Document:

EXHIBIT  10.38

 

Kevin 
Sipes Officer Compensation Continuation Agreement

 

MODIFICATION
TO

REPUBLIC
BANCORP, INC.

REPUBLIC
BANK & TRUST COMPANY

 

OFFICER
COMPENSATION CONTINUATION AGREEMENT

 

FOR IRC
SECTION 409A

 

THIS
MODIFICATION to the
Officer Compensation Continuation Agreement dated as of the 15th day
of June, 2001 (“Agreement”) by and between REPUBLIC BANCORP, INC.
(“Company”), REPUBLIC BANK & TRUST COMPANY
(“Bank”) and KEVIN SIPES (“Executive”) revises
the Agreement so as to conform to section 409A of the Internal Revenue Code of
1986, as amended. The parties agree to modify the Agreement as follows:

 

Effective
January 1, 2005, the introductory paragraph (and only the introductory
paragraph) of Section 3.4 of the Agreement is hereby deleted and the following
inserted in lieu thereof:

 

3.4           Compensation
Upon Termination. If during a Contract Period the Executive’s employment
shall be terminated by the Bank other than pursuant to death or for Cause, or
if the Executive shall terminate his employment for Good Reason, then the
Company shall pay, or the Company shall cause the Bank to pay, to the Executive
as severance compensation in a lump sum (discounted to present value using the
interest rate applicable to a three year certificate of deposit at Republic Bank
& Trust Company) on the fifth day following the Date of Termination; provided,
however, that if the Executive is a “key employee” within the meaning of
Section 416(i) (but without regard to Section 416(i)(5)) of the Internal
Revenue Code of 1986, as amended, at any time during the calendar year in which
occurs the Executive’s separation from service from the Bank (and the Company),
and stock of the Company is publicly traded on an established securities market
or otherwise as of the date of the Executive’s separation from service from the
Bank (and the Company), such severance compensation payable in a lump sum to
the Executive shall not be paid earlier than six months following the date of
the Executive’s separation from service from the Bank (and the Company) and
shall be discounted to present value using the interest rate applicable to a
three year certificate of deposit at Republic Bank & Trust Company on the
delayed payment date:

 

Except
as specifically modified above, the Agreement shall remain unchanged and, as
modified herein, shall continue in full force and effect. This Modification
shall inure to the benefit of and be enforceable by the Executive’s personal or
legal representatives, executors, administrators, successors, heirs,
distributes, devisees and legatees. The validity, interpretation, construction
and performance of this Modification shall be governed by the laws of the
Commonwealth of Kentucky.

 

1

 

IN
WITNESS WHEREOF, the
Company and the Bank, by their duly authorized officers, and the Executive have
caused this Modification to the Agreement to be executed this 15th
day of February, 2006, but to be effective as of January 1, 2005.

 

	
   

  	
  REPUBLIC
  BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Ringswald

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  REPUBLIC BANK & TRUST
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Ringswald

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Kevin Sipes

  	
   

  
	
   

  	
  KEVIN SIPES

  
							

 

2Exhibit
4.12

 

 

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of March 15, 2006

 

To the Indenture dated as of March 15, 2006

 

by and among

 

ALLIANT TECHSYSTEMS INC.,

as Issuer

 

THE SUBSIDIARY GUARANTORS LISTED ON 

SCHEDULE I HERETO

 

and

 

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

 

as Trustee

 

 

63⁄4% Senior Subordinated Notes due 2016

 

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 1         DEFINITIONS
  AND INCORPORATION BY REFERENCE

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Provisions
  of the Base Indenture

  	
   

  	
  1

  
	
  Section 1.02.

  	
   

  	
  Certain
  Terms Defined

  	
   

  	
  2

  
	
  Section 1.03.

  	
   

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  	
  22

  
	
  Section 1.04.

  	
   

  	
  Rules of
  Construction

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2         THE
  NOTES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Designation
  and Principal Amount

  	
   

  	
  23

  
	
  Section 2.02.

  	
   

  	
  Forms Generally

  	
   

  	
  23

  
	
  Section 2.03.

  	
   

  	
  Notes in
  Global Form

  	
   

  	
  34

  
	
  Section 2.04.

  	
   

  	
  Certain
  Sections of Base Indenture Not Applicable

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3         AMENDMENTS
  TO THE BASE INDENTURE

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Provisions
  Applicable Only to the Notes

  	
   

  	
  34

  
	
  Section 3.02.

  	
   

  	
  Amendment of
  Article 2 of the Base Indenture

  	
   

  	
  34

  
	
  Section 3.03.

  	
   

  	
  Amendment of
  Article 3 of the Base Indenture

  	
   

  	
  34

  
	
  Section 3.04.

  	
   

  	
  Amendment
  and Restatement of Section 5.01 of the Base Indenture. Section 5.01 of the
  Base Indenture is hereby amended and restated in its entirety, subject to
  Section 3.01 hereof and, with respect to the Notes only, to read as follows:

  	
   

  	
  52

  
	
  Section 3.05.

  	
   

  	
  Amendment
  and Restatement of Article 8 of the Base Indenture

  	
   

  	
  55

  
	
  Section 3.06.

  	
   

  	
  Amendment
  and Restatement of Article 9 of the Base Indenture

  	
   

  	
  58

  
	
  Section 3.07.

  	
   

  	
  Amendment of
  Article 10 of the Base Indenture

  	
   

  	
  60

  
	
  Section 3.08.

  	
   

  	
  Amendment
  and Restatement of Article 13 of the Base Indenture

  	
   

  	
  62

  
	
  Section 3.09.

  	
   

  	
  Amendment of
  Article 14 of the Base Indenture

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4         SUBSIDIARY
  GUARANTEES

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Subsidiary
  Guarantees

  	
   

  	
  68

  
	
  Section 4.02.

  	
   

  	
  Limitation
  on Liability

  	
   

  	
  70

  
	
  Section 4.03.

  	
   

  	
  Successors
  and Assigns

  	
   

  	
  71

  
	
  Section 4.04.

  	
   

  	
  No Waiver

  	
   

  	
  71

  
	
  Section 4.05.

  	
   

  	
  Modification

  	
   

  	
  71

  
	
  Section 4.06.

  	
   

  	
  Execution of
  Supplemental Indenture for Future Subsidiary Guarantors

  	
   

  	
  71

  
	
  Section 4.07.

  	
   

  	
  Non-Impairment

  	
   

  	
  72

  

 

i

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5         SUBORDINATION
  OF THE SUBSIDIARY GUARANTEES

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Agreement to
  Subordinate

  	
   

  	
  72

  
	
  Section 5.02.

  	
   

  	
  Liquidation,
  Dissolution, Bankruptcy

  	
   

  	
  72

  
	
  Section 5.03.

  	
   

  	
  Default on
  Designated Senior Indebtedness of a Subsidiary Guarantor

  	
   

  	
  72

  
	
  Section 5.04.

  	
   

  	
  Demand for
  Payment

  	
   

  	
  73

  
	
  Section 5.05.

  	
   

  	
  When
  Distribution Must Be Paid Over

  	
   

  	
  74

  
	
  Section 5.06.

  	
   

  	
  Subrogation

  	
   

  	
  74

  
	
  Section 5.07.

