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EXHIBIT 4.10    
  

AMERICAN
RESTAURANT GROUP, INC.,

as obligor, 

THE
GUARANTORS REFERRED TO HEREIN,

as guarantors 

and 

BNY
WESTERN TRUST COMPANY,

as trustee 

SECOND
SUPPLEMENTAL INDENTURE 

Dated
as of October 31, 2001 

TO

INDENTURE 

Dated
as of February 25, 1998,

as amended and supplemented to date 

111/2%
Senior Secured Notes due 2006 

    SECOND SUPPLEMENTAL INDENTURE, dated as of October 31, 2001 (herein called the "Supplemental Indenture"), between AMERICAN
RESTAURANT GROUP, INC., a corporation duly organized and existing under the laws of Delaware and having its principal executive office at 4410 El Camino Real, Suite 201, Los Altos, California
94022 (hereinafter referred to as the "Company"), the Guarantors named herein and BNY WESTERN TRUST COMPANY, a California state banking corporation
(successor in interest to U.S. Trust Company National Association, formerly known as U.S. Trust Company of California, N.A.) (hereinafter referred to as the
"Trustee"), under the Indenture dated as of February 25, 1998, between the Company, the Guarantors and the Trustee, as amended by the First
Supplemental Indenture, dated as of June 26, 2000 (hereinafter referred to together as the "Original Indenture" and, collectively with this
Supplemental Indenture, the "Indenture"). 

    RECITALS 

    WHEREAS,
in accordance with Section 9.2 of the Original Indenture, the Company and the Trustee may enter into supplemental indentures to the Original Indenture with the consent
of the Holders of at least a majority of the principal amount of the then outstanding Notes to amend certain provisions of the Original Indenture; 

    WHEREAS,
the Holders of a majority of the principal amount of outstanding Notes have consented to amending the Original Indenture as set forth herein; 

    WHEREAS,
the Company desires to issue and establish the form and terms of a series of Notes under the Indenture to be designated as the "111/2% Series C Senior
Secured Notes due 2006" and to otherwise amend and supplement the Original Indenture in accordance with the terms thereof; and 

    WHEREAS,
the Company has determined that the requirements of the Original Indenture have been satisfied for itself, the Guarantors and the Trustee to enter into this Supplemental
Indenture, and has requested the Trustee, pursuant to the Officers' Certificate, to join with it in the execution and delivery of this Supplemental Indenture; all requirements necessary to make this
Supplemental Indenture a valid instrument in accordance with its terms have been met; and the execution and delivery hereof have been in all respects duly authorized; 

    NOW,
THEREFORE, for good and valuable consideration the sufficiency of which is hereby acknowledged, the Company covenants and agrees with the Trustee as follows: 

    ARTICLE
ONE

TERMS AND ISSUANCE OF THE NEW NOTES 

    SECTION
1.01.  Issuance and Designation.  (a) A series of New Notes which shall be designated as the
Company's "111/2% Series C Senior Secured Notes due 2006" is hereby duly established and shall be executed, authenticated and delivered in accordance with the provisions of, and
shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and this Supplemental Indenture. The aggregate principal amount at maturity of the Series C
Notes that may be authenticated and delivered under this Supplemental Indenture shall not, except as permitted by the provisions of the Original Indenture, exceed $166,000,000. 

    (b) A
series of New Notes which shall be designated as the Company's "111/2% Series D Senior Secured Notes due 2006" is hereby duly established
and shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of, the Original Indenture and
this Supplemental Indenture. The aggregate principal amount at maturity of the Series D Notes that may be authenticated and delivered under this Supplemental Indenture shall not, except as
permitted by the provisions of the Original Indenture, exceed the principal amount of the Series C Notes for which such Series D Notes are exchanged in an Exchange Offer. 

    (c) The
Trustee shall, upon a Company Order, authenticate for original issue up to $166,000,000 aggregate principal amount of Series C Notes and Series D
Notes. 

 

    SECTION 1.02.  Form and Other Terms of Notes; Incorporation of Terms.  The New Notes shall be issued in
global form, substantially in the form of Exhibit A attached hereto. The terms of such New Notes are herein incorporated by reference and
form a part of this Supplemental Indenture. Each New Note shall include the Guaranty executed by each of the Guarantors substantially in the form of Exhibit B  attached hereto. The terms of
such Guarantees are herein incorporated by reference and form a part of this Supplemental Indenture. 

    ARTICLE
TWO

AMENDMENTS TO TERMS OF THE ORIGINAL INDENTURE 

    SECTION
2.01.  Certain Definitions.  

    (a) Section 1.1
of the Original Indenture is hereby amended with respect to the New Notes only to add the following definitions in alphabetical order: 

    "Cash Equivalents" means (i) securities issued by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is pledged in support thereof), (ii) time deposits and certificates of deposit and commercial paper issued by the parent
corporation of any domestic commercial bank of recognized standing having capital and surplus in excess of $250,000,000 and commercial paper issued by others rated at least A-2 or the
equivalent thereof by Standard & Poor's Corporation or at least P-2 or the equivalent thereof by Moody's Investors Service, Inc. and in each case maturing within one year
after the date of acquisition and (iii) investments in money market funds substantially all of whose assets comprise securities of the types described in clauses (i) and
(ii) above. 

    "Closing Date" means the date upon which the Series C Notes are first issued. 

    "Eligible Credit Facility" means debt instruments (and any related notes, guarantees, collateral documents, instruments and agreements
executed therewith) that (i) have terms and conditions no more restrictive in the aggregate than the Senior Credit Facility, (ii) do not permit the Company to incur Indebtedness under
all Eligible Credit Facilities in the aggregate at any time outstanding in excess of $10 million principal amount and (iii) may be secured by certain assets of the Company and its
Subsidiaries, subject to the terms of the Intercreditor Agreement. 

    "Excess Cash Flow" means, with respect to the Company and its Subsidiaries, for any period, without duplication,
(a) Consolidated EBITDA of the Company and its Subsidiaries, minus (b) the sum of (i) the provision for taxes based on income or
profits of the Company and its Subsidiaries for such period, to the extent that such provision for taxes was included in computing Consolidated Net Income, (ii) the consolidated interest
expense of the Company and its Subsidiaries for such period to the extent that such expense was deducted in computing Consolidated Net Income (including amortization of original issue discount, the
interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, and commissions, discounts and other fees and charges incurred
in respect of letter of credit or bankers' acceptance financing, but excluding amortization of deferred financing fees), (iii) Consolidated Capital Expenditures (as defined by U.S. GAAP) that
are paid in cash other than from the proceeds of Capital Lease Obligations or Purchase Money Obligations, (iv) payments for closed facilities that are not reflected in Consolidated EBITDA and
(v) principal payments on the Notes or any other Indebtedness of the Company (including payments of amounts under the Senior Credit Facility)." 

    "Exchange Offer" means the offer that may be made by the Company pursuant to the Registration Rights Agreement to exchange
Series D Notes for Series C Notes. 

    "Existing Holders" shall mean the holders of the Common Stock and Senior Pay-in-Kind Preferred Stock of the
Company on the Closing Date, TCW or any of their affiliates. 

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    "Net Proceeds" means the aggregate proceeds received in the form of cash or Cash Equivalents in respect of any Asset Sale (including
payments in respect of deferred payment obligations when received), net of (i) the reasonable and customary direct out-of-pocket costs relating to such Asset Sale
(including, without limitation, legal, accounting and investment banking fees and sales commissions), other than any such costs payable to an Affiliate of the Company, (ii) taxes actually
payable directly as a result of such Asset Sale in the taxable year that such sale is consummated or in the immediately succeeding taxable year (after taking into account any available tax credits or
deductions and any tax sharing arrangements, and similar tax attributes), (iii) amounts required to be applied to the permanent repayment of Indebtedness in connection with such Asset Sale, and
(iv) appropriate amounts provided as a reserve by the Company or any Restricted Subsidiary, in accordance with GAAP, against any liabilities associated with such Asset Sale and retained by the
Company or such Restricted Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities, liabilities related
to environmental matters and liabilities under any indemnification obligations arising from such Asset Sale. 

    "New Notes" means, collectively, the Series C Notes and the Series D Notes, and any additional Notes issued pursuant to
this Indenture. 

    "Purchase Money Obligations" means Indebtedness (other than Capital Lease Obligations) representing, or incurred to finance, the cost
(i) of acquiring or improving any assets; and (ii) of construction or build-out of operating or administrative facilities (including Purchase Money Obligations of any other
Person at the time such other Person is merged with or into or is otherwise acquired by the Company), provided, that (a) the principal amount of
such Indebtedness does not exceed 100% of such cost, including construction charges, (b) any Lien securing such Indebtedness does not extend to or cover any other asset or property other than
the asset or property being so acquired or improved and (c) such Indebtedness is incurred, and any Liens with respect thereto are granted, within 180 days of the acquisition or
improvement of such property or asset. 

    "Senior Credit Facility" means the Senior Credit Facility, entered into on February 25, 1998, as amended on June 28, 2000
and September 7, 2001, between the Company, certain of its Subsidiaries, the lenders named therein and the agent for such Lenders as the same may be amended, modified, renewed,
refunded, replaced or refinanced from time to time, including (i) any related notes, letters of credit, guarantees, collateral documents, instruments and agreements executed in connection
therewith, and in each case as amended, modified, renewed, refunded, replaced or refinanced from time to time; and (ii) any notes, guarantees, collateral documents, instruments and agreements
executed in connection with such amendment, modification, renewal, refunding, replacement or refinancing. 

    "Series C Notes" means the Company's 111/2% Series C Senior Secured Notes due 2006, as authenticated and
issued under this Indenture. 

    "Series D Notes" means the Company's 111/2% Series D Senior Secured Notes due 2006, as authenticated and
issued under this Indenture. 

    (b) Section 1.1
of the Original Indenture is hereby amended with respect to the New Notes only to delete the following definitions: 

	(i)
	"New
Credit Facility"; and

	(ii)
	"Permitted
Tax Payments to Holdings." 

3

 

    (c) Section 1.1
of the Original Indenture is hereby amended with respect to the New Notes and the Existing Notes as follows: 

	(i)
	the
definition of "Notes" shall be amended in its entirety to read as follows: 

    "Notes" means, collectively, the Series A Notes, the Series B Notes, the Series C Notes, the Series D Notes
and any additional Notes issued pursuant to the Indenture. 

	(ii)
	the
following definitions will be added in the appropriate alphabetical order: 

    "Existing Notes" means the Company's Series A and Series B 111/2% Senior Secured Notes Due 2003. 

    (d) For
all purposes of this Supplemental Indenture: 

	(i)
	capitalized
terms used herein without definition shall have the meanings specified in the Original Indenture;

	(ii)
	all
references herein to Articles and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of the Original
Indenture;

	(iii)
	the
terms "herein", "hereof", "hereunder" and other words of similar import refer to this Supplemental Indenture; and

	(iv)
	in
the event of a conflict between any definition, term or provision set forth in the Original Indenture and any definition, term or provision set
forth in this Supplemental Indenture, the definition, term or provision set forth in this Supplemental Indenture shall control, provided that any such conflicting definition, term or provision shall
not be deemed to be amended with respect to any other series of Notes issued under the Original Indenture. 

    SECTION
2.02.  Amendments.  

    Section 2.2
of the Original Indenture is hereby amended in its entirety, with respect to all series of Notes, to read as follows: 

    "Section 2.2
Amount Unlimited; Issuable in Series; Execution and Authentication. 

    (a) The
aggregate principal amount of Series A Notes and Series B Notes outstanding at any time may not exceed $158,600,000, except as provided in
Section 2.7 hereof. 

    (b) Subject
to Section 4.9, the aggregate principal amount of Notes that may be authenticated and delivered under this Indenture is unlimited. 

    The
Notes may be issued in one or more series and the Notes of each such series shall rank equally and pari passu with the Notes of
each other series. There shall be established in or pursuant to one or more resolutions of the Board of Directors (each, a "Board Resolution") (and, to
the extent established pursuant to rather than set forth in a Board Resolution, in an Officers' Certificate detailing such establishment) or established in one or more indentures supplemental hereto,
prior to the initial issuance of Notes of any series: 

    (1) the
designation of the Notes of the series, which shall distinguish the Notes of such series from the Notes of all other series; 

    (2) any
limit upon the aggregate principal amount of the Notes of the series that may be authenticated and delivered under this Indenture (except for Notes
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes of the series pursuant to Section 2.6, 2.7, 2.10 or 3.6); 

    (3) the
date or dates on which the principal of the Notes of the series is payable; 

4

 

    (4) the rate or rates at which Notes of the series shall bear interest, if any, the date or dates from which any such interest shall accrue, on which any such interest
shall be payable and on which a record shall be taken for the determination of Holders to whom any such interest is payable or the method by which such rate or rates or date or dates shall be
determined or both; 

    (5) the
place or places where and the manner in which the principal of, premium, if any, and interest, if any, on Notes of the series shall be payable (if other than as
provided in Section 4.1) and the office or agency for the Notes of the series maintained by the Company pursuant to Section 4.2; 

    (6) the
right, if any, of the Company to redeem, purchase or repay Notes of the series, in whole or in part, at its option and the period or periods within which, the
price or prices (or the method by which such price or prices shall be determined or both) at which, the form of method of payment therefor if other than in cash and any terms and conditions upon which
and the manner in which (if different from the provisions of Article 3) Notes of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation; 

    (7) the
obligation, if any, of the Company to redeem, purchase or repay Notes of the series in whole or in part pursuant to any mandatory redemption, sinking fund or
analogous provision or at the option of
a Holder thereof and the period or periods within which the price or prices (or the method by which such price or prices shall be determined or both) at which, the form or method of payment therefor
if other than in cash and any terms and conditions upon which and the manner in which (if different from the provisions of Article 3) Notes of the series shall be redeemed, purchased or repaid,
in whole or in part, pursuant to such obligations; 

    (8) if
other than denominations of $1,000 and any integral multiple thereof, the denominations in which Notes of the series shall be issuable; 

    (9) if
other than the principal amount thereof, the portion of the principal amount of Notes of the series that will be payable upon acceleration of the maturity
thereof; 

    (10) whether
Notes of the series will be issuable as Global Notes; 

    (11) if
the Notes of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Note of such series) only upon
receipt of certain certificates or other documents or satisfaction of other conditions (other than as provided in Section 2.6), the form and terms of such certificates, documents or conditions; 

    (12) any
trustees, depositaries, authenticating or paying agents, transfer agents or registrars or any other agents with respect to the Notes of such series; 

    (13) any
deleted, modified or additional events of default or remedies or any deleted, modified or additional covenants with respect to the Notes of such series; 

    (14) any
provision relating to the issuance of Notes of such series at an original issue discount (including, without limitation, the issue price thereof, the rate or
rates at which such original issue discount shall accrete, if any, and the date or dates from or to which or period or periods during which such original issue discount shall accrete at such rate or
rates); 

    (15) if
other than U.S. dollars, the foreign currency in which payment of the principal of, premium, if any, and interest, if any, on the Notes of such series shall be
payable; 

    (16) if
the amounts of payments of principal of, premium, if any, and interest, if any, on the Notes of such series are to be determined with reference to an index, the
manner in which such amounts shall be determined; 

    (17) the
terms for conversion or exchange, if any, with respect to the Notes of such series; and 

5

 

    (18) any other terms of the series. 

