redemption or purchase and, in the case of any Note selected for partial
redemption or purchase, the principal amount thereof to be redeemed or
purchased. Notes and portions of Notes selected shall be in amounts of $2,000
or whole multiples of $1,000 in excess of $2,000; no Notes of $2,000 or less
can be redeemed in part, except that if all of the Notes of a Holder are to be
redeemed or purchased, the entire outstanding amount of Notes held by such
Holder, even if not a multiple of $1,000, shall be redeemed or purchased.
Except as provided in the preceding sentence, provisions of this Indenture that
apply to Notes called for redemption or purchase also apply to portions of
Notes called for redemption or purchase.

	
  

 	
  

 
	
 Section 3.03

 	
 Notice of Redemption.

 

                    Subject
to Section 3.09 hereof, the Issuer shall mail or cause to be mailed by
first-class mail notices of redemption at least 30 days but not more than 60
days before the redemption date to each Holder of Notes to be redeemed at such
Holder’s registered address, except that redemption notices may be mailed more
than 60 days prior to a redemption date if the notice is issued in connection
with Article 8 

-49-

or Article 11 hereof. Except
as provided for in Section 3.07(c), notices of redemption may not be
conditional.

                    The
notice shall identify the Notes (including the CUSIP and ISIN numbers) to be
redeemed and shall state:

	
  

 	
  

 
	
  

 	
           (a)
 the Redemption Date;

 
	
  

 	
  

 
	
  

 	
           (b)
 the redemption price;

 
	
  

 	
  

 
	
  

 	
           (c)
 if any Note is to be redeemed in part only, the portion of the principal
 amount of that Note that is to be redeemed and that, after the Redemption
 Date upon surrender of such Note, a new Note or Notes in principal amount
 equal to the unredeemed portion of the original Note representing the same
 indebtedness to the extent not redeemed will be issued in the name of the
 Holder of the Notes upon cancellation of the original Note;

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
           (f)
 that, unless the Issuer defaults in making such redemption payment, interest
 on Notes called for redemption ceases to accrue on and after the Redemption
 Date;

 
	
  

 	
  

 
	
  

 	
           (g)
 the paragraph or subparagraph of the Notes and/or Section of this Indenture
 pursuant to which the Notes called for redemption are being redeemed; and

 
	
  

 	
  

 
	
  

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

 

                    At
the Issuer’s request, the Trustee shall give the notice of redemption in the
Issuer’s name and at its expense; provided that the Issuer shall have
delivered to the Trustee, at least 15 days before notice of redemption is
required to be mailed or caused to be mailed to Holders pursuant to this
Section 3.03 (unless a shorter notice shall be agreed to by the Trustee), an
Officer’s Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in such notice as provided in the preceding
paragraph.

	
  

 	
  

 
	
 Section 3.04

 	
 Effect of Notice of
 Redemption.

 

                    Once
notice of redemption is mailed in accordance with Section 3.03 hereof, Notes
called for redemption become irrevocably due and payable on the Redemption Date
at the redemption price. The notice, if mailed in a manner herein provided,
shall be conclusively presumed to have been given, whether or not the Holder
receives such notice. In any case, failure to give such notice by mail or any
defect in the notice to the Holder of any Note designated for redemption in
whole or in part shall not affect the validity of the proceedings for the redemption
of any other Note. Subject to Section 3.05 hereof, on and after the Redemption
Date, interest ceases to accrue on Notes or portions of Notes called for redemption.

-50-

	
  

 	
  

 
	
 Section 3.05

 	
 Deposit of Redemption or
 Purchase Price.

 

                    Prior
to 10:00 a.m. (New York City time) on the redemption or purchase date, the
Issuer shall deposit with the Trustee or with the Paying Agent money sufficient
to pay the redemption or purchase price of and accrued and unpaid interest on
all Notes to be redeemed or purchased on that date. The Trustee or the Paying Agent
shall promptly return to the Issuer any money deposited with the Trustee or the
Paying Agent by the Issuer in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest on, all Notes to be
redeemed or purchased.

                    If
the Issuer complies with the provisions of the preceding paragraph, on and
after the redemption or purchase date, interest shall cease to accrue on the
Notes or the portions of Notes called for redemption or purchase. Redemption
amounts shall only be paid upon presentation and surrender of any such Notes to
be redeemed. If a Note is
redeemed or purchased on or after a Record Date but on or prior to the related
Interest Payment Date, then any accrued and unpaid interest to the redemption
or purchase date shall be paid to the Person in whose name such Note was registered
at the close of business on such Record Date. If any Note called for redemption
or purchase shall not be so paid upon surrender for redemption or purchase
because of the failure of the Issuer to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption or purchase
date until such principal is paid, and to the extent lawful on any interest
accrued to the redemption or purchase date not paid on such unpaid principal,
in each case at the rate provided in the Notes and in Section 4.01 hereof.

                    Payment
of the redemption price and performance of the Issuer’s obligations in
connection with any redemption may be performed by another Person.

	
  

 	
  

 
	
 Section 3.06

 	
 Notes Redeemed or
 Purchased in Part.

 

                    Upon
surrender of a Note that is redeemed or purchased in part, the Issuer shall
issue and the Trustee shall authenticate for the Holder at the expense of the
Issuer a new Note equal in principal amount to the unredeemed or unpurchased
portion of the Note surrendered representing the same indebtedness to the
extent not redeemed or purchased; provided that each new Note will be in
a principal amount of $2,000 or an integral multiple of $1,000 in excess of
$2,000. It is understood that, notwithstanding anything in this Indenture to
the contrary, only an Authentication Order and not an Opinion of Counsel or
Officer’s Certificate is required for the Trustee to authenticate such new
Note.

	
  

 	
  

 
	
 Section 3.07

 	
 Optional Redemption.

 

                    (a)
At any time prior to April 1, 2014, the Issuer may redeem all or a part of the
Notes, upon prior notice as provided in Section 3.03, at a redemption price
equal to 100% of the principal amount of the Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest and Additional Interest, if any,
to the date of redemption (the “Redemption
Date”), subject to the rights of Holders of Notes on the relevant Record
Date to receive interest due on the relevant Interest Payment Date.

                    (b)
On and after April 1, 2014, the Issuer may redeem the Notes, in whole or in
part, upon prior notice as provided in Section 3.03, at the redemption prices
(expressed as percentages of principal amount of the Notes to be redeemed) set
forth below, plus accrued and unpaid interest and Additional Interest, if any,
thereon to the applicable Redemption Date, subject to the right of Holders of
Notes of record on the relevant Record Date to receive interest due on the
relevant Interest Payment Date, if redeemed during the twelve-month period
beginning on April 1 of each of the years indicated below:

-51-

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Year

 	
  

 	
 Percentage

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 2014

 	
  

 	
  

 	
 105.344

 	
 %

 
	
 2015

 	
  

 	
  

 	
 103.563

 	
 %

 
	
 2016

 	
  

 	
  

 	
 101.781

 	
 %

 
	
 2017 and thereafter

 	
  

 	
  

 	
 100.000

 	
 %

 

                    (c)
Until April 1,
2014, the Issuer may, at its option, on one or more occasions, redeem up
to 35% of the aggregate principal amount of Notes at a redemption price equal
to 107.125% of the aggregate principal amount thereof, plus accrued and unpaid
interest thereon and Additional Interest, if any, to the applicable Redemption
Date, subject to the right of Holders of Notes of record on the relevant record
date to receive interest due on the relevant interest payment date, with the
net cash proceeds of one or more Equity Offerings; provided that
at least 65% of the sum of the original aggregate principal amount of Notes
issued under this Indenture and the original principal amount of any Additional
Notes issued under the Indenture after the Issue Date remains outstanding
immediately after the occurrence of each such redemption; provided further that each such redemption occurs within 90 days
of the date of closing of each such Equity Offering. Notice of any redemption
upon any Equity Offering may be given prior to the redemption thereof, and any
such redemption or notice may, at the Issuer’s discretion, be subject to one or
more conditions precedent, including, but not limited to, completion of the
related Equity Offering.

	
  

 	
  

 
	
 Section 3.08

 	
 Mandatory Redemption.

 

                    The
Issuer shall not be required to make mandatory redemption or sinking fund
payments with respect to the Notes. However, the Issuer may at any time and
from time to time purchase Notes in the open market or otherwise. 

	
  

 	
  

 
	
 Section 3.09

 	
 Offers To Repurchase by
 Application of Excess Proceeds.

 

                    (a)
In the event that, pursuant to Section 4.10 hereof, the Issuer shall be
required to commence an Asset Sale Offer, it shall follow the procedures
specified below.

                    (b)
The Asset Sale Offer shall remain open for a period of 20 Business Days
following its commencement and no longer, except to the extent that a longer
period is required by applicable law (the “Offer Period”). No later than
five Business Days after the termination of the Offer Period (the “Purchase
Date”), the Issuer shall apply all Excess Proceeds (the “Offer Amount”)
to the purchase of Notes and, if required, Pari Passu Indebtedness (on a pro rata
basis, if applicable), or, if less than the Offer Amount has been tendered, all
Notes and Pari Passu Indebtedness tendered in response to the Asset Sale Offer.
Payment for any Notes so purchased shall be made in the same manner as interest
payments are made. 

                    (c)
If the Purchase Date is on or after a Record Date and on or before the related
Interest Payment Date, any accrued and unpaid interest up to but excluding the
Purchase Date, shall be paid to the Person in whose name a Note is registered
at the close of business on such Record Date, and no Additional Interest shall
be payable to Holders who tender Notes pursuant to the Asset Sale Offer.

                    (d)
Upon the commencement of an Asset Sale Offer, the Issuer shall send, by
first-class mail, a notice to each of the Holders, with a copy to the Trustee.
The notice shall contain all instructions and materials necessary to enable
such Holders to tender Notes pursuant to the Asset Sale Offer. 

-52-

The Asset Sale Offer shall
be made to all Holders and, if required, holders of Pari Passu Indebtedness.
The notice, which shall govern the terms of the Asset Sale Offer, shall state:

	
  

 	
  

 
	
  

 	
           (i)
 that the Asset Sale Offer is being made pursuant to this Section 3.09 and
 Section 4.10 hereof and the length of time the Asset Sale Offer shall remain
 open;

 
	
  

 	
  

 
	
  

 	
           (ii)
 the Offer
 Amount, the purchase price and the Purchase Date;

 
	
  

 	
  

 
	
  

 	
           (iii)
 that any Note
 not tendered or accepted for payment shall continue to accrue interest;

 
	
  

 	
  

 
	
  

 	
           (iv)
 that, unless the
 Issuer defaults in making such payment, any Note accepted for payment pursuant
 to the Asset Sale Offer shall cease to accrue interest after the Purchase
 Date;

 
	
  

 	
  

 
	
  

 	
           (v)
 that Holders
 electing to have a Note purchased pursuant to an Asset Sale Offer may elect
 to have Notes purchased in a minimum amount of $2,000, or integral multiples
 of $1,000 in excess thereof;

 
	
  

 	
  

 
	
  

 	
           (vi)
 that Holders
 electing to have a Note purchased pursuant to any Asset Sale Offer shall be
 required to surrender the Note, with the form entitled “Option of Holder to
 Elect Purchase” attached to the Note completed, or transfer such Note by
 book-entry transfer, to the Issuer, the Depositary, if appointed by the
 Issuer, or a Paying Agent at the address specified in the notice at least
 three days before the Purchase Date;

 
	
  

 	
  

 
	
  

 	
           (vii)
 that Holders
 shall be entitled to withdraw their election if the Issuer, the Depositary or
 the 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 Note the Holder delivered for
 purchase and a statement that such Holder is withdrawing his election to have
 such Note purchased;

 
	
  

 	
  

 
	
  

 	
           (viii)
 that, if the
 aggregate principal amount of Notes and Pari Passu Indebtedness surrendered
 by the holders thereof exceeds the Offer Amount, the Trustee shall select the
 Notes and such Pari Passu Indebtedness to be purchased on a pro rata
 basis based on the accreted value or principal amount of the Notes or such
 Pari Passu Indebtedness tendered (with such adjustments as may be deemed
 appropriate by the Trustee so that only Notes in a minimum amount of $2,000,
 or integral multiples of $1,000 in excess thereof, shall be purchased); and

 
	
  

 	
  

 
	
  

 	
           (ix)
 that Holders
 whose Notes were purchased only in part shall be issued new Notes equal in
 principal amount to the unpurchased portion of the Notes surrendered (or
 transferred by book-entry transfer) representing the same indebtedness to the
 extent not repurchased.

 

                    (e)
On or before the Purchase Date, the Issuer shall, to the extent lawful, (1)
accept for payment, on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof validly tendered pursuant to the
Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes
tendered and (2) deliver or cause to be delivered to the Trustee the Notes
properly accepted together with an Officer’s Certificate stating the aggregate
principal amount of Notes or portions thereof so tendered.

-53-

                    (f)
The Issuer, the Depositary or the Paying Agent, as the case may be, shall
promptly mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes properly tendered by such Holder and accepted by
the Issuer for purchase, and the Issuer shall promptly issue a new Note, and
the Trustee, upon receipt of an Authentication Order, shall authenticate and
mail or deliver (or cause to be transferred by book-entry) such new Note to
such Holder (it being understood that, notwithstanding anything in this
Indenture to the contrary, no Opinion of Counsel or Officer’s Certificate is required
for the Trustee to authenticate and mail or deliver such new Note) in a
principal amount equal to any unpurchased portion of the Note surrendered
representing the same indebtedness to the extent not repurchased; provided
that each such new Note shall be in a minimum principal amount of $2,000 or an
integral multiple of $1,000 in excess thereof. Any Note not so accepted shall
be promptly mailed or delivered by the Issuer to the Holder thereof. If
required by applicable law, the Issuer shall publicly announce the results of
the Asset Sale Offer on or as soon as practicable after the Purchase Date.

                    Other
than as specifically provided in this Section 3.09 or Section 4.10 hereof, any
purchase pursuant to this Section 3.09 shall be made pursuant to the applicable
provisions of Sections 3.01 through 3.06 hereof.

ARTICLE IV

COVENANTS

	
  

 	
  

 
	
 Section 4.01

 	
 Payment of Notes.

 

                    The
Issuer shall pay or cause to be paid the principal of, premium, if any, and
interest on the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest shall be considered paid on the date
due if the Paying Agent, if other than the Issuer or a Subsidiary, holds as of
10:00 a.m. New York City time on the due date money deposited by the Issuer in
immediately available funds and designated for and sufficient to pay all
principal, premium, if any, and interest then due. Such Paying Agent
shall, upon written request by the Issuer, return to the Issuer promptly, and
in any event no later than five Business Days following such request, any money
that exceeds such amount of principal, premium, if any, and interest paid on
the Notes. If a payment date is not a Business Day, payment may be made on the
next succeeding date that is a Business Day.

                    The
Issuer shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate equal to the then
applicable interest rate on the Notes to the extent lawful; and shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

	
  

 	
  

 
	
 Section 4.02

 	
 Maintenance of Office or
 Agency.

 

                    The
Issuer shall maintain in the Borough of Manhattan in the City of New York an
office or agency (which may be an office of the Trustee or an affiliate of the
Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Issuer in respect of the Notes and this Indenture may be served. The
Issuer 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 Issuer
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office.

-54-

                    The
Issuer may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided
that no such designation or rescission shall in any manner relieve the Issuer
of its obligation to maintain an office or agency in the Borough of Manhattan
in the City of New York for such purposes. The Issuer shall give prompt written
notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

                    The
Issuer hereby designates the Corporate Trust Office as one such office or agency
of the Issuer in accordance with Section 2.03 hereof.

	
  

 	
  

 
	
 Section 4.03

 	
 Reports and Other
 Information.

 

                    (a)
Regardless of whether the Issuer remains subject to the reporting requirements
of Section 13 or 15(d) of the Exchange Act or otherwise reports on an annual
and quarterly basis on forms provided for such annual and quarterly reporting
pursuant to rules and regulations promulgated by the SEC, the Issuer shall file
with the SEC (and make available to the Trustee and, upon written request,
Holders of the Notes (without exhibits) without cost to any Holder, within 15
days after it files them with the SEC) from and after the Issue Date,

	
  

 	
  

 
	
  

 	
           (1)
 within 90 days after the end of each fiscal year, annual reports on Form
 10-K, or any successor or comparable form, containing the information
 required to be contained therein or required in such successor or comparable
 form;

 
	
  

 	
  

 
	
  

 	
           (2)
 within 45 days after the end of each of the first three fiscal quarters of
 each fiscal year, reports on Form 10-Q containing all quarterly information
 that would be required to be contained in Form 10-Q or any successor or
 comparable form; and

 
	
  

 	
  

 
	
  

 	
           (3)
 promptly from time to time after the occurrence of an event required to be
 therein reported, such other reports on Form 8-K, or any successor or
 comparable form; 

 

in each case,
in a manner that complies in all material respects with the requirements
specified in such form; provided that the Issuer shall not be so
obligated to file such reports with the SEC if the SEC does not permit such
filing, in which event the Issuer shall make available such information to
prospective purchasers of Notes, in addition to providing such information to
the Trustee and the Holders of the Notes, in each case within 15 days after the
time the Issuer would be required to file such information with the SEC, if it
were subject to Sections 13 or 15(d) of the Exchange Act. The posting of such
reports, documents and information to the SEC’s or the Issuer’s website shall
constitute delivery of such reports, documents and information to the Trustee
and the Holders of the Notes, provided, however, that the Trustee
shall have no responsibility to determine whether such posting has occurred. To
the extent not satisfied by the foregoing, the Issuer agrees that, for so long
as any Notes are outstanding, it shall furnish to Holders and to securities analysts
and prospective investors, upon their written request, the information required
to be delivered pursuant to Rule 144A(d)(4) promulgated under the Securities
Act.

                    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 Issuer’s compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

-55-

	
  

 	
  

 
	
 Section 4.04

 	
 Compliance Certificate.

 

                    (a)
The Issuer and each Guarantor (to the extent that such Guarantor is so required
under the Trust Indenture Act) shall deliver to the Trustee, within 120 days
after the end of each fiscal year ending after the Issue Date, a certificate
from the principal executive officer, principal financial officer or principal
accounting officer stating that a review of the activities of the Issuer and
the Restricted Subsidiaries during the preceding fiscal year has been made under
the supervision of the signing Officer with a view to determining whether the
Issuer has kept, observed, performed and fulfilled its obligations under this
Indenture, and further stating, as to such Officer signing such certificate,
that to the best of his or her knowledge the Issuer has, during such fiscal
year, kept, observed, performed and fulfilled each and every condition and
covenant contained in this Indenture and is not in default in the performance
or observance of any of the terms, provisions, covenants and conditions of this
Indenture (or, if a Default shall have occurred, describing all such Defaults
of which he or she may have knowledge and what action the Issuer is taking or
proposes to take with respect thereto).

                    (b)
The Issuer shall within 60 days after the Issuer becomes aware that any Default
has occurred and is continuing deliver to the Trustee by registered or
certified mail or by facsimile transmission an Officer’s Certificate specifying
such event and what action the Issuer proposes to take with respect thereto.

	
  

 	
  

 
	
 Section 4.05

 	
 Taxes.

 

                    The
Issuer shall pay or discharge, and shall cause each of the Restricted
Subsidiaries to pay or discharge, prior to delinquency, all material taxes,
lawful assessments, and governmental levies except such as are being contested
in good faith and by appropriate actions or where the failure to effect such
payment or discharge is not adverse in any material respect to the Holders of
the Notes.

	
  

 	
  

 
	
 Section 4.06

 	
 Stay, Extension and Usury
 Laws.

 

                    The
Issuer and each of the Guarantors covenant (to the extent that they may
lawfully do so) that they shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in force,
that may affect the covenants or the performance of this Indenture; and the
Issuer and each of the Guarantors (to the extent that they may lawfully do so)
hereby expressly waive all benefit or advantage of any such law, and covenant
that they shall not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and permit
the execution of every such power as though no such law has been enacted.

	
  

 	
  

 
	
 Section 4.07

 	
 Limitation on Restricted
 Payments.

 

                    (a)
The Issuer shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly:

	
  

 	
  

 	
  

 
	
  

 	
           (I)
 declare or pay any dividend or make any payment or distribution on account of
 the Issuer’s or any of its Restricted Subsidiaries’ Equity Interests,
 including any dividend or distribution payable in connection with any merger
 or consolidation other than:

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 dividends, payments or distributions by the Issuer payable solely in Equity
 Interests (other than Disqualified Stock) of the Issuer; or

 

-56-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 dividends, payments or distributions by a Restricted Subsidiary so long as,
 in the case of any dividend, payment or distribution payable on or in respect
 of any class or series of securities issued by a Restricted Subsidiary that
 is not a Wholly-Owned Subsidiary, the Issuer or a Restricted Subsidiary
 receives at least its pro rata share of such dividend, payment
 or distribution in accordance with its Equity Interests in such class or
 series of securities;

 
	
  

 	
  

 	
  

 
	
  

 	
           (II)
 purchase, redeem, defease or otherwise acquire or retire for value any Equity
 Interests of the Issuer or any direct or indirect parent of the Issuer,
 including in connection with any merger or consolidation;

 
	
  

 	
  

 
	
  

 	
           (III)
 make any principal payment on, or redeem, repurchase, defease or otherwise
 acquire or retire for value or give any irrevocable notice of redemption with
 respect thereto, in each case, prior to any scheduled repayment, sinking fund
 payment or maturity, any Subordinated Indebtedness, other than:

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 Indebtedness permitted under clauses (7) and (8) of Section 4.09(b) hereof;
 or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 the purchase, repurchase or other acquisition of Subordinated Indebtedness
 purchased in anticipation of satisfying a sinking fund obligation, principal
 installment or final maturity, in each case due within one year of the date
 of purchase, repurchase or acquisition; or

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 the giving of an irrevocable notice of redemption with respect to the
 transactions described in clauses (2) and (3) of Section 4.07(b); or

 
	
  

 	
  

 	
  

 
	
  

 	
           (IV)
 make any Restricted Investment

 

(all such payments and other
actions set forth in clauses (I) through (IV) above being collectively referred
to as “Restricted Payments”),
unless, at the time of such Restricted Payment:

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 no Default shall have occurred and be continuing or would occur as a
 consequence thereof;

 
	
  

 	
  

 
	
  

 	
           (2)
 immediately after giving effect to such transaction on a pro forma basis, the
 Issuer could incur $1.00 of additional Indebtedness under Section 4.09(a)
 hereof; and

 
	
  

 	
  

 
	
  

 	
           (3)
 such Restricted Payment, together with the aggregate amount of all other
 Restricted Payments made by the Issuer and its Restricted Subsidiaries after
 the Issue Date (including Restricted Payments permitted by clauses (1), (7),
 (8), (9) (10), (11), (13) and (14) of Section 4.07(b) hereof, but excluding
 all other Restricted Payments permitted by Section 4.07(b) hereof), is less
 than the sum of (without duplication):

 
	
  

 	
  

 
	
  

 	
  

 	
           (a)
 50% of the Consolidated Net Income of the Issuer for the period (taken as one
 accounting period) beginning January 1, 2011, to the end of the Issuer’s
 most recently ended fiscal quarter for which internal financial statements
 are available at the time of such Restricted Payment, or, in the case such
 Consolidated Net Income for such period is a deficit, minus 100% of such
 deficit; plus

 

-57-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 100% of the aggregate
 net cash proceeds and the fair market value of marketable securities or other
 property received by the Issuer since immediately after the Issue Date from
 the sale of:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (i)
 Equity Interests of the Issuer, including Treasury Capital Stock (as defined
 below), but excluding cash proceeds and the fair market value of marketable
 securities or other property received from the sale of Equity Interests to members of management,
 directors or consultants of the Issuer, any direct or indirect parent company
 of the Issuer and the Issuer’s Subsidiaries after the Issue Date to the
 extent such amounts have been applied to Restricted Payments made in accordance
 with clause (4) of Section 4.07(b) hereof; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (ii)
 debt securities of the Issuer that have been converted into or exchanged for
 such Equity Interests of the Issuer;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 provided, however, that this clause (b) shall not include
 the proceeds from (X) Equity Interests or convertible debt securities of
 the Issuer sold to a Restricted Subsidiary, as the case may be, or
 (Y) Disqualified Stock or debt securities that have been converted into
 Disqualified Stock; plus

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (c)
 100% of the aggregate amount of cash and the fair market value of marketable
 securities or other property contributed to the capital of the Issuer
 following the Issue Date (other than by a Restricted Subsidiary); plus

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (d)
 100% of the aggregate
 amount received in cash and the fair market value of marketable securities or
 other property received by means of:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (i)
 the sale or other disposition (other than to the Issuer or a Restricted
 Subsidiary) of Restricted Investments made by the Issuer or its Restricted
 Subsidiaries or interests payments made in respect of any repurchases and redemptions
 of such Restricted Investments from the Issuer or its Restricted Subsidiaries,
 repayments of or interest payments made in respect of any loans or advances,
 and releases of guarantees, which constitute Restricted Investments by the
 Issuer or its Restricted Subsidiaries or any dividends or other distributions
 made or payments made with respect to any Restricted Investment by the Issuer
 or any Restricted Subsidiary in each case after the Issue Date; or

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (ii)
 the sale (other than to the Issuer or a Restricted Subsidiary) of the stock
 of an Unrestricted Subsidiary or a distribution from an Unrestricted
 Subsidiary (other than in each case to the extent the Investment in such
 Unrestricted Subsidiary constituted a Permitted Investment) or a dividend
 from an Unrestricted Subsidiary after the Issue Date; plus

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (e)
 in the case of the redesignation of an Unrestricted Subsidiary as a
 Restricted Subsidiary after the Issue Date, the merger or consolidation of an
 Unrestricted Subsidiary into the Issuer or a Restricted Subsidiary or the
 transfer of assets of any Unrestricted Subsidiary to the Issuer or a
 Restricted Subsidiary, the fair market value of the Investment in such
 Unrestricted Subsidiary at the time of the redesignation of such Unrestricted
 Subsidiary as a Restricted Subsidiary, other than an Unrestricted Subsidiary
 to 

 

-58-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 the extent the Investment
 in such Unrestricted Subsidiary constituted a Permitted Investment.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b) The foregoing
 provisions shall not prohibit:

 
	
  

 	
  

 	
  

 
	
  

 	
           (1)
 the payment of any dividend or distribution or the consummation of any
 irrevocable redemption within 60 days after the date of declaration thereof
 or the giving of the irrevocable redemption notice, as applicable, if at the
 date of declaration or notice such payment would have complied with the
 provisions of this Indenture;

 
	
  

 	
  

 
	
  

 	
           (2)
 the redemption, repurchase, retirement, defeasance or other acquisition of
 any Equity Interests of the Issuer or any direct or indirect parent of the
 Issuer (“Treasury Capital Stock”) or Subordinated Indebtedness of the
 Issuer or a Guarantor in exchange for, or out of the proceeds of the substantially
 concurrent sale (other than to a Restricted Subsidiary) of, Equity Interests
 of the Issuer or any direct or indirect parent of the Issuer to the extent
 contributed to the Issuer (in each case, other than any Disqualified Stock); provided
 that the amount of any proceeds that are utilized for any such redemption,
 repurchase, retirement or other acquisition shall be excluded from clauses
 (b) and (c) of the preceding paragraph;

 
	
  

 	
  

 
	
  

 	
           (3)
 the redemption, repurchase, retirement, defeasance or other acquisition of
 Subordinated Indebtedness of the Issuer or a Guarantor made in exchange for,
 or out of the proceeds of, the substantially concurrent sale of, new
 Indebtedness of the Issuer or a Guarantor, as the case may be, which is
 incurred in compliance with Section 4.09 hereof so long as:

 
	
  

 	
  

 
	
  

 	
  

 	
           (a)
 the principal amount (or accreted value, if applicable) of such new
 Indebtedness does not exceed the principal amount of (or accreted value, if
 applicable), plus any accrued and unpaid interest on, the Subordinated
 Indebtedness being so redeemed, repurchased, acquired or retired for value,
 plus the amount of any reasonable premium paid (including reasonable tender
 premiums) and any reasonable fees and expenses incurred in connection with
 the issuance of such new Indebtedness;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 such new Indebtedness is subordinated to the Notes or the applicable
 Guarantee at least to the same extent as such Subordinated Indebtedness so
 purchased, exchanged, redeemed, repurchased, acquired or retired for value;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (c)
 such new Indebtedness has a final scheduled maturity date equal to or later
 than the final scheduled maturity date of the Subordinated Indebtedness being
 so redeemed, repurchased, acquired or retired; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (d)
 such new Indebtedness has a Weighted Average Life to Maturity equal to or
 greater than the remaining Weighted Average Life to Maturity of the
 Subordinated Indebtedness being so redeemed, repurchased, acquired or
 retired;

 
	
  

 	
  

 	
  

 
	
  