  	
   

  	
  Relative
  Rights

  	
   

  	
  74

  
	
  Section 5.08.

  	
   

  	
  Subordination
  May Not Be Impaired by a Subsidiary Guarantor

  	
   

  	
  74

  
	
  Section 5.09.

  	
   

  	
  Rights of
  Trustee and Paying Agent

  	
   

  	
  74

  
	
  Section 5.10.

  	
   

  	
  Distribution
  or Notice to Representative

  	
   

  	
  75

  
	
  Section 5.11.

  	
   

  	
  Article 5
  Not to Prevent Events of Default or Limit Right to Accelerate

  	
   

  	
  75

  
	
  Section 5.12.

  	
   

  	
  Trustee
  Entitled to Rely

  	
   

  	
  75

  
	
  Section 5.13.

  	
   

  	
  Trustee to
  Effectuate Subordination

  	
   

  	
  76

  
	
  Section 5.14.

  	
   

  	
  Trustee Not
  Fiduciary for Holders of Senior Indebtedness of a Subsidiary Guarantor

  	
   

  	
  76

  
	
  Section 5.15.

  	
   

  	
  Reliance by
  Holders of Senior Indebtedness of a Subsidiary Guarantor on Subordination
  Provisions

  	
   

  	
  76

  
	
  Section 5.16.

  	
   

  	
  Defeasance

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6         MISCELLANEOUS
  PROVISIONS

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Governing
  Law

  	
   

  	
  76

  
	
  Section 6.02.

  	
   

  	
  Successors
  and Assigns of Company Bound by Indenture

  	
   

  	
  76

  
	
  Section 6.03.

  	
   

  	
  Counterparts

  	
   

  	
  76

  
	
  Section 6.04.

  	
   

  	
  Conflict of
  any Provision of Indenture with Trust Indenture Act

  	
   

  	
  77

  
	
  Section 6.05.

  	
   

  	
  Consent to
  Jurisdiction

  	
   

  	
  77

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule I -
  Subsidiary Guarantors

  	
   

  	
   

  
	
  Appendix A -
  Form of Supplemental Indenture

  

 

ii

 

FIRST SUPPLEMENTAL INDENTURE (the “First Supplemental Indenture”) dated as of
March 15, 2006, by and among ALLIANT TECHSYSTEMS INC., a Delaware corporation
(the “Company”), the Subsidiary
Guarantors listed on Schedule I hereto (the “Subsidiary
Guarantors”) and THE BANK OF NEW YORK TRUST COMPANY, N.A., a
national banking association, as trustee (the “Trustee”), to the Indenture, dated as of March 15, 2006, by
and between the Company and the Trustee (the “Base
Indenture”).

 

RECITALS

 

Whereas, the Base Indenture provides for the
issuance from time to time thereunder, in series, of Securities of the Company,
and Section 2.03 of the Base Indenture provides for the establishment of the
form or terms of Securities issued thereunder through one or more supplemental
indentures;

 

Whereas, the Company and the Subsidiary
Guarantors desire by the First Supplemental Indenture to create a new series of
Securities to be issuable under the Base Indenture, as supplemented by the
First Supplemental Indenture, and to be known as the Company’s 63⁄4% Senior
Subordinated Notes due 2016 (the “Notes”),
the terms and provisions of which are to be as specified in the First
Supplemental Indenture;

 

Whereas, the Company and the Subsidiary
Guarantors have duly authorized the execution and delivery of the First
Supplemental Indenture to establish the Notes as a series of Securities under
the Base Indenture and to provide for, among other things, the issuance of and
the form and terms of the Notes, the full and unconditional guarantee of the
Notes by the Subsidiary Guarantors, and additional covenants for the benefit of
the Holders of the Notes and the Trustee; and

 

Whereas, all things necessary to make the
First Supplemental Indenture a valid and binding legal obligation of the
Company and the Guarantors according to its terms have been done.

 

Now, therefore, for and in consideration of
the premises and the purchase and acceptance of the Notes by the Holders
thereof and for the purpose of setting forth, as provided in the Base
Indenture, the form of the Notes and the terms, provisions and conditions
thereof, the Company and the Guarantors covenant and agree with the Trustee:

 

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01.          Provisions of the Base
Indenture. Except insofar as herein otherwise expressly provided,
all the definitions, provisions, terms and conditions of the Base Indenture
shall remain in full force and effect. The Base Indenture, as amended and
supplemented by the First Supplemental Indenture, is in all respects ratified
and confirmed, and the Base Indenture and the First Supplemental Indenture shall
be read, taken and considered as one and the same instrument for all purposes.

 

1

 

Section 1.02.          Certain Terms
Defined.  For all purposes of the Base Indenture and the
First Supplemental Indenture relating to the Notes, created hereby, except as
otherwise expressly provided or unless the context otherwise requires, (i) the
terms defined in this Article 1 have the meanings assigned to them in this
Article 1, (ii) any term that is defined in both the Base Indenture and the
First Supplemental Indenture shall have the meaning assigned to such term in
the First Supplemental Indenture and (iii) any capitalized term that is used in
the First Supplemental Indenture but not defined herein shall have the meaning specified
in the Base Indenture.

 

“Additional
Assets” means (a) any property or assets (other than
Indebtedness and Capital Stock) to be used by the Company or a Restricted
Subsidiary in a Permitted Business; (b) the Capital Stock of a Person that
becomes a Restricted Subsidiary as a result of the acquisition of such Capital
Stock by the Company or another Restricted Subsidiary; or (c) Capital
Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary; provided, however, that any such
Restricted Subsidiary described in clause (b) or (c) above is primarily
engaged in a Permitted Business.

 

“Additional
Notes” is defined in Section 2.01 of this First Supplemental
Indenture.

 

“Affiliate”
of any specified Person means any other Person, directly or indirectly,
controlling or controlled by or under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used
with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing. For purposes of
Sections 3.09 and 3.10 only, “Affiliate” shall also mean any beneficial
owner of shares representing 10% or more of the total voting power of the
Voting Stock (on a fully diluted basis) of the Company or of rights or warrants
to purchase such Voting Stock (whether or not currently exercisable) and any
Person who would be an Affiliate of any such beneficial owner pursuant to the
first sentence hereof.

 

“Affiliate
Transaction” has the meaning specified in Section 3.10(a).

 

“Applicable
Premium” means, with respect to a Note at any date of redemption,
the greater of (i) 1.0% of the principal amount of such Note and (ii) the
excess of (A) the present value at such date of redemption of (1) the
redemption price of such Note at April 1, 2011 (such redemption price being
described in paragraph 5(a) of the form of reverse of Note described in Section
2.02(b) of the First Supplemental Indenture) plus (2) all remaining required
interest payments due on such Note through April 1, 2011 (excluding accrued but
unpaid interest to the date of redemption), computed using a discount rate
equal to the Treasury Rate plus 50 basis points, over (B) the principal amount
of such Note.