    All
New Notes of any one series shall be substantially identical, except as to denomination and except as may otherwise be provided by or pursuant to the Board Resolution or Officers'
Certificate referred to above or as set forth in any such indenture supplemental hereto. All Notes of any one series need not be issued at the same time and may be issued from time to time, consistent
with the terms of this Indenture, if so provided by or pursuant to such Board Resolution, such Officers' Certificate or in any such indenture supplemental hereto. 

    Any
such Board Resolution or Officers' Certificate referred to above with respect to Notes of any series filed with the Trustee on or before the initial issuance of the New Notes of
such series shall be incorporated herein by reference with respect to Notes of such series as fully as if such Board Resolution or Officers' Certificate were set forth herein in full. 

    (b) Two
Officers shall sign the Notes for the Company by manual or facsimile signature. If an Officer whose signature is on a Note no longer holds that office at the
time the Note is authenticated, the Note shall nevertheless be valid. 

    A
Note shall not be valid until authenticated by the manual signature of the Trustee. The signature of the Trustee shall be conclusive evidence that the Note has been authenticated
under this Indenture. The form of Trustee's certificate of authentication to be borne by the Notes shall be substantially as set forth in Exhibit A attached hereto. 

    The
Trustee may appoint an authenticating agent acceptable to the Company to authenticate Notes. Unless limited by the terms of such appointment, an authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authenticating by the Trustee includes authenticating by such agent. An authenticating agent has the same rights
as an Agent to deal with the Company or an Affiliate of the Company. 

    The
Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name any Note is registered as the owner of such Note for the purpose of receiving
payment of principal of and (subject to the provisions of this Indenture and the Notes with respect to record dates) interest on such Note and for all other purposes whatsoever, whether or not such
Note is overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

    Except
as set forth in the next sentence, the Notes will initially be issued in the form of one or more registered global Notes that will be deposited on the Closing Date with, or on
behalf of, the Depository and registered in the name of the global Holder. Notes that are originally issued to or transferred to an institutional "accredited investor" (within the meaning of
Rule 501 under the Securities Act) who is not a "qualified institutional buyer" (within the meaning of Rule 144A (a "QIB") or to any other persons who are not QIBs shall be issued in the
form of certificated Notes in registered form substantially in the form set forth in Exhibit A." 

    Section 2.6(h)
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "(h) Exchange of Series C Notes for Series D Notes. The Series C Notes may be exchanged for
Series D Notes pursuant to the terms of the Exchange Offer. The Trustee and Registrar shall make the exchange as follows: 

    The
Company shall present the Trustee with an Officers' Certificate certifying the following: 

	(A)
	upon
issuance of the Series D Notes, the transactions contemplated by the Exchange Offer have been consummated; and 

6

 

	(B)
	the
principal amount of Series C Notes properly tendered in the Exchange Offer that are represented by a Global Note and the principal amount of Series C Notes
properly tendered in the Exchange Offer that are represented by Definitive Notes, the name of each Holder of such Definitive Notes, the principal amount at maturity properly tendered in the Exchange
Offer by each such Holder and the name and address to which Definitive Notes for Series D Notes shall be registered and sent for each such Holder. 

    The
Trustee, upon receipt of (i) such Officers' Certificate, (ii) an Opinion of Counsel to the effect that the Series D Notes have been registered under
Section 5 of the Securities Act and the Indenture has been qualified under the TIA and (iii) a Company Order, shall authenticate (A) a Global Note for Series D Notes in an
aggregate principal amount equal to the aggregate principal amount of Series C Notes represented by a Global Note indicated in such Officers' Certificate as having been properly tendered and
(B) Definitive Notes representing Series D Notes registered in the names of, and in the principal amounts indicated in such Officers' Certificate. 

    If
the principal amount of the Global Note for the Series D Notes is less than the principal amount of the Global Note for the Series C Notes, the Trustee shall make an
endorsement on such Global Note for Series C Notes indicating a reduction in the principal amount represented thereby. 

    The
Trustee shall deliver such Definitive Notes for Series D Notes to the Holders thereof as indicated in such Officers' Certificate." 

    Section 2.13
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 2.13  Legends.  

    (a) Except
as permitted by subsections (b) or (c) hereof, each Note shall bear legends relating to restrictions on transfer pursuant to the securities
laws in substantially the form set forth on Exhibit A attached hereto. 

    (b) Upon
any sale or transfer of a Restricted Security (including any Restricted Security represented by a Global Note) pursuant to Rule 144 under the Securities
Act or pursuant to an effective registration statement under the Securities Act: 

    in
the case of any Restricted Security that is a Definitive Note, the Registrar shall permit the Holder thereof to exchange such Restricted Security for a Definitive Note that does
not bear the legends required by subsection (a) above; and 

    in
the case of any Restricted Security represented by a Global Note, such Restricted Security shall not be required to bear the legends required by subsection (a) above, but
shall continue to be subject to the provisions of Section 2.6(c) hereof; provided, that with respect to any request for an exchange of a
Restricted Security that is represented by a Global Note for a Definitive Note that does not bear the
legends required by subsection (a) above, which request is made in reliance upon Rule 144, the Holder thereof shall certify in writing to the Registrar that such request is being made
pursuant to Rule 144. 

    (c) The
Company (and the Guarantors) shall issue and the Trustee shall authenticate Series D Notes in exchange for Series C Notes accepted for exchange in
the Exchange Offer. The Series D Notes shall not bear the legends required by subsection (a) above unless the Holder of such Series C Notes is either (A) a broker-dealer
who purchased such Series C Notes directly from the Company to resell pursuant to Rule 144A or any other available exemption under the Securities Act, (B) a Person participating
in the distribution of the Series C Notes or (C) a Person who is an affiliate (as defined in Rule 144A) of the Company." 

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    (d) Any request to remove any legend relating to restrictions on transfer pursuant to the securities laws or otherwise shall be accompanied by an opinion of counsel,
reasonably acceptable to the Company and the Trustee, to the effect that such transfer and reissuance of such securities without such legend is in compliance with the Securities Act. 

    Section 3.7
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 3.7  Optional Redemption.  

    (a) Except
as set forth in Section 3.7(b), the New Notes are not redeemable at the Company's option prior to November 1, 2004. Thereafter, the New Notes
will be subject to redemption at the option of the Company, in whole or in part, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid
interest thereon, if any, and Liquidated Damages, if any, to the applicable redemption date, if redeemed during the 12-month period beginning on November 1 of the years indicated
below: 

	Year
 
	 	Percentage
	 
	2004	 	105.750	%
	2005 and thereafter	 	100.000	%

    (b) Notwithstanding
the foregoing, at any time or from time to time prior to November 1, 2004, the Company may, at its option, redeem up to 35% of the original
principal amount of the New Notes, at a redemption price of 111.500% of the principal amount thereof, plus accrued and unpaid interest, if any, and Liquidated Damages, if any, to the applicable
redemption date, (i) with the net cash proceeds of one or more Qualified Equity Offerings; provided, that (A) such redemption shall occur
within 60 days of the date of closing of such public offering and (B) at least 65% of the original aggregate principal amount of New Notes remains outstanding immediately after giving
effect to each such redemption or (ii) after the consummation of any merger with another corporation whose common stock, after the consummation of such transaction, is admitted for quotation on
the Nasdaq National Market (or any successor thereto) or listed on a national securities exchange." 

    Section 4.7
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.7  Limitation on Restricted Payments.  

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

    (i)  declare
or pay any dividend or make any distribution on account of any Equity Interests of the Company or any of its Restricted Subsidiaries (other than
(x) dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Company or (y) dividends or distributions payable to the Company or any Restricted
Subsidiary or (z) if the Subsidiary making such dividend or distribution is not a Wholly Owned Subsidiary, dividends to its shareholders on a pro rata  basis), 

    (ii) purchase,
redeem or otherwise acquire or retire for value any Equity Interest of the Company, any Subsidiary or any other Affiliate of the Company (other than any
such Equity Interest owned by the Company or any Wholly Owned Subsidiary), 

    (iii) make
any principal payment on, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness of the Company or any Guarantor that is
subordinated in right of payment to the Notes or such Guarantor's Guarantee thereof, as the case may be, 

8

 

    (iv) make any Restricted Investment, or 

    (v) make
any payment or transfer any assets to, or on behalf of, Holdings or any of its Affiliates 

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

    (1) no
Default or Event of Default has occurred and is continuing or would occur as a consequence thereof, 

    (2) immediately
after giving effect thereto on a pro forma basis, the Company could incur at least $1.00 of additional
Indebtedness under Section 4.9(a) hereof, and 

    (3) such
Restricted Payment (the value of any such payment, if other than cash, being determined in good faith by the Board of Directors and evidenced by a resolution
set forth in an Officers' Certificate delivered to the Trustee), together with the aggregate of all other Restricted Payments made after the date of this Indenture (including Restricted Payments
permitted by clauses (i), (iv) (to the extent made in cash) and (v) of Section 4.7(b) and excluding Restricted Payments permitted by the other clauses therein), is less than the
sum of (x) 50% of the Consolidated Net Income of the Company for the period (taken as one accounting period) from the beginning of the first quarter commencing immediately after the Closing
Date to the end of the Company's most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income
for such period is a deficit, 100% of such deficit), plus (y) 100% of the aggregate net cash proceeds (or of the net cash proceeds received upon the conversion of non-cash proceeds
into cash) received by the Company from the issuance or sale, other than to a Subsidiary, of Equity Interests of the Company (other than Disqualified Stock) after the date of this Indenture and on or
prior to the time of such Restricted Payment, plus (z) 100% of the aggregate net cash proceeds (or of the net cash proceeds received upon the conversion of non-cash proceeds into
cash) received by the Company from the issuance or sale, other than to a Subsidiary, of any convertible or exchangeable debt security of the Company that has been converted or exchanged into Equity
Interests of the Company (other than Disqualified Stock) pursuant to the terms thereof after the date of this Indenture and on or prior to the time of such Restricted Payment (including any additional
net cash proceeds not included in clause (y) above received by the Company upon such conversion or exchange). The aggregate amount of each Investment constituting a Restricted Payment since the
date hereof shall be reduced by the aggregate after-tax amount of all payments made to the Company and its Restricted Subsidiaries with respect to such Investments; provided, that
(a) the maximum amount of such payments shall not exceed the original amount of such Investment and (b) such payments shall also be excluded from the calculations contemplated by clauses
(3)(x) through (z) of this Section 4.7. 

    Notwithstanding
anything herein to the contrary, the Company shall not declare or pay any cash dividends on its existing Senior Pay-in-Kind Preferred Stock
(the "Preferred Stock"); provided however,
the Company may declare or pay dividends on its Preferred Stock in additional shares of Preferred Stock in accordance with its terms. 

    (b) The
provisions of subsection (a) above shall not prohibit: 

    (i)  the
payment of any dividend within 60 days after the date of declaration thereof, if at said date of declaration such payment would not have been prohibited
by the provisions of this Indenture, 

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    (ii) the redemption, purchase, retirement or other acquisition of any Equity Interests of the Company or Indebtedness of the Company or any Restricted Subsidiary solely
in exchange for Equity Interests of the Company (other than Disqualified Stock), 

    (iii) the
redemption, repurchase or payoff of any Indebtedness with proceeds of any Refinancing Indebtedness permitted to be incurred pursuant to the provisions of
Section 4.9(b)(xii) hereof, 

    (iv) the
redemption of the Preferred Stock with the proceeds of a Qualified Equity Offering, 

    (v) Permitted
Affiliate Transactions, 

    (vi) Preferred
Stock Repurchases, 

    (vii) the
TCW Tax Payments, 

    (viii)  payments
of dividends on Disqualified Stock issued in accordance with Section 4.9(a) hereof, or 

    (ix) other
Restricted Payments in an aggregate amount not to exceed $2.0 million. 

    (c) Not
later than the date of making each Restricted Payment (other than Restricted Payments contemplated by Section 4.7(b)), the Company shall deliver to the
Trustee an Officers' Certificate stating that such Restricted Payment is permitted, and setting forth the basis upon which the calculations required by this Section 4.7 were computed, which
calculations may be based upon the Company's latest available financial statements." 

    Section 4.8
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.8  Limitation on Restrictions on Subsidiary Dividends.  