 	
           (4)
 a Restricted Payment to pay for the repurchase, retirement or other
 acquisition of Equity Interests of the Issuer held by any future, present or
 former employee, director or consultant of the Issuer, any of its
 Subsidiaries or any of its direct or indirect parent companies pursuant to
 any management equity plan or stock option plan or any other management or
 employee benefit plan or agreement; provided, however, that the
 aggregate Restricted Payments made under this clause (4) do not exceed in any
 calendar year $10.0 million (with unused amounts in any calendar 

 

-59-

	
  

 	
  

 	
  

 
	
  

 	
 year being
 carried over to succeeding calendar years subject to a maximum (without
 giving effect to the following proviso) of $20.0 million in any calendar
 year); provided, further, that such amount
 in any calendar year may be increased by an amount not to exceed:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (a)
 the cash proceeds from the sale of Equity Interests (other than Disqualified
 Stock) of the Issuer to members of management, directors or consultants of
 the Issuer or any of its Subsidiaries that occurs after the Issue Date, to
 the extent the cash proceeds from the sale of such Equity Interests have not
 otherwise been applied to the payment of Restricted Payments by virtue of
 clause (3) of Section 4.07(a) hereof or clause (8) of the definition of
 Permitted Investments; plus

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 the cash proceeds of key man life insurance policies received by the Issuer
 or its Restricted Subsidiaries after the Issue Date; less

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (c)
 the amount of any Restricted Payments made in any prior calendar year
 pursuant to clauses (a) and (b) of this clause (4);

 
	
  

 	
  

 	
  

 
	
  

 	
           (5)
 the declaration and payment of dividends to holders of any class or series of
 Disqualified Stock of the Issuer or any of its Restricted Subsidiaries issued
 in accordance with Section 4.09 hereof to the extent such dividends are
 included in the definition of “Fixed Charges”;

 
	
  

 	
  

 
	
  

 	
           (6)
 repurchases of Equity Interests deemed to occur upon exercise or vesting of
 stock options, warrants or similar rights if such Equity Interests represent
 all or a portion of the exercise price of such options or warrants or are
 surrendered in connection with satisfying any federal or state income tax
 obligation incurred in connection with such exercise or vesting;

 
	
  

 	
  

 
	
  

 	
           (7)
 the repurchase, redemption or other acquisition for value of Equity Interests
 of the Issuer representing fractional shares of such Equity Interests in
 connection with a stock dividend, split or combination or any merger,
 consolidation, amalgamation or other combination involving the Issuer;

 
	
  

 	
  

 
	
  

 	
           (8)
 the redemption, repurchase, retirement or other acquisition, in each case for
 nominal value per right, of any rights granted to all holders of Equity
 Interests of the Issuer pursuant to any stockholders’ rights plan adopted for
 the purpose of protecting stockholders from unfair takeover tactics, provided
 that any such redemption, repurchase, retirement or other acquisition of such
 rights shall not be for the purpose of evading the limitations described
 under this covenant;

 
	
  

 	
  

 
	
  

 	
           (9)
 the declaration and payment of dividends to holders of Equity Interests of
 the Issuer or the acquisition, in open market purchases or otherwise, of
 Equity Interests of the Issuer in an aggregate amount not to exceed $10.0
 million in any fiscal year, provided that up to $10.0 million of such
 amount that is not utilized by the Issuer to pay dividends or acquire Equity
 Interests of the Issuer in any calendar year may be carried forward to the immediately
 succeeding year;

 
	
  

 	
  

 
	
  

 	
           (10)
 payments or distributions to dissenting stockholders pursuant to applicable
 law in connection with a merger, consolidation or transfer of all or
 substantially all of the Issuer’s property or assets that complies with this
 Indenture, provided that as a result of such merger, consolidation or
 transfer of all or substantially all of the Issuer’s property or assets, the
 Issuer shall have 

 

-60-

	
  

 	
  

 
	
  

 	
 made a
 Change of Control Offer or Asset Sale Offer and all Notes tendered by Holders
 in connection therewith shall have been repurchased, redeemed or acquired for
 value;

 
	
  

 	
  

 
	
  

 	
           (11)
 other Restricted Payments in an aggregate amount taken together with all
 other Restricted Payments made pursuant to this clause (11) not to exceed
 $100.0 million;

 
	
  

 	
  

 
	
  

 	
           (12)
 the repurchase, redemption, retirement, defeasance or other acquisition of
 the Convertible Subordinated Notes; 

 
	
  

 	
  

 
	
  

 	
           (13)
 the repurchase, redemption retirement, defeasance or other acquisition of any
 Subordinated Indebtedness required in accordance with provisions applicable
 thereto similar to those described under Sections 4.10 and Section 4.14
 hereof; provided that all Notes tendered by Holders in
 connection with a Change of Control Offer or Asset Sale Offer, as applicable,
 have been repurchased, redeemed or acquired for value; and 

 
	
  

 	
  

 
	
  

 	
           (14)
 direct or indirect loans or advances to the Issuer’s Employee Stock Ownership
 Plan in connection with its purchase or other acquisition of Equity Interests
 of the Issuer in an aggregate amount not to exceed $10.0 million in any
 fiscal year or $50.0 million in the aggregate;

 

provided, however, that at the time of, and
after giving effect to, any Restricted Payment permitted under clauses (9),
(11) and (14) of this Section 4.07(b), no Default shall have occurred and be
continuing or would occur as a consequence thereof.

                    (c)
As of the Issue Date, all of the Issuer’s Subsidiaries shall be Restricted
Subsidiaries. The Issuer shall not permit any Unrestricted Subsidiary to become
a Restricted Subsidiary except pursuant to the last sentence of the definition
of “Unrestricted Subsidiary.” For purposes of designating any Restricted
Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the
Issuer and its Restricted Subsidiaries (except to the extent repaid) in the Subsidiary
so designated shall be deemed to be Restricted Payments in an amount determined
as set forth in the last sentence of the definition of “Investment.” Such
designation shall be permitted only if a Restricted Payment in such amount
would be permitted at such time, whether pursuant to Section 4.07(a) hereof or
under clause (11) of Section 4.07(b) hereof, or pursuant to the definition of
“Permitted Investments,” and if such Subsidiary otherwise meets the definition
of an Unrestricted Subsidiary. Unrestricted Subsidiaries shall not be subject
to any of the restrictive covenants set forth in this Indenture.

                    (d)
If the Issuer or any Restricted Subsidiary makes a Restricted Payment which, at
the time of the making of such Restricted Payment, in the good faith
determination of the Issuer or such Restricted Subsidiary, would be permitted
under the requirements of this Indenture, such Restricted Payment shall be
deemed to have been made in compliance with this Indenture notwithstanding any
subsequent adjustment made in good faith to the Issuer’s financial statements
affecting Consolidated Net Income.

                    (e)
In the event that a Restricted Payment meets the criteria of more than one of
the types of Restricted Payments described in the above clauses, including,
without limitation, the first paragraph of this Section, the Issuer, in its
sole discretion, may order and classify, and from time to time may reclassify,
such Restricted Payment if it would have been permitted at the time such
Restricted Payment was made and at the time of such reclassification.

-61-

	
  

 	
  

 
	
 Section 4.08

 	
 Dividend and Other Payment
 Restrictions Affecting Restricted Subsidiaries.

 

                    (a)
The Issuer shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly, create or otherwise cause or suffer to exist or
become effective any consensual encumbrance or consensual restriction on the
ability of any such Restricted Subsidiary to:

	
  

 	
  

 
	
  

 	
           (1)
 (A) pay dividends or make any other distributions to the Issuer or any of the
 Restricted Subsidiaries on its Capital Stock or with respect to any other
 interest or participation in, or measured by, its profits, or

 
	
  

 	
  

 
	
  

 	
           (B)
 pay any Indebtedness owed to the Issuer or any of the Restricted Subsidiaries;

 
	
  

 	
  

 
	
  

 	
           (2)
 make loans or advances to the Issuer or any of the Restricted Subsidiaries;
 or

 
	
  

 	
  

 
	
  

 	
           (3)
 sell, lease or transfer any of its properties or assets to the Issuer or any
 of the Restricted Subsidiaries.

 
	
  

 	
  

 
	
                     (b)
 except (in each case) for such encumbrances or restrictions existing under or
 by reason of:

 
	
  

 	
  

 
	
  

 	
           (1)
 contractual encumbrances or restrictions in effect on the Issue Date,
 including pursuant to the Credit Facilities and the related documentation;

 
	
  

 	
  

 
	
  

 	
           (2)
 this Indenture and the Notes;

 
	
  

 	
  

 
	
  

 	
           (3)
 purchase money obligations and capital lease obligations for property
 acquired in the ordinary course of business that impose restrictions of the
 nature discussed in clause (3) of Section 4.08(a) hereof on the property so
 acquired;

 
	
  

 	
  

 
	
  

 	
           (4)
 applicable law or any applicable rule, regulation or order;

 
	
  

 	
  

 
	
  

 	
           (5)
 any agreement or other instrument of a Person acquired by the Issuer or any
 of its Restricted Subsidiaries in existence at the time of such acquisition
 (but not created in contemplation thereof), which encumbrance or restriction
 is not applicable to any Person, or the properties or assets of any Person,
 other than the Person and its Subsidiaries, or the property or assets of the
 Person and its Subsidiaries, so acquired;

 
	
  

 	
  

 
	
  

 	
           (6)
 contracts for the sale of assets, including customary restrictions with
 respect to a Subsidiary of the Issuer pursuant to an agreement that has been
 entered into for the sale or disposition of all or substantially all of the
 Capital Stock or assets of such Subsidiary, that impose restrictions on the
 assets to be sold;

 
	
  

 	
  

 
	
  

 	
           (7)
 Secured Indebtedness otherwise permitted to be incurred pursuant to Section
 4.09 hereof and Section 4.12 hereof that limit the right of the debtor to
 dispose of the assets securing such Indebtedness or place any restriction on
 the Issuer’s or its Restricted Subsidiaries’ use of the assets securing such
 Secured Indebtedness;

 
	
  

 	
  

 
	
  

 	
           (8)
 restrictions on cash or other deposits or net worth imposed by customers
 under contracts entered into in the ordinary course of business;

 

-62-

	
  

 	
  

 
	
  

 	
           (9)
 other Indebtedness, Disqualified Stock or Preferred Stock of Foreign
 Subsidiaries permitted to be incurred subsequent to the Issue Date pursuant
 to the provisions of Section 4.09 hereof that impose restrictions solely on
 Foreign Subsidiaries party thereto; 

 
	
  

 	
  

 
	
  

 	
           (10)
 customary provisions in joint venture agreements and other similar agreements
 relating solely to such joint venture;

 
	
  

 	
  

 
	
  

 	
           (11)
 customary provisions contained in leases or licenses of intellectual property
 and other agreements, in each case, entered into in the ordinary course of
 business;

 
	
  

 	
  

 
	
  

 	
           (12)
 contractual requirements of a Receivables Subsidiary in connection with a
 Qualified Receivables Financing, provided that such restrictions apply
 only to such Receivables Subsidiary or the receivables that are subject to
 the Qualified Receivables Financing;

 
	
  

 	
  

 
	
  

 	
           (13)
 protective Liens filed in connection with a sale and leaseback transaction
 permitted under this Indenture;

 
	
  

 	
  

 
	
  

 	
           (14)
 restrictions in effect on the Issue Date that are contained in charter
 documents or shareholder agreements relating to any Restricted Subsidiary of
 the Issuer;

 
	
  

 	
  

 
	
  

 	
           (15)
 any other agreement governing Indebtedness entered into after the Issue Date
 that contains encumbrances and restrictions that are not materially more
 restrictive with respect to the Issuer or any Restricted Subsidiary than
 those in effect on the Issue Date pursuant to agreements in effect on the
 Issue Date; and

 
	
  

 	
  

 
	
  

 	
           (16)
 any encumbrances or restrictions of the type referred to in clauses (1), (2)
 and (3) of Section 4.08(a) hereof imposed by any amendments, modifications,
 restatements, renewals, increases, supplements, refundings, replacements or
 refinancings of the contracts, instruments or obligations referred to in
 clauses (1) through (15) of this Section 4.08(b); provided that such
 amendments, modifications, restatements, renewals, increases, supplements,
 refundings, replacements or refinancings are, in the good faith judgment of
 the Issuer, not materially more restrictive with respect to such encumbrance
 and other restrictions taken as a whole than those prior to such amendment,
 modification, restatement, renewal, increase, supplement, refunding,
 replacement or refinancing.

 

	
  

 	
  

 
	
 Section 4.09

 	
 Limitation on Incurrence
 of Indebtedness and Issuance of Disqualified Stock and Preferred Stock.

 

                    (a)
The Issuer shall not, and shall not permit any of the Restricted Subsidiaries
to, directly or indirectly, create, incur, issue, assume, guarantee or
otherwise become directly or indirectly liable, contingently or otherwise
(collectively, “incur”
and collectively, an “incurrence”)
with respect to any Indebtedness (including Acquired Indebtedness) and the Issuer
shall not issue any shares of Disqualified Stock and shall not permit any
Restricted Subsidiary to issue any shares of Disqualified Stock or Preferred
Stock; provided, however, that the Issuer may
incur Indebtedness (including Acquired Indebtedness) or issue shares of
Disqualified Stock, and any Guarantor may incur Indebtedness (including
Acquired Indebtedness), issue shares of Disqualified Stock and issue shares of
Preferred Stock, if the Fixed Charge Coverage Ratio on a consolidated basis for
the Issuer and its Restricted Subsidiaries’ most recently ended four fiscal
quarters for which internal financial statements are available immediately
preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock or Preferred

-63-

Stock is
issued would have been at least 2.00 to 1.00, determined on a pro forma basis (including a pro forma application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred, or the
Disqualified Stock or Preferred Stock had been issued, as the case may be, and
the application of proceeds therefrom had occurred at the beginning of such
four-quarter period. 

	
  

 	
  

 
	
  

 	
           (b)
 The provisions of Section 4.09(a) hereof shall not apply to: 

 
	
  

 	
  

 
	
  

 	
           (1)
 the incurrence of Indebtedness under the Credit Facilities by the Issuer or
 any of its Restricted Subsidiaries and the issuance and creation of letters
 of credit and bankers’ acceptances thereunder (with letters of credit and
 bankers’ acceptances being deemed to have a principal amount equal to the
 face amount thereof), up to an aggregate principal amount of $300.0 million
 outstanding at any one time, less (i) any permanent payments actually made by
 the borrower thereunder following the Issue Date in respect of Indebtedness
 thereunder with Net Proceeds from an Asset Sale and (ii) the amount of
 Indebtedness then outstanding under clause (20); 

 
	
  

 	
  

 
	
  

 	
           (2)
 the incurrence by the Issuer and any Guarantor of Indebtedness represented by
 the Initial Notes (including any Guarantee of the Initial Notes) and any
 Exchange Notes and any related Guarantee issued in respect of the Initial
 Notes; 

 
	
  

 	
  

 
	
  

 	
           (3)
 Indebtedness of the Issuer and its Restricted Subsidiaries in existence on
 the Issue Date (other than Indebtedness described in clauses (1) and (2) of
 this Section 4.09(b)); 

 
	
  

 	
  

 
	
  

 	
           (4)
 Indebtedness (including Capitalized Lease Obligations), Disqualified Stock
 and Preferred Stock incurred by the Issuer or any of its Restricted
 Subsidiaries to finance the purchase, lease, construction, installation,
 repair or improvement of property (real or personal) or equipment (other than
 software) that is used or useful in a Similar Business (including any
 reasonably related fees or expenses incurred in connection with such purchase,
 lease, construction, installation, repair or improvement), whether through
 the direct purchase of assets or the Capital Stock of any Person owning such
 assets, in an aggregate principal amount, including all Indebtedness incurred
 or Disqualified Stock and Preferred Stock issued to renew, refund, refinance,
 replace, defease or discharge any Indebtedness incurred or Disqualified Stock
 and Preferred Stock issued pursuant to this clause (4), not to exceed at any
 time outstanding the greater of (x) $100.0 million and (y) 5.0% of Total
 Assets; 

 
	
  

 	
  

 
	
  

 	
           (5)
Indebtedness incurred by the Issuer or any of its Restricted Subsidiaries
constituting reimbursement obligations with respect to letters of credit
issued in the ordinary course of business, including letters of credit in
respect of lease obligations, workers’ compensation claims, unemployment
insurance and other types of social security or property, casualty or
liability insurance or self-insurance, or other Indebtedness with respect to
reimbursement type obligations regarding workers’ compensation claims;
provided, however, that, upon the drawing of such letters of credit, such
obligations are reimbursed within 30 days following such drawing;

 
	
  

 	
  

 
	
  

 	
           (6)
Indebtedness arising from agreements of the Issuer or its Restricted
Subsidiaries providing for indemnification, adjustment of purchase price or
similar obligations, or guarantees or letters of credit, surety bonds or
performance bonds securing any obligations of the Issuer or any Restricted
Subsidiary pursuant to such agreements, in each case, incurred or assumed in
connection with the disposition of any business, assets or a Subsidiary,
other than guarantees of Indebtedness incurred by any Person acquiring all or
any portion of such business, assets or a Subsidiary for the purpose of
financing such acquisition; provided, however, that the maximum as-

 

-64-

	
  

 	
  

 
	
  

 	
 sumable
 liability in respect of all such Indebtedness shall at no time exceed the
 gross proceeds including non cash proceeds (the fair market value of such non
 cash proceeds being measured at the time received and without giving effect
 to any subsequent changes in value) actually received by the Issuer and its
 Restricted Subsidiaries in connection with such disposition; 

 
	
  

 	
  

 
	
  

 	
           (7)
Indebtedness of the Issuer to a Restricted Subsidiary; provided that any such
Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is
expressly subordinated in right of payment to the Notes; provided, further,
that any subsequent issuance or transfer of any Capital Stock or any other
event which results in any such other Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such
Indebtedness (except to the Issuer or another Restricted Subsidiary or any
pledge of such Indebtedness constituting a Permitted Lien) shall be deemed,
in each case, to be an incurrence of such Indebtedness not permitted by this
clause (7);  

 
	
  

 	
  

 
	
  

 	
           (8)
Indebtedness of a Restricted Subsidiary to the Issuer or another Restricted
Subsidiary; provided that if a
Guarantor incurs such Indebtedness to a Restricted Subsidiary that is not a
Guarantor, such Indebtedness is expressly subordinated in right of payment to
the Guarantee of the Notes of such Guarantor; provided further that any
subsequent issuance or transfer of any Capital Stock or any other event which
results in any such other Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any subsequent transfer of any such Indebtedness (except to the
Issuer or another Restricted Subsidiary or any pledge of such Indebtedness
constituting a Permitted Lien) shall be deemed, in each case, to be an
incurrence of such Indebtedness not permitted by this clause (8);  

 
	
  

 	
  

 
	
  

 	
           (9)
shares of Preferred Stock of a Restricted Subsidiary issued to the Issuer or
another Restricted Subsidiary; provided that
any subsequent issuance or transfer of any Capital Stock or any other event
which results in any such other Restricted Subsidiary ceasing to be a
Restricted Subsidiary or any other subsequent transfer of any such shares of
Preferred Stock (except to the Issuer or another of its Restricted
Subsidiaries) shall be deemed in each case to be an issuance of such shares
of Preferred Stock not permitted by this clause (9);  

 
	
  

 	
  

 
	
  

 	
           (10)
 Hedging Obligations (excluding Hedging Obligations entered into for
 speculative purposes) for the purpose of limiting interest rate risk exchange
 rate risk or commodity pricing risk; 

 
	
  

 	
  

 
	
  

 	
           (11)
 obligations in respect of performance, bid, appeal and surety bonds and
 completion guarantees provided by the Issuer or any of its Restricted
 Subsidiaries in the ordinary course of business; 

 
	
  

 	
  

 
	
  

 	
           (12)
Indebtedness or Disqualified Stock of the Issuer and Indebtedness,
Disqualified Stock or Preferred Stock of the Issuer or any Restricted
Subsidiary not otherwise permitted hereunder in an aggregate principal amount
or liquidation preference which, when aggregated with the principal amount
and liquidation preference of all other Indebtedness, Disqualified Stock and
Preferred Stock then outstanding and incurred pursuant to this clause (12),
does not at any one time outstanding exceed $75.0 million; provided that the
principal amount of Indebtedness incurred by any Restricted Subsidiary that
is not a Guarantor pursuant to this clause (12) does not exceed $10.0 million
at any one time outstanding;  

 

-65-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (13)
the incurrence by the Issuer or any Restricted Subsidiary of the Issuer of
Indebtedness, Disqualified Stock or Preferred Stock which serves to refund,
replace or refinance any Indebtedness, Disqualified Stock or Preferred Stock
incurred as permitted under Section 4.09(a) hereof and clauses (2), (3), this
clause (13) and clause (14) of this Section 4.09(b) or any Indebtedness,
Disqualified Stock or Preferred Stock issued to so refund, replace or
refinance such Indebtedness, Disqualified Stock or Preferred Stock including
additional Indebtedness, Disqualified Stock or Preferred Stock incurred to
pay premiums (including reasonable tender premiums), defeasance costs and
fees in connection therewith (the “Refinancing Indebtedness”) prior to its
respective maturity; provided, however, that such Refinancing Indebtedness: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 has a Weighted Average Life to Maturity at the time such Refinancing
 Indebtedness is incurred which is not less than the remaining Weighted
 Average Life to Maturity of the Indebtedness, Disqualified Stock or Preferred
 Stock being refunded or refinanced, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 to the extent such Refinancing Indebtedness refinances (i) Indebtedness
 subordinated or pari passu to
 the Notes or any Guarantee thereof, such Refinancing Indebtedness is
 subordinated or pari passu to
 the Notes or the Guarantee at least to the same extent as the Indebtedness
 being refinanced or refunded, or (ii) Disqualified Stock or Preferred Stock,
 such Refinancing Indebtedness must be Disqualified Stock or Preferred Stock,
 respectively, and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 shall not include: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (i)
 Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary of the
 Issuer that is not a Guarantor that refinances Indebtedness, Disqualified
 Stock or Preferred Stock of the Issuer; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (ii)
 Indebtedness, Disqualified Stock or Preferred Stock of a Subsidiary of the
 Issuer, that is not a Guarantor that refinances Indebtedness, Disqualified
 Stock or Preferred Stock of a Guarantor; or 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
           (iii)
 Indebtedness, Disqualified Stock or Preferred Stock of the Issuer or a
 Restricted Subsidiary that refinances Indebtedness, Disqualified Stock or
 Preferred Stock of an Unrestricted Subsidiary; 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (14)
 the incurrence by the Issuer or any Restricted Subsidiary of Indebtedness to
 the extent the net cash proceeds of such Indebtedness are promptly deposited
 to defease or to satisfy and discharge the Notes as described under Article 8
 and Section 11.01; 

 
	
  

 	
  

 
	
  

 	
           (15)
Indebtedness, Disqualified Stock or Preferred Stock of (x) the Issuer or a
Guarantor incurred to finance an acquisition or (y) Persons that are acquired
by the Issuer or any Guarantor or merged into the Issuer or a Guarantor in
accordance with the terms of this Indenture; provided that after giving pro forma effect to such acquisition or
merger, either 

 
	
  

 	
  

 
	
  

 	
  

 	
           (a)
 the Issuer would be permitted to incur at least $1.00 of additional
 Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in
 the first sentence of this covenant, or 

 

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           (b)
 the Fixed Charge Coverage Ratio of the Issuer and the Restricted Subsidiaries
 is greater than immediately prior to such acquisition or merger; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (16)
Indebtedness arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument drawn against insufficient
funds in the ordinary course of business, provided that such Indebtedness is
extinguished within five Business Days of its incurrence;  

 
	
  

 	
  

 
	
  

 	
           (17)
 (a) any guarantee by the Issuer or a Restricted Subsidiary of Indebtedness or
 other obligations of any Restricted Subsidiary so long as the incurrence of
 such Indebtedness incurred by such Restricted Subsidiary is permitted under
 the terms of this Indenture; or 

 
	
  

 	
  

 
	
  

 	
           (b)
any guarantee by a Restricted Subsidiary of Indebtedness of the Issuer;
provided that such guarantee is incurred in accordance with Section 4.15
hereof; 

 
	
  

 	
  

 
	
  

 	
           (18)
 Indebtedness of Foreign Subsidiaries of the Issuer not to exceed at any one
 time outstanding and together with any other Indebtedness incurred under this
 clause (18) $75.0 million; 

 
	
  

 	
  

 
	
  

 	
           (19)
 Indebtedness of the Issuer or any of its Restricted Subsidiaries consisting
 of (i) the financing of insurance premiums or (ii) take-or-pay obligations
 contained in supply arrangements, in each case, incurred in the ordinary
 course of business; 

 
	
  

 	
  

 
	
  

 	
           (20)
 Indebtedness incurred by a Receivables Subsidiary in a Qualified Receivables
 Financing that is not recourse to the Issuer or any Restricted Subsidiary
 other than a Receivables Subsidiary (except for Standard Securitization
 Undertakings); 

 
	
  

 	
  

 
	
  

 	
           (21)
 customer deposits and advance payments received from customers for goods and
 services sold in the ordinary course of business; 

 
	
  

 	
  

 
	
  

 	
           (22)
 Indebtedness owed on a short-term basis of not longer than 30 days to banks
 and other financial institutions incurred in the ordinary course of business
 of the Issuer and its Restricted Subsidiaries with such banks or financial
 institutions in connection with ordinary banking arrangements to manage cash
 balances of the Issuer and its Restricted Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (23)
 Indebtedness incurred by a Restricted Subsidiary in connection with bankers’
 acceptances, discounted bills of exchange or the discounting or factoring of
 receivables for credit management purposes, in each case incurred or
 undertaken in the ordinary course of business on arm’s-length commercial
 terms; and 

 
	
  

 	
  

 
	
  

 	
           (24)
 guarantee obligations incurred in connection with the purchase or other
 acquisition by the Issuer’s Employee Stock Ownership Plan of Equity Interests
 of the Issuer not to exceed $50.0 million at any time outstanding. 

 
	
  

 	
  

 
	
  

 	
           Notwithstanding
 anything to the contrary, no Subsidiary of the Issuer shall guarantee the
 Convertible Subordinated Notes. 

 

-67-

	
  

 	
  

 
	
  

 	
           (c)
 For purposes of determining compliance with this Section 4.09: 

 
	
  

 	
  

 
	
  

 	
           (1)
in the event that an item of Indebtedness, Disqualified Stock or Preferred
Stock (or any portion thereof) meets the criteria of more than one of the
categories of permitted Indebtedness, Disqualified Stock or Preferred Stock
described in clauses (1) through (24) of Section 4.09(b) hereof or is
entitled to be incurred pursuant to Section 4.09(a) hereof, the Issuer, in
its sole discretion, shall classify or reclassify such item of Indebtedness,
Disqualified Stock or Preferred Stock (or any portion thereof) and shall only
be required to include the amount and type of such Indebtedness, Disqualified
Stock or Preferred Stock in one of the above clauses; provided that all
Indebtedness outstanding under the Credit Facilities on the Issue Date shall
at all times be deemed to be outstanding in reliance on clause (1) of Section
4.09(b) hereof; and  

 
	
  

 	
  

 
	
  

 	
           (2)
 at the time of incurrence, the Issuer shall be entitled to divide and
 classify an item of Indebtedness in more than one of the types of
 Indebtedness described in Sections 4.09(a) and 4.09(b) hereof. 

 
	
  

 	
  

 
	
                     (d)
Accrual of interest, the accretion of accreted value, the amortization of
original issue discount, and the payment of interest or dividends in the form
of additional Indebtedness, Disqualified Stock or Preferred Stock, as
applicable, the accretion of liquidation preference and increases in the
amount of Indebtedness outstanding solely as a result of fluctuations in the
exchange rate of currencies will not be deemed to be an incurrence of
Indebtedness, Disqualified Stock or Preferred Stock for purposes of this
covenant. Guarantees of, or obligations in respect of letters of credit
relating to, Indebtedness that are otherwise included in the determination of
a particular amount of Indebtedness shall not be included in the
determination of such amount of Indebtedness, provided that the incurrence of
the Indebtedness represented by such guarantee or letter of credit, as the
case may be, was in compliance with this covenant.  

 
	
  

 
	
                     (e)
For purposes of determining compliance with any U.S. dollar-denominated
restriction on the incurrence of Indebtedness, the U.S. dollar-equivalent
principal amount of Indebtedness denominated in a foreign currency shall be
calculated based on the relevant currency exchange rate in effect on the date
such Indebtedness was incurred, in the case of term debt, or first committed,
in the case of revolving credit debt; provided that if such Indebtedness is
incurred to refinance other Indebtedness denominated in a foreign currency,
and such refinancing would cause the applicable U.S. dollar denominated
restriction to be exceeded if calculated at the relevant currency exchange
rate in effect on the date of such refinancing, such U.S. dollar-denominated
restriction shall be deemed not to have been exceeded so long as the
principal amount of such refinancing Indebtedness does not exceed the principal
amount of such Indebtedness being refinanced plus the amount of any
reasonable premium (including reasonable tender premiums), defeasance costs
and any reasonable fees and expenses incurred in connection with the issuance
of such new Indebtedness.  