 

“Asset
Disposition” means any sale, lease, transfer or other disposition
(or series of related sales, leases, transfers or dispositions) by the Company
or any Restricted Subsidiary, including any disposition by means of a merger,
consolidation or similar transaction (each referred to for the purposes of this
definition as a “disposition”), of:

 

2

 

(a)           any
shares of Capital Stock of a Restricted Subsidiary (other than directors’
qualifying shares or shares required by applicable law to be held by a Person
other than the Company or a Restricted Subsidiary),

 

(b)           all
or substantially all the assets of any division or line of business of the
Company or any Restricted Subsidiary or

 

(c)           any
other assets of the Company or any Restricted Subsidiary outside of the
ordinary course of business of the Company or such Restricted Subsidiary,

 

other than,

 

(i)            any
disposition by a Restricted Subsidiary to the Company or by the Company or a
Restricted Subsidiary to a Restricted Subsidiary,

 

(ii)           for
purposes of Section 3.09 only, a disposition subject to (and permitted by)
Section 3.07,

 

(iii)          a
disposition of assets with a Fair Market Value of less than $25,000,000,

 

(iv)          any
disposition of surplus, discontinued or worn-out equipment or other immaterial
assets no longer used in the on-going business of the Company and its
Restricted Subsidiaries,

 

(v)           (1) any
disposition of cash or Temporary Cash Investments or readily marketable
securities or (2) any disposition resulting from the liquidation or
dissolution of any Restricted Subsidiary to the extent made ratably in
accordance with the relative equity interests held by, or capital accounts of,
the owners thereof, and

 

(vi)          any
transaction that constitutes a Permitted Investment.

 

“Attributable
Debt” in respect of a Sale/Leaseback Transaction means, as at the
time of determination, the present value (discounted at the interest rate borne
by the Notes, compounded annually) of the total obligations of the lessee for
rental payments during the remaining term of the lease included in such
Sale/Leaseback Transaction (including any period for which such lease has been
extended).

 

“Average
Life” means, as of the date of determination, with respect to any
Indebtedness or Preferred Stock, the quotient obtained by dividing:
(1) the sum of the products of the numbers of years from the date of determination
to the dates of each successive scheduled principal payment of such
Indebtedness or scheduled redemption or similar payment with respect to such
Preferred Stock multiplied by the amount of such payment by (2) the sum of
all such payments.

 

“Bank Indebtedness”
means any and all amounts payable under or in respect of the Credit Agreement
and any Refinancing Indebtedness with respect thereto, as amended from time to
time, including principal, premium (if any), interest (including interest
accruing on or

 

3

 

after the filing of any
petition in bankruptcy or for reorganization relating to the Company whether or
not a claim for post-filing interest is allowed in such proceedings), fees,
charges, expenses, reimbursement obligations, guarantees and all other amounts
payable thereunder or in respect thereof. It is understood and agreed that
Refinancing Indebtedness in respect of the Credit Agreement may be Incurred
from time to time after termination of the Credit Agreement.

 

“Base
Indenture” has the meaning specified in the preamble.

 

“Blockage
Notice” has the meaning specified in Section 13.03.

 

“Board of
Directors” means the Board of Directors of the Company or any
committee thereof duly authorized to act on behalf of the Board of Directors of
the Company.

 

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

 

“Capital
Stock” of any Person means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any
Preferred Stock, but excluding any debt securities convertible into such
equity.

 

“Capitalized
Lease Obligations” means an obligation that is required to be
classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by
such obligation shall be the capitalized amount of such obligation determined
in accordance with GAAP; and the Stated Maturity thereof shall be the date of
the last payment of rent or any other amount due under such lease prior to the
first date upon which such lease may be prepaid by the lessee without payment
of a penalty.

 

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

 

(a)           any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act),
is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act, except that for purposes of this clause (a) such
person shall be deemed to have “beneficial ownership” of all shares that any
such person has the right to acquire), directly or indirectly, of more than 50%
of the total voting power of the Voting Stock of the Company (for the purposes
of this clause (a), a person shall be deemed to beneficially own any Voting
Stock of an entity held by any other entity (the “parent entity”), if such
person is the beneficial owner (as defined in this clause (a)), directly or
indirectly, of more than 50% of the voting power of the Voting Stock of the
parent entity);

 

(b)           during any period of
two consecutive years, individuals who at the beginning of such period
constituted the Board of Directors of the Company (together with any new
directors whose election by such Board of Directors of the Company or whose
nomination for election by the stockholders of the Company was approved by a
vote of a majority of the directors of the Company then still in office who
were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors of the Company then in office;

 

4

 

(c)           the adoption of a
plan relating to the liquidation or dissolution of the Company; or

 

(d)           the merger or
consolidation of the Company with or into another Person or the merger of
another Person with or into the Company or the sale of all or substantially all
the assets of the Company to another Person and, in the case of any such
merger, consolidation or sale, the securities of the Company that are
outstanding immediately prior to such transaction and which represent 100% of
the aggregate voting power of the Voting Stock of the Company are changed into
or exchanged for cash, securities or property, unless pursuant to such
transaction such securities are changed into or exchanged for, in addition to
any other consideration, securities of the surviving Person or transferee that
represent, immediately after such transaction, at least a majority of the
aggregate voting power of the Voting Stock of the surviving Person or
transferee.

 

“Change of
Control Offer” has the meaning specified in Section 3.11(b).

 

“Closing
Date” means March 15, 2006.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Commodity
Agreement” means with respect to any Person any contract designed to
protect the Company or any Restricted Subsidiary against fluctuations in
commodity prices.

 

“Company”
means the Person identified as the “Company” in the preamble until a successor
corporation shall have become such pursuant to the applicable provisions
hereof, and thereafter “Company” shall mean such successor corporation.

 

“Consolidated
Coverage Ratio” as of any date of determination means the ratio of
(1) the aggregate amount of Consolidated EBITDA for the period of the most
recent four consecutive fiscal quarters for which financial statements are then
publicly available to (2) Consolidated Interest Expense for such four
fiscal quarters; provided, however, that (A) if the Company
or any Restricted Subsidiary has Incurred any Indebtedness since the beginning
of such period that remains outstanding on such date of determination, other
than Indebtedness Incurred under any revolving credit facility or similar
arrangement to finance seasonal fluctuations in working capital needs, or if
the transaction giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, Consolidated EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been Incurred
on the first day of such period and the discharge of any other Indebtedness
repaid, repurchased, defeased or otherwise discharged with the proceeds of such
new Indebtedness as if such discharge had occurred on the first day of such
period; provided, however, that with respect to Indebtedness
Incurred pursuant to a revolving credit or similar arrangement referred to
above, calculations shall be made using the average daily balance of such
Indebtedness for such period unless such Indebtedness is projected, in the
reasonable judgment of senior management of the Company, to remain outstanding
for a period in excess of 12 months from the date of Incurrence of such
Indebtedness, in which case such calculations shall be made on a pro forma
basis as if such

 

5

 