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

    (a) to
(1) pay dividends or make any other distributions to the Company or any of its Restricted Subsidiaries (A) on such Restricted Subsidiary's Capital
Stock or (B) with respect to any other interest or participation in, or measured by, such Restricted Subsidiary's profits or (2) pay any indebtedness owed to the Company or any of its
Restricted Subsidiaries, or 

    (b) to
make loans or advances to the Company or any of its Restricted Subsidiaries, or 

    (c) to
transfer any of its assets to the Company or any of its Restricted Subsidiaries, 

except
for such encumbrances or restrictions existing under or by reason of: 

    (i)  the
Senior Credit Facility, as in effect on the Closing Date, any Eligible Credit Facility (so long as such restrictions or encumbrances are no more restrictive
than those as in effect in the Senior Credit Facility on the Closing Date) or any refinancings, amendments, modifications or supplements thereof containing dividend or other payment restrictions that
are not materially more restrictive than those contained in the Senior Credit Facility on the Closing Date, 

    (ii) this
Indenture, the Security Documents and the Notes, 

    applicable
law, 

    restrictions
with respect to a Subsidiary that was not a Subsidiary on the Closing Date in existence at the time such Person becomes a Subsidiary (but not created as a result of or in 

10

 

anticipation of such Person becoming a Subsidiary); provided, that such restrictions are not applicable to any other Person or the properties or assets of any other Person, 

    customary
non-assignment and net-worth provisions of any contract or lease entered into in the ordinary course of business, 

    customary
restrictions on the transfer of assets subject to a Lien permitted under this Indenture imposed by the holder of such Lien, 

    restrictions
imposed by any agreement to sell assets or Capital Stock to any Person pending the closing of such sale, and 

    (viii)  permitted
Refinancing Indebtedness (including Indebtedness Refinancing Acquired Debt), provided,  that such restrictions contained in any agreement governing such Refinancing Indebtedness are not materially more
restrictive than those contained in any agreements governing
the Indebtedness being Refinanced." 

    Section 4.9
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.9  Limitation on Incurrence of Indebtedness.  

    (a) The
Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly, (1) create, incur, issue, assume, guaranty or
otherwise become directly or indirectly liable with respect to, contingently or otherwise (collectively, "incur"), any Indebtedness (including Acquired Debt) or (2) issue any Disqualified
Stock; provided, that the Company may incur Indebtedness (including Acquired Debt) or issue shares of Disqualified Stock and any Restricted Subsidiary
may incur Acquired Debt, in each case if (x) no Default or Event of Default shall have occurred and be continuing at the
time of, or would occur after giving effect on a pro forma basis to such incurrence or issuance, and (y) the Interest Coverage Ratio for the
Company's most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock is issued would have been at least equal to 2:1, determined on a pro forma basis (including a pro forma  application of the net proceeds
therefrom), as if the additional Indebtedness (including Acquired Debt) had been incurred, or the Disqualified Stock had been issued, as the
case may be, at the beginning of such four-quarter period. 

    (b) The
limitations of Section 4.9(a) shall not prohibit the incurrence of: 

    (i)  Indebtedness
under the Senior Credit Facility or an Eligible Credit Facility, provided, that the aggregate
principal amount of Indebtedness so incurred on any date, together with all other Indebtedness incurred pursuant to this clause (i) and outstanding on such date, shall not exceed
$20 million, 

    (ii) performance
bonds, appeal bonds, surety bonds, insurance obligations or bonds and other similar bonds or obligations incurred in the ordinary course of business, 

    (iii) obligations
incurred to fix the interest rate on any variable rate Indebtedness otherwise permitted by this Indenture ("Hedging
Obligations"), 

    (iv) Indebtedness
owed by (1) a Restricted Subsidiary to the Company or to a Wholly Owned Subsidiary or (2) the Company to a Wholly Owned Subsidiary, 

    (v) Indebtedness
outstanding on the date of this Indenture, including the New Notes, the Guarantees thereof, the Existing Notes and any Guarantees thereof and any
Series D Notes issued in an Exchange Offer and any Guarantees thereof, 

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

11

 

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

    (vii) Indebtedness
represented by Guarantees by the Company of Indebtedness otherwise permitted to be incurred pursuant to this covenant and Indebtedness represented by
Guarantees by a Restricted Subsidiary of Indebtedness of the Company or another Restricted Subsidiary otherwise permitted to be Incurred pursuant to this covenant; 

    (viii)  obligations
with respect to customary provisions regarding post-closing purchase price adjustments and indemnification in agreements
for the purchase or sale of a business or assets otherwise permitted by the Indenture; 

    (ix) the
incurrence by the Company or any Guarantor of Capital Lease Obligations after the Closing Date or Indebtedness under an Eligible Credit Facility after the
Closing Date; provided, that the aggregate amount of such Indebtedness incurred and outstanding at any time pursuant to this clause (ix) (plus
any Refinancing Indebtedness used to retire, defease, refinance, replace or refund such Indebtedness) shall not exceed $5.0 million; 

    (x) the
incurrence by the Company or any Guarantor of any Purchase Money Obligations; 

    (xi) other
Indebtedness in an aggregate principal amount at any one time outstanding not to exceed $5.0 million; and 

    (xii) Indebtedness
issued in exchange for, or the proceeds of which are contemporaneously used to extend, refinance, renew, replace, or refund (collectively,
"Refinance") Indebtedness referred to in clause (v) above or this clause (xii) or Indebtedness incurred pursuant to the Interest Coverage
Ratio test set forth in Section 4.9(a) hereof ("Refinancing Indebtedness"); provided, that
(A) the principal amount of such Refinancing Indebtedness does not exceed the principal amount of Indebtedness so Refinanced (plus the premiums required to be paid, and the
out-of-pocket expenses (other than those payable to an Affiliate of the Company) reasonably incurred, in connection therewith), (B) the Refinancing Indebtedness has a
final scheduled maturity that exceeds the final stated maturity, and a Weighted Average Life to Maturity that is equal to or greater than the Weighted Average Life to Maturity of the Indebtedness
being Refinanced, and (C) the Refinancing Indebtedness ranks, in right of payment, no more favorable to the Notes as the Indebtedness being Refinanced." 

    Section 4.10
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.10  Limitation on Asset Sales.  

    The
Company shall not, and shall not permit any Restricted Subsidiary to, make any Asset Sale unless (i) the Company or such Restricted Subsidiary receives consideration at the
time of such Asset Sale at least equal to the fair market value (as determined in good faith by the Board of Directors as evidenced by a resolution of the Board of Directors set forth in an Officers'
Certificate delivered to the Trustee) of the assets subject to such Asset Sale, (ii) at least 75% of the consideration for such Asset Sale is in the form of cash, Cash Equivalents or
liabilities of the Company or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the New Notes or any Guarantee of the New Notes) that are assumed by the
transferee of such assets (provided, that following such Asset Sale there is no further recourse to the Company and its Restricted Subsidiaries with
respect to such liabilities), and (iii) within 12 months of such Asset Sale, the Net Proceeds thereof are (a) invested in assets related to the business of the Company or its
Restricted Subsidiaries, or (b) used to repay, purchase or otherwise acquire Indebtedness under the Senior Credit Facility or (c) to the extent not used as provided in clause (a)
or (b), applied to make an offer to purchase New Notes as described below (an "Excess Proceeds Offer"); provided,  that if the amount of Net Proceeds from
any Asset Sale 

12

 

not invested or used pursuant to clause (a) or (b) above is less than $5.0 million, the Company shall not be required to make an offer pursuant to clause (c) until the
aggregate amount of Excess Proceeds from all Asset Sales exceeds $5.0 million. Pending the final application of any such Net Proceeds, the Company or any Restricted Subsidiary may temporarily
reduce Indebtedness under the Senior Credit Facility or temporarily invest such Net Proceeds in Cash Equivalents. 

    For
the purposes of this covenant, the following are deemed to be cash: (y) securities received by the Company or any Restricted Subsidiary from the transferee that are
promptly converted by the Company or such Restricted Subsidiary into cash and (z) assets related to the business of the Company or its Restricted Subsidiaries received in an exchange of assets
transaction; provided that (i) in the event such exchange of assets transaction or series of related exchange of assets transactions (each an "Exchange
Transaction") involves an aggregate value in excess of $2.5 million, the terms of such Exchange Transaction shall have been approved by a majority of the disinterested
members of the Board of Directors, (ii) in the event such Exchange Transaction involves an aggregate value in excess of $5.0 million, the Company shall have received a written opinion
from a nationally recognized independent investment banking firm that the Company has received consideration equal to the fair market value of the assets disposed of and (iii) any assets to be
received shall be comparable to those being exchanged as determined in good faith by the Board of Directors. 

    The
amount of Net Proceeds not invested, used or applied as set forth in the preceding clauses (a) and (b) constitutes "Excess
Proceeds." If the Company elects, or becomes obligated to make an Excess Proceeds Offer, the Company shall offer to purchase New Notes having an aggregate principal amount
equal to the Excess Proceeds (the "Purchase Amount"), at a purchase price equal to 100% of the aggregate principal amount thereof, plus accrued and
unpaid interest, if any, and Liquidated Damages, if any, to the purchase date. The Company must commence such Excess Proceeds Offer not later than 30 days after the expiration of the
12-month period following the Asset Sale that produced Excess Proceeds. If the aggregate purchase price for the New Notes tendered pursuant to the Excess Proceeds Offer is less than the
Excess Proceeds, the Company and its Restricted Subsidiaries may use the portion of the Excess Proceeds remaining after payment of such purchase price for general corporate purposes, including
Preferred Stock Purchases. 

    Each
Excess Proceeds Offer shall remain open for a period of 20 Business Days and no longer, unless a longer period is required by law (the "Excess Proceeds
Offer Period"). Promptly after the termination of the Excess Proceeds Offer Period (the "Excess Proceeds Payment Date"), the
Company shall purchase and mail or deliver payment for the Purchase Amount for the New Notes or portions thereof tendered, pro rata or by such other
method as may be required by law, or, if less than the Purchase Amount has been tendered, all New Notes tendered pursuant to the Excess Proceeds Offer. The principal amount of New Notes to be
purchased pursuant to an Excess Proceeds Offer may be reduced by the principal amount of New Notes acquired by the Company through purchase or redemption (other than pursuant to a Change of Control
Offer) subsequent to the date of the Asset Sale and surrendered to the Trustee for cancellation. 

    Each
Excess Proceeds Offer shall be conducted in compliance with all applicable laws, including without limitation, Regulation 14E of the Exchange Act and the rules thereunder
and all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.10, the
Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.10 by virtue thereof. 

    The
Company shall, no later than 30 days following the expiration of the 12-month period following the Asset Sale that produced Excess Proceeds, commence the Excess
Proceeds Offer, if an Excess Proceeds Offer is required by the terms of this Indenture, by mailing to the Trustee and each Holder, at such Holder's last registered address, a notice, which shall
govern the terms of the Excess Proceeds Offer, and shall state: 

13

  

    that
the Excess Proceeds Offer is being made pursuant to this Section 4.10, the principal amount of New Notes which shall be accepted for payment and that all New Notes validly
tendered shall be accepted for payment on a pro rata basis; 

    the
purchase price and the date of purchase; 

    that
any New Notes not tendered or accepted for payment pursuant to the Excess Proceeds Offer shall continue to accrue interest and Liquidated Damages, if any; 

    that,
unless the Company defaults in the payment of the purchase price with respect to any New Notes tendered, New Notes accepted for payment pursuant to the Excess Proceeds Offer
shall cease to accrue interest and Liquidated Damages, if any, after the Excess Proceeds Payment Date; 

    that
Holders electing to have New Notes purchased pursuant to an Excess Proceeds Offer shall be required to surrender their New Notes, with the form entitled "Option of Holder to
Elect Purchase" on the reverse of the New Note completed, to the Company prior to the close of business on the third Business Day immediately preceding the Excess Proceeds Payment Date; 

    that
Holders shall be entitled to withdraw their election if the Company receives, not later than the close of business on the second Business Day preceding the Excess Proceeds
Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of New Notes the Holder delivered for purchase and a statement that such
Holder is withdrawing his election to have such New Notes purchased; 

    that
if the aggregate purchase price of the New Notes tendered pursuant to the Excess Proceeds Offer is less than the Excess Proceeds, the Company may use the portion of the Excess
Proceeds remaining after payment of such purchase price for general corporate purposes, including Preferred Stock Repurchases. 

    that
Holders whose New Notes are purchased only in part shall be issued New Notes representing the unpurchased portion of the Notes surrendered;  provided that each New Note purchased and each new New Note
issued shall be in principal amount of $1,000 or whole multiples thereof; and 

    the
instructions that Holders must follow in order to tender their New Notes. 

    On
or before the Excess Proceeds Payment Date, the Company shall (i) accept for payment on a pro rata basis the New Notes or
portions thereof tendered pursuant to the Excess Proceeds Offer, (ii) deposit with the Paying Agent money sufficient to pay the purchase price of all New Notes or portions thereof so accepted
and (iii) deliver to the Trustee the New Notes so accepted, together with an Officers' Certificate stating that the New Notes or portions thereof tendered to the Company are accepted for
payment. The Paying Agent shall promptly mail to each Holder of New Notes so accepted payment in an amount equal to the purchase price of such New Notes, and the Trustee shall promptly authenticate
and mail to such Holders new New Notes equal in principal amount to any unpurchased portion of the New Note surrendered. 

    The
Company shall make a public announcement of the results of the Excess Proceeds Offer as soon as practicable after the Excess Proceeds Payment Date. For the purposes of this
Section 4.10, the Trustee shall act as the Paying Agent." 

14

 

    Section 4.12 of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.12  Limitation on Liens.  