 
	
  

 
	
                     (f)
 The Issuer shall not, and shall not permit any Guarantor to, directly or
 indirectly, incur any Indebtedness (including Acquired Indebtedness) that is
 subordinated or junior in right of payment to any Indebtedness of the Issuer
 or such Guarantor, as the case may be, unless such Indebtedness is expressly
 subordinated in right of payment to the Notes or such Guarantor’s Guarantee
 to the extent and in the same manner as such Indebtedness is subordinated to
 other Indebtedness of the Issuer or such Guarantor, as the case may be. 

 
	
  

 
	
                     (g)
 For purposes of this Indenture, (1) unsecured Indebtedness is not deemed to
 be subordinated or junior to Secured Indebtedness merely because it is
 unsecured or (2) Indebtedness is not 

 

-68-

deemed to be
subordinated or junior to any other Indebtedness merely because it has a junior
priority with respect to the same collateral. 

	
  

 	
  

 
	
 Section 4.10

 	
 Asset Sales.

 

                    (a)
The Issuer shall not, and shall not permit any of the Restricted Subsidiaries
to, cause, make or suffer to exist an Asset Sale, unless: 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 the Issuer or such Restricted Subsidiary, as the case may be, receives
 consideration at the time of such Asset Sale at least equal to the fair
 market value of the assets or Equity Interests issued or sold or otherwise
 disposed of; and 

 
	
  

 	
  

 
	
  

 	
           (2)
except in the case of a Permitted Asset Swap, at least 75% of the
consideration therefor received by the Issuer or such Restricted Subsidiary,
as the case may be, is in the form of (a) cash or Cash Equivalents (b)
Replacement Assets or (c) any combination of the consideration specified in
clauses (a) and (b); provided that the amount of:  

 
	
  

 	
  

 
	
  

 	
  

 	
           (A)
 any liabilities (as shown on the Issuer’s or such Restricted Subsidiary’s
 most recent balance sheet or in the footnotes thereto) of the Issuer or such
 Restricted Subsidiary, other than liabilities that are by their terms
 subordinated to the Notes, that are assumed by the transferee of any such
 assets and for which the Issuer and all of its Restricted Subsidiaries have
 been validly released by all creditors in writing, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
 any securities, notes or other obligations received by the Issuer or such
 Restricted Subsidiary from such transferee that are converted by the Issuer
 or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of
 the cash or Cash Equivalents received) within 180 days following the closing
 of such Asset Sale, 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 any Designated Non-cash Consideration received by the Issuer or any of its
 Restricted Subsidiaries in such Asset Sale having an aggregate fair market
 value, taken together with all other Designated Non-cash Consideration
 received since the date of this Indenture pursuant to this clause (C) that is
 at that time outstanding, not to exceed 5.0% of Total Assets at the time of
 the receipt of such Designated Non-cash Consideration (with the fair market
 value of each item of Designated Non-cash Consideration being measured at the
 time received and without giving effect to subsequent changes in value); and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (D)
 any securities publicly-traded on a national securities exchange; 

 
	
  

 	
  

 	
  

 
	
 shall be
 deemed to be cash or Cash Equivalents for purposes of this provision and for
 no other purpose.

 
	
  

 
	
                     (b)
 Within 365 days after the receipt of any Net Proceeds of any Asset Sale, the
 Issuer or such Restricted Subsidiary, at its option, may apply the Net
 Proceeds from such Asset Sale, 

 
	
  

 
	
                     (1)
 to permanently reduce: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (A)
 Secured Indebtedness under one or more Credit Facilities;

 

-69-

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B)
Obligations under Pari Passu Indebtedness (and to correspondingly reduce
commitments with respect thereto); provided that the Issuer shall equally and ratably (based on the aggregate
principal amounts (or accreted value, as applicable)) reduce Obligations
under the Notes as provided under Section 3.07 hereof, through open-market
purchases (to the extent such purchases are at or above 100% of the principal
amount thereof) or by making an offer (in accordance with the procedures set
forth under Section 4.10(c) hereof) to all Holders to purchase their Notes at
100% of the principal amount thereof, plus the amount of accrued but unpaid
interest, if any, on the amount of Notes that would otherwise be prepaid; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C)
 Indebtedness of a Restricted Subsidiary that is not a Guarantor, other than
 Indebtedness owed to the Issuer or another Restricted Subsidiary; or

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
to make an Investment in or expenditure for Replacement Assets or other
capital expenditure used or useful in a Similar Business or to enter into a
binding commitment to make such an investment or expenditure; provided that
in the case of a commitment to make such an Investment or expenditure, such
Investment or expenditure shall have been made within 365 days of the first
anniversary of the receipt of any Net Proceeds from such Asset Sale. 

 

                    (c)
Any Net Proceeds from the Asset Sale that are not invested or applied as
provided and within the time period set forth in Section 4.10(b) shall be
deemed to constitute “Excess Proceeds.” When the aggregate amount of Excess
Proceeds exceeds $50.0 million, the Issuer shall make an offer to all Holders,
and, if required by the terms of any Pari Passu Indebtedness, to the holders of
such Pari Passu Indebtedness (an “Asset Sale Offer”), to purchase the maximum
aggregate principal amount (or accreted value, as applicable) of the Notes and
such Pari Passu Indebtedness that is a minimum amount of $2,000 and in an
integral multiple of $1,000 in excess thereof that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the
principal amount thereof (or accreted value, as applicable), plus accrued and
unpaid interest and Additional Interest, if any, to the date fixed for the
closing of such offer, in accordance with the procedures set forth in this
Indenture. The Issuer will commence an Asset Sale Offer with respect to Excess
Proceeds within 30 calendar days after the date that Excess Proceeds exceed
$50.0 million by mailing the notice required pursuant to the terms of this
Indenture, with a copy to the Trustee. 

                    To
the extent that the aggregate principal amount (or accreted value, as
applicable) of Notes and such Pari Passu Indebtedness tendered pursuant to an
Asset Sale Offer is less than the Excess Proceeds, the Issuer may use any
remaining Excess Proceeds for general corporate purposes, subject to the other
covenants contained in this Indenture and they will no longer constitute Excess
Proceeds. If the aggregate principal amount (or accreted value, as applicable)
of Notes or the Pari Passu Indebtedness surrendered by such holders thereof
exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and
such Pari Passu Indebtedness to be purchased on a pro rata basis (or, in the case of Notes in global form, the
Trustee shall select Notes for redemption based on DTC’s method that most nearly
approximates a pro rata selection or by such other method that the Trustee
shall deem fair and appropriate) based on the accreted value or principal
amount of the Notes or such Pari Passu Indebtedness tendered. Upon completion
of any such Asset Sale Offer, the amount of Excess Proceeds shall be reset at
zero. 

                    (d)
Pending the final application of any Net Proceeds pursuant to this Section
4.10, the holder of such Net Proceeds may apply such Net Proceeds temporarily
to reduce Indebtedness outstanding under a revolving credit facility or
otherwise invest such Net Proceeds in any manner not prohibited by this
Indenture. 

-70-

                    (e)
The Issuer shall comply with the applicable requirements of Rule 14e-1 under
the Exchange Act and any other securities laws and regulations thereunder to
the extent such laws or regulations are applicable in connection with the
repurchase of the Notes pursuant to an Asset Sale Offer. To the extent that the
applicable provisions of any securities laws or regulations conflict with the
provisions of this Indenture, the Issuer shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations described in this Indenture by virtue thereof. 

	
  

 	
  

 
	
 Section 4.11

 	
 Transactions
 with Affiliates.

 

                    (a)
The Issuer shall not, and shall not permit any of its Restricted Subsidiaries
to, make any payment to, or sell, lease, transfer or otherwise dispose of any
of its properties or assets to, or purchase any property or assets from, or
enter into or make or amend any transaction, contract, agreement,
understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Issuer (each of the foregoing, an “Affiliate Transaction”)
unless:  

	
  

 	
  

 
	
  

 	
           (1)
 such Affiliate Transaction is on terms that are not materially less favorable
 to the Issuer or its relevant Restricted Subsidiary than those that would
 have been obtained in a comparable transaction by the Issuer or such Restricted
 Subsidiary with an unrelated Person on an arm’s-length basis; 

 
	
  

 	
  

 
	
  

 	
           (2)
 the Issuer delivers to the Trustee with respect to any Affiliate Transaction
 or series of related Affiliate Transactions involving aggregate payments or
 consideration in excess of $20.0 million, a resolution adopted by the
 majority of the board of directors of the Issuer approving such Affiliate
 Transaction and set forth in an Officer’s Certificate certifying that such
 Affiliate Transaction complies with clause (1) of this Section 4.11(a); and 

 
	
  

 	
  

 
	
  

 	
           (3)
 the Issuer delivers to the Trustee with respect to any Affiliate Transaction
 or series of related Affiliate Transactions involving aggregate payments or
 consideration in excess of $50.0 million, an opinion as to the fairness of
 the Affiliate Transaction to the Issuer or the relevant Restricted Subsidiary
 from a financial point of view issued by an Independent Financial Advisor. 

 
	
  

 	
  

 
	
  

 	
           (b)
 The foregoing provisions of Section 4.11(a) hereof will not apply to the
 following: 

 
	
  

 	
  

 
	
  

 	
           (1)
 transactions between or among the Issuer or any of its Restricted
 Subsidiaries; 

 
	
  

 	
  

 
	
  

 	
           (2)
 Restricted Payments permitted by Section 4.07 hereof and the Investments
 constituting “Permitted Investments”; 

 
	
  

 	
  

 
	
  

 	
           (3)
 the payment of reasonable and customary fees, compensation, benefits and
 incentive arrangements paid or provide to, and indemnities provided on behalf
 of, officers, directors, employees or consultants of Issuer, any of its
 direct or indirect parent companies or any of its Restricted Subsidiaries,
 including, without limitation, any such fees, compensation, benefits,
 arrangements and indemnities approved in good faith by the board of directors
 (or a committee thereof) of the Issuer; 

 
	
  

 	
  

 
	
  

 	
           (4)
 any agreement as in effect as of the Issue Date, or any amendment or
 replacement agreement thereto (so long as any such amendment is not
 materially disadvantageous to the 

 

-71-

	
  

 	
  

 
	
  

 	
 Holders when
 taken as a whole as compared to the applicable agreement as in effect on the
 Issue Date); 

 
	
  

 	
  

 
	
  

 	
           (5)
the existence of, or the performance by the Issuer or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders
agreement (including any registration rights agreement or purchase agreement
related thereto) to which it is a party as of the Issue Date and any similar
agreements which it may enter into thereafter; provided, however, that the
existence of, or the performance by the Issuer or any of its Restricted
Subsidiaries of obligations under any future amendment or replacement
agreement to any such existing agreement or under any similar agreement
entered into after the Issue Date shall only be permitted by this clause (5)
to the extent that the terms of any such amendment or new agreement are not
otherwise materially disadvantageous to the Holders when taken as a whole;  

 
	
  

 	
  

 
	
  

 	
           (6)
 any transaction effected as part of a Qualified Receivables Financing
 permitted hereunder; 

 
	
  

 	
  

 
	
  

 	
           (7)
transactions between the Issuer or any of its Restricted Subsidiaries and any
Person is an Affiliate of the Issuer solely due to the fact that a director
of such Person is also a director of the Issuer; provided, however, that such
director abstains from voting as a director of the Issuer or such direct or
indirect parent of the Issuer, as the case may be, on any matter involving
such other Person;  

 
	
  

 	
  

 
	
  

 	
           (8)
 any non-recourse pledge of Equity Interests of an Unrestricted Subsidiary to
 support the Indebtedness of such Unrestricted Subsidiary; 

 
	
  

 	
  

 
	
  

 	
           (9)
 the Transaction and the payment of all fees and expenses related to the
 Transaction, in each case as disclosed in the Offering Memorandum; 

 
	
  

 	
  

 
	
  

 	
           (10)
 transactions with customers, clients, suppliers or purchasers or sellers of
 goods or services, in each case in the ordinary course of business and
 otherwise in compliance with the terms of this Indenture which are fair to
 the Issuer and its Restricted Subsidiaries, in the reasonable determination
 of the board of directors of the Issuer or the senior management thereof, or
 are on terms at least as favorable as might reasonably have been obtained at
 such time from an unaffiliated party; 

 
	
  

 	
  

 
	
  

 	
           (11)
 the sale or issuance of Equity Interests (other than Disqualified Stock) of
 the Issuer; and 

 
	
  

 	
  

 
	
  

 	
           (12)
 payments or loans (or cancellation of loans) to employees or consultants of
 the Issuer, any of its direct or indirect parent companies or any of its
 Restricted Subsidiaries and employment agreements, stock option plans and
 other similar arrangements with such employees or consultants which, in each
 case, are approved by the Issuer in good faith. 

 

	
  

 	
  

 
	
 Section 4.12

 	
 Liens.
 

 

                    (a)
The Issuer shall not, and shall not permit any Restricted Subsidiary to,
directly or indirectly, create, incur, assume or suffer to exist any Lien (an
“Initial Lien”) (except Permitted Liens) that secures obligations under any
Indebtedness or any related guarantee, on any asset or property of the  

-72-

Issuer 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 Subordinated Indebtedness, the Notes and
 related Guarantees 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 Notes or the Guarantees are equally and ratably
secured, except that the foregoing shall not apply to (A) Liens securing the
Notes and the related Guarantees, (B) Liens securing Indebtedness permitted
to be incurred under the Credit Facilities, including any letter of credit
facility relating thereto, that was permitted by the terms of this Indenture
to be incurred pursuant to Section 4.09(b)(1) hereof and (C) Liens securing
additional Indebtedness permitted to be incurred pursuant to Section 4.09,
provided that, in the case of this clause (C), at the time of the incurrence
of such Indebtedness and after giving pro forma effect thereto, the Secured
Leverage Ratio shall not exceed 2.75 to 1.0.  

 

                    (b)
Any Lien created for the benefit of the holders of Notes pursuant to Section
4.12(a) hereof shall provide by its terms that such Lien shall be automatically
and unconditionally released and discharged upon discharge of the Initial Lien.

	
  

 	
  

 
	
 Section 4.13

 	
 Corporate
 Existence. 

 

                    Subject
to Article 5 hereof, the Issuer shall do or cause to be done all things
necessary to preserve and keep in full force and effect (i) its corporate
existence, and the corporate, partnership or other existence of each of the
Restricted Subsidiaries, in accordance with the respective organizational
documents (as the same may be amended from time to time) of such Issuer or any
such Restricted Subsidiary and (ii) the rights (charter and statutory),
licenses and franchises of the Issuer and the Restricted Subsidiaries; provided
that the Issuer shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any of the
Restricted Subsidiaries, if the Issuer in good faith shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Issuer and the Restricted Subsidiaries, taken as a whole.  

	
  

 	
  

 
	
 Section 4.14

 	
 Offer To
 Repurchase Upon Change of Control. 

 

                    (a)
If a Change of Control occurs, unless the Issuer has previously or concurrently
mailed a redemption notice with respect to all the outstanding Notes as
described under Section 3.07 hereof, the Issuer shall make an offer to purchase
all of the Notes pursuant to the offer described below (the “Change of Control
Offer”) at a price in cash (the “Change of Control Payment”) equal to 101% of
the aggregate principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase, subject to the right of
Holders of the Notes of record on the relevant Record Date to receive interest
due on the relevant Interest Payment Date. Within 30 days following any Change
of Control, the Issuer shall send notice of such Change of Control Offer by
first-class mail, with a copy to the Trustee, to each Holder of Notes at the
address of such Holder appearing in the security register, with the following
information:  

	
  

 	
  

 
	
  

 	
           (1)
 that a Change of Control Offer is being made pursuant to this Section 4.14
 and that all Notes properly tendered pursuant to such Change of Control Offer
 will be accepted for payment by the Issuer; 

 

-73-

	
  

 	
  

 
	
  

 	
           (2)
the purchase price and the purchase date, which will be no earlier than 30
days nor later than 60 days from the date such notice is mailed (the “Change
of Control Payment Date”);  

 
	
  

 	
  

 
	
  

 	
           (3)
 that any Note not properly tendered will remain outstanding and continue to
 accrue interest; 

 
	
  

 	
  

 
	
  

 	
           (4)
 that unless the Issuer defaults in the payment of the Change of Control
 Payment, all Notes accepted for payment pursuant to the Change of Control
 Offer will cease to accrue interest on the Change of Control Payment Date; 

 
	
  

 	
  

 
	
  

 	
           (5)
 that Holders electing to have any Notes purchased pursuant to a Change of
 Control Offer will be required to surrender such Notes, with the form
 entitled “Option of Holder to Elect Purchase” on the reverse of such Notes
 completed, to the paying agent specified in the notice at the address
 specified in the notice prior to the close of business on the Business Day
 preceding the Change of Control Payment Date; 

 
	
  

 	
  

 
	
  

 	
           (6)
that Holders shall be entitled to withdraw their tendered Notes and their
election to require the Issuer to purchase such Notes, provided that the
paying agent receives, not later than the close of business on the second
Business Day prior to the Change of Control Payment Date, a facsimile
transmission or letter setting forth the name of the Holder of the Notes, the
principal amount of Notes tendered for purchase, and a statement that such
Holder is withdrawing its tendered Notes and its election to have such Notes
purchased;  

 
	
  

 	
  

 
	
  

 	
           (7)
 that if the Issuer is redeeming less than all of the Notes, the Holders of
 the remaining Notes will be issued new Notes and such new Notes will be equal
 in principal amount to the unpurchased portion of the Notes surrendered. The
 unpurchased portion of the Notes must be equal to $2,000 or an integral
 multiple of $1,000 in excess thereof; 

 
	
  

 	
  

 
	
  

 	
           (8)
 if such notice is mailed prior to the occurrence of a Change of Control,
 stating the Change of Control Offer is conditional on the occurrence of such
 Change of Control; and 

 
	
  

 	
  

 
	
  

 	
           (9)
 the other instructions, as determined by the Issuer, consistent with this
 Section 4.14, that a Holder must follow in order to have its Notes
 repurchased. 

 

                    The
notice, if mailed in a manner herein provided, shall be conclusively presumed
to have been given, whether or not the Holder receives such notice. If (a) the
notice is mailed in a manner herein provided and (b) any Holder fails to
receive such notice or a Holder receives such notice but it is defective, such
Holder’s failure to receive such notice or such defect shall not affect the
validity of the proceedings for the purchase of the Notes as to all other
Holders that properly received such notice without defect. The Issuer shall
comply with the applicable requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder to the extent such
laws or regulations are applicable in connection with the repurchase of Notes
pursuant to a Change of Control Offer. To the extent that the applicable
provisions of any securities laws or regulations conflict with the provisions
of this Section 4.14, the Issuer shall comply with the applicable securities
laws and regulations and shall not be deemed to have breached its obligations
under this Indenture by virtue thereof. 

-74-

                    (b)
On the Change of Control Payment Date, the Issuer shall, to the extent
permitted by law, 

	
  

 	
  

 
	
  

 	
           (1)
 accept for payment all Notes issued by it or portions thereof properly
 tendered pursuant to the Change of Control Offer, 

 
	
  

 	
  

 
	
  

 	
           (2)
 deposit with the Paying Agent an amount equal to the aggregate Change of
 Control Payment in respect of all Notes or portions thereof so tendered, and 

 
	
  

 	
  

 
	
  

 	
           (3)
 deliver, or cause to be delivered, to the Trustee for cancellation the Notes
 so accepted together with an Officer’s Certificate to the Trustee stating
 that such Notes or portions thereof have been tendered to and purchased by
 the Issuer. 

 

                    (c)
The Issuer shall not be required to make a Change of Control Offer following a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set
forth in this Section 4.14 applicable to a Change of Control Offer made by the
Issuer and purchases all Notes validly tendered and not withdrawn under such
Change of Control Offer. Notwithstanding anything to the contrary herein, a
Change of Control Offer may be made in advance of a Change of Control,
conditional upon such Change of Control, if a definitive agreement is in place
for the Change of Control at the time of making of the Change of Control Offer.

                    (d)
Other than as specifically provided in this Section 4.14, any purchase pursuant
to this Section 4.14 shall be made pursuant to the provisions of Sections 3.02,
3.05 and 3.06 hereof. 

	
  

 	
  

 
	
 Section 4.15

 	
 Subsidiary
 Guarantees. 

 

                    (a)
If the Issuer or any of its Restricted Subsidiaries organizes, acquires,
transfers assets to or otherwise invests in any Domestic Restricted Subsidiary
(other than a Domestic Restricted Subsidiary if the Net Book Value of such
Domestic Restricted Subsidiary, when taken together with the aggregate Net Book
Value of all other Domestic Restricted Subsidiaries that are not Guarantors, as
of such date, does not exceed in the aggregate $50.0 million), then such
Domestic Restricted Subsidiary shall: 

	
  

 	
  

 
	
  

 	
           (1)
 within 30 Business Days execute, and deliver to the Trustee, a supplemental
 indenture in form reasonably satisfactory to the Trustee pursuant to which
 such Domestic Restricted Subsidiary shall unconditionally Guarantee all of
 the Issuer’s obligations under the Notes and this Indenture on the terms set
 forth in this Indenture; and 

 
	
  

 	
  

 
	
  

 	
           (2)
 deliver to the Trustee an Opinion of Counsel that such supplemental indenture
 has been duly authorized, executed and delivered by such Domestic Restricted
 Subsidiary and constitutes a legal, valid, binding and enforceable obligation
 of such Domestic Restricted Subsidiary. 

 

                    Thereafter,
such Domestic Restricted Subsidiary shall be a Guarantor for all purposes of
this Indenture. 

                    (b)
In addition, (i) to the extent that the collective Net Book Value of the
Issuer’s non-Guarantor Domestic Restricted Subsidiaries, as of the date of the
organization, acquisition, transfer of assets to or investment in a
non-Guarantor Domestic Restricted Subsidiary, exceeds $50.0 million, then,
within 10 Business Days of such date, the Issuer shall cause one or more of
such non-Guarantor Domestic 

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Restricted
Subsidiaries to similarly execute a supplemental indenture (and deliver the
related Opinions of Counsel) pursuant to which such Domestic Restricted
Subsidiary or Domestic Restricted Subsidiaries shall unconditionally Guarantee
all of the Issuer’s obligations under the Notes and this Indenture, in each
case, such that the collective Net Book Value of all remaining non-Guarantor Domestic
Restricted Subsidiaries does not exceed $50.0 million and (ii) the Issuer may,
at its option, cause any other Subsidiary of the Issuer to Guarantee its
obligations under the Notes and this Indenture and enter into a supplemental
indenture with respect thereto. 

                    (c)
Notwithstanding the foregoing, from and after the Issue Date, the Issuer will
not permit any of its Restricted Subsidiaries, directly or indirectly, by way
of pledge, intercompany note or otherwise, to assume, guarantee or in any other
manner become liable with respect to any Indebtedness (other than the Notes) of
the Issuer or any Domestic Restricted Subsidiary of the Issuer, unless, in any
such case, such Restricted Subsidiary executes and delivers a supplemental indenture
(and the related Opinion of Counsel) to this Indenture providing a Guarantee of
the Notes by such Restricted Subsidiary; provided that no Restricted Subsidiary
shall be required to Guarantee the Notes if and to the extent it is prohibited
by law from Guaranteeing the Notes. The obligations of each Guarantee by a
Restricted Subsidiary will be limited as necessary to prevent the Guarantee
from constituting a fraudulent conveyance or fraudulent transfer under
applicable law.  

	
  

 	
  

 
	
 Section 4.16

 	
 Suspension of
 Covenants. 

 

                    (a)
Following the first day (the “Suspension Date”) that (i) the Notes have an
Investment Grade Rating from both Rating Agencies and (ii) no Default has
occurred and is continuing, the Issuer and its Restricted Subsidiaries will not
be subject to the provisions of this Indenture summarized herein under:
Sections 4.07, 4.08, 4.09, 4.10, 4.11 and 5.01(a)(4) (collectively, the
“Suspended Covenants”).  

                    (b)
In the event that the Issuer and its Restricted Subsidiaries are not subject to
the Suspended Covenants for any period of time as a result of the foregoing,
and on any subsequent date (the “Reversion Date”) one or both of the Rating
Agencies withdraws its Investment Grade Rating or downgrades the rating assigned
to the Notes below an Investment Grade Rating, then the Issuer and its
Restricted Subsidiaries shall thereafter again be subject to the Suspended
Covenants with respect to future events. The period of time between the
Suspension Date and the Reversion Date is referred to herein as the “Suspension
Period.” Notwithstanding that the Suspended Covenants may be reinstated, no
Default shall be deemed to have occurred as a result of a failure to comply
with the Suspended Covenants during the Suspension Period. 

                    (c)
During the Suspension Period, the Issuer and its Restricted Subsidiaries shall
be entitled to incur Liens to the extent provided for under Section 4.12
(including, without limitation, Permitted Liens) and any Permitted Liens which
may refer to one or more Suspended Covenants shall be interpreted as though
such applicable Suspended Covenant(s) continued to be applicable during the
Suspension Period (but solely for purposes of Section 4.12 and for no other
provision of this Indenture). 

                    (d)
After any Reversion Date, (1) with respect to any Restricted Payments made
after such Reversion Date, the amount of any Restricted Payments made shall be
calculated as though the covenant described above under Section 4.07 had been
in effect since the Issue Date and throughout the Suspension Period; and (2)
all Indebtedness incurred, or Disqualified Stock or preferred stock issued,
during the Suspension Period shall be classified to have been incurred or
issued pursuant to Section 

-76-

4.09(b)(3).
Notwithstanding the foregoing, during the Suspension Period the Issuer shall
not designate any of its Restricted Subsidiaries to be Unrestricted
Subsidiaries. 

ARTICLE V

SUCCESSORS

	
  

 	
  

 
	
 Section 5.01

 	
 Merger,
 Consolidation or Sale of All or Substantially All Assets.
 

 

                    (a)
Issuer may not consolidate or merge with or into or wind up into (whether or
not the Issuer is the surviving corporation), or sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties or
assets, in one or more related transactions, to any Person unless: 

	
  

 	
  

 
	
  

 	
           (1)
the Issuer is the surviving corporation or the Person formed by or surviving
any such consolidation or merger (if other than the Issuer) or to which such
sale, assignment, transfer, lease, conveyance or other disposition will have
been made is a corporation, partnership, limited liability company or similar
entity organized or existing under the laws of the jurisdiction of
organization of the United States, any state thereof, the District of
Columbia, or any territory thereof (such Person, as the case may be, being
herein called the “Successor Company”); provided that at any time the Issuer
or the Successor Company is not a corporation, a co-obligor of the Notes is a
corporation organized or existing under such laws;  

 
	
  

 	
  

 
	
  

 	
           (2)
 the Successor Company, if other than the Issuer, expressly assumes all the
 obligations of the Issuer under the Notes pursuant to supplemental indentures
 or other documents or instruments in form reasonably satisfactory to the
 Trustee; 

 
	
  

 	
  

 
	
  

 	
           (3)
 immediately after such transaction, no Default exists; 

 
	
  

 	
  

 
	
  

 	
           (4)
 immediately after giving pro forma
 effect to such transaction and any related financing transactions, as if such
 transactions had occurred at the beginning of the applicable four-quarter
 period, the Successor Company would be permitted to incur at least $1.00 of
 additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set
 forth in Section 4.09(a) hereof; 

 
	
  

 	
  

 
	
  

 	
           (5)
 each Guarantor, unless it is the other party to the transactions described
 above, in which case Section 5.01(c)(1)(B) hereof shall apply, shall have by
 supplemental indenture confirmed that its Guarantee shall apply to such
 Person’s obligations under this Indenture, the Notes and the Registration
 Rights Agreement; and 

 
	
  

 	
  

 
	
  

 	
           (6)
 the Issuer shall have delivered to the Trustee an Officer’s Certificate and
 an Opinion of Counsel, each stating that such consolidation, merger or
 transfer and such supplemental indentures, if any, comply with this
 Indenture. 