Indebtedness had been Incurred
on the first day of such period, (B) if the Company or any Restricted
Subsidiary has repaid, repurchased, defeased or otherwise discharged any
Indebtedness since the beginning of such period or if any Indebtedness is to be
repaid, repurchased, defeased or otherwise discharged (in each case other than
Indebtedness Incurred under any revolving credit facility or similar
arrangement to finance seasonal fluctuations in working capital needs, unless
such Indebtedness has been permanently repaid and the related commitment has
been terminated and not been replaced) on the date of the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio, Consolidated
EBITDA and Consolidated Interest Expense for such period shall be calculated on
a pro forma basis as if such discharge had occurred on the first day of such
period and as if the Company or such Restricted Subsidiary has not earned the
interest income actually earned during such period in respect of cash or
Temporary Cash Investments used to repay, repurchase, defease or otherwise
discharge such Indebtedness, (C) if since the beginning of such period the
Company or any Restricted Subsidiary shall have made any Asset Disposition, the
Consolidated EBITDA for such period shall be reduced by an amount equal to the
Consolidated EBITDA (if positive) directly attributable to the assets that are
the subject of such Asset Disposition for such period or increased by an amount
equal to the Consolidated EBITDA (if negative) directly attributable thereto
for such period and Consolidated Interest Expense for such period shall be
reduced by an amount equal to the Consolidated Interest Expense directly
attributable to any Indebtedness of the Company or any Restricted Subsidiary
repaid, repurchased, defeased or otherwise discharged with respect to the
Company and its continuing Restricted Subsidiaries in connection with such
Asset Disposition for such period (or, if the Capital Stock of any Restricted
Subsidiary is sold, the Consolidated Interest Expense for such period directly
attributable to the Indebtedness of such Restricted Subsidiary to the extent
the Company and its continuing Restricted Subsidiaries are no longer liable for
such Indebtedness after such sale), (D) if since the beginning of such
period the Company or any Restricted Subsidiary (by merger or otherwise) shall
have made an Investment in any Restricted Subsidiary (or any Person that
becomes a Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction causing a
calculation to be made hereunder, which constitutes all or substantially all of
an operating unit of a business, Consolidated EBITDA and Consolidated Interest
Expense for such period shall be calculated after giving pro forma effect
thereto (including the Incurrence of any Indebtedness) as if such Investment or
acquisition occurred on the first day of such period and (E) if since the
beginning of such period any Person (that subsequently became a Restricted Subsidiary
or was merged with or into the Company or any Restricted Subsidiary since the
beginning of such period) shall have made any Asset Disposition or any
Investment or acquisition of assets that would have required an adjustment
pursuant to clause (C) or (D) above if made by the Company or a Restricted
Subsidiary during such period, Consolidated EBITDA and Consolidated Interest
Expense for such period shall be calculated after giving pro forma effect
thereto as if such Asset Disposition, Investment or acquisition of assets
occurred on the first day of such period.

 

For purposes of this definition, whenever pro
forma effect is to be given to an acquisition of assets or other Investment,
the amount of income or earnings relating thereto and the amount of Consolidated
Interest Expense associated with any Indebtedness Incurred in connection
therewith, the pro forma calculations shall be determined in good faith by a
responsible financial or accounting Officer of the Company and shall comply
with the requirements of Rule 11-02 of Regulation S-X promulgated by
the Commission.

 

6

 

If any Indebtedness bears a floating rate of
interest and is being given pro forma effect, the interest expense on such
Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any Interest Rate Agreement applicable to such Indebtedness if such
Interest Rate Agreement has a remaining term as at the date of determination in
excess of 12 months). If the interest on any such Indebtedness may be
determined based on rates chosen by the Company, pro forma interest expense may
be determined based on such optional rate chosen as the Company may designate.

 

“Consolidated
EBITDA” for any period means the Consolidated Net Income for such
period, plus, without duplication, the following to the extent deducted in
calculating such Consolidated Net Income: 
(a) income tax expense of the Company and its Consolidated
Restricted Subsidiaries accrued in accordance with GAAP, (b) Consolidated
Interest Expense, (c) depreciation expense of the Company and its
Consolidated Restricted Subsidiaries, (d) amortization expense of the
Company and its Consolidated Restricted Subsidiaries (excluding amortization
expense attributable to a prepaid cash item that was paid in a prior period),
and (e) all other non-cash charges of the Company and its Consolidated
Restricted Subsidiaries (excluding any such non-cash charge to the extent it
represents an accrual of or reserve for cash expenditures in any future period)
less all nonrecurring non-cash gains of the Company and its Restricted
Subsidiaries in each case for such period. Notwithstanding the foregoing, the
provision for taxes based on the income or profits of, and the depreciation and
amortization and non-cash charges of, a Restricted Subsidiary of the Company
shall be added to Consolidated Net Income to compute Consolidated EBITDA only
to the extent (and in the same proportion) that the net income of such
Restricted Subsidiary was included in calculating Consolidated Net Income and
only if a corresponding amount would be permitted at the date of determination
to be dividended to the Company by such Restricted Subsidiary without prior
approval (that has not been obtained), pursuant to the terms of its charter and
all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary or its
stockholders.

 

“Consolidated
Interest Expense” means, for any period, the total interest expense
of the Company and its Consolidated Restricted Subsidiaries, plus, to the
extent Incurred by the Company and its Consolidated Restricted Subsidiaries in
such period but not included in such interest expense, without duplication
(a) interest expense attributable to Capitalized Lease Obligations and the
interest expense attributable to leases constituting part of a Sale/Leaseback
Transaction, (b) amortization of debt discount and debt issuance costs,
(c) capitalized interest, (d) non-cash interest expense,
(e) commissions, discounts and other fees and charges attributable to
letters of credit and bankers’ acceptance financing, (f) interest accruing
on any Indebtedness of any other Person to the extent such Indebtedness is
Guaranteed by the Company or any Restricted Subsidiary; (g) net costs
associated with Hedging Obligations (including amortization of fees), (h) all
dividends in respect of all Disqualified Stock of the Company and all Preferred
Stock of any of the Subsidiaries of the Company (other than dividends payable
solely in Capital Stock of the Company (other than Disqualified Stock) or to
the Company or a Restricted Subsidiary), (i) interest Incurred in
connection with investments in discontinued operations, and (j) the cash
contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay interest or
fees to any Person (other than the Company) in connection with Indebtedness
Incurred by such plan or trust.

 

7

 

“Consolidated
Net Income” means, for any period, the net income of the Company and
its Consolidated Subsidiaries for such period; provided, however,
that there shall not be included in such Consolidated Net Income:

 

(a)           any
net income of any Person (other than the Company) if such Person is not a
Restricted Subsidiary, except that (i) subject to the limitations
contained in clause (d) below, the Company’s equity in the net income of
any such Person for such period shall be included in such Consolidated Net
Income up to the aggregate amount of cash actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a dividend or
other distribution (subject, in the case of a dividend or other distribution
made to a Restricted Subsidiary, to the limitations contained in
clause (c) below) and (ii) the Company’s equity in a net loss of any
such Person for such period shall be included in determining such Consolidated
Net Income;

 

(b)           except
as contemplated by the definition of Consolidated Coverage Ratio, any net
income (or loss) of any Person acquired by the Company or a Restricted
Subsidiary of the Company for any period prior to the date of such acquisition;

 

(c)           any
net income (or loss) of any Restricted Subsidiary that is not a Subsidiary
Guarantor if such Restricted Subsidiary is subject to restrictions, directly or
indirectly, on the payment of dividends or the making of distributions by such
Restricted Subsidiary, directly or indirectly, to the Company, except that
(i) subject to the limitations contained in clause (d) below, the
Company’s equity in the net income of any such Restricted Subsidiary for such
period shall be included in such Consolidated Net Income up to the aggregate
amount of cash actually distributed by such Restricted Subsidiary during such
period (or after such period and prior to the applicable calculation date) to
the Company or another Restricted Subsidiary as a dividend or other
distribution (subject, in the case of a dividend or other distribution made to
another Restricted Subsidiary, to the limitation contained in this clause) and
(ii) the Company’s equity in a net loss of any such Restricted Subsidiary
for such period shall be included in determining such Consolidated Net Income;