    The
Company shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist any Lien on any asset (including, without
limitation, all real, tangible or intangible property) of the Company or any Restricted Subsidiary, whether now owned or hereafter acquired, or on any income or profits therefrom, or assign or convey
any right to receive income therefrom, except (i) Liens in favor of the Collateral Agent securing the New Notes and Indebtedness incurred under the Senior Credit Facility or any Eligible Credit
Facility, (ii) Purchase Money Liens, and (iii) Permitted Liens." 

    Section 4.14
of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "Section 4.14  Repurchase Upon a Change in Control.  

    Upon
the occurrence of a Change of Control, the Company shall notify the Trustee in writing thereof and shall make an offer to purchase all of the New Notes then outstanding as
described below (the "Change of Control Offer") at a purchase price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid
interest, if any, and Liquidated Damages, if any, to the date of repurchase (the "Change of Control Payment"). 

    The
Change of Control Offer shall be made in compliance with all applicable laws, including without limitation, Regulation 14E of the Exchange Act and the rules thereunder and
all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.14, the Company
shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 4.14 by virtue thereof. 

    Within
30 days following any Change of Control, the Company shall commence the Change of Control Offer by mailing to the Trustee and each Holder a notice, which shall govern
the terms of the Change of Control Offer, and shall state that: 

     (i) the
Change of Control Offer is being made pursuant to this Section 4.14 and that all New Notes tendered will be accepted for payment, 

    (ii) the
purchase price and the purchase date, which shall be a Business Day no earlier than 30 days nor later than 60 days from the date such notice is
mailed (the "Change of Control Payment Date"), 

    (iii) that
any New Note not tendered for payment pursuant to the Change of Control Offer shall continue to accrue interest and Liquidated Damages, if any, 

    (iv) that,
unless the Company defaults in the payment of the Change of Control Payment, all New Notes accepted for payment pursuant to the Change of Control Offer shall
cease to accrue interest and Liquidated Damages, if any, on the Change of Control Payment Date, 

    (v) that
any Holder electing to have New Notes purchased pursuant to a Change of Control Offer shall be required to surrender such New Notes, with the form entitled
"Option of Holder to Elect Purchase" on the reverse of the New Notes completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day
preceding the Change of Control Payment Date, 

    (vi) that
any Holder shall be entitled to withdraw such election if the Paying Agent receives, not later than the close of business on the second Business Day preceding
the Change of Control 

15

 

Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of New Notes such Holder delivered for purchase, and a statement that such
Holder is withdrawing his election to have such New Notes purchased, 

   (vii) that
a Holder whose Notes are being purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion of the New Notes
surrendered, which unpurchased portion must be equal to $1,000 in principal amount or an integral multiple thereof, 

   (viii) the
instructions that Holders must follow in order to tender their New Notes, and 

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

    On
the Change of Control Payment Date, the Company shall, to the extent lawful, (i) accept for payment the New Notes or portions thereof tendered pursuant to the Change of
Control Offer, (ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all New Notes or portions thereof so tendered and not withdrawn, and
(iii) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers' Certificate stating that the New Notes or portions thereof tendered to the Company are
accepted for payment. The Paying Agent shall promptly mail to each Holder of New Notes so accepted payment in an amount equal to the purchase price for such New Notes, and the Trustee shall
authenticate and mail to each Holder a new New Note equal in principal amount to any unpurchased portion of the New Notes surrendered, if any, provided,
that each such new New Note will be in principal amount of $1,000 or an integral multiple thereof. 

    The
Company shall make a public announcement of the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date. For the purposes of
this Section 4.14, the Trustee shall act as the Paying Agent." 

    Section 4.19
shall be added with respect to the New Notes only, to read as follows: 

    "Section 4.19  Excess Cash Flow Offers.  

    If
the Company has Excess Cash Flow for any fiscal year ending on or about December 31, beginning with the fiscal year ending on or about December 31, 2002, the Company
will be required to make an offer to purchase (the "Excess Cash Flow Offer") the Notes from all Holders at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Liquidated Damages, if any, to the purchase date with a portion of its Excess Cash Flow for each such fiscal year. 

    The
Company shall purchase from Holders accepting any such Excess Cash Flow Offer, on a pro rata basis, up to the maximum principal
amount (expressed as a multiple of $1,000) of Notes that may be purchased with 75% of the Excess Cash Flow. The Company shall deliver an Officers' Certificate to the Trustee setting forth its
calculation of the Excess Cash Flow within 5 business days following the filing of its Form 10-K and shall make the Excess Cash Flow Offer within 20 days following the filing
of its Form 10-K. The Excess Cash Flow Offer is required to remain open for at least 20 business days." 

    Subsection
(1) of Section 6.1 of the Original Indenture is hereby amended in its entirety, with respect to the New Notes only, to read as follows: 

    "(1) the
Company defaults in the payment of interest or Liquidated Damages, if any, on any Note when the same becomes due and payable and the Default continues for a
period of 30 days;". 

    SECTION
2.03.  Amendments Relating to Existing Notes.  The Original Indenture is hereby amended, with
respect to Existing Notes only, to delete the following Sections in their entirety: 

	(a)
	Section 4.4,
"Compliance Certificate"; 

16

 

	(b)
	Section 4.5,
"Taxes";

	(c)
	Section 4.7,
"Limitation on Restricted Payments";

	(d)
	Section 4.8,
"Limitation on Restrictions on Subsidiary Dividends";

	(e)
	Section 4.9,
"Limitation on Incurrence of Indebtedness";

	(f)
	Section 4.11,
"Limitation on Transactions with Affiliates";

	(g)
	Section 4.12,
"Limitation on Liens";

	(h)
	Section 4.13,
"Corporate Existence";

	(i)
	Section 4.15,
"Maintenance of Properties";

	(j)
	Section 4.16,
"Maintenance of Insurance";

	(k)
	Section 4.17,
"Restrictions on Sale and Issuance of Subsidiary Stock";

	(l)
	Section 4.18,
"Line of Business";

	(m)
	Section 5.1,
"When the Company May Merge, etc."; and

	(n)
	Subsection
(5) of Section 6.1, "Events of Default". 

 
 

ARTICLE THREE
  GENERAL PROVISIONS    

    SECTION
3.01  Effectiveness of Amendment.  This Second Supplemental Indenture is effective as of the date
first written above. 

    SECTION
3.02  Ratification of Indenture.  The Original Indenture is in all respects acknowledged,
ratified and confirmed, and shall continue in full force and effect in accordance with the terms thereof as supplemented by this Second Supplemental Indenture. All provisions of this Second
Supplemental Indenture shall be deemed to be incorporated in, and made a part of the Original Indenture, and the Original Indenture, as supplemented and amended by this Second Supplemental Indenture
shall be read, taken and construed as one and the same instrument. 

    SECTION
3.03  Effect of Headings.  The Article and Section headings in this Second Supplemental Indenture
are for convenience only and shall not affect the construction of this Second Supplemental Indenture. 

    SECTION
3.04  GOVERNING LAW.  NOTWITHSTANDING ANYTHING CONTAINED IN THE ORIGINAL INDENTURE TO THE
CONTRARY, THE INDENTURE SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B). 

    SECTION
3.05  Counterparts.  This Second Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute the same instrument. Delivery of an executed counterpart of a signature
page of this Second Supplemental Indenture by facsimile transmission shall be effective as delivery of a manually executed counterpart of this Second Supplemental Indenture. 

17

 

    IN WITNESS WHEREOF, the parties hereto have executed and delivered this Indenture as of the date first written above. 

	 	 	 	 	AMERICAN RESTAURANT GROUP, INC.
	

 	
 	

 	
 	

By:	
 	

/s/ Ralph S. Roberts

	 	 	 	 	 	 	Name: Ralph S. Roberts

Title: Chief Executive Officer
	
GUARANTORS	
 	

 	
 	

 
	

ARG ENTERPRISES, INC.	
 	

 	
 	

 
	

By:	
 	

/s/ Ralph S. Roberts
	
 	

 	
 	

 
	Name: Ralph S. Roberts

Title: Chief Executive Officer	 	 	 	 
	

ARG PROPERTY MANAGEMENT CORPORATION	
 	

 	
 	

 
	

By:	
 	

/s/ Ralph S. Roberts
	
 	

 	
 	

 
	Name: Ralph S. Roberts

Title: Chief Executive Officer	 	 	 	 
	

ARG TERRA, INC.	
 	

 	
 	

 
	

By:	
 	

/s/ Ralph S. Roberts
	
 	

 	
 	

 
	Name: Ralph S. Roberts

Title: Chief Executive Officer	 	 	 	 
	

 	
 	

 	
 	

BNY WESTERN TRUST COMPANY, as Trustee
	

 	
 	

 	
 	

By:	
 	

/s/ Sandra H. Leess

	 	 	 	 	Name: Sandra H. Leess

Title: Attorney-in-fact

18

  

 
 

EXHIBIT A    
  

(Face
of Security) 

    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 DEPOSITORY TRUST COMPANY (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 DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DEPOSITARY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DEPOSITARY), 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.(1) 

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

    THE
HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND
(2) AGREES NOT TO OFFER, SELL OR OTHERWISE TRANSFER SUCH NOTE, PRIOR TO (X) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD THAT MAY HEREAFTER BE PROVIDED UNDER RULE 144(K) AS
PERMITTING
RESALES BY NON-AFFILIATES OF RESTRICTED SECURITIES WITHOUT RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE
COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF SUCH NOTE) OR (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION DATE") EXCEPT
(A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR
IN OFFSHORE TRANSACTIONS AND WITHOUT DIRECTED SELLING EFFORTS WITHIN THE MEANINGS OF SUCH TERMS AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED
INVESTOR" WITHIN THE MEANING OF RULE 501(A)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS PURCHASING THE NOTE FOR ITS OWN ACCOUNT, OR FOR 

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THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT
OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE
FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE, AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES
LAWS OF ANY U.S. STATE OR ANY OTHER APPLICABLE JURISDICTION. THE HOLDER OF THIS NOTE AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

	(1)
	This
paragraph should be included only if the Note is issued in global form. 

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AMERICAN RESTAURANT GROUP, INC.

111/2% [SERIES C][SERIES D] SENIOR SECURED NOTE

DUE 2006  

	No.

CUSIP NO.	 	$            

    American Restaurant Group, Inc., a Delaware corporation (the "Company"), as obligor, for value received promises to pay to            or
registered assigns, the principal sum of            Dollars on November 1, 2006. 

    Interest
Payment Dates: November 1 and May 1. 

    Record
Dates: October 15 and April 15 (whether or not a Business Day). 

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

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

	 	 	 	Dated:
	

 	

 	
 	

AMERICAN RESTAURANT GROUP, INC.
	

 	

 	
 	

By:	

 
	 	 	 	 	
 Name:

Title:
	

 	

 	
 	

By:	

 
	 	 	 	 	
 Name:

Title:
	Trustee's Certificate of Authentication:	 	 	 
	

This is one of the New Notes referred to

in the within-mentioned Indenture:	
 	

 	

 
	

[            ], as Trustee	
 	

 	

 
	

By:	

 	
 	

 	

 
	 	
 Authorized Signature	 	 	 

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(Back
of Security)
 111/2% [SERIES C][SERIES D] SENIOR SECURED NOTE

DUE 2006  

	1.
	Interest. American Restaurant Group, Inc., a Delaware corporation (the "Company"), as obligor, promises to pay interest on the
principal amount of this Note at the rate and in the manner specified below. 

    The
Company shall pay, in cash, interest on the principal amount of this New Note, at the rate of 11.5% per annum. The Company shall pay interest semi-annually on
November 1 and May 1 of each year, and on the maturity date, commencing on May 1, 2002, or if any such day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). 

    Interest
shall be computed on the basis of a 360-day year consisting of twelve 30-day months. Interest shall accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from October 31, 2001. To the extent lawful, the Company shall pay interest on overdue installments of interest (without regard to any applicable
grace periods) at the same rate. 

	2.
	Method of Payment. The Company shall pay interest on the New Notes (except defaulted interest) to the Persons who are registered
Holders of New Notes at the close of business on the record date next preceding the Interest Payment Date, even if such New Notes are cancelled after such record date and on or before such Interest
Payment Date. The Holder must surrender this New Note to a Paying Agent to collect principal payments. The Company shall pay interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. The Company, however, may pay interest by check to a Holder's registered address.

	3.
	Paying Agent and Registrar. Initially, the Trustee shall act as Paying Agent and Registrar. The Company may change any Paying Agent,
Registrar or co-registrar without notice to any Holder. Subject to certain exceptions, the Company or any of its Subsidiaries may act in any such capacity.

	4.
	Indenture. The Company issued the Notes under an Indenture dated as of February 25, 1998, as supplemented by a First
Supplemental Indenture dated as of June 26, 2000 and a Second Supplemental Indenture dated as of October 31, 2001 (together, the "Indenture"), each between the Company, the Guarantors
named therein and the Trustee. The terms of the New Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (the "TIA") (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date
of the Indenture until such time as the Indenture is qualified under the TIA and thereafter as in effect on the date the Indenture is so qualified. The New Notes are subject to all such terms, and
Holders are referred to the Indenture and such act for a statement of such terms. The terms of the Indenture shall govern any inconsistencies between the Indenture and the New Notes. Terms not
otherwise defined herein shall have the meanings assigned in the Indenture. 

    The
Obligations under the Indenture, the New Notes and the Guarantee thereof are secured by the Collateral described in the Security Documents, subject to the provisions of such
agreements. Holders are referred to the Security Documents for a statement of such terms. 