 

                    (b)
The Successor Company shall succeed to, and be substituted for the Issuer, as
the case may be, under this Indenture, the Guarantees and the Notes, as
applicable. Notwithstanding clauses (3) and (4) of Section 5.01(a) hereof, 

	
  

 	
  

 
	
  

 	
           (1)
 any Restricted Subsidiary may consolidate with or merge into or transfer all
 or part of its properties and assets to the Issuer, and 

 

-77-

	
  

 	
  

 
	
  

 	
           (2)
 the Issuer may merge with an Affiliate of the Issuer solely for the purpose
 of (x) reincorporating the Issuer in a State of the United States or (y) the
 creation of a holding company of the Issuer so long as the amount of Indebtedness
 of the Issuer and its Restricted Subsidiaries is not increased thereby; 

 
	
  

 	
  

 
	
                     (c)
 No Guarantor shall, and the Issuer shall not permit any Guarantor to,
 consolidate or merge with or into or wind up into (whether or not the Issuer or
 Guarantor is the surviving corporation), or sell, assign, transfer, lease,
 convey or otherwise dispose of all or substantially all of its properties or
 assets, in one or more related transactions, to any Person unless: 

 
	
  

 
	
  

 	
           (1)
(A) such Guarantor is the surviving corporation or the Person formed by or
surviving any such consolidation or merger (if other than such Guarantor) or
to which such sale, assignment, transfer, lease, conveyance or other
disposition will have been made is a corporation, partnership, limited
partnership, limited liability company or trust or similar entity organized
or existing under the laws of the jurisdiction of organization of such
Guarantor, as the case may be, or the laws of the United States, any state
thereof, the District of Columbia, or any territory thereof (such Guarantor
or such Person, as the case may be, being herein called the “Successor
Person”);  

 
	
  

 	
  

 
	
  

 	
           (B)
 the Successor Person, if other than such Guarantor, expressly assumes all the
 obligations of such Guarantor under this Indenture and such Guarantor’s
 related Guarantee pursuant to supplemental indentures or other documents or
 instruments in form reasonably satisfactory to the Trustee; 

 
	
  

 	
  

 
	
  

 	
           (C)
 immediately after such transaction, no Default exists; and 

 
	
  

 	
  

 
	
  

 	
           (D)
 the Issuer shall have delivered to the Trustee an Officer’s Certificate and
 an Opinion of Counsel, each stating that such consolidation, merger or
 transfer and such supplemental indentures, if any, comply with this Indenture;
 or 

 
	
  

 	
  

 
	
  

 	
           (2)
 the transaction is made in compliance with Section 4.10 hereof. 

 

                    (d)
In the case of clause (1) above, the Successor Person shall succeed to, and be
substituted for, such Guarantor under this Indenture and such Guarantor’s
Guarantee. Notwithstanding the foregoing, any Guarantor may merge into or
transfer all or part of its properties and assets to another Guarantor or the
Issuer. 

	
  

 	
  

 
	
 Section 5.02

 	
 Successor
 Corporation Substituted. 

 

                    Upon
any consolidation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the assets of
the Issuer in accordance with Section 5.01 hereof, the successor corporation
formed by such consolidation or into or with which the Issuer is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition
is made shall succeed to, and be substituted for (so that from and after the
date of such consolidation, merger, sale, lease, conveyance or other
disposition, the provisions of this Indenture referring to the Issuer shall
refer instead to the successor corporation and not to the Issuer), and may
exercise every right and power of the Issuer under this Indenture with the same
effect as if such successor Person had been named as the Issuer herein;
provided that the predecessor Issuer shall not be relieved from the obligation
to pay the principal of and 

-78-

interest, if
any, on the Notes except in the case of a sale, assignment, transfer,
conveyance or other disposition of all of the Issuer’s assets that meets the
requirements of Section 5.01 hereof. 

ARTICLE VI

DEFAULTS AND REMEDIES

	
  

 	
  

 
	
 Section 6.01

 	
 Events of
Default.  

 

                    An
“Event of Default” wherever used herein, means any one of the following events: 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 default in payment when due and payable, upon redemption, acceleration or
 otherwise, of principal of, or premium, if any, on the Notes; 

 
	
  

 	
  

 
	
  

 	
           (2)
 default for 30 days or more in the payment when due of interest or Additional
 Interest on or with respect to the Notes; 

 
	
  

 	
  

 
	
  

 	
           (3)
 (a) failure by the Issuer or any Guarantor to comply with its obligations
 under Section 5.01 hereof, (b) failure by the Issuer or any Restricted
 Subsidiary to comply with its obligations under the covenants described under
 Sections 4.10 and 4.14 hereof (in each case other than a failure to purchase
 Notes that will constitute an Event of Default under clause (1) above and
 other than a failure to comply with its obligations that would cause a
 default under clause (a)), or (c) failure by the Issuer or any Restricted
 Subsidiary to comply with any of its obligations, covenants or agreements
 (other than a default referred to in clauses (1), (2) and (a) and (b) above) contained
 in this Indenture or the Notes in the case of clause (b) for 30 days and in
 the case of clause (c) for 60 days, in each such case after receipt of
 written notice given to the Issuer by the Trustee or the Holders of not less
 than 25% in principal amount of the Notes; 

 
	
  

 	
  

 
	
  

 	
           (4)
 default under any mortgage, indenture or instrument under which there is
 issued or by which there is secured or evidenced any Indebtedness for money
 borrowed by the Issuer or any of its Restricted Subsidiaries or the payment
 of which is guaranteed by the Issuer or any of its Restricted Subsidiaries,
 other than Indebtedness owed to the Issuer or a Restricted Subsidiary,
 whether such Indebtedness or guarantee now exists or is created after the
 issuance of the Notes, if both: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (a)
 such default either results from the failure to pay any principal of such
 Indebtedness at its stated final maturity (after giving effect to any
 applicable grace periods) or relates to an obligation other than the
 obligation to pay principal of any such Indebtedness at its stated final
 maturity and results in the holder or holders of such Indebtedness causing
 such Indebtedness to become due prior to its stated maturity; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (b)
 the principal amount of such Indebtedness, together with the principal amount
 of any other such Indebtedness in default for failure to pay principal at
 stated final maturity (after giving effect to any applicable grace periods),
 or the maturity of which has been so accelerated, aggregate $25.0 million or
 more at any one time outstanding; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (5)
 failure by the Issuer or any Significant Subsidiary (or group of Restricted
 Subsidiaries that taken together would constitute a Significant Subsidiary)
 to pay final judgments aggregating in excess of $25.0 million, which final
 judgments remain unpaid, undischarged and un-

 

-79-

	
  

 	
  

 	
  

 
	
  

 	
 stayed for a
 period of more than 60 days after such judgment becomes final, and in the
 event such judgment is covered by insurance, an enforcement proceeding has
 been commenced by any creditor upon such judgment or decree which is not
 promptly stayed; 

 
	
  

 	
  

 
	
  

 	
           (6)
 the Issuer or any Significant Subsidiary or any group of Restricted
 Subsidiaries that, taken together, would constitute a Significant Subsidiary
 (as of the date of the most recent consolidated financial statements of the
 Issuer delivered pursuant to Section 4.03), pursuant to or within the meaning
 of any Bankruptcy Law: 

 
	
  

 	
  

 
	
  

 	
  

 	
           (i)
 commences proceedings to be adjudicated bankrupt or insolvent; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 consents to the institution of bankruptcy or insolvency proceedings against
 it, or the filing by it of a petition or answer or consent seeking
 reorganization or relief under applicable Bankruptcy Law; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 consents to the appointment of a receiver, liquidator, assignee, trustee,
 sequestrator or other similar official of it or for all or substantially all
 of its property; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 makes a general assignment for the benefit of its creditors; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
  

 	
           (i)
 is for relief against the Issuer or any Significant Subsidiary or any group
 of Restricted Subsidiaries that, taken together, would constitute a
 Significant Subsidiary (as of the date of the most recent consolidated
 financial statements of the Issuer delivered pursuant to Section 4.03), in a
 proceeding in which the Issuer, any Significant Subsidiary or any group of
 Restricted Subsidiaries that, taken together, would constitute a Significant
 Subsidiary, is to be adjudicated bankrupt or insolvent; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 appoints a receiver, liquidator, assignee, trustee, sequestrator or other
 similar official of the Issuer or any Significant Subsidiary or any group of
 Restricted Subsidiaries that, taken together, would constitute a Significant
 Subsidiary (as of the date of the most recent consolidated financial
 statements of the Issuer delivered pursuant to Section 4.03), or for all or
 substantially all of the property of the Issuer or any Significant Subsidiary
 or any group of Restricted Subsidiaries that, taken together, would
 constitute a Significant Subsidiary (as of the date of the most recent
 consolidated financial statements of the Issuer); or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 orders the liquidation of the Issuer or any Significant Subsidiary or any
 group of Restricted Subsidiaries that, taken together, would constitute a
 Significant Subsidiary (as of the date of the most recent consolidated
 financial statements of the Issuer delivered pursuant to Section 4.03); 

 
	
  

 	
  

 	
  

 
	
  

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

 

-80-

	
  

 	
  

 
	
  

 	
 (8) the Guarantee of any Significant Subsidiary (or group of
 Guarantors that taken together would constitute a Significant Subsidiary)
 shall for any reason cease to be in full force and effect or be declared null
 and void or any responsible officer of such Guarantor, as the case may be,
 denies that it has any further liability under its Guarantee or gives notice
 to such effect, other than by reason of the termination of this Indenture or
 the release of any such Guarantee in accordance with this Indenture and such
 default continues for 10 Business Days. 

 

	
  

 	
  

 
	
 Section 6.02

 	
 Acceleration.
 

 

                    If
any Event of Default (other than a type specified in clause (6) or (7) of
Section 6.01 hereof with respect to the Issuer) occurs and is continuing under
this Indenture, the Trustee (by written notice to the Issuer) or the Holders of
at least 25% in principal amount of the then total outstanding Notes (by
written notice to the Issuer and the Trustee) may declare the principal,
premium, if any, interest and any other monetary obligations on all the then
outstanding Notes to be due and payable immediately. 

                    Upon
the effectiveness of such declaration, such principal and interest shall be due
and payable immediately. The Trustee shall have no obligation to accelerate the
Notes if and so long as a committee of its Responsible Officers in good faith
determines acceleration is not in the best interest of the Holders of the
Notes. 

                    Notwithstanding
the foregoing, in the case of an Event of Default arising under clause (6) or
(7) of Section 6.01 hereof, all outstanding Notes shall be due and payable
immediately without further action or notice. 

                    The
Holders of a majority in aggregate principal amount of the then outstanding
Notes by written notice to the Trustee may on behalf of all of the Holders
rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Events of Default
(except nonpayment of principal, interest or premium that has become due solely
because of the acceleration) have been cured or waived. 

	
  

 	
  

 
	
 Section 6.03

 	
 Other
 Remedies. 

 

                    If
an Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal, premium, if any, and interest on
the Notes or to enforce the performance of any provision of the Notes or this
Indenture. 

                    The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Holder of a Note in exercising any right or remedy accruing upon
an Event of Default shall not impair the right or remedy or constitute a waiver
of or acquiescence in the Event of Default. All remedies are cumulative to the
extent permitted by law. 

	
  

 	
  

 
	
 Section 6.04

 	
 Waiver of
 Past Defaults. 

 

                    Holders
of not less than a majority in aggregate principal amount of the then
outstanding Notes by notice to the Trustee may on behalf of the Holders of all
of the Notes waive any existing Default and its consequences hereunder, except
a continuing Default in the payment of the principal of, premium, if any, or
interest on, any Note held by a non-consenting Holder (including in connection
with an Asset Sale Offer or a Change of Control Offer) or a continuing Default
in respect of a covenant or provision of 

-81-

this Indenture
which may not be amended or modified without the consent of all Holders;
provided, subject to Section 6.02 hereof, that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration. Upon any such waiver, such Default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.  

	
  

 	
  

 
	
 Section 6.05

 	
 Control by
 Majority. 

 

                    Holders
of a majority in aggregate principal amount of the then total outstanding Notes
may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or of exercising any trust or power conferred
on the Trustee with respect to the Notes. The Trustee, however, may refuse to
follow any direction that conflicts with law or this Indenture or that the
Trustee determines is unduly prejudicial to the rights of any other Holder of a
Note or that would involve the Trustee in personal liability. 

	
  

 	
  

 
	
 Section 6.06

 	
 Limitation
 on Suits. 

 

                    Subject
to Section 6.07 hereof, no Holder of a Note may pursue any remedy with respect
to this Indenture or the Notes unless: 

	
  

 	
  

 
	
  

 	
           (1)
 such Holder has previously given the Trustee written notice that an Event of
 Default is continuing; 

 
	
  

 	
  

 
	
  

 	
           (2)
 Holders of at least 25% in aggregate principal amount of the total outstanding
 Notes have requested in writing that the Trustee pursue the remedy; 

 
	
  

 	
  

 
	
  

 	
           (3)
 Holders of the Notes have offered the Trustee security or indemnity
 satisfactory to it against any loss, liability or expense; 

 
	
  

 	
  

 
	
  

 	
           (4)
 the Trustee has not complied with such request within 60 days after the
 receipt thereof and the offer of security or indemnity; and 

 
	
  

 	
  

 
	
  

 	
           (5)
 Holders of a majority in principal amount of the total outstanding Notes have
 not given the Trustee a written direction inconsistent with such request
 within such 60-day period. 

 

                    A
Holder of a Note may not use this Indenture to prejudice the rights of another
Holder of a Note or to obtain a preference or priority over another Holder of a
Note (it being understood that the Trustee does not have an affirmative duty to
ascertain whether or not such actions or forbearances are unduly prejudicial to
such Holders). 

	
  

 	
  

 
	
 Section 6.07

 	
 Rights of
 Holders of Notes To Receive Payment. 

 

                    Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium, if any, and interest on the Note, on or
after the respective due dates expressed in the Note (including in connection
with an Asset Sale Offer or a Change of Control Offer), or to bring suit for
the enforcement of any such payment on or after such respective dates, shall
not be impaired or affected without the consent of such Holder. 

-82-

	
  

 	
  

 
	
 Section 6.08

 	
 Collection
 Suit by Trustee. 

 

                    If
an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Issuer for the whole amount of
principal of, premium, if any, and interest then due and owing on the Notes and
interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel. 

	
  

 	
  

 
	
 Section 6.09

 	
 Restoration
 of Rights and Remedies.

 

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

	
  

 	
  

 
	
 Section 6.10

 	
 Rights and
 Remedies Cumulative.

 

                    Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in Section 2.07 hereof, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy. 

	
  

 	
  

 
	
 Section 6.11

 	
 Delay or
 Omission Not Waiver.

 

                    No
delay or omission of the Trustee or of any Holder of any Note to exercise any
right or remedy accruing upon any Event of Default shall impair any such right
or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be. 

	
  

 	
  

 
	
 Section 6.12

 	
 Trustee May
 File Proofs of Claim.

 

                    The
Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Issuer
(or any other obligor upon the Notes including the Guarantors), its creditors
or its property and shall be entitled and empowered to participate as a member
in any official committee of creditors appointed in such matter and to collect,
receive and distribute any money or other property payable or deliverable on
any such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the 

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Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.07 hereof out of the
estate in any such proceeding, shall be denied for any reason, payment of the
same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the
Holders may be entitled to receive in such proceeding whether in liquidation or
under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding. 

	
  

 	
  

 
	
 Section 6.13

 	
 Priorities.

 

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

	
  

 	
  

 	
  

 
	
  

 	
           (i)
 to the Trustee, its agents and attorneys for amounts due under Section 7.07
 hereof, including payment of all compensation, expenses and liabilities
 incurred, and all advances made, by the Trustee and the costs and expenses of
 collection; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii)
 to Holders of Notes for amounts due and unpaid on the Notes for principal,
 premium, if any, and interest, ratably, without preference or priority of any
 kind, according to the amounts due and payable on the Notes for principal,
 premium, if any, and interest, respectively; and 

 
	
  

 	
  

 	
  

 
	
  

 	
           (iii)
 to the Issuer or to such party as a court of competent jurisdiction shall
 direct including a Guarantor, if applicable. 

 

                    The
Trustee may fix a record date and payment date for any payment to Holders of
Notes pursuant to this Section 6.13. 

	
  

 	
  

 
	
 Section 6.14

 	
 Undertaking
 for Costs. 

 

                    In
any suit for the enforcement of any right or remedy under this Indenture or in
any suit against the Trustee for any action taken or omitted by it as a
Trustee, a court in its discretion may require the filing by any party litigant
in the suit of an undertaking to pay the costs of the suit, and the court in
its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.14 does not apply to a suit by the Trustee, a suit by the
Company, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a
suit by Holders of more than 10% in principal amount of the then outstanding
Notes. 

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ARTICLE VII

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 its exercise, as a prudent Person would exercise
or use under the circumstances in the conduct of such Person’s own affairs. 

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

	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
           (ii)
 in the absence of bad faith on its part, the Trustee may conclusively rely,
 as to the truth of the statements and the correctness of the opinions
 expressed therein, upon certificates or opinions furnished to the Trustee and
 conforming to the requirements of this Indenture. However, in the case of any
 such certificates or opinions which by any provision hereof are specifically
 required to be furnished to the Trustee, the Trustee shall examine the
 certificates and opinions to determine whether or not they conform to the
 requirements of this Indenture, but need not confirm or investigate the
 accuracy of mathematical calculations or other facts stated therein. 

 
	
  

 	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

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

 

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

                    (e)
The Trustee shall be under no obligation to exercise any of its rights or
powers under this Indenture at the request or direction of any Holder of the
Notes unless such Holder has offered to the Trustee indemnity or security
satisfactory to it against any loss, liability or expense. 

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

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 Section 7.02

 	
 Rights of
 Trustee. 

 

                    (a)
The Trustee may conclusively rely upon and shall be fully protected in acting
or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order or
other paper or document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document, but the Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see
fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Issuer, personally or by agent or attorney at the sole cost of the
Issuer and shall incur no liability or additional liability of any kind by
reason of such inquiry or investigation. 

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

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

                    (d)
The Trustee shall not be liable for any action it takes or omits to take in
good faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture. 

                    (e)
Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuer shall be sufficient if signed by an Officer
of the Issuer. 

                    (f)
None of the provisions of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise to incur any liability, financial or otherwise,
in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or indemnity satisfactory to it against such risk or
liability is not assured to it. 

                    (g)
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 notice of any event which is in fact such a Default
is received by the Trustee at the Corporate Trust Office, and such notice
references the Notes and this Indenture. 

                    (h)
In no event shall the Trustee be responsible or liable for special, indirect,
punitive 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. 

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

-86-

                    (j)
The permissive rights of the Trustee enumerated herein shall not be construed
as duties. 

                    (k)
The Trustee may request that the Issuer delivers an Officer’s Certificate
setting forth the names of individuals and/or titles of officers authorized at
such time to take specified actions pursuant to this Indenture. 

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

	
  

 	
  

 
	
 Section 7.03

 	
 Individual
 Rights of Trustee. 

 

                    The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or any Affiliate of the Issuer
with the same rights it would have if it were not Trustee. However, in the event
that the Trustee acquires any conflicting interest it must eliminate such
conflict within 90 days, apply to the SEC for permission to continue as trustee
or resign. Any Agent may do the same with like rights and duties. The Trustee
is also 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 Notes, it shall not be
accountable for the Issuer’s use of the proceeds from the Notes or any money
paid to the Issuer or upon the Issuer’s direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the Notes
or any other document in connection with the sale of the Notes or pursuant to
this Indenture other than its 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 Holders of Notes a notice of the Default within 90 days
after it occurs. Except in the case of a Default relating to the payment of
principal, premium, if any, or interest on any Note, the Trustee may withhold
from the Holders notice of any continuing Default if and so long as it in good
faith determines that withholding the notice is in the interests of the Holders
of the Notes. The Trustee shall not be deemed to know of any Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any event which is such a Default is received by the Trustee
at the Corporate Trust Office. 

	
  

 	
  

 
	
 Section 7.06

 	
 Reports by
 Trustee to Holders of the Notes. 

 

                    Within
60 days after each March 15, beginning with March 15, 2012, and for so long as
Notes remain outstanding, the Trustee shall mail to the Holders of the Notes a
brief report dated as of such reporting date that complies with Trust Indenture
Act Section 313(a) (but if no event described in Trust Indenture Act Section
313(a) has occurred within the twelve months preceding the reporting date, no
report need be transmitted). The Trustee also shall comply with Trust Indenture
Act Section 313(b)(2). The Trustee shall also transmit by mail all reports as
required by Trust Indenture Act Section 313(c). 

-87-

                    A
copy of each report at the time of its mailing to the Holders of Notes shall be
mailed to the Issuer and filed with the SEC and each stock exchange on which
the Notes are listed in accordance with Trust Indenture Act Section 313(d). The
Issuer shall promptly notify the Trustee in writing when the Notes are listed
on any stock exchange or delisted therefrom. 

	
  

 	
  

 
	
 Section 7.07

 	
 Compensation
 and Indemnity. 

 

                    The
Issuer and the Guarantors, jointly and severally, shall pay to the Trustee from
time to time such compensation for its acceptance of this Indenture and
services hereunder as the parties shall agree in writing from time to time. The
Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Issuer and the Guarantors, jointly and
severally, shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel. 

                    The
Issuer and the Guarantors, jointly and severally, shall indemnify the Trustee
for, and hold the Trustee harmless against, any and all loss, damage, claims,
liability or expense (including attorneys’ fees) incurred by it in connection
with the acceptance or administration of this trust and the performance of its
duties hereunder (including the costs and expenses of enforcing this Indenture
against any Issuer or any of the Guarantors (including this Section 7.07) or
defending itself against any claim whether asserted by any Holder, any Issuer
or any Guarantor, or liability in connection with the acceptance, exercise or
performance of any of its powers or duties hereunder). The Trustee shall notify
the Issuer promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify the Issuer shall not relieve the Issuer of its
obligations hereunder except to the extent actually prejudiced thereby. The Issuer
shall defend the claim, and the Trustee shall cooperate in the defense of such
claim. The Trustee may have separate counsel if the Trustee shall have been
advised by counsel that there may be one or more legal defenses available to it
that are different from or additional to those available to the Issuer and in
the reasonable judgment of such counsel it is advisable for the Trustee to
engage separate counsel, and the Issuer shall pay the reasonable and documented
fees and expenses of any one such separate counsel (as well as such fees and
expenses of one firm of local counsel in each jurisdiction in which the primary
counsel is not admitted to practice and where local counsel is necessary or
advisable). The Issuer need not pay for any settlement made without its
consent, which consent shall not be unreasonably withheld. The Issuer need not
reimburse any expense or indemnify against any loss, liability or expense
incurred as determined in a final judgment by a court of competent
jurisdiction, by the Trustee through the Trustee’s own willful misconduct,
negligence or bad faith. 

                    The
obligations of the Issuer under this Section 7.07 shall survive the
satisfaction and discharge of this Indenture or the earlier resignation or
removal of the Trustee. 

                    To
secure the payment obligations of the Issuer and the Guarantors in this Section
7.07, the Trustee shall have a Lien prior to the Notes on all money or property
held or collected by the Trustee, except that held in trust to pay principal
and interest on particular Notes. Such Lien shall survive 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 (including the fees and expenses of its agents
and counsel) are intended to constitute expenses of administration under any
Bankruptcy Law. 

-88-

                    The
Trustee shall comply with the provisions of Trust Indenture Act Section
313(b)(2) to the extent applicable. 

	
  

 	
  

 
	
 Section 7.08

 	
 Replacement
 of Trustee. 

 

                    A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section 7.08. The Trustee may resign in writing
at any time and be discharged from the trust hereby created by so notifying the
Issuer. The Holders of a majority in principal amount of the then outstanding
Notes may remove the Trustee by so notifying the Trustee and the Issuer in
writing not less than 30 days prior to the effective date of such removal. The
Issuer may remove the Trustee if: 

	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
 entered with respect to the Trustee under any Bankruptcy Law; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 a custodian or public officer takes charge of the Trustee or its property; or
 

 
	
  

 	
  

 	
  

 
	
  

 	
           (d)
 the Trustee becomes incapable of acting. 

 

                    If
the Trustee resigns or is removed or if a vacancy exists in the office of
Trustee for any reason, the Issuer shall promptly appoint a successor Trustee.
Within one year after the successor Trustee takes office, the Holders of a
majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuer. 

                    If
a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee (at the Issuer’s expense),
the Issuer or the Holders of at least 10% in principal amount of the then
outstanding Notes may, at the expense of the Issuer, petition any court of
competent jurisdiction for the appointment of a successor Trustee. 

                    If
the Trustee, after written request by any Holder who has been a Holder for at
least six months, fails to comply with Section 7.10 hereof, such Holder 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 Issuer. Thereupon, the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Holders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee; provided all sums owing to the Trustee hereunder have
been paid and subject to the Lien provided for in Section 7.07 hereof.
Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the
Issuer’s obligations under Section 7.07 hereof shall continue for the benefit
of the retiring Trustee. 

	
  

 	
  

 
	
 Section 7.09

 	
 Successor
 Trustee by Merger, etc. 

 

                    If
the Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee. 

-89-

	
  

 	
  

 
	
 Section 7.10

 	
 Eligibility;
 Disqualification. 

 

                    There
shall at all times be a Trustee hereunder that is a corporation organized and
doing business under the laws of the United States of America or of any state
thereof that is authorized under such laws to exercise corporate trustee power,
that is subject to supervision or examination by federal or state authorities
and that has a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition. 

                    This
Indenture shall always have a Trustee who satisfies the requirements of Trust
Indenture Act Sections 310(a)(1), (2) and (5). The Trustee is subject to Trust
Indenture Act Section 310(b). 

	
  

 	
  

 
	
 Section 7.11

 	
 Preferential
 Collection of Claims Against Issuer. 

 

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

ARTICLE VIII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	
  

 	
  

 
	
 Section 8.01

 	
 Option To
 Effect Legal Defeasance or Covenant Defeasance. 

 

                    The
Issuer may, at its option and at any time, elect to have either Section 8.02 or
8.03 hereof applied to all outstanding Notes upon compliance with the
conditions set forth below in this Article 8. 

	
  

 	
  

 
	
 Section 8.02

 	
 Legal
 Defeasance and Discharge. 

 

                    Upon
the Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.02, the Issuers and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to
have been discharged from their obligations with respect to all outstanding
Notes and Guarantees on the date the conditions set forth below are satisfied
(“Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuer
shall be deemed to have paid and discharged the entire Indebtedness represented
by the outstanding Notes, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture including that of the
Guarantors (and the Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging the same) and cure all then
existing Events of Default, except for the following provisions which shall
survive until otherwise terminated or discharged hereunder:  

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 the rights of Holders of Notes to receive payments in respect of the
 principal of, premium, if any, and interest on the Notes when such payments
 are due solely out of the trust created pursuant to this Indenture referred
 to in Section 8.04 hereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 the Issuer’s obligations with respect to Notes concerning issuing temporary
 Notes, registration of such Notes, mutilated, destroyed, lost or stolen Notes
 and the maintenance of an office or agency for payment and money for security
 payments held in trust; 

 

-90-

	
  

 	
  

 	
  

 
	
  

 	
           (c)
 the rights, powers, trusts, duties and immunities of the Trustee, and the
 Issuer’s obligations in connection therewith; and 

 
	
  

 	
  

 	
  

 
	
  

 	
           (d)
 this Section 8.02. 

 

          Subject
to compliance with this Article 8, the Issuer may exercise its option under
this Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof. 

	
  

 	
  

 
	
 Section 8.03

 	
 Covenant
 Defeasance. 

 

                    Upon
the Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03, the Issuer and the Guarantors shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released
from their obligations under the covenants contained in Sections 4.03, 4.04,
4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.14 and 4.15 hereof and the
operation of Section 5.01 with respect to the outstanding Notes on and after
the date the conditions set forth in Section 8.04 hereof are satisfied
(“Covenant Defeasance”), and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that,
with respect to the outstanding Notes, the Issuer may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference
in any such covenant to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default
under Section 6.01 hereof, but, except as specified above, the remainder of
this Indenture and such Notes shall be unaffected thereby. In addition, upon
the Issuer’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03 hereof, subject to the satisfaction of the conditions set
forth in Section 8.04 hereof, Sections 6.01(3), 6.01(4), 6.01(5), 6.01(6)
(solely with respect to Restricted Subsidiaries that are Significant
Subsidiaries), 6.01(7) (solely with respect to Restricted Subsidiaries that are
Significant Subsidiaries) and 6.01(8) hereof shall not constitute Events of
Default.  

	
  

 	
  

 
	
 Section 8.04

 	
 Conditions
 to Legal or Covenant Defeasance. 