 

(d)           any
after-tax gain or loss realized upon the sale or other disposition of any asset
of the Company or its Consolidated Subsidiaries (including pursuant to any
Sale/Leaseback Transaction) that is not sold or otherwise disposed of in the
ordinary course of business and any after-tax gain or loss realized upon the
sale or other disposition of any Capital Stock of any Person;

 

(e)           any
extraordinary after-tax gain or loss;

 

(f)            any
nonrecurring non-cash charges relating to a restructuring program approved by
the Board of Directors;

 

(g)           any
fees and expenses, or any amortization or writeoff thereof, incurred in
connection with any acquisition, investment, asset disposition, issuance or
repayment of debt, issuance of equity securities, refinancing transaction
(including the refinancing of the Company’s 81⁄2% Senior Subordinated Notes due
2011 with the proceeds of the Notes

 

8

 

and the termination of existing
Interest Rate Agreements in connection therewith) or amendment or other
modification of any debt instrument; and any charges incurred as a result of
any such transaction;

 

(h)           non-cash
charges related to the issuance of stock options or restricted stock or other
non-cash stock-based compensation expense; and

 

(i)            the
cumulative effect of a change in accounting principles.

 

Notwithstanding the foregoing, for the
purpose of Section 3.07 only, there shall be excluded from Consolidated Net Income
any dividends, repayments of loans or advances or other transfers of assets
from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the
extent such dividends, repayments or transfers increase the amount of
Restricted Payments permitted under clause 3(E) of Section 3.07(a).

 

“Consolidated
Tangible Assets” as of any date of determination, means the total
amount of assets (less accumulated depreciation and amortization, allowances
for doubtful receivables, other applicable reserves and other properly
deductible items) which would appear on a consolidated balance sheet of the
Company and its Consolidated Restricted Subsidiaries, determined on a Consolidated basis in accordance with GAAP, and
after giving effect to purchase accounting and after deducting therefrom to the
extent otherwise included, the amounts of: 
(a) minority interests in Consolidated Subsidiaries held by Persons
other than the Company or a Restricted Subsidiary; (b) unamortized debt
discount and expenses and other unamortized deferred charges, goodwill,
patents, trademarks, service marks, trade names, copyrights, licenses,
organization or developmental expenses and other intangible items;
(c) treasury stock; (d) cash set apart and held in a sinking or other
analogous fund established for the purpose of redemption or other retirement of
Capital Stock; and (e) Investments in, and assets of, Unrestricted
Subsidiaries.

 

“Consolidation”
means the consolidation of the accounts of each of the Restricted Subsidiaries
with those of the Company in accordance with GAAP consistently applied; provided,
however, that “Consolidation” will not include consolidation of the
accounts of any Unrestricted Subsidiary, but the interest of the Company or any
Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an
investment. The term “Consolidated” has a correlative meaning.

 

“Corporate
Trust Office” means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Indenture is
located at 2 North LaSalle Street, Suite 1020 Chicago, IL 60602 Attn:
Corporate Trust Administration.

 

“Credit
Agreement” means the Credit Agreement dated March 31, 2004 among the
Company, as borrower, Bank of America, N.A. (“BOA”), as Administrative Agent,
the lenders party thereto, Credit Lyonnais New York Branch, as Syndication
Agent, The Bank of New York, U.S. Bank National Association (“US Bank”), and
National City Bank, as Co-Documentation Agents, Banc of America Securities LLC
and Credit Lyonnais New York Branch, as Joint Lead Arrangers, and Banc of
America Securities LLC, as Sole Bookrunning

 

9

 

Manager, as amended by that
certain Amendment No. 1 to Credit Agreement, dated as of May 5, 2005 among the
Company, the lenders party thereto, BOA as swing line lender, Bank of America,
Calyon New York Branch (f/k/a Credit Lyonnais New York Branch), US Bank and
JPMorgan Chase Bank, N.A., as L/C Issuers, and BOA as administrative agent, and
as may be amended, restated, supplemented, waived, replaced, whether or not
upon termination, and whether with the original lenders or otherwise,
refinanced, restructured or otherwise modified from time to time.

 

“Credit
Facilities” means, one or more debt facilities (including, without
limitation, the Credit Agreement), commercial paper facilities or indentures,
in each case with banks or other institutional lenders or a trustee, providing
for revolving credit loans, term loans, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables), letters of credit
or issuances of notes, in each case, as amended, restated, modified, renewed,
refunded, replaced or refinanced in whole or in part from time to time.

 

“Currency
Agreement” means with respect to any Person any foreign exchange
contract, currency swap agreements or other similar agreement or arrangement to
which such Person is a party or of which it is a beneficiary.

 

“Default”
means any event which is, or after notice or passage of time or both would be,
an Event of Default.

 

“defaulted
interest” has the meaning specified in Section 2.07.

 

“Designated
Non-Cash Consideration” means the Fair Market Value of non-cash
consideration received by the Company or one of its Restricted Subsidiaries in
connection with an Asset Disposition that is so designated as Designated
Non-Cash Consideration pursuant to an Officers’ Certificate, setting forth the
basis of such valuation.

 

“Description
of Notes” means the section entitled “Description of Notes” in the
Company’s final prospectus supplement, dated March 6, 2006 and filed with the
Commission on March 8, 2006, relating to the Notes.

 

“Designated
Senior Indebtedness” of the Company means (a) the Bank
Indebtedness and (b) any other Senior Indebtedness of the Company that, at
the date of determination, has an aggregate principal amount outstanding of, or
under which, at the date of determination, the holders thereof are committed to
lend up to, at least $25,000,000 and is specifically designated by the Company
in the instrument evidencing or governing such Senior Indebtedness as
“Designated Senior Indebtedness” for purposes of this Indenture. “Designated
Senior Indebtedness” of a Subsidiary Guarantor has a correlative meaning.

 

“Disqualified
Stock” means, with respect to any Person, any Capital Stock which by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable or exercisable) or upon the happening of any
event:  (a) matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
(b) is convertible or exchangeable for Indebtedness or Disqualified Stock,
excluding Capital Stock convertible or exchangeable solely at the option of the
Company or a Restricted Subsidiary; provided, however, that any
such

 

10

 

conversion or exchange shall be
deemed an Incurrence of Indebtedness or Disqualified Stock, as applicable, or
(c) is redeemable at the option of the holder thereof, in whole or in
part, in the case of each of clauses (a), (b) and (c) on or prior to 91
days after the Stated Maturity of the Notes; provided, however,
that any Capital Stock that would not constitute Disqualified Stock but for
provisions thereof giving holders thereof the right to require such Person to
repurchase or redeem such Capital Stock upon the occurrence of an “asset sale”
or “change of control” occurring prior to 91 days after the Stated Maturity of
the Notes shall not constitute Disqualified Stock if the “asset sale” or
“change of control” provisions applicable to such Capital Stock are not more
favorable to the holders of such Capital Stock than the provisions of
Sections 3.09 and 3.11.