	5.
	Optional Redemption. The New Notes are not redeemable at the Company's option prior to November 1, 2004. Thereafter, the New
Notes will be subject to redemption at the option of the Company, in whole or in part, at the redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid
interest thereon, if any, to the applicable 

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redemption
date, if redeemed during the 12-month period beginning on November 1 of the years indicated below: 

	Year
 
	 	Percentage
	 
	2004	 	105.750	%
	2005 and thereafter	 	100.000	%

    Notwithstanding
the foregoing, at any time or from time to time prior to November 1, 2004, the Company may, at its option, redeem up to 35% of the original principal amount of
the New Notes, at a redemption price of 111.500% of the principal amount thereof, plus accrued and unpaid interest, if any, and Liquidated Damages, if any, to the applicable redemption date,
(i) with the net cash proceeds of one or more Qualified Equity Offerings; provided, that (A) such redemption shall occur within
60 days of the date of closing of such public offering and (B) at least 65% of the original aggregate principal amount of New Notes remains outstanding immediately after giving effect to
each such redemption or (ii) after the consummation of any merger with another corporation whose common stock, after the consummation of such transaction, is admitted for quotation on the
Nasdaq National Market (or any successor thereto) or listed on a national securities exchange. 

	6.
	Mandatory Redemption. There shall be no mandatory redemption of the New Notes prior to maturity.

	7.
	Denominations, Transfer, Exchange. The New Notes are in registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of New Notes may be registered and New 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 Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Registrar and the Company need
not exchange or register the transfer (i) of any New Note or portion of a New Note selected for redemption or (ii) of any New Notes for a period of 15 days before a selection of
New Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date.

	8.
	Persons Deemed Owners. The registered Holder of a New Note may be treated as its owner for all purposes, subject to the provisions of
the Indenture with respect to the record dates for the payment of interest.

	9.
	Amendments and Waivers. Subject to certain exceptions, the Indenture or the Notes may be amended with the written consent of the
Holders of at least a majority in principal amount of the then outstanding Notes (including consents obtained in connection with a tender offer or exchange offer for Notes), and any existing Default
or Event of Default (except certain payment defaults) may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes (including consents obtained in
connection with a tender offer or exchange offer for Notes). Without the consent of any Holders, the Indenture and the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for assumption of the Company's obligations to the Holders in the case of a merger or consolidation, to provide for uncertificated Notes in addition to or in place of
certificated Notes, to make any change that would provide any additional rights or benefits to the Holders of the Notes, or that does not materially adversely affect the legal rights under the
Indenture of any Holder, to release any Guarantee of the Notes permitted to be released under the terms of the Indenture or to comply with requirements of the Commission in order to effect or maintain
the qualification of the Indenture under the TIA.

	10.
	Defaults and Remedies. If an 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 by written notice to the Company and the Trustee all the Notes to be due and payable immediately, except that in the 

A–5

 

case
of an Event of Default arising from certain events of bankruptcy or insolvency, all outstanding Notes become due and payable immediately without further action or notice. Holders may not enforce
the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations,
Holders
of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Company must furnish an annual compliance certificate to the Trustee. 

	11.
	Trustee Dealings with Company. The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee.

	12.
	No Recourse Against Others. No director, officer, employee, incorporator, stockholder or controlling person of the Company or
Guarantor, as such, shall have any liability for any obligations of the Company or any Guarantor under the New Notes, the Indenture or the Registration Rights Agreement (as defined) or for any claim
based on, in respect of, or by reason of such obligations or their creation. Each Holder by accepting a New Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the New Notes and the Guarantees thereof. Notwithstanding the foregoing, nothing in this provision shall be construed as a waiver or release of any claims under the
Federal securities laws.

	13.
	Authentication. This New Note shall not be valid until authenticated by the manual signature of the Trustee or an authenticating
agent.

	14.
	Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

	15.
	CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company
has caused CUSIP numbers to be printed on the Notes and has directed the Trustee to 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.
	Holders' Compliance with Registration Rights Agreement. Each Holder of a New Note, by his acceptance thereof, acknowledges and agrees
to the provisions of the Registration Rights Agreement, dated as of October 31, 2001, among the Company and the parties named on the signature page thereof (the "Registration Rights
Agreement"). 

    The
Company shall furnish to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: American
Restaurant Group, Inc., 4410 El Camino Real, Suite 201, Los Altos, California 94022, Attention: General Counsel. 

    THIS
NEW NOTE (INCLUDING THE GUARANTY ENDORSED HEREON) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTION
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B). 

A–6

 

ASSIGNMENT FORM  

    To
assign this New Note, fill in the form below: (I) or (we) assign and transfer this New Note to 

	

	(Insert assignee's soc. sec. or tax I.D. no.)
	

	

	

	

	(Print or type assignee's name, address and zip code)

and irrevocably appoint                          

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

	Date:	 	 	 	Your Signature:	 	 
	 	 	
	 	 	 	
 (Sign exactly as your name appears on the face of this New Note)
	

Signature Guarantee*	
 	

 	
 	

 

	

	* NOTICE:	 	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guarantee programs:
	 	 	(1)  The Securities Transfer Agent Medallion Program (STAMP);
	 	 	(2)  The New York Stock Exchange Medallion Program (MSP);
	 	 	(3)  The Stock Exchange Medallion Program (SEMP).

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OPTION OF HOLDER TO ELECT PURCHASE    
  

    If you want to elect to have all or any part of this New Note purchased by the Company pursuant to Section 4.10 or Section 4.14 of the Indenture,
as the case may be, state the amount you elect to have purchased (if all, write "ALL"): $               

	Date:	 	 	 	Your Signature:	 	 
	 	 	
	 	 	 	
 (Sign exactly as your name appears on the face of this New Note)
	

Signature Guarantee*	
 	

 	
 	

 

	

	* NOTICE:	 	The signature must be guaranteed by an institution which is a member of one of the following recognized signature guarantee programs:
	 	 	(1)  The Securities Transfer Agent Medallion Program (STAMP);
	 	 	(2)  The New York Stock Exchange Medallion Program (MSP);
	 	 	(3)  The Stock Exchange Medallion Program (SEMP).

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SCHEDULE OF EXCHANGES OF DEFINITIVE NOTES**    
  

    The following exchanges of a part of this Global Note for Definitive Notes have been made: 

	Date of Exchange
 
	 	Amount of decrease in Principal Amount of this

Global Note
	 	Amount of increase in Principal Amount of this

Global Note
	 	Principal Amount of this Global Note following such decrease (or increase)
	 	Signature of authorized signatory of Trustee

	

 	
 	

 	
 	

 	
 	

 	
 	

 

	**
	This
should be included only if the New Note is issued in global form. 

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EXHIBIT B    
  

[FORM OF GUARANTY]

GUARANTY 

    For
good and valuable consideration received from the Company by the undersigned (hereinafter referred to as the "Guarantors," which term includes any successor or additional
Guarantors), the receipt and sufficiency of which is hereby acknowledged, subject to and in accordance with, Sections 10.8 through 10.14 of the Indenture, each Guarantor, jointly and severally, hereby
unconditionally guarantees, irrespective of the validity or enforceability of the Indenture, the New Notes, the Security Documents or the Obligations, (a) the due and punctual payment of the
principal and premium, if any, of and interest on the New Notes (including, without limitation, interest after the filing of a petition initiating any proceedings referred to in Sections 6.1(9) or
(10) of the Indenture), whether at maturity or on an interest payment date, by acceleration, call for redemption or otherwise, (b) the due and punctual payment of interest on the overdue
principal and premium, if any, of and interest, if any, on the New Notes, if lawful, (c) the due and punctual payment and performance of all other Obligations, all in accordance with the terms
set forth in the Indenture, the New Notes and the Security Documents, and (d) in case of any extension of time of payment or renewal of any New Notes or any of such other Obligations, the due
and punctual payment or performance thereof in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. 

    No
director, officer, employee, incorporator, stockholder or controlling person of the Guarantor, as such, shall have any liability under this Guaranty for any obligations of the
Guarantor under the New Notes, the Indenture or the Registration Rights Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the New
Notes by accepting a New Note waives and releases all such liability. 

	ARG ENTERPRISES, INC.	 	ARG PROPERTY MANAGEMENT CORPORATION
	

By:	
 	

  
	
 	

By:	
 	

  

	Name:	 	  
	 	Name:	 	  

	Title:	 	  
	 	Title:	 	  

	

ARG TERRA, INC.	
 	

 	
 	

 
	

By:	
 	

  
	
 	

 	
 	

 
	Name:	 	  
	 	 	 	 
	Title:	 	  
	 	 	 	 

A–1

QuickLinks

EXHIBIT 4.10

ARTICLE THREE GENERAL PROVISIONS

EXHIBIT A

OPTION OF HOLDER TO ELECT PURCHASE

SCHEDULE OF EXCHANGES OF DEFINITIVE NOTES**

EXHIBIT BPrepared by MERRILL CORPORATION

QuickLinks
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EXHIBIT 4.11    
  

    AMERICAN RESTAURANT GROUP, INC.  

 $166,000,000 111/2% Series C Senior Secured Notes due 2006  

REGISTRATION RIGHTS AGREEMENT  

October 31, 2001 

JEFFERIES &
COMPANY, INC.

11100 Santa Monica Boulevard

10th Floor

Los Angeles, California 90025 

Ladies
and Gentlemen: 

    American
Restaurant Group, Inc., a Delaware corporation (the "Company"), is issuing and selling to Jefferies & Company, Inc. (the "Purchaser"), upon the terms set
forth in a purchase agreement, dated as of September 28, 2001, (the "Purchase Agreement"), up to $30,000,000,000 aggregate principal amount of its 111/2% Series C Senior
Secured Notes due 2006 (the "Additional Notes"). In addition, the Company is issuing up to $136,000,000 aggregate principal amount of its 111/2% Series C Senior Secured Notes due
2006 (the "Exchange Notes") in exchange for its outstanding 111/2% Series B Senior Secured Notes due 2003 pursuant to its Confidential Exchange Offer and Consent Solicitation
Statement or as otherwise agreed to between the Company and a holder of such notes. As an inducement to the Purchaser to enter into the Purchase Agreement, the Company and each of the guarantors (the
"Guarantors") named in the Indenture (defined below) agrees with the Purchaser, for the benefit of the holders of the Securities (defined below) (including, without limitation, the Purchaser), as
follows: 

1.  Definitions  

    Capitalized
terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have
the following meanings: 

    Advice: See Section 6. 

    Agreement: This Registration Rights Agreement. 

    Applicable Period: See Section 2(f). 

    Business Days: Any day other than (i) Saturday or Sunday, or (ii) a day on which banking institutions in the State of New
York are authorized or obligated by law or executive order to be closed. 

    Closing Date or "Issue Date": October 31, 2001. 

    Company: American Restaurant Group, Inc. 

    Confidential Information: See Section 6(a). 

    Effectiveness Date: The 150th day following the Closing Date. 

    Effectiveness Period: See Section 3(a). 

    Event Date: See Section 4(a). 

    Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 

    Exchange Offer: See Section 2(a).  

    Exchange Offer Registration Statement: See Section 2(a). 

 

    Exchange Securities: The Company's 111/2% Series D Senior Secured Notes due 2006, including the guarantees
notated therein, identical in all material respects to the Notes, except for references to series and restrictive legends. 

    Filing Date: The 90th day following the Closing Date. 

    Holder: Each holder of Registrable Securities. 

    Indemnified Party: See Section 8(c). 

    Indemnifying Party: See Section 8(c). 

    Indenture: The Indenture, dated as of February 13, 1998, as supplemented by a First Supplemental Indenture, dated
June 26, 2000, and as supplemented as of the date hereof, between the Company and U.S. Trust Company of California, N.A., now known as BNY Western Trust Company, as trustee, pursuant to which
the Notes are being issued, as amended or supplemented from time to time, in accordance with the terms thereof. 

    Initial Shelf Registration: See Section 3(a). 

    Losses: See Section 8(a). 

    Maximum Contribution Amount: See Section 8(d). 

    NASD: The National Association of Securities Dealers, Inc. 

    Notes: The Additional Notes, the Exchange Notes and any 111/2% Series C Senior Secured Notes due 2006 issued
pursuant to the Indenture. 

    Participating Broker-Dealer: See Section 2(f). 

    Person: Any individual, corporation, partnership, joint stock company, association joint venture, trust, unincorporated organization,
government or any agency or political subdivision thereof, or any other entity. 

    Private Exchange: See Section 2(g). 

    Private Exchange Securities: See Section 2(g). 

    Prospectus: The prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Securities covered by such Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

    Registrable Securities: (i) Notes and (ii) Private Exchange Securities. 

    Registration Default: See Section 4(a). 

    Registration Statement: Any registration statement of the Company that covers any of the Securities pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits, and all material incorporated by
reference or deemed to be incorporated by reference in such registration statement. 

    Rule 144: Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar rule (other
than Rule 144A) or regulation hereafter adopted by the SEC. 

2

 

    Rule 144A: Rule 144A under the Securities Act, as such Rule may be amended from time to time, or any similar rule (other
than Rule 144) or regulation hereafter adopted by the SEC. 

    Rule 415: Rule 415 under the Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the SEC. 

    SEC: The Securities and Exchange Commission. 

    Securities: The Notes, the Private Exchange Securities and the Exchange Securities, collectively. 

    Securities Act: The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

    Shelf Notice: See Section 2(i). 

    Shelf Registration Statement: The Initial Shelf Registration Statement and any Subsequent Shelf Registration Statement. 

    Special Counsel: Counsel chosen by the holders of a majority in aggregate principal/liquidation amount of Securities. 

    Subsequent Shelf Registration Statement: See Section 3(b). 

    TIA: The Trust Indenture Act of 1939, as amended. 

    Trustee: The trustee under the Indenture and, if any, the trustee under any indenture governing the Exchange Securities or the Private
Exchange Securities. 

    Underwritten Registration or Underwritten Offering: A registration in which securities of the Company are sold to an underwriter for
reoffering to the public. 

    Weekly Liquidated Damages Amount: See Section 4(a). 