 

                    The
following shall be the conditions to the application of either Section 8.02 or
8.03 hereof to the outstanding Notes: 

                    In
order to exercise either Legal Defeasance or Covenant Defeasance with respect
to the Notes: 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 the Issuer must irrevocably deposit with the Trustee, in trust, for the
 benefit of the Holders of the Notes, cash in U.S. dollars, Government
 Securities, or a combination thereof, in such amounts as will be sufficient,
 in the opinion of a nationally recognized firm of independent public
 accountants, to pay the principal of, premium, if any, and interest due on
 the Notes on the stated maturity date or on the redemption date, as the case
 may be, of such principal, premium, if any, or interest on such Notes and the
 Issuer must specify whether such Notes are being defeased to maturity or to a
 particular redemption date; 

 

-91-

	
  

 	
  

 	
  

 
	
  

 	
           (2)
 in the case of Legal Defeasance, the Issuer shall have delivered to the
 Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
 that, subject to customary assumptions and exclusions, 

 
	
  

 	
  

 	
  

 
	
  

 	
                     (a)
 the Issuer has received from, or there has been published by, the United
 States Internal Revenue Service a ruling, or 

 
	
  

 	
  

 	
  

 
	
  

 	
                     (b)
 since the issuance of the Notes, there has been a change in the applicable
 U.S. federal income tax law, 

 
	
  

 	
  

 
	
  

 	
 in either
 case to the effect that, and based thereon such Opinion of Counsel shall
 confirm that, subject to customary assumptions and exclusions, the Holders of
 the Notes will not recognize income, gain or loss for U.S. federal income tax
 purposes, as applicable, as a result of such Legal Defeasance and will be
 subject to U.S. federal income tax on the same amounts, in the same manner
 and at the same times as would have been the case if such Legal Defeasance
 had not occurred;

 
	
  

 	
  

 
	
  

 	
           (3)
 in the case of Covenant Defeasance, the Issuer shall have delivered to the
 Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming
 that, subject to customary assumptions and exclusions, the Holders of the
 Notes will not recognize income, gain or loss for U.S. federal income tax
 purposes as a result of such Covenant Defeasance and will be subject to such
 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;

 
	
  

 	
  

 
	
  

 	
           (4)
 no Default (other than that resulting from borrowing funds to be applied to
 make such deposit and the granting of Liens in connection therewith) shall
 have occurred and be continuing on the date of such deposit;

 
	
  

 	
  

 
	
  

 	
           (5)
 such Legal Defeasance or Covenant Defeasance shall not result in a breach or
 violation of, or constitute a default under any Credit Facility, the
 Convertible Subordinated Notes or the indenture pursuant to which the
 Convertible Subordinated Notes were issued or any other material agreement or
 instrument (other than this Indenture) to which the Issuer or any Guarantor
 is a party or by which the Issuer or any Guarantor is bound;

 
	
  

 	
  

 
	
  

 	
           (6)
 the Issuer shall have delivered to the Trustee an Opinion of Counsel to the
 effect that, as of the date of such opinion and subject to customary
 assumptions and exclusions following the deposit, the trust funds will not be
 subject to the effect of Section 547 of Title 11 of the United States Code;

 
	
  

 	
  

 
	
  

 	
           (7)
 the Issuer shall have delivered to the Trustee an Officer’s Certificate
 stating that the deposit was not made by the Issuer with the intent of
 defeating, hindering, delaying or defrauding any creditors of the Issuer or
 any Guarantor or others; and

 
	
  

 	
  

 
	
  

 	
           (8)
 the Issuer shall have delivered to the Trustee an Officer’s Certificate and
 an Opinion of Counsel (which Opinion of Counsel may be subject to customary
 assumptions and exclusions) each stating that all conditions precedent
 provided for or relating to the Legal Defeasance or the Covenant Defeasance,
 as the case may be, have been complied with.

 

-92-

	
  

 	
  

 
	
 Section 8.05

 	
 Deposited
 Money and Government Securities To Be Held in Trust; Other Miscellaneous
 Provisions. 

 

                    Subject
to Section 8.06 hereof, all money and Government Securities (including the
proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to
Section 8.04 hereof in respect of the outstanding Notes shall be held in trust
and applied by the Trustee, in accordance with the provisions of such Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Issuer or a Guarantor acting as Paying Agent) as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.  

                    The
Issuer shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the cash or Government Securities deposited
pursuant to Section 8.04 hereof or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Notes. 

                    Anything
in this Article VIII to the contrary notwithstanding, the Trustee shall deliver
or pay to the Issuer from time to time upon the request of the Issuer any money
or Government Securities held by it as provided in Section 8.04 hereof which,
in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.04 hereof), are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance. 

	
  

 	
  

 
	
 Section 8.06

 	
 Repayment to
 Issuer. 

 

                    The
Trustee shall promptly, upon the written request of the Issuer, and in any
event no later than five Business Days after such request, pay to the Issuer
after request therefore, any excess money held with respect to the Notes at
such time in excess of amounts required to pay any of the Issuer’s Obligations
then owing with respect to the Notes. 

                    Any
money deposited with the Trustee or any Paying Agent, or then held by the
Issuer, in trust for the payment of the principal of, premium, if any, or
interest on any Note and remaining unclaimed for one year after such principal
and premium, if any, or interest has become due and payable shall be paid to
the Issuer on its request or (if then held by the Issuer) shall be discharged
from such trust; and the Holder of such Note shall thereafter look only to the
Issuer for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Issuer as
trustee thereof, shall thereupon cease. 

	
  

 	
  

 
	
 Section 8.07

 	
 Reinstatement.
 

 

                    If
the Trustee or Paying Agent is unable to apply any United States dollars or
Government Securities in accordance with Section 8.02 or 8.03 hereof, as the
case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Issuer’s obligations under this Indenture and the Notes shall be revived
and reinstated as though no deposit had occurred pursuant to Section 8.02 or
8.03 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.02 or 8.03 hereof, as the
case may be; provided that, if the Issuer makes any payment of principal of,
premium, if any, or interest on any Note following the reinstatement of its
obligations, the Issuer shall be subrogated  

-93-

to the rights
of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent. 

ARTICLE IX

AMENDMENT, SUPPLEMENT AND WAIVER

	
  

 	
  

 
	
 Section 9.01

 	
 Without
 Consent of Holders of Notes. 

 

                    Notwithstanding
Section 9.02 hereof, the Issuer, any Guarantor (with respect to a Guarantee or
this Indenture) and the Trustee may amend or supplement this Indenture and any
Guarantee or Notes without the consent of any Holder: 

	
  

 	
  

 	
  

 
	
  

 	
           (1)
 to cure any ambiguity, omission, mistake, defect or inconsistency; 

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
           (3)
 to comply with Section 5.01 hereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (4)
 to provide for the assumption of the Issuer’s or any Guarantor’s obligations
 to the Holders; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (5)
 to make any change that would provide any additional rights or benefits to
 the Holders or that does not adversely affect the rights under this Indenture
 of any such Holder; 

 
	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
           (7)
 to comply with requirements of the SEC in order to effect or maintain the
 qualification of this Indenture under the Trust Indenture Act; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (8)
 to evidence and provide for the acceptance and appointment under this
 Indenture of a successor Trustee thereunder pursuant to the requirements
 thereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (9)
 to provide for the issuance of Exchange Notes; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (10)
 to add a Guarantor or release any Guarantor from its Guarantee if such
 release is in accordance with the terms under this Indenture; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (11)
 to conform the text of this Indenture, Guarantees or the Notes to any
 provision of the “Description of Notes” section of the Offering Memorandum to
 the extent that such provision in such “Description of Notes” section was
 intended to be a verbatim recitation of a provision of this Indenture,
 Guarantee or Notes, as provided in an Officer’s Certificate; or 

 
	
  

 	
  

 	
  

 
	
  

 	
           (12)
to make any amendment to the provisions of this Indenture relating to the
transfer and legending of Notes as permitted by this Indenture, including,
without limitation, to facilitate the issuance and administration of the
Notes; provided, however, that (i) compliance with this Indenture as so
amended would not result in Notes being transferred in violation of the
Securities

 

-94-

	
  

 	
  

 	
  

 
	
  

 	
 Act or any
 applicable securities law and (ii) such amendment does not materially and
 adversely affect the rights of Holders to transfer Notes.

 

                    Upon
the request of the Issuer accompanied by a resolution of the Issuer’s board of
directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in
Section 7.02, the Trustee shall join with the Issuer and the Guarantors in the
execution of any amended or supplemental indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.
Notwithstanding the foregoing, no Opinion of Counsel shall be required in
connection with the addition of a Guarantor under this Indenture upon (i)
execution and delivery by such Guarantor and the Trustee of a supplemental
indenture to this Indenture, the form of which is attached as Exhibit D hereto,
and (ii) delivery of an Officer’s Certificate. 

	
  

 	
  

 
	
 Section 9.02

 	
 With Consent
 of Holders of Notes. 

 

                    Except
as provided below in this Section 9.02, the Issuer and the Trustee may amend or
supplement this Indenture, the Notes and the Guarantees with the consent of the
Holders of at least a majority in principal amount of the Notes then
outstanding voting as a single class (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing
Default or Event of Default (other than a Default or Event of Default in the
payment of the principal of, premium or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture, the Guarantees or the Notes may be waived
with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes). Section 2.08 hereof and Section 2.09 hereof shall determine which Notes
are considered to be “outstanding” for the purposes of this Section 9.02. 

                    Upon
the request of the Issuer accompanied by a resolution of the Issuer’s board of
directors authorizing the execution of any such amended or supplemental
indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt
by the Trustee of the documents described in Section 9.06 hereof, the Trustee
shall join with the Issuer in the execution of such amended or supplemental
indenture unless such amended or supplemental indenture directly affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but shall not be obligated to,
enter into such amended or supplemental indenture. 

                    The
consent of the Holders is not necessary under this Indenture to approve the
particular form of any proposed amendment. It is sufficient if such consent
approves the substance of the proposed amendment. 

                    After
an amendment, supplement or waiver under this Section 9.02 becomes effective,
the Issuer shall mail to the Holders of Notes affected thereby a notice briefly
describing the amendment, supplement or waiver. Any failure of the Issuer to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such amended or supplemental indenture or waiver.

-95-

                    Without
the consent of each affected Holder of Notes, an amendment or waiver under this
Section 9.02 may not (with respect to any Notes held by a non-consenting
Holder): 

	
  

 	
  

 	
  

 
	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
           (2)
 reduce the principal of or change the fixed final maturity of any such Note
 or alter or waive the provisions with respect to the redemption of such Notes
 (other than provisions relating to Section 3.09, Section 4.10 and Section
 4.14); 

 
	
  

 	
  

 	
  

 
	
  

 	
           (3)
 reduce the rate of or change the time for payment of interest on any Note; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (4)
 waive a Default in the payment of principal of or premium, if any, or
 interest on the Notes, except a rescission of acceleration of the Notes by the
 Holders of at least a majority in aggregate principal amount of the Notes and
 a waiver of the payment default that resulted from such acceleration; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (5)
 make any Note payable in currency other than that stated therein; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (6)
 make any change in the provisions of this Indenture relating to the rights of
 Holders to receive payments of principal of or premium, if any, or interest
 on the Notes; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (7)
 make any change to this paragraph of Section 9.02; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (8)
 impair the right of any Holder to receive payment of principal of, or
 interest on such Holder’s Notes on or after the due dates therefor or to
 institute suit for the enforcement of any payment on or with respect to such
 Holder’s Notes; 

 
	
  

 	
  

 	
  

 
	
  

 	
           (9)
 make any change to or modify the ranking of the Notes that would adversely
 affect the Holders; or 

 
	
  

 	
  

 	
  

 
	
  

 	
           (10)
 except as expressly permitted by this Indenture, modify the Guarantee of any
 Significant Subsidiary in any manner adverse to the Holders of the Notes. 

 

	
  

 	
  

 
	
 Section 9.03

 	
 Compliance
 with Trust Indenture Act. 

 

                    Every
amendment or supplement to this Indenture or the Notes shall be set forth in an
amended or supplemental indenture that complies with the Trust Indenture Act as
then in effect. 

	
  

 	
  

 
	
 Section 9.04

 	
 Revocation
 and Effect of Consents. 

 

                    Until
an amendment, supplement or waiver becomes effective, a consent to it by a
Holder of a Note is a continuing consent by the Holder of a Note and every
subsequent Holder of a Note or portion of a Note that evidences the same debt
as the consenting Holder’s Note, even if notation of the consent is not made on
any Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder. 

-96-

                    The
Issuer 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 120 days after
such record date unless the consent of the requisite number of Holders has been
obtained. 

	
  

 	
  

 
	
 Section 9.05

 	
 Notation on
 or Exchange of Notes. 

 

                    The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. The Issuer in exchange for all
Notes may issue and the Trustee shall, upon receipt of an Authentication Order,
authenticate new Notes that reflect the amendment, supplement or waiver. 

                    Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver. 

	
  

 	
  

 
	
 Section 9.06

 	
 Trustee To
 Sign Amendments, etc. 

 

                    The
Trustee shall sign any amendment, supplement or waiver authorized pursuant to
this Article 9 if the amendment, supplement or waiver does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Issuer may
not sign an amendment, supplement or waiver until its board of directors
approves it. In executing any amendment, supplement or waiver, the Trustee
shall be provided with and (subject to Section 7.01 hereof) shall be fully
protected in conclusively relying upon, in addition to the documents required
by Section 12.04 hereof, an Officer’s Certificate and an Opinion of Counsel,
each stating that the execution of such amended or supplemental indenture is authorized
or permitted by this Indenture and that such amendment, supplement or waiver is
the legal, valid and binding obligation of the Issuer and any Guarantors party
thereto, enforceable against them in accordance with its terms, subject to
customary exceptions, and complies with the provisions hereof (including
Section 9.03). Notwithstanding the foregoing, no Opinion of Counsel will be
required for the Trustee to execute any amendment or supplement adding a new
Guarantor under this Indenture. 

	
  

 	
  

 
	
 Section 9.07

 	
 Payment for
 Consent. 

 

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

-97-

ARTICLE X

GUARANTEES 

	
  

 	
  

 
	
 Section
 10.01

 	
 Guarantee.

 

                    Subject
to this Article 10, from and after the consummation of the Transaction, each of
the Guarantors hereby, jointly and severally, fully and unconditionally
guarantees to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Indenture, the Notes or the obligations of the
Issuer hereunder or thereunder, that: (a) the principal of, interest, premium,
if any, on the Notes, subject to any applicable grace period, shall be promptly
paid in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes,
if any, if lawful, and all other Obligations of the Issuer to the Holders or
the Trustee hereunder or thereunder shall be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same shall be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration or otherwise. Failing payment by the Issuer
when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors shall be jointly and severally obligated to pay
the same immediately. Each Guarantor agrees that this is a guarantee of payment
and not a guarantee of collection. 

                    The
Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes with respect to any provisions
hereof or thereof, the recovery of any judgment against the Issuer, any action
to enforce the same or any other circumstance which might otherwise constitute
a legal or equitable discharge or defense of a guarantor (other than payment in
full of all of the Obligations of the Issuer hereunder and under the Notes).
Each Guarantor hereby waives diligence, presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of the Issuer,
any right to require a proceeding first against the Issuer, protest, notice and
all demands whatsoever and covenants that this Guarantee shall not be
discharged except by complete performance of the obligations contained in the
Notes and this Indenture or by release in accordance with the provisions of
this Indenture. 

                    Each
Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ and agents’ fees and expenses) incurred by the Trustee or
any Holder in enforcing any rights under this Section 10.01. 

                    If
any Holder or the Trustee is required by any court or otherwise to return to
the Issuer, the Guarantors or any custodian, trustee, liquidator or other
similar official acting in relation to either the Issuer or the Guarantors, any
amount paid either to the Trustee or such Holder, this Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect. 

                    Each
Guarantor agrees that it shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby. Each Guarantor further
agrees that, as between the Guarantors, on the one hand, and the Holders and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 hereof for the purposes of
this Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed 

-98-

hereby, and
(y) in the event of any declaration of acceleration of such obligations as
provided in Article 6 hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of
this Guarantee. The Guarantors shall have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair
the rights of the Holders under the Guarantees. 

                    Each
Guarantee shall remain in full force and effect and continue to be effective
should any petition be filed by or against the Issuer for liquidation, reorganization,
should the Issuer become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of the Issuer’s assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Notes are, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned by any obligee on the Notes or Guarantees, whether as a “voidable
preference,” “fraudulent transfer” or otherwise, all as though such payment or
performance had not been made. In the event that any payment or any part
thereof, is rescinded, reduced, restored or returned, the Notes shall, to the fullest
extent permitted by law, be reinstated and deemed reduced only by such amount
paid and not so rescinded, reduced, restored or returned. 

                    In
case any provision of any Guarantee 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. 

                    The
Guarantee issued by any Guarantor shall be a general unsecured obligation of
such Guarantor and shall rank equally in right of payment to all existing and
future Senior Indebtedness of such Guarantor, if any. 

                    Each
payment to be made by a Guarantor in respect of its Guarantee shall be made
without set-off, counterclaim, reduction or diminution of any kind or nature. 

	
  

 	
  

 
	
 Section
 10.02

 	
 Limitation
 on Guarantor Liability. 

 

                    Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Guarantee of such Guarantor not constitute
a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law to the extent applicable to any Guarantee. To effectuate
the foregoing intention, the Trustee, the Holders and the Guarantors hereby
irrevocably agree that the obligations of each Guarantor shall be limited to
the maximum amount as will, after giving effect to such maximum amount and all
other contingent and fixed liabilities of such Guarantor that are relevant
under such laws and after giving effect to any collections from, rights to
receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this
Article 10, result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under applicable
law. Each Guarantor that makes a payment under its Guarantee shall be entitled
upon payment in full of all guaranteed obligations under this Indenture to a
contribution from each other Guarantor in an amount equal to such other
Guarantor’s pro rata portion of
such payment based on the respective net assets of all the Guarantors at the
time of such payment determined in accordance with GAAP. 

-99-

	
  

 	
  

 
	
 Section
 10.03

 	
 Execution
 and Delivery. 

 

                    To
evidence its Guarantee set forth in Section 10.01 hereof, each Guarantor hereby
agrees that this Indenture shall be executed on behalf of such Guarantor by an
authorized officer. 

                    Each
Guarantor hereby agrees that its Guarantee set forth in Section 10.01 hereof
shall remain in full force and effect notwithstanding the absence of the
endorsement of any notation of such Guarantee on the Notes. 

                    If
an officer of a Guarantor whose signature is on this Indenture no longer holds
that office at the time the Trustee authenticates the Note, the Guarantee of
such Guarantor shall be valid nevertheless. 

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

                    If
required by Section 4.15 hereof, the Issuer shall cause any newly created or
acquired Restricted Subsidiary to comply with the provisions of Section 4.15
hereof and this Article 10, to the extent applicable. 

	
  

 	
  

 
	
 Section
 10.04

 	
 Subrogation.
 

 

                    Each
Guarantor shall be subrogated to all rights of Holders of Notes against the
Issuer in respect of any amounts paid by any Guarantor pursuant to the
provisions of Section 10.01 hereof; provided that, if an Event of Default has
occurred and is continuing, no Guarantor shall be entitled to enforce or
receive any payments arising out of, or based upon, such right of subrogation
until all amounts then due and payable by the Issuer under this Indenture or
the Notes shall have been paid in full. 

	
  

 	
  

 
	
 Section
 10.05

 	
 Benefits
 Acknowledged. 

 

                    Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the
guarantee and waivers made by it pursuant to its Guarantee are knowingly made in
contemplation of such benefits. 

	
  

 	
  

 
	
 Section
 10.06

 	
 Release of
 Guarantees. 

 

                    A
Guarantee by a Guarantor shall be automatically and unconditionally released
and discharged, and no further action by such Guarantor, the Issuer or the Trustee
is required for the release of such Guarantor’s Guarantee, upon: 

	
  

 	
  

 
	
  

 	
 (1)          (A)
any sale, exchange or transfer (by merger or otherwise) of (i) the Capital
Stock of such Guarantor, after which the applicable Guarantor is no longer a
Restricted Subsidiary or (ii) all or substantially all the assets of such
Guarantor, in each case, provided that
such sale, exchange or transfer of Capital Stock or assets is made in
compliance with the applicable provisions of this Indenture;  

 
	
  

 	
  

 
	
  

 	
                (B) if
 applicable, the release or discharge of the Indebtedness that pursuant to
 Section 4.15(c) resulted in the creation of such Guarantee; 

 

-100-

	
  

 	
  

 
	
  

 	
                (C)
 the proper designation of any Restricted Subsidiary that is a Guarantor as an
 Unrestricted Subsidiary in compliance with the applicable provisions of this
 Indenture; or 

 
	
  

 	
  

 
	
  

 	
                (D)
 the Issuer exercising their Legal Defeasance option or Covenant Defeasance
 option in accordance with Article 8 hereof or the Issuer’s obligations under
 this Indenture being discharged in accordance with the terms of this
 Indenture; and 

 

	
  

 	
  

 
	
  

 	
  

 
	
  

 	
                (2)
 the Issuer delivering to the Trustee an Officer’s Certificate and an Opinion
 of Counsel, each stating that all conditions precedent provided for in this
 Indenture relating to such transaction have been complied with. 

 

ARTICLE XI

SATISFACTION AND DISCHARGE

	
  

 	
  

 
	
 Section
 11.01

 	
 Satisfaction
 and Discharge. 

 

                    This
Indenture will be discharged and will cease to be of further effect as to all
Notes, when either: 

	
  

 	
  

 
	
  

 	
           (1)
 all Notes theretofore authenticated and delivered, except lost, stolen or
 destroyed Notes which have been replaced or paid and Notes for whose payment
 money has theretofore been deposited in trust, have been delivered to the
 Trustee for cancellation; or 

 
	
  

 	
  

 
	
  

 	
           (2)
 (A) all Notes not theretofore delivered to the Trustee for cancellation have
 become due and payable by reason of the making of a notice of redemption or
 otherwise, will become due and payable within one year or are to be called
 for redemption and redeemed 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 Issuer and the Issuer or any Guarantor have
 irrevocably deposited or caused to be deposited with the Trustee as trust
 funds in trust solely for the benefit of the Holders of the Notes, cash in
 U.S. dollars, Government Securities, or a combination thereof, in such
 amounts as will be sufficient without consideration of any reinvestment of
 interest to pay and discharge the entire indebtedness on the Notes not
 theretofore delivered to the Trustee for cancellation for principal, premium,
 if any, and accrued interest to the date of maturity or redemption, as the
 case may be; 

 
	
  

 	
  

 
	
  

 	
           (B)
 the Issuer has paid or caused to be paid all sums payable by it under this
 Indenture; and 

 
	
  

 	
  

 
	
  

 	
           (C)
 the Issuer has delivered irrevocable instructions to the Trustee to apply the
 deposited money toward the payment of the Notes at maturity or the Redemption
 Date, as the case may be. 

 

                    In
addition, the Issuer must deliver an Officer’s Certificate and an Opinion of
Counsel to the Trustee stating that all conditions precedent to satisfaction
and discharge have been satisfied. 

-101-

                    Notwithstanding
the satisfaction and discharge of this Indenture, if money shall have been
deposited with the Trustee pursuant to subclause (A) of clause (2) of this
Section 11.01, the provisions of Section 11.02 and Section 8.06 hereof shall
survive such satisfaction and discharge. 

	
  

 	
  

 
	
 Section
 11.02

 	
 Application
 of Trust Money. 

 

                    Subject
to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Issuer acting as its
own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal (and premium, if any) and interest for whose payment
such money has been deposited with the Trustee; but such money need not be
segregated from other funds except to the extent required by law. 

                    If
the Trustee or Paying Agent is unable to apply any money or Government
Securities in accordance with Section 11.01 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
Issuer’s and any Guarantor’s obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 11.01 hereof; provided that if the Issuer has made any payment of
principal of, premium, if any, or interest on any Notes because of the
reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.  

ARTICLE XII 

MISCELLANEOUS 

	
  

 	
  

 
	
 Section
 12.01

 	
 Trust
 Indenture Act Controls. 

 

                    If
any provision of this Indenture limits, qualifies or conflicts with the duties
imposed by Trust Indenture Act Section 318(c), the imposed duties shall
control. 

	
  

 	
  

 
	
 Section
 12.02

 	
 Notices.
 

 

                    Any
notice or communication by the Issuer, any Guarantor or the Trustee to the
others is duly given if in writing and delivered in person or mailed by
first-class mail (registered or certified, return receipt requested), fax or
overnight air courier guaranteeing next day delivery, to the others’ address: 

	
  

 	
  

 
	
  

 	
 If to the
 Issuer and/or any Guarantor: 

 
	
  

 	
  

 
	
  

 	
 c/o Griffon
 Corporation 

 
	
  

 	
 712 Fifth
 Avenue, 18th Floor 

 
	
  

 	
 New York,
 New York 10019 

 
	
  

 	
 Attention:
 General Counsel 

 
	
  

 	
 Fax: (212)
 957-5040 

 

-102-

	
  

 	
  

 
	
  

 	
 with a copy
 to: 

 
	
  

 	
  

 
	
  

 	
 Dechert LLP 

 
	
  

 	
 1095 Avenue
 of the Americas 

 
	
  

 	
 New York, NY
 10036 

 
	
  

 	
 Attention:
 Martin Nussbaum 

 
	
  

 	
 Fax: (212)
 698-3599 

 
	
  

 	
  

 
	
  

 	
 If to the
 Trustee: 

 
	
  

 	
  

 
	
  

 	
 Wells Fargo
 Bank, National Association 

 
	
  

 	
 45 Broadway,
 14th Floor

 
	
  

 	
 New
 York NY 10006 

 
	
  

 	
 Attention:
 Corporate Trust Services - Administrator for Griffon Corporation 

 
	
  

 	
 Fax: (212)
 515-1589 

 

                    The
Issuer, any Guarantor or the Trustee, by notice to the others, may designate
additional or different addresses for subsequent notices or communications. 

                    All
notices and communications (other than those sent to Holders) shall be deemed
to have been duly given: at the time delivered by hand, if personally
delivered; five calendar days after being deposited in the mail, postage
prepaid, if mailed by first-class mail; when receipt acknowledged, if faxed;
and the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery; provided that any notice
or communication delivered to the Trustee shall be deemed effective upon actual
receipt thereof. 

                    Any
notice or communication to a Holder shall be mailed by first-class mail,
certified or registered, return receipt requested, or by overnight air courier
guaranteeing next day delivery to its address shown on the register kept by the
Registrar. Any notice or communication shall also be so mailed to any Person
described in Trust Indenture Act Section 313(c), to the extent required by the
Trust Indenture Act. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other
Holders. 

                    If
a notice or communication is mailed or otherwise delivered in the manner
provided above within the time prescribed, such notice or communication shall
be deemed duly given, whether or not the addressee receives it. 

                    The
Trustee agrees to accept and act upon facsimile transmission of written
instructions and/or directions pursuant to this Indenture given by the Issuer,
provided, however that: (i) if requested, such Issuer, subsequent to such
facsimile transmission of written instructions and/or directions, shall provide
the originally executed instructions and/or directions to the Trustee in a
timely manner and (ii) such originally executed instructions and/or directions
shall be signed by an Authorized Officer of the Issuer.  

                    If
the Issuer mails a notice or communication to Holders, it shall mail a copy to
the Trustee and each Agent at the same time. 

-103-

	
  

 	
  

 
	
 Section
 12.03

 	
 Communication
 by Holders of Notes with Other Holders of Notes. 

 

                    Holders
may communicate pursuant to Trust Indenture Act Section 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. The
Issuer, the Trustee, the Registrar and anyone else shall have the protection of
Trust Indenture Act Section 312(c). 

	
  

 	
  

 
	
 Section
 12.04

 	
 Certificate
 and Opinion as to Conditions Precedent. 

 

                    Upon
any request or application by the Issuer or any of the Guarantors to the
Trustee to take any action under this Indenture, the Issuer or such Guarantor,
as the case may be, shall furnish to the Trustee: 

	
  

 	
  

 
	
  

 	
           (a)
 An Officer’s Certificate in form and substance reasonably satisfactory to the
 Trustee (which shall include the statements set forth in Section 12.05
 hereof) stating that, in the opinion of the signers, all conditions precedent
 and covenants, if any, provided for in this Indenture relating to the
 proposed action have been satisfied; and 

 
	
  

 	
  

 
	
  

 	
           (b)
 An Opinion of Counsel in form and substance reasonably satisfactory to the
 Trustee (which shall include the statements set forth in Section 12.05
 hereof) stating that, in the opinion of such counsel, all such conditions
 precedent and covenants have been satisfied; provided that no such opinion
 shall be required for the issuance of the Initial Notes. 

 

	
  

 	
  

 
	
 Section
 12.05

 	
 Statements
 Required in Certificate or Opinion. 

 

                    Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
Section 4.04 hereof or Trust Indenture Act Section 314(a)(4)) shall comply with
the provisions of Trust Indenture Act Section 314(e) and shall include: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

                    With
respect to matters of fact, an Opinion of Counsel may rely on an Officers’
Certificate, certificates of public officials or reports or opinions of
experts. 

	
  

 	
  

 
	
 Section
 12.06

 	
 Rules by
 Trustee and Agents. 

 

                    The
Trustee may make reasonable rules for action by or at a meeting of Holders. The
Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions. 

-104-

	
  

 	
  

 
	
 Section
 12.07

 	
 No Personal
 Liability of Directors, Officers, Employees and Stockholders.
 