 

“Domestic
Subsidiary” means any Restricted Subsidiary of the Company other
than a Foreign Subsidiary.

 

“Event of
Default” has the meaning specified in Section 5.01 of
Indenture.

 

“Fair Market
Value” means, with respect to any asset or property, the price,
which could be negotiated in an arm’s-length, free market transaction, for
cash, between a willing seller and a willing and able buyer, neither of whom is
under undue pressure or compulsion to complete the transaction. The Fair Market
Value of property or assets other than cash which involves (a) an
aggregate amount in excess of $20,000,000, shall be set forth in a resolution
approved by at least a majority of the Board of Directors and (b) an
aggregate amount in excess of $40,000,000, shall have been determined in
writing by a nationally recognized appraisal or investment banking firm, provided
that (i) this sentence shall not apply to the definitions of “Asset
Disposition,” “Permitted Investments” and “Indebtedness,” and (ii) except in
the case of a disposition to an Affiliate of the Company, clause (b) of this
sentence shall not apply to Section 3.09(a)(i).

 

“First
Supplemental Indenture” has the meaning set forth in the preamble.

 

“Foreign Subsidiary”
means any Restricted Subsidiary of the Company that is not organized under the
laws of the United States of America or any State thereof or the District of
Columbia unless it Guarantees Indebtedness of the Company.

 

“GAAP”
means generally accepted accounting principles in the United States of America
as in effect as of the Closing Date, including those set forth in (a) the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants, (b) statements and
pronouncements of the Financial Accounting Standards Board, (c) such other
statements by such other entities as approved by a significant segment of the
accounting profession and (d) the rules and regulations of the Commission
governing the inclusion of financial statements (including pro forma financial
statements) in periodic reports required to be filed pursuant to
Section 13 of the Securities Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements
from the accounting staff of the Commission. All ratios and computations based
on GAAP contained in this Indenture shall be computed in conformity with GAAP.

 

“Guarantee”
means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness or other obligation of any other
Person and

 

11

 

any obligation, direct or
indirect, contingent or otherwise, of such Person (a) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation of such other Person (whether arising by virtue of
partnership arrangements, or by agreement to keep-well, to purchase assets,
goods, securities or services, to take-or-pay, or to maintain financial
statement conditions or otherwise) or (b) entered into for purposes of
assuring in any other manner the obligee of such Indebtedness or other
obligation of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part); provided, however, that the term
“Guarantee” shall not include endorsements for collection or deposit in the
ordinary course of business. The term “Guarantee” used as a verb has a
corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing
any obligation.

 

“Guarantee
Blockage Notice” has the meaning specified in Section 5.03 of the
First Supplemental Indenture.

 

“Guarantee
Blockage Period” has the meaning specified in Section 5.03 of the
First Supplemental Indenture.

 

“Guaranteed
Obligations” has the meaning specified in Section 4.01(a) of this
First Supplemental Indenture.

 

“Hedging
Obligations” of any Person means the obligations of such Person
pursuant to any Interest Rate Agreement, Currency Agreement or Commodity
Agreement.

 

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

 

“Incur”
means issue, assume, Guarantee, incur or otherwise become liable for; provided,
however, that any Indebtedness or Capital Stock of a Person existing at
the time such Person becomes a Subsidiary (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the
time it becomes a Subsidiary. The term “Incurrence” when used as a noun shall
have a correlative meaning. The accretion of principal of a non-interest
bearing or other discount security shall not be deemed the Incurrence of
Indebtedness.

 

“Indebtedness”
means, with respect to any Person on any date of determination, without
duplication:

 

(a)           the
principal in respect of indebtedness of such Person for borrowed money;

 

(b)           the
principal in respect of obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments;

 

(c)           all
obligations of such Person in respect of letters of credit or other similar
instruments (including reimbursement obligations with respect thereto);

 

(d)           all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services (except Trade Payables), which purchase price is due more

 

12

 

than six months after the date of
placing such property in service or taking delivery and title thereto or the
completion of such services;

 

(e)           all
Capitalized Lease Obligations and all Attributable Debt of such Person;

 

(f)            the
amount of all obligations of such Person with respect to the redemption,
repayment or other repurchase of any Disqualified Stock or, with respect to any
Subsidiary of such Person, any Preferred Stock (but excluding, in each case,
any accrued dividends);

 

(g)           all
Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person; provided, however,
that the amount of Indebtedness of such Person shall be the lesser of
(i) the Fair Market Value of such asset at such date of determination and
(ii) the amount of such Indebtedness of such other Persons;

 

(h)           Hedging
Obligations of such Person; and

 

(i)            all
obligations of the type referred to in clauses (a) through (h) of other
Persons and all dividends of other Persons for the payment of which, in either
case, such Person is responsible or liable, directly or indirectly, as obligor,
guarantor or otherwise, including by means of any Guarantee.

 

The amount of Indebtedness of any Person at
any date shall be the outstanding balance at such date of all unconditional
obligations as described above and the maximum liability, upon the occurrence
of the contingency giving rise to the obligation, of any contingent obligations
at such date.

 

“Indenture” means the Base Indenture as
originally executed and as supplemented by the First Supplemental Indenture, or
as it may from time to time be amended or supplemented as herein provided, as
so amended or supplemented or both.

 

“interest
payment date” has the meaning specified in Section 2.01 of the First
Supplemental Indenture.

 

“Interest
Rate Agreement” means with respect to any Person any interest rate
protection agreement, interest rate future agreement, interest rate option
agreement, interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement to which such Person is party or of which it is a beneficiary.

 

“Investment”
by a specified Person in any other Person means any direct or indirect advance,
loan (other than advances to customers in the ordinary course of business that
are recorded as accounts receivable on the balance sheet of the lender) or
other extension of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the
account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by such other Person. For
purposes of the definition of

 

13

 

“Unrestricted Subsidiary” and
Section 3.07, (a) “Investment” shall include the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the Fair
Market Value of the net assets of any Subsidiary of the Company at the time
that such Subsidiary is designated an Unrestricted Subsidiary; provided,
however, that upon a redesignation of such Subsidiary as a Restricted
Subsidiary, the Company shall be deemed to continue to have a permanent
“Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to
(i) the Company’s “Investment” in such Subsidiary at the time of such
redesignation less (ii) the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net assets of such
Subsidiary at the time of such redesignation; (b) any property transferred
to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value
at the time of such transfer; and (c) if the Company or any Restricted
Subsidiary of the Company sells or otherwise disposes of any Equity Interests of
any direct or indirect Restricted Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such Person is no longer a
Restricted Subsidiary of the Company, the Company will be deemed to have made
an Investment on the date of any such sale or disposition equal to the Fair
Market Value of the Investment in such Subsidiary not sold or disposed of.

 

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

 

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

 

“Moody’s”
has the meaning specified in the definition of “Temporary Cash Investments.”