2.  Exchange Offer  

    (a) The
Company and the Guarantors shall (i) prepare and file with the SEC promptly after the date hereof, but in no event later than the Filing Date, a
registration statement, or, if applicable, a Shelf Registration Statement (the "Exchange Offer Registration Statement") on an appropriate form under the Securities Act with respect to a proposed offer
(the "Exchange Offer") to the Holders to issue and deliver to such Holders, in exchange for the Notes, a like aggregate principal or liquidation amount, as the case may be, of Exchange Securities,
(ii) use their best efforts to cause the Exchange Offer Registration Statement to become effective as promptly as practicable after the filing thereof, but in no event later than the
Effectiveness Date, (iii) keep the Exchange Offer Registration Statement effective until the consummation of the Exchange Offer pursuant to its terms, and (iv) unless the Exchange Offer
would not be permitted by a policy of the SEC, commence the Exchange Offer and use their best efforts to issue, on or prior to 30 business days after the Effectiveness Date, Exchange Securities in
exchange for all Notes tendered prior thereto in the Exchange Offer. The Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate applicable law or
any applicable interpretation of the staff of the SEC. 

    (b) The
Exchange Securities shall be issued under, and entitled to the benefits of, the Indenture or a trust indenture that is identical to the Indenture (other than
such changes as are necessary to comply with any requirements of the SEC to effect or maintain the qualification thereof under the TIA). 

3

 

    (c) In connection with the Exchange Offer, the Company and the Guarantors shall: 

     (i) mail
to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal that is
an exhibit to the Exchange Offer Registration Statement and related documents; 

    (ii) keep
the Exchange Offer open for at least 20 business days after the date notice thereof is mailed to the Holders (or longer if required by applicable law); 

    (iii) utilize
the services of a depository for the Exchange Offer with an address in the Borough of Manhattan, The City of New York; 

    (iv) permit
Holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer shall
remain open; and 

    (v) otherwise
comply with all laws applicable to the Exchange Offer. 

    (d) As
soon as practicable after the close of the Exchange Offer, the Company and the Guarantors shall: 

     (i) accept
for exchange all Notes, validly tendered and not validly withdrawn pursuant to the Exchange Offer; 

    (ii) deliver
to the Trustee for cancellation all Notes so accepted for exchange; and 

    (iii) cause
the Trustee promptly to authenticate and deliver to each Holder of Notes, Exchange Securities equal in aggregate principal amount to the Notes of such
Holder so accepted for exchange. 

    (e) Interest
on each Exchange Security and Private Exchange Security will accrue from the last interest payment date on which interest was paid on the Notes surrendered
in exchange therefor or, if no interest has been paid on the Notes, from the date of original issue of the Notes. Each Exchange
Security and Private Exchange Security shall bear interest at the rate set forth thereon; provided, that interest with respect to the period prior to
the issuance thereof shall accrue at the rate or rates borne by the Notes from time to time during such period. 

    (f)  The
Company and the Guarantors shall include within the Prospectus contained in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution," containing a summary statement of the positions taken or policies made by the staff of the SEC with respect to the potential "underwriter" status of any broker-dealer that is the
beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of Exchange Securities received by such broker-dealer in the Exchange Offer (a "Participating Broker-Dealer").
Such "Plan of Distribution" section shall also allow the use of the Prospectus by all Persons subject to the prospectus delivery requirements of the Securities Act, including (without limitation) all
Participating Brokers-Dealers, and include a statement describing the means by which Participating Broker-Dealers may resell the Exchange Securities. The Company shall use its best efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery requirement of the Securities Act
for such period of time as such Persons must comply with such requirements in order to resell the Exchange Securities; provided that such period shall
not exceed 90 days after consummation of the Exchange Offer (as such period may be extended pursuant to the last paragraph of Section 6 hereof (the "Applicable Period")). 

    (g) If,
prior to consummation of the Exchange Offer, the Purchaser holds any Notes acquired by it and having the status as an unsold allotment in the initial
distribution, the Company shall, upon the request of the Purchaser, simultaneously with the delivery of the Exchange Securities in the Exchange Offer, issue (pursuant to the same indentures as the
Exchange Securities) and deliver to the Purchaser, in exchange for the Notes held by the Purchaser (the "Private Exchange"), a like principal amount of 

4

 

debt securities (the "Private Exchange Securities") of the Company that are identical to the Exchange Securities except that such Private Exchange Securities shall continue to bear thereon the legend
restricting transfer. The Private Exchange Securities shall bear the same respective CUSIP numbers as the Exchange Securities. 

    (h) The
Company may require each Holder participating in the Exchange Offer to represent to the Company that at the time of the consummation of the Exchange Offer
(i) any Exchange Securities received by such Holder in the Exchange Offer will be acquired in the ordinary course of its business, (ii) such Holder will have no arrangement or
understanding with any Person to participate in the distribution of the Exchange Securities within the meaning of the Securities Act or resale of the Exchange Securities in violation of the Securities
Act, (iii) if such Holder is not a broker-dealer, that it is not engaged in and does not intend to engage in, the distribution of the Exchange Securities, (iv) if such Holder is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Notes that were acquired as a result of market-making or other trading activities and that it will deliver a
prospectus, as required by law, in connection with any resale of such Exchange Securities, and (v) if such Holder is an affiliate of the Company, that it will comply with the registration and
prospectus delivery requirements of the Securities Act applicable to it. 

    (i)  If
(i) applicable interpretations of the staff of the SEC would not permit the consummation of the Exchange Offer prior to the Effectiveness Date,
(ii) subsequent to the consummation of the Private Exchange but within 270 days of the Closing Date, the Purchaser so requests with respect to Securities held by the Purchaser and having
the status as an unsold allotment, (iii) the Exchange Offer is not consummated within 180 days of the Closing Date for any reason or (iv) in the case of (A) any Holder not
permitted to participate in the Exchange Offer, (B) any Holder participating in the Exchange Offer that receives Exchange Securities that may not be sold without restriction under state and
federal securities laws (other than due solely to the status of such Holder as an affiliate of the Company within the meaning of the Securities Act) or (C) any broker-dealer who holds Notes
acquired directly from the Company or one of its affiliates and, in each such case contemplated by this clause (iv), such Holder notifies the Company within 20 business days of consummation of
the Exchange Offer, then the Company shall promptly deliver to the Holders (or in the case of any occurrence of an event described in clause (iv) hereof, to any such Holder) and the Trustee
notice thereof (the "Shelf Notice") and shall as promptly as possible thereafter file an Initial Shelf Registration pursuant to Section 3. 

3.  Shelf Registration  

    If
a Shelf Notice is required to be delivered pursuant to Section 2(i)(i), (ii) or (iii), then this Section 3 shall apply to all Registrable Securities.
Otherwise, upon consummation of the Exchange Offer in accordance with Section 2, the provisions of this Section 3 shall apply solely with respect to (i) Notes held by any Holder
thereof not permitted to participate in the Exchange Offer and (ii) Exchange Securities that are not freely tradeable as contemplated by Section 2(i)(iv) hereof, provided in each
case that the relevant Holder has duly notified the Company within 20 business days of the Exchange Offer as required by Section 2(i)(iv). 

    (a)  Initial Shelf Registration Statement.  The Company and the Guarantors shall prepare and file with
the SEC a Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the Registrable Securities (the "Initial Shelf Registration Statement").
If the Company and the Guarantors have not yet filed an Exchange Offer, the Company and the Guarantors shall file with the SEC the Initial Shelf Registration Statement on or prior to the Filing Date.
Otherwise, the Company and the Guarantors shall use their best efforts to file the Initial Shelf Registration Statements within 45 days after an obligation to file such Initial Shelf
Registration arises. The Initial Shelf Registration Statement shall be on Form S-1 or another appropriate form permitting registration of such Registrable Securities for resale by
such Holders in the manner or manners 

5

 

designated by them (including, without limitation, one or more underwritten offerings). The Company and the Guarantors shall (i) not permit any securities other than the Registrable Securities
to be
included in any Shelf Registration, and (ii) use their best efforts to cause the Initial Shelf Registration Statement to be declared effective as promptly as practicable after the filing
thereof and to keep the Initial Shelf Registration Statement continuously effective until the date that is 24 months after the Effectiveness Date (subject to extension pursuant to the last
paragraph of Section 6 hereof) (the "Effectiveness Period"), or such shorter period ending when (i) all Registrable Securities covered by the Initial Shelf Registration Statement have
been sold or (ii) a Subsequent Shelf Registration Statement covering all of the Registrable Securities has been declared effective under the Securities Act. 

    (b)  Subsequent Shelf Registrations Statements.  If any Shelf Registration Statement ceases to be
effective for any reason at any time during the Effectiveness Period (other than because of the sale of all of the Registrable Securities registered thereunder), the Company and the Guarantors shall
use their best efforts to obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 45 days of such cessation of effectiveness amend the
Shelf Registration Statement in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional "shelf" Registration Statement pursuant
to Rule 415 covering all of the Registrable Securities (a "Subsequent Shelf Registration Statement"). If a Subsequent Shelf Registration Statement is filed, the Company and the Guarantors shall
use their best efforts to cause the Subsequent Shelf Registration Statement to be declared effective as soon as practicable after such filing and to keep such Subsequent Shelf Registration Statement
continuously effective for a period equal to the number of days in the Effectiveness Period less the aggregate number of days during which the Initial Shelf Registration Statement, and any Subsequent
Shelf Registration Statement, was previously effective. 

    (c) Notwithstanding
the foregoing provisions of this Section 3 (but subject to Section 4 below), the Company shall not be required to amend or supplement
a Registration Statement, any related Prospectus or any document incorporated therein by reference, for a period not to exceed an aggregate of 60 days in any calendar year if, (i) an
event occurs and is continued as a result of which the Shelf Registration Statement would, in the Company's good faith judgment, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and (ii) the Company determines in its good faith
judgment that the disclosure of such event at such time would have a material adverse effect on (a) the business, operations or prospects of the Company or (b) a pending material
business transaction that has not yet been publicly disclosed. 

4.  Liquidated Damages.  

    (a) The
Company and the Guarantors acknowledge and agree that the holders of Registrable Securities will suffer damages, and that it would not be feasible to ascertain
the extent of such damages with precision, if the Company and the Guarantors fail to fulfill their obligations hereunder. Accordingly, in the event of such failure, the Company and the Guarantors
jointly and severally agree to pay liquidated damages to each Holder under the circumstances and to the extent set forth below: 

     (i) if
the Exchange Offer Registration Statement is not filed with the SEC within 90 days after the Closing Date; 

    (ii) if
neither the Exchange Offer Registration Statement nor the Initial Shelf Registration Statement is declared effective by the SEC on or prior to the Effectiveness
Date; 

    (iii) the
Exchange Offer, if permitted, has not been consummated within 30 business days after the Effectiveness Date; 

6

  

    (iv) if
the Company is obligated to file a Shelf Registration Statement and the Shelf Registration Statement is not filed within 45 days after such filing
obligation arises; 

    (v) if
the Company is obligated to file a Shelf Registration Statement and the Shelf Registration Statement is not declared effective within 90 days after
such filing obligation arises; or 

    (vi) if
the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case may be, is declared effective but thereafter ceases to be effective
or useable in connection with resales of the Registrable Securities; 

(each
of the foregoing a "Registration Default," and the date on which the Registration Default occurs being referred to herein as an "Event Date"). 

    Upon
the occurrence of any Registration Default, the Company shall pay, or cause to be paid (and the Guarantors hereby guarantee the payment of), in addition to amounts otherwise due
under the Indenture and the Registrable Securities, as liquidated damages, and not as a penalty, to each holder of a Registrable Security to which such Registration Default is applicable, an
additional amount (the "Weekly Liquidated Damages Amount") equal to (A) beginning on the Event Date for the first 90-day period immediately following such Event Date, $.05 per week
per $1,000 principal amount of Registrable Securities held by such holder, and (B) after the 90-day period set forth in the foregoing clause (A), the Weekly Liquidated
Damages Amount shall increase by an additional $.05 per week per $1,000 principal amount of Registrable Securities held by such holder for each subsequent 90-day period, up to a maximum
amount of $.50 per week per $1,000 principal amount of Registrable Securities held by such holder; provided that such liquidated damages will, in each
case, cease to accrue (subject to the occurrence of another Registration Default) on the date on which all Registration Defaults have been cured. A Registration Default under clauses (i), (ii),
(iv) and (v) above shall be cured on the date that either the Exchange Offer Registration Statement or the Initial Shelf Registration Statement is declared effective by the SEC; a
Registration Default under clause (iii) above shall be cured on the date the Exchange Offer is consummated with respect to all Notes validly tendered; and a Registration Default under
clause (vi) above shall be cured on the earlier of (A) the date on which the applicable Shelf Registration Statement is no longer subject to an order suspending the effectiveness thereof
or proceedings relating thereto or (B) a Subsequent Shelf Registration Statement is declared effective. 

    (b) The
Company shall notify the Trustee within five Business Days after each Event Date. The Company will not be required to pay liquidated damages for more than one
Registration Default at any given time. All accrued liquidated damages in respect of the Notes will be paid with interest payments
on the Notes on semiannual damages payment dates that correspond to interest payment dates for the Notes by wire transfer to the accounts specified by each Holder of the Registrable Securities or by
mailing checks to such Holder's registered address if no such accounts have been specified. 

5.  Hold-Back Agreements  

    The
Company and the Guarantors agree not to effect any public sale or any sale pursuant to Rule 144A of any securities the same as or similar to those covered by a Shelf
Registration Statement filed pursuant to Section 3 hereof, or any securities convertible into or exchangeable or exercisable for such securities, during the 10 days prior to, and during
the 90-day period beginning on the commencement of a firm commitment underwritten public distribution of Registrable Securities, where the managing underwriter so requests. 