 

                    No
past, present or future director, officer, employee, incorporator or
stockholder, member or limited partner of the Issuer or any Restricted
Subsidiary or any of their direct or indirect parent companies shall have any
liability for any obligations of the Issuer or the Guarantors under the Notes,
the Guarantees or this Indenture or for any claim based on, in respect of, or
by reason of such obligations or their creation. Each Holder by accepting Notes
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. 

	
  

 	
  

 
	
 Section
 12.08

 	
 Governing
 Law. 

 

                    THIS
INDENTURE, THE NOTES AND ANY GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF. 

	
  

 	
  

 
	
 Section
 12.09

 	
 Waiver of
 Jury Trial. 

 

                    THE
ISSUER, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVE, 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
TRANSACTIONS CONTEMPLATED HEREBY. 

	
  

 	
  

 
	
 Section
 12.10

 	
 Force
 Majeure. 

 

                    In
no event shall the Trustee be responsible or liable for any failure or delay in
the performance of its obligations under this Indenture arising out of or
caused by, directly or indirectly, forces beyond its reasonable 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 or hardware) services. 

	
  

 	
  

 
	
 Section
 12.11

 	
 No Adverse
 Interpretation of Other Agreements. 

 

                    This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Issuer or the Restricted Subsidiaries or of any other Person.
Any such indenture, loan or debt agreement may not be used to interpret this
Indenture. 

	
  

 	
  

 
	
 Section
 12.12

 	
 Successors.
 

 

                    All
agreements of the Issuer in this Indenture and the Notes shall bind their
successors. All agreements of the Trustee in this Indenture shall bind its
successors. All agreements of each Guarantor in this Indenture shall bind its
successors, except as otherwise provided in Section 10.06 hereof. 

	
  

 	
  

 
	
 Section
 12.13

 	
 Severability.
 

 

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

-105-

	
  

 	
  

 
	
 Section
 12.14

 	
 Counterpart
 Originals. 

 

                    The
parties may sign any number of copies of this Indenture which, when taken
together, shall constitute one instrument. Each signed copy shall be an
original, but all of them together represent the same agreement. The exchange
of copies of this Indenture and of signature pages by facsimile or PDF
transmission shall constitute effective execution and delivery of this Indenture
as to the parties hereto and may be used in lieu of the original Indenture for
all purposes. Signatures of the parties hereto transmitted by facsimile or PDF
shall be deemed to be their original signatures for all purposes. 

	
  

 	
  

 
	
 Section
 12.15

 	
 Table of
 Contents, Headings, etc. 

 

                    The
Table of Contents, Cross-Reference Table 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 of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof. 

	
  

 	
  

 
	
 Section
 12.16

 	
 U.S.A.
 Patriot Act. 

 

                    The
parties hereto acknowledge that in accordance with Section 326 of the U.S.A.
Patriot Act, the Trustee, like all financial institutions and in order to help
fight the funding of terrorism and money laundering, is required to obtain,
verify, and record information that identifies each person or legal entity that
establishes a relationship or opens an account with the Trustee. The parties to
this Indenture agree that they will provide the Trustee with such information
as it may request in order for the Trustee to satisfy the requirements of the
U.S.A. Patriot Act. 

[Signatures on following page]

-106-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 GRIFFON CORPORATION,

 	
  

 
	
  

 	
 as Issuer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ Thomas Gibbons

 	
  

 
	
  

 	
  

 	

 

 

 	
  

 
	
  

 	
 Name: Thomas
 Gibbons

 	
  

 
	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY BUILDING PRODUCTS COMPANY, INC.,

 	
  

 
	
  

 	
 as Guarantor

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Thomas Gibbons

 	
  

 
	
  

 	
  

 	

 

 

 	
  

 
	
  

 	
 Name: Thomas
 Gibbons

 	
  

 
	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY PLASTIC PRODUCTS COMPANY, INC.,

 
	
  

 	
 as Guarantor

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Thomas Gibbons

 	
  

 
	
  

 	
  

 	

 

 

 	
  

 
	
  

 	
 Name: Thomas
 Gibbons

 	
  

 
	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TELEPHONICS CORPORATION,

 	
  

 
	
  

 	
 as Guarantor

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Dominick Nocera

 	
  

 
	
  

 	
  

 	

 

 

 	
  

 
	
  

 	
 Name:
 Dominick Nocera

 	
  

 
	
  

 	
 Title:
 Senior Vice President and Chief Financial Officer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AMES TRUE TEMPER, INC.,

 	
  

 
	
  

 	
 as Guarantor

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Thomas Gibbons

 	
  

 
	
  

 	
  

 	

 

 

 	
  

 
	
  

 	
 Name: Thomas
 Gibbons

 	
  

 
	
  

 	
 Title: Vice
 President and Treasurer

 	
  

 

Signature Page
Indenture

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL

 
	
  

 	
 ASSOCIATION, as Trustee

 
	
  

 	
 By: 

 	
 /s/ Martin Reed

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Martin
 Reed

 	
  

 
	
  

 	
 Title: Vice
 President

 	
  

 

Signature
Page Indenture

EXHIBIT A

[Face of Note]

                    [Insert
the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

                    [Insert
the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

A-1

CUSIP
[               ]

ISIN
[               ]1

[RULE 144A][REGULATION S] GLOBAL NOTE

representing up to

$550,000,000

71⁄8% Senior Notes due 2018

	
  

 	
  

 
	
 No. ___

 	
 [$______________]

 

GRIFFON CORPORATION

promises to
pay to CEDE & CO. or registered assigns, the principal sum [set forth on
the Schedule of Exchanges of Interests in the Global Note attached hereto] [of
________________________ United States Dollars] on April 1, 2018.

Interest
Payment Dates: April 1 and October 1

Record Dates: March 15 and September 15

	
  

 	
  

 	
  

 
	

 

 	
  

 
	
  

 	
  

 
	
 1

 	
 Rule 144A
 Note CUSIP: 398433 AE2 

 
	
  

 	
 Rule 144A
 Note ISIN: US398433AE25

 
	
  

 	
 Regulation S
 Note CUSIP: U0390D AA4

 
	
  

 	
 Regulation S
 Note ISIN: USU0390DAA47

 

A-2

                    IN
WITNESS HEREOF, the Issuer has caused this instrument to be duly executed.

Dated: March
17, 2011

	
  

 	
  

 	
  

 
	
  

 	
 GRIFFON
 CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

A-3

This is one of
the Notes referred to in the within-mentioned Indenture:

	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL ASSOCIATION, as
 Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Authorized Signatory

 

A-4

[Back of Note]

71⁄8% Senior Notes due 2018

                    Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

                    1.
INTEREST. Griffon Corporation, a Delaware corporation (the “Issuer”), promises
to pay interest on the principal amount of this Note at 107.125% per annum from
March 17, 2011 until maturity. The Issuer will pay interest semi-annually in
arrears on April 1 and October 1 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”). Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
issuance; provided that the first Interest Payment Date shall be [October 1,
2011]2. The Issuer shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at
the rate equal to the then applicable interest rate on the Notes to the extent
lawful; and shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue installments of interest (without regard
to any applicable grace period) at the same rate to the extent lawful. Interest
will be computed on the basis of a 360-day year comprised of twelve 30-day
months. 

                    2.
METHOD OF PAYMENT. The Issuer will pay interest on the Notes to the Persons who
are registered Holders of Notes at the close of business on the March 15
or September 15 (whether or not a Business Day), as the case may be, next
preceding the Interest Payment Date, even if such Notes are canceled after such
record date and on or before such Interest Payment Date, except as provided in
Section 2.12 of the Indenture with respect to defaulted interest. Payment of
interest may be made by check mailed to the Holders at their addresses set
forth in the register of Holders, provided that payment by wire transfer
of immediately available funds will be required with respect to principal of
and interest and premium on, all Global Notes and all other Notes the Holders
of which shall have provided wire transfer instructions to the Issuer or the
Paying Agent at least five Business Days in advance of the applicable Interest
Payment Date. Such payment shall be in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public
and private debts.

                    3.
PAYING AGENT AND REGISTRAR. Initially, Wells Fargo Bank, National Association,
the Trustee under the Indenture, will act as Paying Agent and Registrar. The
Issuer may change any Paying Agent or Registrar without notice to the Holders.
The Issuer or any of its Subsidiaries may act in any such capacity.

                    4.
INDENTURE. The Issuer issued the Notes under an Indenture, dated as of March
17, 2011 (the “Indenture”), among Griffon Corporation and the Guarantors
named therein and the Trustee. This Note is one of a duly authorized issue of
notes of the Issuer designated as its 71⁄8% Senior Notes due 2018. The
Issuer shall be entitled to issue Additional Notes pursuant to the Indenture.
The 

	
  

 	
  

 	
  

 
	

 

 	
  

 
	
  

 	
  

 	
  

 
	
 2

 	
 With respect
 to Notes issued on the Issue Date.

 

A-5

terms of the
Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”). The Notes are subject to all such terms, and Holders are
referred to the Indenture and the Trust Indenture Act for a statement of such
terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and
be controlling.

                    5.
OPTIONAL REDEMPTION.

                    (a)
Except as described below under clauses 5(b) and 5(d) hereof, the Notes will
not be redeemable at the Issuer’s option before April 1, 2014. 

                    (b)
At any time prior to April 1, 2014, the Issuer may redeem all or a part of the
Notes, upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Holder of Notes to be redeemed at such Holder’s
registered address, at a redemption price equal to 100% of the principal amount
of the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid
interest to, the date of redemption (the “Redemption Date”), subject to the rights of Holders of Notes
on the relevant Record Date to receive interest due on the relevant Interest Payment
Date

                    (c)
On and after April 1, 2014, the Issuer may redeem the Notes, in whole or in
part, upon not less than 30 nor more than 60 days’ prior notice mailed by
first-class mail to each Holder of Notes to be redeemed at such Holder’s
registered address, at the redemption prices (expressed as percentages of
principal amount of the Notes to be redeemed) set forth below, plus accrued and
unpaid interest thereon to the applicable Redemption Date, subject to the right
of Holders of Notes of record on the relevant Record Date to receive interest
due on the relevant Interest Payment Date, if redeemed during the twelve-month
period beginning on April 1 of each of the years indicated below:

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Year

 	
  

 	
 Percentage

 	
  

 
	

 

 	
  

 	

 

 	
  

 
	
 2014

 	
  

 	
  

 	
 105.344

 	
 %

 
	
 2015

 	
  

 	
  

 	
 103.563

 	
 %

 
	
 2016

 	
  

 	
  

 	
 101.781

 	
 %

 
	
 2017 and
 thereafter

 	
  

 	
  

 	
 100.000

 	
 %

 

                    (d)
Until April 1, 2014, the Issuer may, at its option, on one or more occasions, redeem
up to 35% of the aggregate principal amount of Notes at a redemption price
equal to 107.125% of the aggregate principal amount thereof, plus accrued and
unpaid interest thereon, to the applicable Redemption Date, subject to the
right of Holders of Notes of record on the relevant record date to receive
interest due on the relevant interest payment date, with the net cash proceeds
of one or more Equity Offerings; provided that at least 65% of the sum of the
original aggregate principal amount of Notes issued under this Indenture and
the original principal amount of any Additional Notes issued under the
Indenture after the Issue Date remains outstanding immediately after the
occurrence of each such redemption; provided further that each such redemption
occurs within 90 days of the date of closing of each such Equity Offering. Notice
of any redemption upon any Equity Offering may be given prior to the redemption
thereof, and any such redemption or notice may, at the Issuer’s discretion, be
subject to one or more conditions precedent, including, but not limited to,
completion of the related Equity Offering.

                    (e)
Any redemption pursuant to this paragraph 5 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 of the Indenture.

A-6

                    6.
MANDATORY REDEMPTION. The Issuer shall not be required to make mandatory redemption
or sinking fund payments with respect to the Notes.

                    7.
NOTICE OF REDEMPTION. Subject to Section 3.03 of the Indenture, notice of
redemption will be mailed by first-class mail at least 30 days but not more
than 60 days before the redemption date (except that redemption notices may be
mailed more than 60 days prior to a Redemption Date if the notice is issued in
connection with Article VIII or Article XI of the Indenture) to each Holder
whose Notes are to be redeemed at its registered address. Notes in
denominations larger than $2,000 may be redeemed in part but only in whole
multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest ceases to accrue on Notes
or portions thereof called for redemption. Redemption amounts shall only be
paid upon presentation and surrender of any such Notes to be redeemed. Payment
of the redemption price and performance of the Issuer’s obligations in connection
with any redemption may be performed by another Person. 

                    8.
OFFERS TO REPURCHASE.

                    (a)
Upon the occurrence of a Change of Control, the Issuer shall make an offer (a “Change
of Control Offer”) to each Holder to repurchase all or any part (equal to
$2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s
Notes at a purchase price equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest, if any, to the date of purchase (the
“Change of Control Payment”). The Change of Control Offer shall be made
in accordance with Section 4.14 of the Indenture.

                    (b)
The Issuer is, subject to certain
conditions and exceptions, obligated to make an offer to purchase Notes and
certain other pari passu Indebtedness at 100% of their principal amount,
plus accrued and unpaid interest and Additional Interest, if any, thereon to
the date of repurchase, with certain Excess Proceeds of Asset Sales in
accordance with the Indenture.

                    9.
DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons
in a minimum amount of $2,000 and integral multiples of $1,000. The transfer of
Notes may be registered and Notes may be exchanged as provided in the
Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuer need not exchange or register the transfer
of any Note or portion of a Note selected for redemption, except for the
unredeemed portion of any Note being redeemed in part. Also, the Issuer need
not exchange or register the transfer of any Notes for a period of 15 days
before the mailing of a notice of redemption of Notes to be redeemed or any
Notes selected for redemption or tendered (and not withdrawn) for repurchase in
connection with a Change of Control Offer or Asset Sale Offer.

                    10.
PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its
owner for all purposes.

                    11.
AMENDMENT, SUPPLEMENT AND WAIVER. The Indenture, the Guarantees or the Notes
may be amended or supplemented as provided in the Indenture.

                    12.
DEFAULTS AND REMEDIES. The Events of Default relating to the Notes are defined
in Section 6.01 of the Indenture. If any Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare the principal, premium, if any, interest
and any other monetary obligations on all the then outstanding Notes to be due 

A-7

and payable
immediately. Notwithstanding the foregoing, in the case of an Event of Default
arising from certain events of bankruptcy or insolvency, all outstanding Notes
will become due and payable immediately without further action or notice.
Holders may not enforce the Indenture, the Notes or the Guarantees except as
provided in the Indenture. Subject to certain limitations, Holders of a majority
in aggregate principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any continuing Default (except a Default relating
to the payment of principal, premium, if any, or interest) if it determines
that withholding notice is in their interest. The Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any existing Default
or and its consequences under the Indenture except a continuing Default in
payment of the principal of, premium, if any, or interest on, any of the Notes
held by a non-consenting Holder. The Issuer and each Guarantor (to the extent
that such Guarantor is so required under the Trust Indenture Act) are required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Issuer is required within ten Business Days after becoming
aware of any Default, to deliver to the Trustee a statement specifying such
Default and what action the Issuer proposes to take with respect thereto.

                    13.
AUTHENTICATION. This Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose until authenticated by the
manual signature of the Trustee.

                    14.
GOVERNING LAW. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE, THE NOTES AND THE GUARANTEES, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THEREOF.

                    15.
CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers
to be printed on the Notes and the Trustee may use CUSIP numbers in notices of
redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.

                    16.
Registration Rights Agreement. The Holder of this Note shall be
entitled to the benefits of a Registration Rights Agreement, dated as of the
Issue Date, among the Issuer, the Guarantors and the Initial Purchasers.

                    The
Issuer will furnish to any Holder upon written request and without charge a
copy of the Indenture. Requests may be made to the Issuer at the following
address:

	
  

 	
  

 
	
  

 	
 c/o Griffon
 Corporation

 
	
  

 	
 712 Fifth
 Avenue, 18th Floor

 
	
  

 	
 New York,
 New York 10019

 
	
  

 	
 Fax: (212)
 957-5040

 
	
  

 	
 Attention:
 General Counsel

 

A-8

ASSIGNMENT FORM

                    To
assign this Note, fill in the form below:

	
  

 	
  

 
	
 (I) or (we)
 assign and transfer this Note to: 

 	
  

 
	
  

 	

 

 
	
  

 	
 (Insert assignee’s legal name)

 
	
  

 	
  

 
	

 

 
	
 (Insert assignee’s soc. sec. or tax I.D. no.)

 
	
  

 	
  

 
	

 

 
	

 

 
	

 

 
	

 

 
	
 (Print or type assignee’s name, address and zip code)

 

	
  

 	
  

 
	
 and
 irrevocably appoint

 	
  

 
	
  

 	

 

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

 

	
  

 	
  

 
	
 Date:

 	
  

 
	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Your
 Signature: 

 
	
  

 	
  

 	

 

 
	
  

 	
  

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

 

	
  

 	
  

 
	
 Signature
 Guarantee*: 

 	
  

 
	
  

 	

 

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-9

OPTION OF HOLDER TO ELECT PURCHASE

                    If
you want to elect to have this Note purchased by the Issuer pursuant to
Section 4.10 or 4.14 of the Indenture, check the appropriate box below:

[    ] Section
4.10                    [   
] Section 4.14

                    If
you want to elect to have only part of this Note purchased by the Issuer
pursuant to Section 4.10 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 Note)

 

	
  

 	
  

 	
  

 
	
  

 	
 Tax
 Identification No.:

 
	
  

 	
  

 	

 

 

	
  

 	
  

 
	
 Signature
 Guarantee*: 

 	
  

 
	
  

 	

 

 

* Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

A-10

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL
NOTE*

                    The
initial outstanding principal amount of this Global Note is $__________. The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
or Definitive Note for an interest in this Global Note, have been made:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date of 

 Exchange

 	
  

 	
 Amount of 

 decrease

 in Principal 

 Amount

 	
  

 	
 Amount of increase

 in Principal

 Amount of this

 Global Note

 	
  

 	
 Principal Amount 

 of

 this Global Note

 following such

 decrease or 

 increase

 	
  

 	
 Signature of

 authorized signatory

 of Trustee or 

 Custodian

 	
  

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 

	
  

 	
  

 
	

 

 	
  

 
	
 *This
 schedule should be included only if the Note is issued in global form.

 

A-11

EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Griffon Corporation

712 Fifth Avenue, 18th Floor

New York, New York 10019

Fax: (212) 957-5040

Attention: General Counsel

Wells Fargo
Bank, National Association, 

     as Trustee and Registrar – DAPS Reorg

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSreorg@WellsFargo.com

                    Re:
71⁄8% Senior Notes due 2018

                    Reference
is hereby made to the Indenture, dated as of March 17, 2011 (the “Indenture”),
among Griffon Corporation and the Guarantors named therein and the Trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

                    _______________
(the “Transferor”) owns and proposes to transfer the Note[s] or interest
in such Note[s] specified in Annex A hereto, in the principal amount of
$___________ in such Note[s] or interests (the “Transfer”), to
_______________ (the “Transferee”), as further specified in Annex A
hereto. In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

                    1.
[ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE 144A
GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the United States
Securities Act of 1933, as amended (the “Securities Act”), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States.

                    2.
[ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
REGULATION S GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 promulgated under the Securities Act and, accordingly, the Transferor
hereby further certifies that (i) the Transfer is not being made to a person in
the United States and (x) at the time the buy order was origin-

B-1

nated, the Transferee was outside the United States or such Transferor
and any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed
in, on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S promulgated under the Securities Act
(iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being
made prior to the expiration of the Restricted Period, the transfer is not
being made to a U.S. Person or for the account or benefit of a U.S. Person
(other than an Initial Purchaser). Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will be subject to the restrictions on Transfer
enumerated in the Indenture and the Securities Act.

                    3.
[ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE DEFINITIVE NOTE PURSUANT TO ANY PROVISION OF THE SECURITIES ACT
OTHER THAN RULE 144A OR REGULATION S. The Transfer is being effected in
compliance with the transfer restrictions applicable to beneficial interests in
Restricted Global Notes and Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act and any applicable blue sky securities laws
of any state of the United States, and accordingly the Transferor hereby
further certifies that (check one):

	
  

 	
  

 
	
  

 	
           (a)
 [   ] such Transfer is being effected pursuant to and in accordance
 with Rule 144 promulgated under the Securities Act;

 
	
  

 	
  

 
	
 or

 
	
  

 	
  

 
	
  

 	
           (b)
 [   ] such Transfer is being effected to the Issuer or a subsidiary
 thereof;

 
	
  

 	
  

 
	
 or

 
	
  

 	
  

 
	
  

 	
           (c)
 [   ] such Transfer is being effected pursuant to an effective
 registration statement under the Securities Act and in compliance with the
 prospectus delivery requirements of the Securities Act.

 
	
  

 	
  

 
	
  

 	
           4.
 [   ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
 INTEREST IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE
 NOTE.

 

                    (a)
[   ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The Transfer is
being effected pursuant to and in accordance with Rule 144 promulgated under
the Securities Act and in compliance with the transfer restrictions contained
in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the
Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

B-2

                    (b)
[  ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer
is being effected pursuant to and in accordance with Rule 903 or Rule 904
promulgated under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

                    (c)
[  ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes or Restricted Definitive Notes and in the Indenture.

B-3

                    This
certificate and the statements contained herein are made for your benefit and
the benefit of the Issuer.

	
  

 	
  

 	
  

 
	
  

 	
 [Insert Name
 of Transferor]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

	
  

 	
  

 
	
 Dated: 

 	
  

 
	
  

 	

 

 

B-4

ANNEX A TO CERTIFICATE OF TRANSFER

	
  

 	
  

 	
  

 
	
 1.

 	
 The
 Transferor owns and proposes to transfer the following:

 
	
  

 	
  

 	
  

 
	
 [CHECK ONE OF (a) OR (b)]

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 [   ]
 a beneficial interest in the:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 [   ]
 144A Global Note (CUSIP
 [                        ]),
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 [   ]
 Regulation S Global Note (CUSIP
 [                        ]),
 or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 [   ]
 a Restricted Definitive Note.

 
	
  

 	
  

 	
  

 
	
 2.

 	
 After the
 Transfer the Transferee will hold:

 
	
  

 	
  

 	
  

 
	
 [CHECK ONE]

 
	
  

 	
  

 	
  

 
	
 (a)

 	
 [   ]
 a beneficial interest in the:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 [   ]
 144A Global Note (CUSIP
 [                        ]),
 or

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 [   ]
 Regulation S Global Note
 (CUSIP[                        ]),
 or

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 [   ]
 a Restricted Definitive Note; or

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 [   ]
 an Unrestricted Definitive Note, in accordance with the terms of the Indenture.

 

B-5

EXHIBIT C

FORM OF CERTIFICATE OF EXCHANGE

Griffon
Corporation 

712 Fifth Avenue, 18th Floor

New York, New York 10019

Fax: (212) 957-5040

Attention: General Counsel

Wells Fargo
Bank, National Association

   as Trustee and Registrar – DAPS Reorg

MAC N9303-121

608 2nd Avenue South

Minneapolis, MN 55479

Telephone No.: (877) 872-4605

Fax No.: (866) 969-1290

Email: DAPSreorg@WellsFargo.com

                    Re:
71⁄8% Senior Notes due 2018

                    Reference
is hereby made to the Indenture, dated as of March 17, 2011 (the “Indenture”),
among Griffon Corporation and the Guarantors named therein and the Trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

                    ___________
(the “Owner”) owns and proposes to exchange the Note[s] or interest in
such Note[s] specified herein, in the principal amount of $__________ in such
Note[s] or interests (the “Exchange”). In connection with the Exchange,
the Owner hereby certifies that:

                    1)
EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED
GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED
GLOBAL NOTE

	
  

 	
  

 
	
  

 	
           a)
 [   ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
 GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
 connection with the Exchange
 of the Owner’s beneficial interest in a Restricted Global Note for a
 beneficial interest in an Unrestricted Global Note in an equal principal
 amount, the Owner hereby certifies (i) the beneficial interest is being
 acquired for the Owner’s own account without transfer, (ii) such Exchange has
 been effected in compliance with the transfer restrictions applicable to the
 Global Notes and pursuant to and in accordance with the United States
 Securities Act of 1933, as amended (the “Securities Act”), (iii) the
 restrictions on transfer contained in the Indenture and the Private Placement
 Legend are not required in order to maintain compliance with the Securities
 Act and (iv) the beneficial interest in an Unrestricted Global Note is being
 acquired in compliance with any applicable blue sky securities laws of any
 state of the United States.

 
	
  

 	
  

 
	
  

 	
           b)
 [   ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
 GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with 

 

C-1

	
  

 	
  

 
	
  

 	
 the Exchange
 of the Owner’s beneficial interest in a Restricted Global Note for an
 Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive
 Note is being acquired for the Owner’s own account without transfer,
 (ii) such Exchange has been effected in compliance with the transfer
 restrictions applicable to the Restricted Global Notes and pursuant to and in
 accordance with the Securities Act, (iii) the restrictions on transfer
 contained in the Indenture and the Private Placement Legend are not required
 in order to maintain compliance with the Securities Act and (iv) the
 Definitive Note is being acquired in compliance with any applicable blue sky
 securities laws of any state of the United States.

 
	
  

 	
  

 
	
  

 	
           c)
 [   ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
 BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
 Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in
 an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial
 interest is being acquired for the Owner’s own account without transfer, (ii)
 such Exchange has been effected in compliance with the transfer restrictions
 applicable to Restricted Definitive Notes and pursuant to and in accordance
 with the Securities Act, (iii) the restrictions on transfer contained in the
 Indenture and the Private Placement Legend are not required in order to
 maintain compliance with the Securities Act and (iv) the beneficial interest
 is being acquired in compliance with any applicable blue sky securities laws
 of any state of the United States.

 
	
  

 	
  

 
	
  

 	
           d)
 [   ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
 UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner’s Exchange of a Restricted
 Definitive Note for an Unrestricted Definitive Note, the Owner hereby
 certifies (i) the Unrestricted Definitive Note is being acquired for the
 Owner’s own account without transfer, (ii) such Exchange has been effected in
 compliance with the transfer restrictions applicable to Restricted Definitive
 Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions
 on transfer contained in the Indenture and the Private Placement Legend are
 not required in order to maintain compliance with the Securities Act and (iv)
 the Unrestricted Definitive Note is being acquired in compliance with any
 applicable blue sky securities laws of any state of the United States.

 
	
  

 	
  

 
	
                     2)
 EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED
 GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN RESTRICTED
 GLOBAL NOTES

 
	
  

 	
  

 
	
  

 	
           a)
 [   ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED
 GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the Exchange of
 the Owner’s beneficial interest in a Restricted Global Note for a Restricted
 Definitive Note with an equal principal amount, the Owner hereby certifies
 that the Restricted Definitive Note is being acquired for the Owner’s own
 account without transfer. Upon consummation of the proposed Exchange in
 accordance with the terms of the Indenture, the Restricted Definitive Note
 issued will continue to be subject to the restrictions on transfer enumerated
 in the Private Placement Legend printed on the Restricted Definitive Note and
 in the Indenture and the Securities Act.

 
	
  

 	
  

 
	
  

 	
           b)
 [   ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
 BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange
 of the Owner’s Restricted Definitive Note for a beneficial interest in the
 [CHECK ONE] [ ] 144A Global Note [ ] Regulation S Global Note, with an equal
 principal amount, the Owner 

 

C-2

	
  

 	
  

 
	
  

 	
 hereby
 certifies (i) the beneficial interest is being acquired for the Owner’s own
 account without transfer and (ii) such Exchange has been effected in
 compliance with the transfer restrictions applicable to the Restricted Global
 Notes and pursuant to and in accordance with the Securities Act, and in
 compliance with any applicable blue sky securities laws of any state of the
 United States. Upon consummation of the proposed Exchange in accordance with
 the terms of the Indenture, the beneficial interest issued will be subject to
 the restrictions on transfer enumerated in the Private Placement Legend
 printed on the relevant Restricted Global Note and in the Indenture and the
 Securities Act.

 

                   This
certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and are dated ____________________.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 [Insert Name
 of Transferor]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
  

 	
  

 	
 Title:

 
	
 Dated: 

 	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	
  

 	
  

 

C-3

EXHIBIT D

[FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS]

                    Supplemental
Indenture (this “Supplemental Indenture”), dated as of __________, among
Griffon Corporation, a Delaware corporation (the “Issuer”), [          ], a
subsidiary of the Issuer and a [    ] [corporation] (the “Guaranteeing
Subsidiary”), the other Guarantors party thereto, and Wells Fargo Bank,
National Association, as trustee (the “Trustee”).