 

“Net
Available Cash” from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred payment of
principal pursuant to a note or installment receivable or otherwise and
proceeds from the sale or other disposition of any securities received as
consideration, but only as and when received, but excluding any other
consideration received in the form of assumption by the acquiring Person of
Indebtedness or other obligations relating to the properties or assets that are
the subject of such Asset Disposition or received in any other non-cash form)
therefrom, in each case net of (a) all legal, title and recording tax
expenses, commissions and other fees and expenses incurred, and all Federal,
state, provincial, foreign and local taxes required to be paid or accrued as a
liability under GAAP, as a consequence of such Asset Disposition, (b) all
payments made on any Indebtedness which is secured by any assets subject to
such Asset Disposition, in accordance with the terms of any Lien upon or other
security agreement of any kind with respect to such assets, or which must by
its terms, or in order to obtain a necessary consent to such Asset Disposition,
or by applicable law be repaid out of the proceeds from such Asset Disposition,
(c) all distributions and other payments required to be made to minority
interest holders in Subsidiaries or joint ventures as a result of such Asset
Disposition, (d) payments of unassumed liabilities relating to the assets
sold at the time of, or within 60 days after, the date of such sale to the
extent required by any agreement or contract relating to such liabilities and
(e) appropriate amounts to be provided by the seller as a reserve, in accordance
with GAAP, against any liabilities associated with the

 

14

 

property or other assets
disposed of in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition.

 

“Net Cash
Proceeds”, with respect to any issuance or sale of Capital Stock,
means the cash proceeds of such issuance or sale net of attorneys’ fees,
accountants’ fees, underwriters’ or placement agents’ fees, discounts or
commissions and brokerage, consultant and other fees actually incurred in
connection with such issuance or sale and net of taxes paid or payable as a
result thereof.

 

“Note”
or “Notes” has the meaning stated
in the second recital of this Indenture and includes any Notes authenticated
and delivered under this Indenture, including any Additional Notes.

 

“Offer”
has the meaning specified in Section 3.09(b).

 

“Offer
Amount” has the meaning specified in Section 3.09(c).

 

“Offer
Period” has the meaning specified in Section 3.09(c).

 

“Officer”
means the Chairman of the Board, the Chief Executive Officer, the Chief
Financial Officer, the President, any Vice President, the Treasurer or the
Secretary of the Company or of a Subsidiary Guarantor, as appropriate.

 

“Officers’
Certificate” means a certificate signed by two Officers.

 

“Opinion of
Counsel” means a written opinion from legal counsel. The counsel may
be an employee of or counsel to the Company, a Subsidiary Guarantor or the
Trustee.

 

“Outstanding”,
when used with reference to the Notes as of any particular time, subject to the
provisions of Section 7.04 of the Indenture, means all such Notes
authenticated and delivered under this Indenture, except:

 

(a)           Notes theretofore canceled by the
Trustee or delivered to the Trustee for cancellation;

 

(b)           Notes, or portions thereof, for the
payment or redemption of which the necessary funds in the required currency
shall have been deposited in trust with the Trustee or with any Paying Agent
other than the Company, or shall have been set aside, segregated and held in
trust by the Company for the holders of such Notes if the Company shall act as
its own Paying Agent, provided that if such securities, or portions thereof,
are to be redeemed prior to the maturity thereof, notice of such redemption shall
have been given as herein provided, or provision satisfactory to the Trustee
shall have been made for giving such notice;

 

(c)           Notes in substitution for which other
Notes shall have been authenticated and delivered pursuant to the terms of
Section 2.09 of the Indenture, except with respect to any such Note as to
which proof satisfactory to the Trustee and the Company is

 

15

 

presented that such Note is held by a person
in whose hands such Note is a legal, valid and binding obligation of the
Company; and

 

(d)           Notes with respect to which the
Company has effected defeasance as provided in Article 10.

 

“Paying Agent”
means any Person, which may include the Company or any of its domestically
incorporated Restricted Subsidiaries, authorized by the Company to pay the
principal of or interest, if any, on any Note on behalf of the Company.

 

“pay its Guarantee”
has the meaning specified in Section 5.03 of the First Supplemental Indenture.

 

“Payment Blockage
Period” has the meaning specified in Section 13.03 of the First
Supplemental Indenture.

 

“Permitted
Business” means the business engaged in by the Company and its
Subsidiaries on the Closing Date and
any Related Business.

 

“Permitted
Investment” means an Investment by the Company or any Restricted
Subsidiary in (a) the Company, a Restricted Subsidiary or a Person that
will, upon the making of such Investment, become a Restricted Subsidiary; provided,
however, that the primary business of such Restricted Subsidiary is a
Permitted Business; (b) another Person if as a result of such Investment
such other Person is merged or consolidated with or into, or transfers or
conveys all or substantially all its assets to, the Company or a Restricted
Subsidiary; provided, however, that such Person’s primary
business is a Permitted Business; (c) Temporary Cash Investments;
(d) receivables owing to the Company or any Restricted Subsidiary if
created or acquired in the ordinary course of business and payable or
dischargeable in accordance with customary trade terms; provided, however,
that such trade terms may include such concessionary trade terms as the Company
or any such Restricted Subsidiary deems reasonable under the circumstances;
(e) payroll, travel and similar advances to cover matters that are
expected at the time of such advances ultimately to be treated as expenses for
accounting purposes and that are made in the ordinary course of business;
(f) relocation and other loans or advances to employees made in the
ordinary course of business of the Company or such Restricted Subsidiary and
not exceeding $5,000,000 in the aggregate outstanding at any one time;
(g) stock, obligations or securities received in settlement of debts
created in the ordinary course of business and owing to the Company or any
Restricted Subsidiary or in satisfaction of judgments; (h) any Person to
the extent such Investment represents the non-cash portion of the consideration
received for an Asset Disposition (without regard to clause (iii) or (iv) of the
definition thereof) that was made pursuant to and in compliance with
Section 3.09; (i) lease, utility and other similar deposits in the
ordinary course of business; (j) Investments to the extent paid for in
Capital Stock (other than Disqualified Stock) of the Company;
(k) Investments acquired by the Company or a Restricted Subsidiary as a
result of a foreclosure by, or other transfer of title to, the Company or a
Restricted Subsidiary with respect to a secured Investment;
(l) Investments, in joint ventures and other business entities (in each
case that are not Subsidiaries of the Company) that are engaged in a Permitted
Business, having an aggregate Fair Market Value (measured on the date each such
Investment was made and without giving effect to subsequent changes in value),
when taken

 

16

 

together with all other
Investments made pursuant to this clause (l) that are at the time outstanding
not to exceed $25,000,000; (m) Investments, in any Person, having an aggregate
Fair Market Value (measured on the date each such Investment was made and
without giving effect to subsequent changes in value), when taken together with
all other Investments made pursuant to this clause (m) that are at the time
outstanding not to exceed the greater of (x) $100,000,000 and (y) 5.0% of
Consolidated Tangible Assets; and (n) Investments by ATK Insurance Company or
any other captive insurance Restricted Subsidiary, in the ordinary course of
business, of a nature and type described under Temporary Cash Investments, provided
that the maturity of such Investments from the date of acquisition does not
exceed 5 years.

 

“Permitted
Securities” means, with respect to any Asset Disposition, Voting
Stock of a Person primarily engaged in a Permitted Business, provided
that after giving effect to the Asset Disposition such Person shall become a
Restricted Subsidiary.

 

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

 

“Preferred
Stock”, as applied to the Capital Stock of any Person, means Capital
Stock of any class or classes (however designated) that is preferred as to the
payment of dividends, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over shares of Capital
Stock of any other class of such Person.