7

 

6.  Registration Procedures  

    In
connection with the registration of any Securities pursuant to Sections 2 or 3 hereof, each of the Company and each Guarantor shall effect such registrations to permit the sale of
such Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company and each Guarantor shall: 

    (a) Prepare
and file with the SEC on or prior to the Filing Date, a Registration Statement or Registration Statements as prescribed by Section 2 or 3, and use
its best efforts to cause each such Registration Statement to become effective and remain effective as provided herein; provided, that, if
(i) such filing is pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant to Section 2 is required to be delivered
under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, before filing any Registration Statement or Prospectus or any amendments
or supplements thereto, the Company and the Guarantors shall, if requested, furnish to and afford the Holders of the Registrable Securities covered by such Registration Statement, their Special
Counsel, each Participating Broker-Dealer, the managing underwriters, if any, and their counsel, a reasonable opportunity to review and make available for inspection by such Persons copies of all such
documents (including copies of any
documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed, such financial and other information and books and records of the Company and the Guarantors, and
cause the officers, directors and employees of the Company and the Guarantors, Company counsel and independent certified public accountants of the Company, to respond to such inquiries, as shall be
necessary, in the opinion of respective counsel to such holders, Participating Broker-Dealer and underwriters, to conduct a reasonable investigation within the meaning of the Securities Act (it being
understood that a period of five business days shall be deemed to afford such reasonable opportunity); provided that the foregoing investigation shall be coordinated on behalf of the Holders by one
representative of the Notes designated by and on behalf of such Holders; provided further that the foregoing investigation shall be conducted by the Purchaser on behalf of the Holders if the Purchaser
has Registrable Securities covered by such Registration Statement. The Company may require each Holder to agree to keep confidential any non-public information relating to the Company
("Confidential Information") received by such Holder and not disclose such Confidential Information (other than to an affiliate or prospective purchaser who agrees to respect the confidentiality
provisions of this Section 6(a)) until such information has been made generally available to the public, other than as a result of a disclosure by such Holder, its directors, officers,
employees, agents or advisors or by any other person subject to a confidentiality agreement, unless the release of such Confidential Information is required by law or necessary to respond to inquiries
of regulatory authorities (including the National Association of Insurance Commissioners, or similar organizations or their successors). The Company may also require each Holder to agree (i) to
give the Company prompt notice of any request to disclose any Confidential Information received by such Holder so that the Company may seek appropriate protective orders, (ii) to consult with
the Company with respect to the Company's taking steps to restrict or narrow the scope of such requests, and (iii) if the release of the Confidential Information is required by law or necessary
to respond to inquiries of regulatory authorities, to give specific written notice to the Company describing the Confidential Information to be disclosed (as far in advance of its disclosure as is
practicable) and to use its reasonable best efforts to obtain assurances from the recipient that confidential treatment will be accorded to the Confidential Information. 

    (b) Provide
an indenture trustee for each class of the Registrable Securities as applicable, and cause the Indenture (or other indenture relating to the Registrable
Securities) to be qualified under the TIA not later than the effective date of the first Registration Statement; and in connection therewith, to effect such changes to such indenture as may be
required for such 

8

 

indenture to be so qualified in accordance with the terms of the TIA; and execute, and use its best efforts to cause such trustee to execute, all documents as may be required to effect such changes,
and all other forms and documents required to be filed with the SEC to enable such indenture to be so qualified in a timely manner. 

    (c) Prepare
and file with the SEC such amendments and post-effective amendments to the Registration Statement as may be necessary to keep such Registration
Statement continuously effective for the time periods required hereby; cause the related Prospectus to be supplemented by any Prospectus supplement required by applicable law, and as so supplemented
to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act; and comply in all material respects with the provisions of the Securities Act and the
Exchange Act applicable thereto with respect to the disposition of all securities covered by such Registration Statement, as so amended, or in such Prospectus, as so
supplemented, in accordance with the intended methods of distribution set forth in such Registration Statement or Prospectus as so amended. 

    (d) Furnish
to such selling Holders and Participating Broker-Dealers who so request (i) upon the Company's receipt, a copy of the order of the SEC declaring such
Registration Statement and any post-effective amendment thereto effective and (ii) such reasonable number of copies of such Registration Statement and of each amendment and
supplement thereto (in each case including any documents incorporated therein by reference and all exhibits), (iii) such reasonable number of copies of the Prospectus included in such
Registration Statement (including each preliminary Prospectus), and such reasonable number of copies of the final Prospectus as filed by the Company pursuant to Rule 424(b) under the Securities
Act, in conformity with the requirements of the Securities Act, and (iv) such other documents (including any amendments required to be filed pursuant to clause (c) of this Section), as
any such Person may reasonably request. The Company and the Guarantors hereby consent to the use of the Prospectus by each of the selling Holders of Registrable Securities or each such Participating
Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers (if any), in connection with the offering and sale of the Registrable Securities covered by, or the sale by
Participating Broker-Dealers of the Exchange Securities pursuant to, such Prospectus and any amendment thereto. 

    (e) If
(A) a Shelf Registration Statement is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, notify
the selling Holders of Registrable Securities, their Special Counsel, each Participating Broker-Dealer and the managing underwriters, if any, promptly (but in any event within two Business Days), and
confirm such notice in writing, (i) when a Prospectus has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become
effective under the Securities Act, (ii) of the issuance by the SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use
of any Prospectus or the initiation of any proceedings for that purpose, (iii) if, at any time when a Prospectus is required by the Securities Act to be delivered in connection with sales of
the Registrable Securities, the representations and warranties of the Company or of any Guarantor contained in any agreement (including any underwriting agreement) contemplated by Section 6(l)
below cease to be true and correct in any material respect, (iv) of the receipt by the Company or any Guarantor of any notification with respect to the suspension of the qualification or
exemption from qualification of a Registration Statement or any of the Registrable Securities or the Exchange Securities to be sold by any Participating Broker-Dealer for offer or sale in any
jurisdiction, or the contemplation, initiation or threatening of any proceeding for such purpose, (v) of the happening of any event that makes any statement made in such Registration Statement
or related Prospectus or any document 

9

 

incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in such Registration Statement, Prospectus or documents so that
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading, and (vi) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate. 

    (f)  Use
its reasonable efforts to register or qualify (to the extent required by applicable law), and, if applicable, to cooperate with the selling Holders of
Registrable Securities, the underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of,
Securities to be included in a Registration Statement for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any selling Holder, Participating
Broker-Dealer or the managing underwriters reasonably request in writing; and, if Securities are offered other than through an Underwritten Offering, the Company shall cause its counsel to perform
Blue Sky investigations and file registrations and qualifications required to be filed pursuant to this Section 6(f) at the expense of the Company; keep each such registration or qualification
(or exemption therefrom) effective during the period such Registration Statement is required to be kept effective and do any and all other acts or things which may be reasonably necessary or advisable
to enable the disposition in such jurisdictions of the Securities covered by the applicable Registration Statement, provided, however, that none of the
Company nor the Guarantors shall be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified, (ii) to take action that would subject it to
general service of process in any jurisdiction where it is not so subject or (iii) subject it to taxation in any such jurisdiction where it is not then subject. 

    (g) Use
its reasonable efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or of any order preventing or suspending
the use of a Prospectus or suspending the qualification (or exemption from qualification) of any of the Securities for sale in any jurisdiction, and, if any such order is issued, to use its reasonable
best efforts to obtain the withdrawal of any such order at the earliest possible time. 

    (h) If
(A) a Shelf Registration Statement is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, and if
requested by the managing underwriters, if any, or the Holders of a majority in aggregate principal/liquidation amount of the Registrable Securities, (i) promptly incorporate in a Prospectus or
post-effective amendment such information as the managing underwriters, if any, or such Holders reasonably request to be included therein required to comply with any applicable law and
(ii) make all required filings of such Prospectus or such post-effective amendment as soon as practicable after the Company has received notification of such matters required by
applicable law to be incorporated in such Prospectus or post-effective amendment. 

    (i)  If
(A) a Shelf Registration Statement is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, cooperate
with the selling Holders and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for deposit with The Depository Trust Company ("DTC"); and enable such Registrable Securities to be in such denominations and
registered in such names as the managing underwriters, if any, or Holders may reasonably request. 

10

 

    (j)  If (i) a Shelf Registration Statement is filed pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration
Statement filed pursuant to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period,
upon the occurrence of any event contemplated by paragraph 6(e)(v) or 6(e)(vi) above, as promptly as practicable prepare a supplement or post-effective amendment to
the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities being sold thereunder or to the purchasers of the Exchange Securities to whom such Prospectus will be delivered by a Participating
Broker-Dealer, such Registration Statement or Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. 

    (k) Prior
to the effective date of the first Registration Statement relating to the Securities, (i) provide the applicable trustee or transfer agent with printed
certificates for the Securities in a form eligible for deposit with DTC and (ii) provide a CUSIP number for each of the Securities. 

    (l)  If
a Shelf Registration Statement is filed pursuant to Section 3, enter into such agreements (including an underwriting agreement in form, scope and
substance as is customary in underwritten offerings of securities similar to the Notes, as may be appropriate in the circumstances) and take all such other actions in connection therewith (including
those reasonably requested by the managing underwriters, if any, or the Holders of a majority in aggregate principal/liquidation amount of the Registrable Securities being sold) in order to expedite
or facilitate the registration or the disposition of such Registrable Securities, and in such connection, if such registration is an Underwritten Registration, (i) make such representations and
warranties to the Holders and the underwriters, if any, with respect to the business of the Company and its subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated
or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings of securities similar to the
Notes, as may be appropriate in the circumstances, and confirm the same if and when reasonably requested; (ii) obtain opinions of counsel to the Company and updates thereof (which counsel and
opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, if any, addressed to each of the underwriters, if any, covering the matters customarily covered
in opinions of counsel to the Issuer requested in underwritten offerings of securities similar to the Notes, as may be appropriate in the circumstances; (iii) obtain "cold comfort" letters and
updates thereof (which letters and updates (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters) from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial
data are, or are required to be, included in the Registration Statement), addressed to each of the underwriters and each selling Holder, such letters to be in customary form and covering matters of
the type customarily covered in "cold comfort" letters in connection with underwritten offerings of securities similar to the Notes, as may be appropriate in the circumstances, and such other matters
as reasonably requested by underwriters; and (iv) deliver such documents and certificates as may be reasonably requested by the Holders of a majority in principal/liquidation amount of the
Registrable Securities being sold and the managing underwriters, if any, to evidence the continued validity of the representations and warranties
of the Company and its subsidiaries made pursuant to clause (i) above and to evidence compliance with any conditions contained in the underwriting agreement or other similar agreement entered
into by the Company. Nothing contained in this clause (l) requires the Company or the Guarantors, their 

11

 

counsel or their accountants to make any representations or warranties, to render any legal opinion or to deliver any comfort letters that are not true. 

    (m) Comply
with all applicable rules and regulations of the SEC and make generally available to its security holders earnings statements satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) (i) commencing on the first day of the fiscal quarter following
each fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 

    (n) If
an Exchange Offer or Private Exchange is to be consummated, upon delivery of the Registrable Securities by such Holders to the Company (or to such other Person
as directed by the Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company shall mark, or caused to be marked, on such Registrable
Securities that such Registrable Securities are being cancelled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, and in no event shall such Registrable
Securities be marked as paid or otherwise satisfied. 

    (o) Cooperate
with each seller of Registrable Securities covered by any Registration Statement and each underwriter, if any, participating in the disposition of such
Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD. 

    (p) Use
its reasonable best efforts to take all other steps necessary to effect the registration of the Registrable Securities covered by a Registration Statement
contemplated hereby. 

    The
Company may require each seller of Registrable Securities or Participating Broker-Dealer as to which any registration is being effected to furnish to the Company such reasonable
information regarding such seller or Participating Broker-Dealer and the distribution of such Registrable Securities or Exchange Securities as the Company may, from time to time, reasonably request in
writing. The Company may exclude from such registration the Registrable Securities of any seller or Exchange Securities of any Participating Broker-Dealer who fails to furnish such information
promptly after receiving such request. 

    Each
Holder and each Participating Broker-Dealer agrees by acquisition of such Registrable Securities or Exchange Securities of any Participating Broker-Dealer that, upon receipt of
written notice from the Company of the happening of any event of the kind described in Section 6(e)(ii), 6(e)(iv), 6(e)(v) or 6(e)(vi), such Holder will forthwith discontinue disposition
(in the jurisdictions specified in a notice of a 6(e)(iv) event, and elsewhere in a notice of a 6(e)(ii), 6(e)(v) or 6(e)(vi) event) of such Securities covered by such
Registration Statement or Prospectus until such Holder's receipt of the copies of the supplemented or amended Prospectus contemplated by Section 6(j), or until it is advised in writing (the
"Advice") by the Company that offers or sales in a particular jurisdiction may be resumed or that the use of the applicable Prospectus may be resumed, as the case may be, and has received copies of
any amendments or supplements thereto. If the Company shall give such notice, each of the Effectiveness Period and the Applicable Period shall be extended by the number of days during such periods
from and including the date of the giving of such notice to and including the date when each seller of such Securities covered by such Registration Statement shall have received (x) the copies
of the supplemented or amended Prospectus contemplated by Section 6(j) or (y) the Advice. 