W I T N E S S E T H

                    WHEREAS,
the Issuer and the Guarantors (as defined in the Indenture referred to below)
has heretofore executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of March 17, 2011, providing for the issuance of an unlimited
aggregate principal amount of 71⁄8% Senior Notes due 2018 (the “Notes”);

                    WHEREAS,
the Indenture provides that under certain circumstances the Guaranteeing
Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee
all of the Issuer’s Obligations under the Notes and the Indenture on the terms
and conditions set forth herein and under the Indenture (the “Guarantee”);
and

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

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

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

                    
(2) Agreement to Guarantee. The Guaranteeing Subsidiary hereby agrees as
follows:

	
  

 	
  

 
	
  

 	
           (a)
 The Guaranteeing Subsidiary hereby becomes a party to the Indenture as a Guarantor
 and as such will have all of the rights and be subject to all of the
 obligations and agreements of a Guarantor under the Indenture, subject to the
 terms and conditions set forth in the Indenture. 

 
	
  

 	
  

 
	
  

 	
           (b)
 The Guaranteeing Subsidiary agrees, on a joint and several basis with all the
 existing Guarantors, to fully, unconditionally and irrevocably Guarantee to
 each Holder of the Notes and the Trustee the Obligations pursuant to Article
 10 of the Indenture on a senior basis.

 
	
  

 	
  

 
	
  

 	
           (3)
 No Personal Liability of Directors, Officers, Employees and Stockholders. No
 past, present or future director, officer, employee, incorporator or
 stockholder, member or limited partner of the Issuer or any Restricted
 Subsidiary or any of their direct or indirect parent companies shall have any
 liability for any obligations of the Issuer or the Guarantors (including the
 Guaranteeing Subsidiary) under the Notes, the Guarantees, the Indenture or
 this Supplemental Indenture or for any claim based on, in respect of, or by
 reason of such obligations or their creation.

 

D-1

                    (4)
Execution and Delivery. The Guaranteeing Subsidiary agrees that the
Guarantee shall remain in full force and effect notwithstanding the absence of
the endorsement of any notation of such Guarantee on the Notes.

                    
(5) Governing Law. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

                    
(6) Counterparts. The parties may sign any number of copies of this Supplemental
Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement. The exchange of copies of this Supplemental
Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Supplemental Indenture as
to the parties hereto and may be used in lieu of the original Supplemental
Indenture for all purposes. Signatures of the parties hereto transmitted by
facsimile or PDF shall be deemed to be their original signatures for all
purposes.

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

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

                    
(9) Benefits Acknowledged. The Guaranteeing Subsidiary’s Guarantee is
subject to the terms and conditions set forth in the Indenture. The
Guaranteeing Subsidiary acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by the Indenture and this
Supplemental Indenture and that the guarantee and waivers made by it pursuant
to this Guarantee are knowingly made in contemplation of such benefits.

                    
(10) Successors. All agreements of the Guaranteeing Subsidiary in this
Supplemental Indenture shall bind its successors, except as otherwise provided
in the Indenture (including without limitation Section 10.06 of the Indenture).
All agreements of the Trustee in this Supplemental Indenture shall bind its
successors.

D-2

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

	
  

 	
  

 	
  

 
	
  

 	
 [GUARANTEEING
 SUBSIDIARY]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO BANK, NATIONAL ASSOCIATION, 

 as Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

D-3Exhibit 4.2 

REGISTRATION RIGHTS AGREEMENT

by and among

Griffon Corporation,

and The Guarantors party hereto
and

Deutsche Bank Securities Inc., 

as the Representative of the several Initial Purchasers

Dated as of March 17, 2011

REGISTRATION RIGHTS AGREEMENT

          This
Registration Rights Agreement (this “Agreement”) is made and entered into as of
March 17, 2011, by and among Griffon Corporation, a Delaware corporation (the
“Company”), the Guarantors named on Schedule 1 hereto (the “Guarantors”) and Deutsche
Bank Securities Inc., as the representative (the “Representative”) of the
several initial purchasers (collectively, the “Initial Purchasers”) listed on
Schedule 1 to the Purchase Agreement (as defined below), each of which has
agreed to purchase the Company’s 71⁄8% Senior Notes due 2018 (the “Initial
Notes”) pursuant to the Purchase Agreement. 

          This
Agreement is made pursuant to the Purchase Agreement, dated as of March 14,
2011 (the “Purchase Agreement”), among the Company, the Guarantors and the
Representative on behalf of itself and the Initial Purchasers (i) for the
benefit of the Initial Purchasers and (ii) for the benefit of the holders from
time to time of the Registrable Securities, including the Initial Purchasers.
The Initial Notes will be guaranteed (the “Guarantees” and, together with the
Initial Notes, the “Initial Securities”) on a senior basis by the Guarantors.
In order to induce the Initial Purchasers to purchase the Initial Notes, the
Company has agreed to provide the registration rights set forth in this
Agreement. The execution and delivery of this Agreement is a condition to the
obligations of the Initial Purchasers as set forth in Section 7(h) of the
Purchase Agreement. 

          The
parties hereby agree as follows: 

          SECTION
1. Definitions. As used in this
Agreement, the following capitalized terms shall have the following meanings: 

          Additional
Interest: As defined in Section 5 hereof. 

          Advice:
As defined in the last paragraph of Section 7 hereof. 

          Agreement:
As defined in the preamble hereto. 

          Broker-Dealer:
Any broker or dealer registered under the Exchange
Act. 

          Business
Day: Any day other than a Saturday, Sunday or U.S.
federal holiday or a day on which banking institutions or trust companies
located in New York, New York are authorized or obligated to be closed. 

          Commission:
The U.S. Securities and Exchange Commission. 

          Company:
As defined in the preamble hereto. 

          Consummate:
A registered Exchange Offer shall be deemed
“Consummated” for purposes of this Agreement upon the occurrence of (i) the
filing with the Commission of the Exchange Offer Registration Statement
relating to the Exchange Securities to be issued in the Exchange Offer and its
becoming or being declared effective under the Securities Act, (ii) the
maintenance of the continuous effectiveness of such Registration Statement, and
the keeping of the Exchange Offer open, for a period not less than the minimum
period required pursuant to Section 3(b) hereof, and (iii) the delivery by the
Company to the Registrar under the Indenture of Exchange Securities in the same
aggregate principal amount as the aggregate principal amount of Initial
Securities that were tendered by Holders thereof pursuant to the Exchange
Offer. 

          Exchange
Act: The Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder. 

          Exchange
Notes: The 71⁄8% Senior Notes due 2018 of the same
series under the Indenture as the Initial Notes, to be issued to Holders in
exchange for Registrable Securities pursuant to this Agreement. 

          Exchange
Offer: The registration by the Company under the
Securities Act of the Exchange Securities pursuant to a Registration Statement
pursuant to which the Company offers the Holders of all outstanding Registrable
Securities the opportunity to exchange all such outstanding Registrable
Securities held by such Holders for Exchange Securities in an aggregate
principal amount equal to the aggregate principal amount of the Registrable
Securities tendered in such exchange offer by such Holders. 

          Exchange
Offer Registration Statement: The Registration
Statement relating to the Exchange Offer, including the related Prospectus. 

          Exchange
Securities: The Exchange Notes and the related
Guarantees.

          FINRA: Financial
Industry Regulatory Authority, Inc.

          Guarantees:
As defined in the preamble hereto.

          Guarantors:
As defined in the preamble hereto.

          Holder: As
defined in Section 2(b) hereof.

          Indemnified
Holder: As defined in Section 9(a) hereof. 

          Indenture:
The Indenture, dated as of March 17, 2011, by and
among the Company, the Guarantors and Wells Fargo Bank, National Association,
as trustee (the “Trustee”), pursuant to which the Initial Securities are to be
issued, as such Indenture may be amended or supplemented from time to time in
accordance with the terms thereof. 

          Initial
Notes: As defined in the preamble hereto. 

          Initial
Securities: The Guarantees, together with the Initial
Notes. 

          Initial
Placement: The issuance and sale by the Company of the
Initial Securities to the Initial Purchasers pursuant to the Purchase
Agreement. 

          Initial
Purchaser: As defined in the preamble hereto. 

          Interest
Payment Date: As defined in the Indenture and the
Notes.

          Issue Date: The date of
this Agreement, March 17, 2011.

          Notes: The
Initial Notes and the Exchange Notes. 

          Person:
Any individual, corporation, limited liability
company, partnership, joint venture, association, joint stock company, trust,
unincorporated organization, government or any agency or political subdivision
thereof or any other entity. 

-2-

          Prospectus:
The prospectus included in a Registration Statement,
as amended or supplemented by any prospectus supplement and by all other
amendments thereto, including post-effective amendments, and all material
incorporated by reference into such Prospectus. 

          Purchase
Agreement: As defined in the preamble hereto. 

          Representative:
As defined in the preamble hereto. 

          Registrable
Securities: Each Security, until the earliest to occur
of (a) the date on which such Security is exchanged in the Exchange Offer for
an Exchange Security entitled to be resold to the public by the Holder thereof
without complying with the prospectus delivery requirements of the Securities
Act, (b) the date on which such Security has been effectively registered under
the Securities Act and disposed of in accordance with a Shelf Registration
Statement, (c) the date on which such Security is distributed by a
Broker-Dealer pursuant to the “Plan of Distribution” contemplated by the
Exchange Offer Registration Statement (including delivery of the Prospectus
contained therein), (d) the date on which such Security does not bear a
restricted CUSIP number and is sold pursuant to Rule 144 under the Securities
Act under circumstances in which any legend borne by such Initial Security
relating to restrictions on transferability thereof, under the Securities Act
or otherwise, is removed by the Company or pursuant to the Indenture and (e)
the date on which such Initial Security ceases to be outstanding.

          Registration
Default: As defined in Section 5 hereof. 

          Registration
Statement: Any registration statement of the Company
relating to (a) an offering of Exchange Securities pursuant to an Exchange
Offer or (b) the registration for resale of Registrable Securities pursuant to
the Shelf Registration Statement, which is filed pursuant to the provisions of
this Agreement, in each case, including the Prospectus included therein, all
amendments and supplements thereto (including post-effective amendments) and
all exhibits and material incorporated by reference therein. 

          Securities:
The Initial Securities and the Exchange Securities. 

          Securities
Act: The Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 

          Shelf
Filing Deadline: As defined in Section 4(a)(x) hereof.

          Shelf Registration Statement: As
defined in Section 4(a)(x) hereof.

          Suspension
Period: As defined in the final paragraph of Section 7 hereof. 

          Trust
Indenture Act: The Trust Indenture Act of 1939, as
amended, and the rules and regulations promulgated thereunder. 

          Underwritten
Registration or Underwritten Offering: A registration
in which securities of the Company are sold to an underwriter for reoffering to
the public. 

          SECTION
2. Securities Subject to this Agreement.

          (a)
Registrable Securities. The
securities entitled to the benefits of this Agreement are the Registrable
Securities. 

-3-

          (b)
Holders of Registrable Securities. A
Person is deemed to be a holder of Registrable Securities (each, a “Holder”)
whenever such Person owns Registrable Securities. 

          SECTION
3. Registered Exchange Offer. 

          (a)
Unless the Exchange Offer shall not be permissible under applicable law or
Commission policy (after the procedures set forth in Section 7(a)(i) hereof
have been complied with), the Company and the Guarantors shall (i) cause to be
filed with the Commission within 180 days after the Issue Date the Exchange
Offer Registration Statement, (ii) use their commercially reasonable efforts to
cause such Registration Statement to become or be declared effective at the
earliest possible time, but in no event later than 270 days after the Issue
Date (or if such 270th day is not a Business Day, the next succeeding Business
Day), (iii) in connection with the foregoing, (A) file all pre-effective
amendments to such Registration Statement as may be necessary in order to cause
such Registration Statement to become or be declared effective, (B) if
applicable, file a post-effective amendment to such Registration Statement
pursuant to Rule 430A under the Securities Act and (C) cause all necessary
filings in connection with the registration and qualification of the Exchange
Securities to be made under the state securities or blue sky laws of such jurisdictions
as are necessary to permit Consummation of the Exchange Offer and (iv) upon the
Registration Statement becoming or being declared effective, commence the
Exchange Offer. The Exchange Offer Registration Statement shall be on the
appropriate form permitting registration of the Exchange Securities to be
offered in exchange for the Registrable Securities and to permit resales of
Securities held by Broker-Dealers as contemplated by Section 3(c) hereof. The
Company shall use its commercially reasonable efforts to cause all Exchange
Securities to have the same CUSIP number. 

          (b)
The Company and the Guarantors shall use their commercially reasonable efforts
to cause the Exchange Offer Registration Statement to be effective continuously
and shall keep the Exchange Offer open for a period of not less than the
minimum period required under applicable federal and state securities laws to
Consummate the Exchange Offer; provided,
however, that in no event shall such period be less than 20 Business
Days after the commencement of the Exchange Offer. The Company and the
Guarantors shall cause the Exchange Offer to comply with all applicable federal
and state securities laws. No securities other than the Exchange Securities
shall be included in the Exchange Offer Registration Statement. The Company
shall use its commercially reasonable efforts to cause the Exchange Offer to be
Consummated on the earliest practicable date after the Exchange Offer
Registration Statement has become or been declared effective, but in no event
later than 330 days after the Issue Date (or if such 330th day is not a
Business Day, the next succeeding Business Day). 

          (c)
The Company and the Guarantors shall indicate in a “Plan of Distribution”
section contained in the Prospectus forming a part of the Exchange Offer
Registration Statement that any Broker-Dealer who holds Initial Securities that
are Registrable Securities and that were acquired for its own account as a
result of market-making activities or other trading activities (other than
Registrable Securities acquired directly from the Company) may exchange such
Initial Securities pursuant to the Exchange Offer; however, such Broker-Dealer
may be deemed to be an “underwriter” within the meaning of the Securities Act
and must, therefore, deliver a prospectus meeting the requirements of the
Securities Act in connection with any resales of the Exchange Securities
received by such Broker-Dealer in the Exchange Offer, which prospectus delivery
requirement may be satisfied by the delivery by such Broker-Dealer of the
Prospectus contained in the Exchange Offer Registration Statement. Such “Plan
of Distribution” section shall also contain all other information with respect
to such resales by Broker-Dealers that the Commission may require in order to
permit such resales pursuant thereto, but such “Plan of Distribution” shall not
name any such Broker-Dealer or disclose the amount of Initial Securities held
by any such Broker-Dealer except to the extent required by the Commission. 

-4-

          The
Company and the Guarantors shall use their commercially reasonable efforts to
keep the Exchange Offer Registration Statement continuously effective,
supplemented and amended as required by the provisions of Section 7(c) hereof
to the extent necessary to ensure that it is available for resales of Initial
Securities acquired by Broker-Dealers for their own accounts as a result of
market-making activities or other trading activities, and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from time to
time, for a period ending on the earlier of (i) 180 days from the date on which
the Exchange Offer Registration Statement becomes or is declared effective and
(ii) the date on which a Broker-Dealer is no longer required to deliver a
prospectus in connection with market-making or other trading activities. 

          The
Company and the Guarantors shall provide sufficient copies of the latest
version of such Prospectus to Broker-Dealers promptly upon request at any time
during such 180-day (or shorter as provided in the foregoing sentence) period
in order to facilitate such resales. 

          SECTION
4. Shelf Registration. 

          (a)
Shelf Registration. If (i) the
Company and the Guarantors are not required to file an Exchange Offer
Registration Statement or to consummate the Exchange Offer because the Exchange
Offer is not permitted by applicable law or Commission policy (after the
procedures set forth in Section 7(a)(i) hereof have been complied with), (ii)
for any reason the Exchange Offer is not Consummated within 330 days after the
Issue Date (or if such 330th day is not a Business Day, the next succeeding
Business Day), or (iii) with respect to any Holder of Registrable Securities
(A) such Holder is prohibited by applicable law or Commission policy from
participating in the Exchange Offer, (B) such Holder may not resell the
Exchange Securities acquired by it in the Exchange Offer to the public without
delivering a prospectus and the Prospectus contained in the Exchange Offer
Registration Statement is not appropriate or available for such resales by such
Holder or (C) such Holder is a Broker-Dealer and holds Initial Securities
acquired directly from the Company or one of its affiliates, then, upon such
Holder’s request, the Company shall: 

	
  

 	
  

 
	
  

 	
           (x)
 cause to be filed a shelf registration statement pursuant to Rule 415 under
 the Securities Act, which may be an amendment to the Exchange Offer
 Registration Statement (in either event, the “Shelf Registration Statement”),
 as soon as practicable, but in no event later than the earliest to occur of
 (1) the 60th day after the date on which the Company determines that it is
 not required to file the Exchange Offer Registration Statement, (2) the 60th
 day after the date on which the Company receives notice from a Holder of
 Registrable Securities as contemplated by clause (iii) above and (3) the
 330th day after the Issue Date (or if such 330th day is not a Business Day,
 the next succeeding Business Day) (such earliest date being the “Shelf Filing
 Deadline”), which Shelf Registration Statement shall provide for resales of
 all Registrable Securities the Holders of which shall have provided the
 information required pursuant to Section 4(b) hereof; and 

 
	
  

 	
  

 
	
  

 	
           (y)
 use their commercially reasonable efforts to cause such Shelf Registration
 Statement to become or be declared effective by the Commission at the
 earliest possible time, but in no event later that the 120th day after the
 Shelf Filing Deadline (or if such 120th day is not a Business Day, the next
 succeeding Business Day). 

 

          The
Company and the Guarantors shall use their commercially reasonable efforts to
keep such Shelf Registration Statement continuously effective, supplemented and
amended as required by the provisions of Sections 7(b) and (c) hereof to the
extent necessary to ensure that it is available for resales of Registrable
Securities entitled to the benefit of this Section 4(a), and to ensure that it
conforms with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commis-

-5-

sion as
announced from time to time, for a period of at least one year following the
effective date of such Shelf Registration Statement (or shorter period that
will terminate when all the Securities covered by such Shelf Registration
Statement have been sold pursuant to such Shelf Registration Statement or are
otherwise no longer Registrable Securities). 

          Notwithstanding
the foregoing, the Company may suspend the offering and sale under the Shelf
Registration Statement (the “Suspension
Period”) for a period or periods if (i) the board of directors
reasonably determines that the continued use of such Shelf Registration
Statement would (A) require the Company to make a public disclosure of material
non-public information, which disclosure in the good faith judgment of the
board of directors of the Company (1) would be required to be made in such Shelf
Registration Statement so that such Shelf Registration Statement would not be
materially misleading and (2) would not be required to be made at such time but
for the continued use of such Shelf Registration Statement or (B) would in the
good faith and judgment of the board of directors of the Company be expected to
have a material adverse effect on the Company or its business or on the
Company’s ability to effect a planned or proposed acquisition, disposition,
financing, reorganization, recapitalization or similar transaction and (ii) the
Company notifies the underwriters, if any, and the Holders of Registrable
Securities within five days after the board of directors makes the relevant
determination set forth in clause (i); provided
that the period or periods of suspension under clause (i) above shall not
exceed, in the aggregate, 60 days in any twelve-month period during which the
Shelf Registration Statement is required to be effective. 

          (b)
Provision by Holders of Certain Information
in Connection with the Shelf Registration Statement. No Holder of
Registrable Securities may include any of its Registrable Securities in any
Shelf Registration Statement pursuant to this Agreement unless and until such
Holder furnishes to the Company in writing, within 10 Business Days after
receipt of a request therefor, such information as the Company may reasonably
request for use in connection with any Shelf Registration Statement or
Prospectus or preliminary Prospectus included therein or amendment or supplement
thereto. Each Holder as to which any Shelf Registration Statement is being
effected agrees to furnish promptly to the Company all information required to
be disclosed in order to make the information previously furnished to the
Company by such Holder not materially misleading. 

          SECTION
5. Additional Interest. If (i)
unless the Exchange Offer shall not be permissible under applicable law or
Commission policy, the Exchange Offer Registration Statement has not become or
been declared effective by the Commission on or prior to the 270th day after
the Issue Date (or if such 270th day is not a Business Day, the next succeeding
Business Day), (ii) in the event the Company is required to file a Shelf
Registration Statement pursuant to Section 4(a) hereof, (A) the Shelf
Registration Statement is not filed by the Shelf Filing Deadline or (B) the
Shelf Registration Statement has not become or been declared effective by the
Commission on or prior to the 120th day after the Shelf Filing Deadline (or if
such 120th day is not a Business Day, the next succeeding Business Day), (iii)
the Exchange Offer has not been Consummated within 330 days after the Issue
Date or (iv) any Registration Statement required by this Agreement is filed and
declared effective but shall thereafter cease to be effective or fail to be
usable for its intended purpose without being immediately succeeded by a
post-effective amendment to such Registration Statement that cures such failure
and that is itself immediately declared effective (each such event referred to
in clauses (i) through (iv), a “Registration Default”), the Company and the
Guarantors hereby agree that the interest rate borne by the Registrable
Securities shall be increased by 0.25% per annum during the 90-day period
immediately following the occurrence of any Registration Default and shall
increase by 0.25% per annum at the end of each subsequent 90-day period (such
increases, “Additional Interest”), but in no event shall such increase exceed
1.00% per annum. Any amounts of Additional Interest due pursuant to this
Section 5 will be paid in cash on the relevant Interest Payment Date to Holders
of record on the relevant regular record dates. Following the cure of all
Registration Defaults 

-6-

relating to
any particular Registrable Securities, the interest rate borne by the relevant
Registrable Securities will be reduced to the original interest rate borne by
such Registrable Securities; provided,
however, that, if after any such
reduction in interest rate, a different Registration Default occurs, the
interest rate borne by the relevant Registrable Securities shall again be
increased pursuant to the foregoing provisions. 

          All
obligations of the Company and the Guarantors set forth in the preceding
paragraph that are outstanding with respect to any Registrable Security at the
time such security ceases to be a Registrable Security shall survive until such
time as all such obligations with respect to such security shall have been
satisfied in full. 

          Notwithstanding
the foregoing, (i) the amount of Additional Interest payable shall not increase
because more than one Registration Default has occurred and is pending at any
given time and (ii) a Holder of Registrable Securities that has not provided
the information required pursuant to Section 4(b) hereof within the time period
set forth therein shall not be entitled to Additional Interest with respect to
a Registration Default that pertains to the relevant Shelf Registration
Statement. 

          SECTION
6. Reserved. 

          SECTION
7. Registration Procedures. 

          (a)
Exchange Offer Registration Statement. In
connection with the Exchange Offer, the Company and the Guarantors shall comply
with all of the applicable provisions of Section 7(c) hereof, shall use their
commercially reasonable efforts to effect such exchange to permit the sale of
Registrable Securities being sold in accordance with the intended method or
methods of distribution thereof, and shall comply with all of the following
provisions: 

	
  

 	
  

 
	
  

 	
           (i)
 If in the reasonable opinion of counsel to the Company there is a question as
 to whether the Exchange Offer is permitted by applicable law, the Company and
 the Guarantors hereby agree to seek a no-action letter or other favorable
 decision from the Commission allowing the Company and the Guarantors to
 Consummate an Exchange Offer for such Initial Securities. The Company and the
 Guarantors hereby agree to pursue the issuance of such a decision to the
 Commission staff level but shall not be required to take commercially
 unreasonable action to effect a change of Commission policy. The Company and
 the Guarantors hereby agree, however, to (A) participate in telephonic
 conferences with the Commission, (B) deliver to the Commission staff an
 analysis prepared by counsel to the Company setting forth the legal bases, if
 any, upon which such counsel has concluded that such an Exchange Offer should
 be permitted and (C) diligently pursue a favorable resolution by the
 Commission staff of such submission

 
	
  

 	
  

 
	
  

 	
           (ii)
 As a condition to its participation in the Exchange Offer pursuant to the
 terms of this Agreement, each Holder of Registrable Securities shall furnish,
 upon the request of the Company, prior to the Consummation thereof, a written
 representation to the Company (which may be contained in the letter of
 transmittal contemplated by the Exchange Offer Registration Statement) to the
 effect that (A) it is not an affiliate of the Company, (B) it is not engaged
 in, and does not intend to engage in, and has no arrangement or understanding
 with any Person to participate in, a distribution of the Exchange Securities
 to be issued in the Exchange Offer, (C) it is acquiring the Exchange
 Securities in its ordinary course of business, (D) if it is a Broker-Dealer that
 holds Securities that were acquired for its own account as a result of
 market-making activities or other trading activities (other than Securities
 acquired directly from the Company or any of its affiliates), it will deliver
 a prospectus meeting the requirements of the Securities Act in connection
 with any resales of the Exchange Securities received by it in the Exchange
 Offer, and (E) if it is a Broker-Dealer, that it did not purchase the
 Securities to be exchanged in the Exchange Offer from 

 

-7-

	
  

 	
  

 
	
  

 	
 the Company
 or any of its affiliates. In addition, all such Holders of Registrable
 Securities shall otherwise cooperate in the Company’s preparations for the
 Exchange Offer. Each Holder hereby acknowledges and agrees that any
 Broker-Dealer and any such Holder using the Exchange Offer to participate in
 a distribution of the securities to be acquired in the Exchange Offer (1)
 could not under Commission policy as in effect on the date of this Agreement
 rely on the position of the Commission enunciated in Morgan Stanley and
 Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
 Corporation (available May 13, 1988), as interpreted in the Commission’s
 letter to Shearman & Sterling dated July 2, 1993, and similar no-action
 letters (which may include any no-action letter obtained pursuant to clause
 (i) above), and (2) must comply with the registration and prospectus delivery
 requirements of the Securities Act in connection with a secondary resale
 transaction and that such a secondary resale transaction should be covered by
 an effective registration statement containing the selling security holder
 information required by Item 507 or 508, as applicable, of Regulation S-K if
 the resales are of Exchange Securities obtained by such Holder in exchange
 for Initial Securities acquired by such Holder directly from the Company. 

 

          (b)
Shelf Registration Statement. In
connection with the Shelf Registration Statement, the Company and the
Guarantors shall comply with all the provisions of Section 7(c) hereof and shall
use their commercially reasonable efforts to effect such registration to permit
the sale of the Registrable Securities being sold in accordance with the
intended method or methods of distribution thereof, and pursuant thereto the
Company will as expeditiously as is commercially reasonable prepare and file
with the Commission a Shelf Registration Statement relating to the registration
on any appropriate form under the Securities Act, which form shall be available
for the sale of the Registrable Securities in accordance with the intended
method or methods of distribution thereof. 