12

 

7.  Registration Expenses  

    (a) All
fees and expenses incident to the performance of or compliance with this Agreement by the Company and the Guarantors shall be borne by the Company and the
Guarantors whether or not the Exchange Offer or a Shelf Registration Statement is filed or becomes effective, including, without limitation: 

     (i) all
registration and filing fees (including, without limitation, (A) fees with respect to filings required to be made with the NASD and (B) fees and
expenses of compliance with state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable
Securities or Exchange Securities and determination of the eligibility of the Registrable Securities or Exchange Securities for investment under the laws of such jurisdictions (x) where the
Holders are located, in the case of the Exchange Securities, or (y) as provided in Section 6(f), in the case of Registrable Securities or Exchange Securities to be sold by a
Participating Broker-Dealer during the Applicable Period); 

    (ii) reasonable
printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities or Exchange Securities in a form eligible
for deposit with DTC and of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriters, if any, or, in respect of Registrable Securities or Exchange Securities to
be sold by a Participating Broker-Dealer during the Applicable Period, by the Holders of a majority in aggregate principal/liquidation amount of
the Registrable Securities included in any Registration Statement or of such Exchange Securities, as the case may be); 

    (iii) reasonable
messenger, telephone, duplication, word processing and delivery expenses incurred by the Company in the performance of its obligations hereunder; 

    (iv) fees
and disbursements of counsel for the Company; 

    (v) fees
and disbursements of all independent certified public accountants referred to in Section 6(l)(iii) (including, without limitation, the expenses
of any special audit and "cold comfort" letters required by or incident to such performance); 

    (vi) Securities
Act liability insurance, if the Company so desires such insurance; 

   (vii) fees
and expenses of all other Persons retained by the Company; internal expenses of the Company (including, without limitation, all salaries and expenses of
officers and employees of the Company performing legal or accounting duties); and the expense of any annual audit; and 

   (viii) rating
agency fees and the fees and expenses incurred in connection with the listing of the Securities to be registered on any securities exchange. 

    (b) The
Company and the Guarantors shall reimburse the Holders for the reasonable fees and disbursements of not more than one counsel (in addition to appropriate local
counsel) chosen by the Holders of a majority in aggregate principal amount of the Registrable Securities to be included in any Registration Statement. The Company shall pay all documentary, stamp,
transfer or other transactional taxes attributable to the issuance or delivery of the Exchange Securities or Private Exchange Securities in exchange for the Notes; provided that the Company shall not
be required to pay taxes payable in respect of any transfer involved in the issuance or delivery of any Exchange Security or Private Exchange Security in a name other than that of the holder of the
Note, in respect of which such Exchange Security or Private Exchange Security is being issued. 

    (c) Neither
the Company or the Guarantors shall be liable for any underwriting, brokerage, finder's or similar fees, discounts or commissions, if any, attributable to
the sale of the Registrable Securities which discounts, commissions or taxes shall be paid by the Holders of such Registrable Securities. 

13

   8.  Indemnification  

    (a)  Indemnification by the Company.  In the event of a Shelf Registration Statement or in connection
with any prospectus delivery pursuant to an Exchange Offer Registration Statement by the Purchaser or a Participating Broker-Dealer, as applicable, the Company shall, without limitation as to time,
indemnify and hold harmless each selling Holder and each Participating Broker-Dealer selling Exchange Securities during the Applicable Period, each Person who controls each such selling Holder (within
the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) and Participating Broker-Dealer and controlling person, to the fullest extent lawful, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys' fees as provided in this Section 8) and
expenses (including, without limitation, reasonable costs and expenses incurred in connection with investigating, preparing, pursuing or defending against any of the foregoing) (collectively,
"Losses"), as incurred, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue or alleged untrue statement of a material fact contained in any
Registration Statement, Prospectus or form of prospectus, or in any amendment or supplement thereto, or in any preliminary prospectus, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except insofar as such Losses are based
upon information relating to such selling Holder or Participating Broker-Dealer and furnished in writing to the Company (or reviewed and approved in writing) by such Holder or Participating
Broker-Dealer expressly for use therein; provided, however, that the Company shall not be liable to any Indemnified Party to the extent that any such
losses arise solely out of an untrue statement or alleged untrue statement or omission or alleged omission made in any preliminary prospectus if (i) such Indemnified Party or related holder of
a Registrable Security failed to send or deliver a copy of the Prospectus with or prior to the delivery of written confirmation of the sale by such Indemnified Party or the related holder of a
Registrable Security to the person asserting the claim from which such Losses arise, (ii) the Prospectus would have corrected such untrue statement or alleged untrue statement or omission or
alleged omission, and (iii) the Company has complied with their obligations under Section 6(e) hereof. 

    (b)  Indemnification by Holder of Registrable Securities.  In connection with any Registration Statement,
Prospectus or form of prospectus, any amendment or supplement thereto, or any preliminary prospectus in which a Holder is participating, such Holder shall furnish to the Company in writing such
information as the Company reasonably requests for use in connection with any Registration Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or any preliminary
prospectus and shall, without limitation as to time, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person, if any, who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20(a) of the Exchange Act), and the directors, officers, agents or employees of such controlling persons, to the fullest extent
lawful, from and against all Losses arising out of or based upon any untrue or alleged untrue statement of a material fact
contained in any Registration Statement, Prospectus or form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading to the extent, but only
to the extent, that such untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact is contained in or omitted from any information so furnished
in writing by such Holder to the Company expressly for use therein. In no event shall the liability of any selling Holder be greater in amount than the dollar amount of the proceeds (net of payment of
all expenses) received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of such indemnified party. 

14

 

    (c)  Conduct of Indemnification Proceedings.  If any action, claim, suit or proceeding, pending or
threatened (including, without limitation, an investigation or partial proceeding, such as a deposition) (each, a "Proceeding") shall be brought or asserted against any Person entitled to indemnity
hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the party or parties from which such indemnity is sought (the "Indemnifying Parties") in writing;  provided, that the
failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to
the extent (but only to the extent) that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal) that the Indemnifying Parties have been
prejudiced materially by such failure. 

    The
Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party, within 20 business days after receipt of written notice from such
Indemnified Party of such Proceeding, to assume, at its expense, the defense of any such Proceeding, provided, that an Indemnified Party shall have the
right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or
Indemnified Parties unless: (1) the Indemnifying Party has agreed to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding or shall have failed to employ counsel reasonably satisfactory to such Indemnified Party; or (3) the named parties to any such Proceeding (including any impleaded parties) include
both such Indemnified Party and the Indemnifying Party or any of its affiliates or controlling persons, and such Indemnified Party shall have been advised by counsel that there may be one or more
defenses available to such Indemnified Party that are in addition to, or in conflict with, those defenses available to the Indemnifying Party or such affiliate or controlling person (in which case, if
such Indemnified Party notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying Parties shall not have the
right to assume the defense and the reasonable fees and expenses of such counsel shall be at the expense of the Indemnifying Party; it being understood, however, that, the Indemnifying Party shall
not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be
liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party or Indemnified Parties). 

    No
Indemnifying Party shall be liable for any settlement of any such Proceeding effected without its written consent (which consent shall not be unreasonably withheld), but if settled
with its written consent, or if there be a final judgment for the plaintiff in any such Proceeding, each Indemnifying Party jointly and severally agrees, subject to the exceptions and limitations set
forth above, to indemnify and hold harmless each Indemnified Party from and against any and all Losses by reason of such settlement or judgment. The Indemnifying Party shall not consent to the entry
of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to each Indemnified Party of a release, in form and
substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such Proceeding for which such Indemnified Party would be entitled to indemnification hereunder (whether or
not any Indemnified Party is a party thereto). 

    (d)  Contribution.  If the indemnification provided for in this Section 8 is unavailable to an
Indemnified Party or is insufficient to hold such Indemnified Party harmless for any Losses in respect of which this Section 8 would otherwise apply by its terms (other than by reason of
exceptions provided in this Section 8), then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall have a joint and several obligation to contribute to the
amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and such
Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other 

15

 

relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and indemnified party, on the other hand, shall be determined by reference to, among other things,
whether any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such Indemnifying Party or Indemnified
Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such statement or omission. The amount paid or payable by an Indemnified Party as a
result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for
such fees or expenses if the indemnification provided for in Section 8(a) or 8(b) was available to such party. 

    The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro
rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 8(d), an Indemnifying Party that is a selling Holder shall not be required to contribute, in the aggregate, any amount in excess of such Holder's
Maximum Contribution Amount. A selling Holder's "Maximum Contribution Amount" shall equal the excess of (i) the aggregate proceeds received by such Holder pursuant to the sale of such
Registrable Securities over (ii) the aggregate amount of damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. 

    The
indemnity and contribution agreements contained in this Section 8 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 

9.  Rule 144 and Rule 144A  

    Each of the Company and each Guarantor covenants that it shall (a) file the reports required to be filed by it (if so required) under the Securities Act
and the Exchange Act in a timely manner and, if at any time any such Person is not required to file such reports for so long as the Registrable Securities are "restricted securities" as defined in
Rule 144, it will, upon the request of any Holder, make publicly available other information necessary to permit sales pursuant to Rule 144 and Rule 144A and (b) take such
further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder to sell Registrable Securities without registration under the Securities Act
pursuant to the exemptions provided by Rule 144 and Rule 144A. Upon the request of any Holder, the Company and the Guarantors shall deliver to such Holder a written statement as to
whether they have complied with such information and requirements. 

10.  Underwritten Registrations  

    If
any of the Registrable Securities covered by any Shelf Registration Statement are to be sold in an Underwritten Offering, the investment banker or investment bankers and manager or
managers that will manage the offering will be selected by the Holders of a majority in aggregate principal/liquidation amount of such Registrable Securities included in such offering with the consent
of the Company, which consent shall not be reasonably withheld; it being understood that any Underwritten Offering shall include at least $10,000,000 principal/liquidation amount of the Registrable
Securities. 

    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 questionnaires, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements. 

16

 

11.  Miscellaneous  

    (a)  Remedies.  In the event of a breach by the Company or any of the Guarantors of any of its respective
obligations under this Agreement, each Holder, in addition to being entitled to exercise all rights provided herein, in the Indenture or, in the case of the Purchasers, in the Purchase Agreement, or
granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each of the Guarantors agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate. 

    (b)  No Inconsistent Agreements.  The Company has not entered into, as of the date hereof, and shall not
enter into, after the date of this Agreement, any agreement with respect to any of its securities that is inconsistent with the rights granted to the holders of Registrable Securities in this
Agreement or otherwise conflicts with the provisions hereof. 

    (c)  Amendments and Waivers.  The provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of
Holders of at least a majority of the then outstanding aggregate principal amount of Registrable Securities; provided, that Sections 6(a) and 8 shall
not be amended, modified or supplemented, and waivers or consents to departures from this proviso may not be given, unless the Company has obtained the written consent of each Holder. Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority in aggregate principal/liquidation amount of the
Registrable Securities being sold by such Holders pursuant to such Registration Statement, provided that the provisions of this sentence may not be
amended, modified or supplemented except in accordance with the provisions of the immediately preceding sentence. 

    (d)  Notices.  All notices and other communications (including, without limitation, any notices or other
communications to the Trustee) provided for or permitted hereunder shall be made in writing by hand-delivery, certified first-class mail, return receipt requested, next-day air
courier or facsimile: 

     (i) if
to a Holder, at the most current address given by such holder to the Company in accordance with the provisions of this Section 11(d), which address
initially is, with respect to each holder, the address of such holder maintained by the Trustee under the Indenture, with a copy to Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand
Avenue, Los Angeles, California 90071-3144, telecopy number (213) 687-5600, Attention: Rod A. Guerra, Jr.; and 

    (ii) if
to the Company or any of the Guarantors, initially 4410 El Camino Real, Suite 201, Los Altos, California 94022, telecopy number
(650) 949-6420, Attention: Patrick Kelvie, and thereafter at such other address, notice of which is given in accordance with the provisions of this Section 11(d), with a copy
to Milbank, Tweed, Hadley & McCloy, LLP, 601 South Figueroa Street, 30th Floor, Los Angeles, California 90017, telecopy number (213) 629-5063, Attention:
Kenneth Baronsky. 

    All
such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; one business day after being timely delivered to a next-day air courier; and when receipt is acknowledged by the addressee, if telecopied. 

17

 

    Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee under the Indenture at the address specified
in such Indenture. 

    (e)  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. 

    (f)  Counterparts.  This Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

    (g)  Headings.  The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof. 

    (h)  Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B). 

    (i)  Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court
of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in
no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

    (j)  Entire Agreement.  This Agreement is intended by the parties as a final expression of their
agreement, and is 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 in respect of securities sold
pursuant to the Purchase Agreement. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

    (k)  Securities Held by the Company or its Affiliates.  Whenever the consent or approval of Holders of a
specified percentage of Registrable Securities is required hereunder, Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act)
(other than Holders deemed to be such affiliates solely by reason of their holdings of such Registrable Securities) shall not be counted in determining whether such consent or approval was given by
the holders of such required percentage. 

18

 
REGISTRATION RIGHTS AGREEMENT  

    IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	 	 	 	 	AMERICAN RESTAURANT GROUP, INC.
	

 	
 	

 	
 	

By:	
 	

/s/ Ralph S. Roberts

	 	 	 	 	Name: Ralph S. Roberts

Title: Chief Executive Officer & President
	

 	
 	

 	
 	

ARG ENTERPRISES, INC.
	

 	
 	

 	
 	

By:	
 	

/s/ Ralph S. Roberts

	 	 	 	 	Name: Ralph S. Roberts

Title: Chief Executive Officer & President
	

 	
 	

 	
 	

ARG PROPERTY MANAGEMENT CORPORATION
	

 	
 	

 	
 	

By:	
 	

/s/ Ralph S. Roberts

	 	 	 	 	Name: Ralph S. Roberts

Title: Chief Executive Officer & President
	

 	
 	

 	
 	

ARG TERRA, INC.
	

 	
 	

 	
 	

By:	
 	

/s/ Ralph S. Roberts

	 	 	 	 	Name: Ralph S. Roberts

Title: Chief Executive Officer & President
	

ACCEPTED AND AGREED TO:	
 	

 	
 	

 
	

JEFFERIES & COMPANY, INC.	
 	

 	
 	

 
	

By:	
 	

/s/ M. Brent Stevens
	
 	

 	
 	

 
	Name: M. Brent Stevens

Title: Executive Vice President	 	 	 	 

19

QuickLinks

EXHIBIT 4.11

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