          (c)
General Provisions. In connection
with any Registration Statement and any Prospectus required by this Agreement
to permit the sale or resale of Registrable Securities (including, without
limitation, any Registration Statement and the related Prospectus required to
permit resales of Initial Securities by Broker-Dealers), the Company and the
Guarantors shall: 

	
  

 	
  

 
	
  

 	
           (i)
 use their commercially reasonable efforts to keep such Registration Statement
 continuously effective during the period required by this Agreement and
 provide all requisite financial statements; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 upon the occurrence of any event that would cause any such Registration
 Statement or the Prospectus contained therein (A) to contain a material
 misstatement or omission or (B) not to be effective and usable for resale of
 Registrable Securities during the period required by this Agreement, the
 Company shall file promptly an appropriate amendment to such Registration
 Statement, in the case of clause (A), correcting any such misstatement or
 omission, and, in the case of either clause (A) or (B), use their
 commercially reasonable efforts to cause such amendment to become or be
 declared effective and such Registration Statement and the related Prospectus
 to become usable for their intended purpose(s) as soon as practicable
 thereafter; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 prepare and file with the Commission such amendments and post-effective
 amendments to the applicable Registration Statement as may be necessary to
 keep the Registration Statement effective for the applicable period set forth
 in Section 3 or 4 hereof, as applicable, or such shorter period as will
 terminate when all Registrable Securities covered by such Registration
 Statement have been sold; cause the Prospectus to be supplemented by any
 required Prospectus supplement, and as so supplemented to be filed pursuant
 to Rule 424 under the Securities Act, and to comply fully with the applicable
 provisions of Rules 424 and 430A under the Securities Act in a timely manner;
 and comply with the provisions of the Securities Act with respect to the 

 

-8-

	
  

 	
  

 
	
  

 	
 disposition
 of all securities covered by such Registration Statement during the
 applicable period in accordance with the intended method or methods of
 distribution by the sellers thereof set forth in such Registration Statement
 or supplement to the Prospectus;

 
	
  

 	
  

 
	
  

 	
           (iv)
 advise the underwriter(s), if any, and selling Holders promptly and, if
 requested by such Persons, to confirm such advice in writing, (A) when the
 Prospectus or any Prospectus supplement or post-effective amendment has been
 filed, and, with respect to any Registration Statement or any post-effective
 amendment thereto, when the same has become or been declared effective, (B)
 of any request by the Commission for amendments to the Registration Statement
 or amendments or supplements to the Prospectus or for additional information
 relating thereto, (C) of the issuance by the Commission of any stop order
 suspending the effectiveness of the Registration Statement under the
 Securities Act or of the suspension by any state securities commission of the
 qualification of the Registrable Securities for offering or sale in any
 jurisdiction, or the initiation of any proceeding for any of the preceding
 purposes, (D) of the existence of any fact or the happening of any event that
 makes any statement of a material fact made in the Registration Statement,
 the Prospectus, any amendment or supplement thereto, or any document incorporated
 by reference therein untrue, or that requires the making of any additions to
 or changes in the Registration Statement or the Prospectus in order to make
 the statements therein not misleading. If at any time the Commission shall
 issue any stop order suspending the effectiveness of the Registration
 Statement, or any state securities commission or other regulatory authority
 shall issue an order suspending the qualification or exemption from qualification
 of the Registrable Securities under state securities or blue sky laws, the
 Company shall use their commercially reasonable efforts to obtain the
 withdrawal or lifting of such order at the earliest possible time;

 
	
  

 	
  

 
	
  

 	
           (v)
 furnish without charge to each of the Initial Purchasers, each selling Holder
 named in any Registration Statement that has requested such copies, if any,
 and each of the underwriter(s), if any, before filing with the Commission,
 copies of any Registration Statement or any Prospectus included therein or
 any amendments or supplements to any such Registration Statement or
 Prospectus (other than any documents that will be incorporated by reference
 in such Registration Statement or Prospectus), which documents will be
 subject to the review and comment of such requesting Holders and
 underwriter(s) in connection with such sale, if any, for a period of at least
 five Business Days, and the Company and the Guarantors will not file any such
 Registration Statement or Prospectus or any amendment or supplement to any
 such Registration Statement or Prospectus to which an Initial Purchaser of
 Registrable Securities covered by such Registration Statement or the underwriter(s),
 if any, shall reasonably object in writing within five Business Days after
 the receipt thereof (such objection to be deemed timely made upon
 confirmation of telecopy transmission within such period). The objection of
 an Initial Purchaser or underwriter, if any, shall be deemed to be reasonable
 if such Registration Statement, amendment, Prospectus or supplement, as
 applicable, as proposed to be filed, contains a material misstatement or omission;

 
	
  

 	
  

 
	
  

 	
           (vi)
 make the Company’s representatives reasonably available to the Initial
 Purchaser for customary due diligence matters;

 
	
  

 	
  

 
	
  

 	
           (vii)
 make available at reasonable times for inspection by the Initial Purchasers,
 any Holder the managing underwriter(s), if any, participating in any disposition
 pursuant to such Registration Statement and any attorney or accountant
 retained by such Initial Purchasers, Holder or any of the underwriter(s), in
 each case subject to confidentiality agreements in form and substance
 customarily entered into by such Initial Purchasers or underwriters, all financial
 and other records, pertinent corporate documents and properties of the
 Company and cause the Company’s 

 

-9-

	
  

 	
  

 
	
  

 	
 officers,
 directors and employees to supply all information reasonably requested by any
 such Holder, underwriter, attorney or accountant in connection with such
 Registration Statement or any post-effective amendment thereto subsequent to
 the filing thereof and prior to its effectiveness and to participate in
 meetings with investors to the extent reasonably requested by the managing
 underwriter(s), if any;

 
	
  

 	
  

 
	
  

 	
           (viii)
 if requested by any selling Holders listed as selling securityholders in any
 Registration Statement or the underwriter(s), if any, promptly incorporate in
 any Registration Statement or Prospectus, pursuant to a supplement or
 post-effective amendment if necessary, such information as such selling
 Holders and underwriter(s), if any, may reasonably request to have included
 therein, including, without limitation, information relating to the “Plan of
 Distribution” of the Registrable Securities, information with respect to the
 principal amount of Registrable Securities being sold to such underwriter(s),
 the purchase price being paid therefor and any other terms of the offering of
 the Registrable Securities to be sold in such offering; and make all required
 filings of such Prospectus supplement or post-effective amendment as soon as
 practicable after the Company is notified of the matters to be incorporated
 in such Prospectus supplement or post-effective amendment;

 
	
  

 	
  

 
	
  

 	
           (ix)
 cause the Registrable Securities covered by the Registration Statement to be
 rated with the appropriate rating agencies, if so requested by the Holders of
 a majority in aggregate principal amount of Securities covered thereby or the
 underwriter(s), if any;

 
	
  

 	
  

 
	
  

 	
           (x)
 furnish to each Initial Purchaser, each selling Holder and each of the underwriter(s),
 if any, without charge, at least one copy of the Registration Statement, as
 first filed with the Commission, and of each amendment thereto, including
 financial statements and schedules, if requested, all documents incorporated
 by reference therein and all exhibits (including exhibits incorporated
 therein by reference), unless, in each case, publicly available;

 
	
  

 	
  

 
	
  

 	
           (xi)
 deliver to each selling Holder and each of the underwriter(s), if any,
 without charge, as many copies of the Prospectus (including each preliminary
 prospectus) and any amendment or supplement thereto as such Persons reasonably
 may request; the Company and the Guarantors hereby consent to the use of the
 Prospectus and any amendment or supplement thereto by each of the selling
 Holders and each of the underwriter(s), if any, in connection with the
 offering and the sale of the Registrable Securities covered by the Prospectus
 or any amendment or supplement thereto;

 
	
  

 	
  

 
	
  

 	
           (xii) in connection with an underwritten
 offering pursuant to a Shelf Registration Statement, enter into such
 agreements (including an underwriting agreement), and make such
 representations and warranties, and take all such other commercially reasonable
 actions in connection therewith in order to expedite or facilitate the
 disposition of the Registrable Securities. In furtherance of the foregoing,
 the Company and the Guarantors shall:

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (A)
 furnish to each Initial Purchaser, each selling Holder and each underwriter
 in such substance and scope as they may reasonably request and as are
 customarily made by issuers to underwriters in primary underwritten
 offerings, upon the date of the effectiveness of the Shelf Registration
 Statement:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (1)
 a certificate, dated the effectiveness of the Shelf Registration Statement,
 signed by (y) the President or any Vice President and (z) a principal
 financial or accounting officer of the Company, confirming customary matters;

 

-10-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (2)
 if requested by a majority of selling Holders, an opinion, dated the date of
 effectiveness of the Shelf Registration Statement, of counsel for the
 Company, covering the matters customarily covered in opinions requested in underwritten
 offerings;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (3)
 a customary comfort letter, dated the date of effectiveness of the Shelf
 Registration Statement, from the Company’s independent accountants, in the
 customary form and covering matters of the type customarily requested to be
 covered in comfort letters by underwriters in connection with primary
 underwritten offerings;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (B)
 set forth in full or incorporate by reference in the underwriting agreement,
 if any, the indemnification provisions and procedures of Section 9 hereof
 with respect to all parties to be indemnified pursuant to said Section; and

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
           (C)
 deliver such other documents and certificates as may be reasonably requested
 by such parties to evidence compliance with Section 7(c)(xii)(A) hereof and
 with any customary conditions contained in the underwriting agreement or
 other agreement entered into by the Company pursuant to this Section
 7(c)(xii), if any.

 

	
  

 	
  

 
	
  

 	
           If
 at any time the representations and warranties of the Company and the
 Guarantors contemplated in Section 7(c)(xii)(A)(1) hereof cease to be true
 and correct, the Company and the Guarantors shall so advise the Initial
 Purchasers and the underwriter(s), if any, and each selling Holder promptly
 and, if requested by such Persons, shall confirm such advice in writing;

 
	
  

 	
  

 
	
  

 	
           (xiii)
 prior to any public offering of Registrable Securities, cooperate with the
 selling Holders, the underwriter(s), if any, and their respective counsel in
 connection with the registration and qualification of the Registrable
 Securities under the state securities or blue sky laws of such jurisdictions
 as the selling Holders or underwriter(s), if any, may request and do any and
 all other acts or things necessary or advisable to enable the disposition in
 such jurisdictions of the Registrable Securities covered by the Shelf Registration
 Statement; provided, however, that the Company and the Guarantors
 shall not be required to register or qualify as a foreign corporation where
 it is not then so qualified or to take any action that would subject it to
 the service of process in suits or to taxation, other than as to matters and
 transactions relating to the Registration Statement, in any jurisdiction
 where it is not then so subject;

 
	
  

 	
  

 
	
  

 	
           (xiv)
 in the case of a Shelf Registration Statement, shall issue, upon the request
 of any Holder of Initial Securities covered by the Shelf Registration
 Statement and only in connection with any valid sale of Securities by such
 Holder pursuant to such registration statement (and provided that such Holder
 delivers such certificates or opinions reasonably requested by the Company in
 connection with such sale), Exchange Securities having an aggregate principal
 amount equal to the aggregate principal amount of Initial Securities
 surrendered to the Company by such Holder in exchange therefor or being sold
 by such Holder; such Exchange Securities to be registered in the name of such
 Holder or in the name of the purchaser(s) of such Securities, as the case may
 be; in return, the Initial Securities held by such Holder shall be
 surrendered to the Company for cancellation;

 
	
  

 	
  

 
	
  

 	
           (xv)
 in the case of a Shelf Registration Statement, and subject to the forms of
 the Indenture, cooperate with the selling Holders and the underwriter(s), if
 any, to facilitate the timely preparation and delivery of certificates or
 book-entry receipts, as applicable, representing Registrable Securities to be
 sold and not bearing any restrictive legends; and enable such Registrable 

 

-11-

	
  

 	
  

 
	
  

 	
 Securities
 or such book-entry receipts, as applicable, to be in such denominations and
 registered in such names as the Holders or the underwriter(s), if any, may
 request at least two Business Days prior to any sale of Registrable
 Securities made by such Holders or underwriter(s);

 
	
  

 	
  

 
	
  

 	
           (xvi)
 use their commercially reasonable efforts to cause the Registrable Securities
 covered by the Registration Statement to be registered with or approved by
 such other governmental agencies or authorities as may be necessary to enable
 the seller or sellers thereof or the underwriter(s), if any, to consummate
 the disposition of such Registrable Securities, subject to the proviso contained
 in Section 7(c)(xiii) hereof;

 
	
  

 	
  

 
	
  

 	
           (xvii)
 if any fact or event contemplated by Section 7(c)(iv)(D) hereof shall exist
 or have occurred, prepare a supplement or post-effective amendment to the
 Registration Statement or related Prospectus or any document incorporated
 therein by reference or file any other required document so that, as
 thereafter delivered to the purchasers of Registrable Securities, the
 Prospectus will not contain an untrue statement of a material fact or omit to
 state any material fact necessary in order to make the statements therein not
 misleading;

 
	
  

 	
  

 
	
  

 	
           (xviii)
 provide a CUSIP number for all Securities not later than the effective date
 of the Registration Statement covering such Securities and provide the Trustee
 under the Indenture with printed certificates for such Securities which are
 in a form eligible for deposit with the Depository Trust Company and take all
 other action necessary to ensure that all such Securities are eligible for
 deposit with the Depository Trust Company;

 
	
  

 	
  

 
	
  

 	
           (xix)
 cooperate and assist in any filings required to be made with the FINRA and in
 the performance of any due diligence investigation by any underwriter
 (including any “qualified independent underwriter”) that is required to be
 retained in accordance with the rules and regulations of the FINRA;

 
	
  

 	
  

 
	
  

 	
           (xx)
 otherwise use their commercially reasonable efforts to comply with all
 applicable rules and regulations of the Commission, and make generally
 available to its security holders, as soon as practicable, a consolidated
 earnings statement meeting the requirements of Rule 158 under the Securities
 Act (which need not be audited) for the twelve-month period (A) commencing at
 the end of any fiscal quarter in which Registrable Securities are sold to
 underwriters in a firm commitment or commercially reasonable efforts
 Underwritten Offering or (B) if not sold to underwriters in such an offering,
 beginning with the first month of the Company’s first fiscal quarter
 commencing after the effective date of the Registration Statement; and

 
	
  

 	
  

 
	
  

 	
           (xxi)
 cause the Indenture to be qualified under the Trust Indenture Act not later
 than the effective date of the first Registration Statement required by this
 Agreement, and, in connection therewith, cooperate with the Trustee and the
 Holders of Securities to effect such changes to the Indenture as may be
 required for such Indenture to be so qualified in accordance with the terms
 of the Trust Indenture Act; and to execute and use their commercially
 reasonable efforts to cause the Trustee to execute, all documents that may be
 required to effect such changes and all other forms and documents required to
 be filed with the Commission to enable such Indenture to be so qualified in a
 timely manner.

 

          Each
Holder agrees by acquisition of a Registrable Security that, upon receipt of
any notice from the Company of the existence of any fact of the kind described
in Section 7(c)(iv)(D) hereof or any Suspension Period, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the applicable
Registration Statement until such Holder’s receipt of the copies of the supplemented
or amended Prospectus contemplated by Section 7(c)(xvii) hereof, or until it is
advised in writing (the “Ad-

-12-

vice”) by the
Company that the use of the Prospectus may be resumed, and has received copies
of any additional or supplemental filings that are incorporated by reference in
the Prospectus. If so directed by the Company, each Holder will deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable
Securities that was current at the time of receipt of such notice. In the event
the Company shall give any such notice, the time period regarding the
effectiveness of such Registration Statement set forth in Section 3 or 4
hereof, as applicable, shall be extended by the number of days during the
period from and including the date of the giving of such notice pursuant to
Section 7(c)(iv)(D) hereof or notice of any Suspension Period to and including
the date when each selling Holder covered by such Registration Statement shall
have received the copies of the supplemented or amended Prospectus contemplated
by Section 7(c)(xvii) hereof or shall have received the Advice; provided, however, that no such extension
shall be taken into account in determining whether Additional Interest is due
pursuant to Section 5 hereof or the amount of such Additional Interest, it
being agreed that the Company’s option to suspend use of a Registration
Statement pursuant to this paragraph shall be treated as a Registration Default
for purposes of Section 5 hereof.

          SECTION
8. Registration
Expenses.

          (a)
All expenses incident to the Company’s and the Guarantors’ performance of or
compliance with this Agreement will be borne by the Company and the Guarantors
regardless of whether a Registration Statement becomes or is declared
effective, including, without limitation: (i) all registration and filing fees
and expenses (including filings made by any Initial Purchaser or Holder with
the FINRA (and, if applicable, the fees and expenses of any “qualified
independent underwriter” and its counsel that may be required by the rules and
regulations of the FINRA)); (ii) all fees and expenses of compliance with
federal securities and state securities or blue sky laws; (iii) all expenses of
printing (including printing certificates for the Exchange Securities to be
issued in the Exchange Offer and printing of Prospectuses), messenger and
delivery services and telephone; (iv) all fees and disbursements of counsel for
the Company and, subject to Section 8(b) hereof, the Holders of Registrable
Securities; (v) application and filing fees in connection with listing the
Securities on a securities exchange or automated quotation system pursuant to
the requirements thereof; and (vi) all fees and disbursements of independent
certified public accountants of the Company (including the expenses of any
special audit and comfort letters required by or incident to such performance).

          The
Company will, in any event, bear its internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expenses of any annual audit and the fees and
expenses of any Person, including special experts, retained by the Company.

          (b)
In connection with any Shelf Registration Statement required by this Agreement,
the Company and the Guarantors will reimburse the Initial Purchasers and the
Holders of Registrable Securities being registered pursuant to the Shelf
Registration Statement for the reasonable fees and disbursements of not more
than one counsel, who shall be Cahill Gordon & Reindel LLP or such other counsel as may be chosen
by the Holders of a majority in principal amount of the Registrable Securities
for whose benefit such Registration Statement is being prepared.

          SECTION
9. Indemnification.

          (a)
The Company and the Guarantors agree to indemnify and hold harmless (i) each
Holder and (ii) each Person, if any, who controls (within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder (any
of the Persons referred to in this clause (ii) being hereinafter referred to as
a “controlling person”) and (iii) the respective officers, directors, partners,
employees, 

-13-

representatives
and agents of any Holder or any controlling person (any Person referred to in
clause (i), (ii) or (iii) may hereinafter be referred to as an “Indemnified
Holder”), to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, judgments, actions and expenses (including,
without limitation, and as incurred, reimbursement of all reasonable costs of
investigating, preparing, pursuing, settling, compromising, paying or defending
any claim or action, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, including the reasonable fees and
expenses of counsel to any Indemnified Holder), joint or several, directly or
indirectly caused by, related to, based upon, arising out of or in connection
with any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement or Prospectus (or any amendment or supplement
thereto), or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in
the case of any Prospectus, in the light of the circumstances under which they
were made), not misleading, except insofar as such losses, claims, damages,
liabilities or expenses are caused by an untrue statement or omission or
alleged untrue statement or omission that is made in reliance upon and in conformity
with information relating to any of the Holders furnished in writing to the
Company by or on behalf of any of the Holders expressly for use therein. This
indemnity agreement shall be in addition to any liability which the Company or
any Guarantor may otherwise have.

          In
case any action or proceeding (including any governmental or regulatory
investigation or proceeding) shall be brought or asserted against any of the
Indemnified Holders with respect to which indemnity may be sought against the
Company or any Guarantor, such Indemnified Holder (or the Indemnified Holder
controlled by such controlling person) shall promptly notify the Company in
writing; provided,
however, that the failure to give such notice shall not relieve any
of the Company or any Guarantor of its obligations pursuant to this Agreement.
Such Indemnified Holder shall have the right to employ its own counsel in any
such action and the reasonable fees and expenses of such counsel shall be paid,
as incurred, by the Company or any Guarantor (regardless of whether it is
ultimately determined that an Indemnified Holder is not entitled to
indemnification hereunder). The Company or any Guarantor shall not, in connection
with any one such action or proceeding or separate but substantially similar or
related actions or proceedings in the same jurisdiction arising out of the same
general allegations or circumstances, be liable for the reasonable fees and expenses
of more than one separate firm of attorneys (in addition to any local and/or
regulatory counsel) at any time for such Indemnified Holders, which firm shall
be designated by the Holders. The Company or any Guarantor shall be liable for
any settlement of any such action or proceeding effected with the Company’s
prior written consent, which consent shall not be unreasonably withheld or
delayed, and the Company or any Guarantor agree to indemnify and hold harmless
any Indemnified Holder from and against any loss, claim, damage, liability or
expense by reason of any settlement of any action effected with the written
consent of the Company. The Company or any Guarantor shall not, without the
prior written consent of each Indemnified Holder, settle or compromise or consent
to the entry of judgment in or otherwise seek to terminate any pending or
threatened action, claim, litigation or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not any Indemnified Holder
is a party thereto), unless such settlement, compromise, consent or termination
(i) includes a complete and unconditional release of each Indemnified Holder
from all liability arising out of such action, claim, litigation or proceeding
and (ii) does not include a statement as to or an admission of fault, culpability
or a failure to act, by or on behalf of any Indemnified Party.

          (b)
Each Holder of Registrable Securities agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantors, and its directors and
officers who sign a Registration Statement, and any Person controlling (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) the Company, the Guarantors, and the officers, directors, partners,
employees, representatives and agents of each such Person, to the same extent
as the foregoing indemnity from the Company and the Guarantors to each of the
Indemnified Holders, but only with respect to claims and actions 

-14-

based on
information relating to such Holder furnished in writing by or on behalf of
such Holder expressly for use in any Registration Statement. In case any action
or proceeding shall be brought against the Company, the Guarantors, or its
directors or officers or any such controlling person in respect of which
indemnity may be sought against a Holder of Registrable Securities, such Holder
shall have the rights and duties given to the Company, and the Company and the
Guarantors, their respective directors and officers and such controlling person
shall have the rights and duties given to each Holder by the preceding
paragraph. This indemnity agreement shall be in addition to any liability which
Holders may otherwise have.

          (c)
Reserved.

          (d)
If the indemnification provided for in this Section 9 is unavailable to an
indemnified party under Section 9(a) or (b) hereof (other than by reason of
exceptions provided in those Sections) in respect of any losses, claims,
damages, liabilities, judgments, actions or expenses referred to therein, then
each applicable indemnifying party, in lieu of indemnifying such indemnified
party, shall contribute to the amount paid or payable by such indemnified party
as a result of such losses, claims, damages, liabilities, judgments, actions or
expenses in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Guarantors, on the one hand, and the Holders,
on the other hand, from the Initial Placement (which in the case of the Company
shall be deemed to be equal to the total gross proceeds to the Company and the
Guarantors from the Initial Placement), the amount of Additional Interest which
did not become payable as a result of the filing of the Registration Statement
resulting in such losses, claims, damages, liabilities, judgments actions or
expenses, and such Registration Statement, or if such allocation is not
permitted by applicable law, the relative fault of the Company and the
Guarantors, on the one hand, and the Holders, on the other hand, in connection
with the statements or omissions which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative fault of the Company or the Guarantors, on the one
hand, and of the Indemnified Holder, on the other hand, shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company and the
Guarantors, on the one hand, or the Indemnified Holders, on the other hand, and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The amount paid or payable by
a party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the limitations set
forth in the second paragraph of Section 9(a) hereof, any legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim.

          The
Company, the Guarantors, and each Holder of Registrable Securities agree that
it would not be just and equitable if contribution pursuant to this Section
9(d) were determined by pro rata allocation (even if the Holders were treated
as one entity for such purpose) or by any other method of allocation which does
not take account of the equitable considerations referred to in the immediately
preceding paragraph. The amount paid or payable by an indemnified party as a
result of the losses, claims, damages, liabilities or expenses referred to in
the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 9, none of the
Holders (and its related Indemnified Holders) shall be required to contribute,
in the aggregate, any amount in excess of the amount by which the total
discount received by such Holder with respect to the Initial Securities exceeds
the amount of any damages which such Holder has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged omission.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. The Holders’
obligations to contribute pursuant to this Section 9(d) 

-15-

are several in
proportion to the respective principal amount of Initial Securities held by
each of the Holders hereunder and not joint.

          SECTION
10. Rule
144A. The Company and the Guarantors hereby agree with each Holder,
for so long as any Registrable Securities remain outstanding, to make available
to any Holder or beneficial owner of Registrable Securities in connection with
any sale thereof and any prospective purchaser of such Registrable Securities
from such Holder or beneficial owner, the information required by Rule
144A(d)(4) under the Securities Act in order to permit resales of such
Registrable Securities pursuant to Rule 144A under the Securities Act.

          SECTION
11. Participation
in Underwritten Registrations. No Holder may participate in any
Underwritten Registration hereunder unless such Holder (a) agrees to sell such
Holder’s Registrable Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all reasonable questionnaires,
powers of attorney, indemnities, underwriting agreements, lock-up letters and
other documents required under the terms of such underwriting arrangements.

          SECTION
12. Selection
of Underwriters. If requested by the Holders of a majority in
aggregate principal amount of the Registrable Securities covered by the Shelf
Registration Statement, the Holders of Registrable Securities covered by the
Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. In such Underwritten Offering, the investment
banker(s) and managing underwriter(s) that will administer such offering will
be selected by the Holders of a majority in aggregate principal amount of the
Registrable Securities included in such offering; provided, however, that such
investment banker(s) and managing underwriter(s) must be reasonably
satisfactory to the Company.

          SECTION
13. Miscellaneous.

          (a)
Remedies.
The Company and the
Guarantors hereby agree that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of this Agreement and hereby agree to waive the defense in any action for specific
performance that a remedy at law would be adequate.

          (b)
No
Inconsistent Agreements. The
Company and the Guarantors will not on or after the date of this Agreement
enter into any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders in this Agreement or otherwise conflicts
with the provisions hereof. The rights granted to the Holders hereunder do not
in any way conflict with and are not inconsistent with the rights granted to
the holders of the Company’s and the Guarantors’ securities under any agreement
in effect on the date hereof.

          (c)
Adjustments
Affecting the Securities. The Company and the Guarantors will not
take any action, or permit any change to occur, with respect to the Securities
that would materially and adversely affect the ability of the Holders to
Consummate any Exchange Offer.

          (d)
Amendments
and Waivers. The provisions of this Agreement may not be amended,
modified or supplemented, and waivers or consents to or departures from the
provisions hereof may not be given unless the Company and the Guarantors have
(i) in the case of Section 5 hereof and this Section 13(d)(i), obtained the
written consent of Holders of all outstanding Registrable Securities and (ii)
in the case of all other provisions hereof, obtained the written consent of
Holders of a majority of the outstanding principal amount of Registrable
Securities (excluding any Registrable Securities held by the Company or its
Affiliates). Notwithstanding the foregoing, a waiver or consent to departure
from the 

-16-

provisions
hereof that relates exclusively to the rights of Holders whose securities are
being tendered pursuant to the Exchange Offer and that does not affect directly
or indirectly the rights of other Holders whose securities are not being
tendered pursuant to such Exchange Offer may be given by the Holders of a
majority of the outstanding principal amount of Registrable Securities being
tendered or registered; provided, however,
that, with respect to any matter that directly or indirectly affects the rights
of any Initial Purchaser hereunder, the Company shall obtain the written
consent of each such Initial Purchaser with respect to which such amendment,
qualification, supplement, waiver, consent or departure is to be effective.

          (e)
Notices. All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail (registered or certified,
return receipt requested), facsimile, or air courier guaranteeing overnight
delivery:

	
  

 	
  

 
	
  

 	
           (i)
 if to a Holder, at the address set forth on the records of the Registrar
 under the Indenture, with a copy to the Registrar under the Indenture; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 if to the Company:

 
	
  

 	
  

 
	
  

 	
 Griffon Corporation

 712 Fifth Avenue, 18th Floor

 New York, NY 10019

 Facsimile: (212) 957-5096

 Attention: General Counsel

 
	
  

 	
  

 
	
  

 	
 With a copy to:

 
	
  

 	
  

 
	
  

 	
 Dechert LLP

 1095 Avenue of the Americas

 New York, NY 10036

 Facsimile: (212) 698-3599

 Attention: Martin Nussbaum

 

          All
such notices and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged,
if sent by facsimile; and on the next Business Day, if timely delivered to an
air courier guaranteeing overnight delivery.

          Copies
of all such notices, demands or other communications shall be concurrently
delivered by the Person giving the same to the Trustee at the address specified
in the Indenture.

          (f)
Successors
and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors and assigns of each of the parties, including, without
limitation, and without the need for an express assignment, subsequent Holders
of Registrable Securities; provided, however, that this Agreement
shall not inure to the benefit of or be binding upon a successor or assign of a
Holder unless and to the extent such successor or assign acquired Registrable
Securities from such Holder.

          (g)
Counterparts.
This Agreement may be executed in any number of counterparts (including
by facsimile or other method of electronic transmission) and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

-17-

          (h)
Headings.
The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

          (i)
Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAW
RULES THEREOF.

          (j)
Severability.
In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

          (k)
Entire
Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject
matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein with respect to
the registration rights granted by the Company with respect to the Registrable
Securities. This Agreement supersedes all prior agreements and understandings
between the parties with respect to such subject matter

          (l)
Third
Party Beneficiaries. Each Holder shall be a third party beneficiary
to the agreements made hereunder (excluding those agreements made in Section 6
hereto) between the Company and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent it deems such enforcement necessary or
advisable to protect its rights or the rights of other Holders hereunder.

[Signature Pages Follow]

-18-

          IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
written above.

	
  

 	
  

 	
  

 
	
  

 	
 GRIFFON
 CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
           /s/
 Thomas Gibbons

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Thomas
 Gibbons

 
	
  

 	
  

 	
 Title:
 Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 GUARANTORS

 
	
  

 	
  

 
	
  

 	
 CLOPAY
 BUILDING PRODUCTS COMPANY, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
           /s/
 Thomas Gibbons

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Thomas
 Gibbons

 
	
  

 	
  

 	
 Title:
 Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 PLASTIC PRODUCTS COMPANY, INC.

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
           /s/
 Thomas Gibbons

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Thomas
 Gibbons

 
	
  

 	
  

 	
 Title:
 Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 AMES TRUE
 TEMPER, INC.

 
	
  

 	
  

 
	
  

 	
 By:

 	
           /s/
 Thomas Gibbons

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Thomas
 Gibbons

 
	
  

 	
  

 	
 Title: Vice
 President and Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 TELEPHONICS
 CORPORATION

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
           /s/
 Dominick Nocera

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:
 Dominick Nocera

 
	
  

 	
  

 	
 Title:
 Senior Vice President and Chief Financial Officer

 

-19-

          The
foregoing Registration Rights Agreement is hereby confirmed and accepted as of
the date first above written:

DEUTSCHE BANK
SECURITIES INC. 

Acting on behalf of itself and as the Representative of the several Initial
Purchasers

	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ Chris Blum

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name: Chris
 Blum

 	
  

 
	
  

 	
 Title:
 Director

 	
  

 
	
  

 	
  

 	
  

 
	
 By:

 	
 /s/ David Lynch

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 Lynch

 	
  

 
	
  

 	
 Title:
 Managing Director

 	
  

 

-20-

SCHEDULE
1

Guarantors

	
  

 	
  

 	
  

 	
  

 
	
 Name

 	
  

 	
  

 	
 Jurisdiction
 of Incorporation 

 
	

 

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
 Clopay
 Building Products Company, Inc.

 	
  

 	
 Delaware

 
	
 Clopay
 Plastics Products Company, Inc.

 	
  

 	
 Delaware

 
	
 Telephonics
 Corporation

 	
  

 	
 Delaware

 
	
 Ames True
 Temper, Inc.

 	
  

 	
 Delaware

 

-21-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]