 

“principal”
of a Note means the principal of the Note plus the premium, if any, payable on
the Note which is due or overdue or is to become due at the relevant time.

 

“Purchase
Date” has the meaning specified in Section 3.09(c).

 

“Purchase
Money Indebtedness” means Indebtedness (a) consisting of the
deferred purchase price of an asset, conditional sale obligations, obligations
under any title retention agreement and other purchase money obligations, in
each case where the maturity of such Indebtedness does not exceed the
anticipated useful life of the asset being financed, and (b) Incurred to
finance the acquisition by the Company or a Restricted Subsidiary of such
asset, including cost of construction, additions and improvements; provided,
however, that such Indebtedness is incurred within 180 days after the
acquisition (or completion of construction or improvement) by the Company or
such Restricted Subsidiary of such asset.

 

“Qualified
Equity Offering” means an offering for cash by the Company of its
common stock.

 

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

 

“Refinancing
Indebtedness” means Indebtedness that is Incurred to Refinance any
Indebtedness of the Company or any Restricted Subsidiary Incurred in compliance
with this Indenture; provided, however, that (a) the
Refinancing Indebtedness has a Stated Maturity no

 

17

 

earlier than the Stated
Maturity of the Indebtedness being Refinanced, (b) the Refinancing
Indebtedness has an Average Life at the time such Refinancing Indebtedness is
Incurred that is equal to or greater than the Average Life of the Indebtedness
being Refinanced, (c) such Refinancing Indebtedness is Incurred in an
aggregate principal amount (or if issued with original issue discount, an
aggregate issue price) that is equal to or less than the aggregate principal
amount (or if issued with original issue discount, the aggregate accreted
value) then outstanding of the Indebtedness being Refinanced (plus all accrued
interest thereon and the amount of any reasonably determined premium necessary
to accomplish the Refinancing and such reasonable expenses incurred in
connection therewith) and (d) (1) if the Indebtedness being Refinanced is
subordinated in right of payment to the Notes or any Subsidiary Guarantee, such
Refinancing Indebtedness is subordinated in right of payment to the Notes or
the Subsidiary Guarantee at least to the same extent as the Indebtedness being
Refinanced and (2) if the Indebtedness being Refinanced is pari passu in right of payment with the
Notes or any Subsidiary Guarantee, such Refinancing Indebtedness is pari passu with or subordinated in right
of payment to the Notes or such Subsidiary Guarantee; provided  further,
however, that Refinancing Indebtedness shall not include
(i) Indebtedness of a Restricted Subsidiary that Refinances Indebtedness
of the Company, or (ii) Indebtedness of the Company or a Restricted
Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.

 

“Related
Business” means any business related, ancillary or complementary to
the businesses of the Company and the Restricted Subsidiaries on the Closing
Date.

 

“Representative”
means the trustee, agent or representative (if any) for an issue of Senior
Indebtedness.

 

“Registrar”
means any Person, which may include the Company or any of its domestically
incorporated Restricted Subsidiaries, authorized by the Company to register
Notes and register transfers and exchanges of Notes as herein provided.

 

“Restricted
Subsidiary” means any Subsidiary of the Company other than an
Unrestricted Subsidiary.

 

“S&P”
has the meaning specified in the definition of “Temporary Cash Investments.”

 

“Sale/Leaseback
Transaction” means an arrangement relating to property now owned or
hereafter acquired by the Company or a Restricted Subsidiary whereby the
Company or a Restricted Subsidiary transfers such property to a Person and the
Company or such Restricted Subsidiary leases it from such Person, other than
leases between the Company and a Restricted Subsidiary or between Restricted
Subsidiaries.

 

“Secured
Indebtedness” means any Indebtedness of the Company secured by a
Lien. “Secured Indebtedness” of a Subsidiary Guarantor has a correlative
meaning.

 

“Securities
Custodian” means the custodian with respect to a Depository Security
(as appointed by the Depositary) or any successor person thereto, who shall
initially be the Trustee.

 

18

 

“Senior
Indebtedness” of the Company or any Subsidiary Guarantor means the
principal of, premium (if any) and accrued and unpaid interest on (including
interest accruing on or after the filing of any petition in bankruptcy or for
reorganization of the Company or any Subsidiary Guarantor, as applicable,
regardless of whether or not a claim for post-filing interest is allowed in
such proceedings) and fees and other amounts (including expenses, reimbursement
obligations under letters of credit and indemnities) owing in respect of, Bank
Indebtedness and all other Indebtedness of the Company or any Subsidiary
Guarantor, as applicable, whether outstanding on the Closing Date or thereafter
Incurred, unless in the instrument creating or evidencing the same or pursuant
to which the same is outstanding it is provided that such obligations are not
superior in right of payment to the Notes or such Subsidiary Guarantor’s Subsidiary
Guarantee, as applicable; provided, however, that Senior
Indebtedness of the Company or any Subsidiary Guarantor shall not include
(a) any obligation of the Company to any Subsidiary of the Company or of
such Subsidiary Guarantor to the Company or any other Subsidiary of the
Company, (b) any liability for Federal, state, local or other taxes owed
or owing by the Company or such Subsidiary Guarantor, as applicable,
(c) any accounts payable or other liability to trade creditors arising in
the ordinary course of business (including Guarantees thereof or instruments
evidencing such liabilities) and any amounts owed for compensation to
employees, (d) any Indebtedness or obligation of the Company or such
Subsidiary Guarantor, as applicable, and any accrued and unpaid interest in
respect thereof that by its terms is subordinate or junior in right of payment
to any other Indebtedness of the Company or such Subsidiary Guarantor, as
applicable, including any Senior Subordinated Indebtedness and any Subordinated
Obligations of the Company or such Subsidiary Guarantor, as applicable,
(e) any obligations with respect to the Company’s 3.00% Convertible Senior
Subordinated Notes due 2024, the Company’s 2.75% Convertible Senior
Subordinated Notes due 2024 and the Company’s 81⁄2% Senior Subordinated Notes due
2011 and any Subsidiary Guarantor’s guarantee thereof, (f) any obligations with respect to any Capital Stock,
or (g) any Indebtedness Incurred in violation of this Indenture. For
purposes of clause (d) above, no Indebtedness will be deemed to be subordinated
in right of payment to any other Indebtedness of the Company or any Subsidiary
Guarantor, as applicable, solely by reason of any Liens or Guarantees arising
or created in respect of such other Indebtedness of the Company or any
Subsidiary Guarantor or by virtue of the fact that the holders of any Secured
Indebtedness have entered into intercreditor agreements giving one or more of
such holders priority over other holders in the collateral held by them.

 

“Senior
Subordinated Indebtedness” of the Company means the Notes, the
Company’s 3.00% Convertible Senior Subordinated Notes due 2024, the Company’s
2.75% Convertible Senior Subordinated Notes due 2024, the Company’s 81⁄2% Senior
Subordinated Notes due 2011 and any other Indebtedness of the Company that
specifically provides that such Indebtedness is to rank equally with the Notes
in right of payment and is not subordinated by its terms in right of payment to
any Indebtedness or other obligation of the Company which is not Senior
Indebtedness. “Senior Subordinated Indebtedness” of a Subsidiary Guarantor has
a correlative meaning.

 

“Series”
or “Series of Securities” means
all Securities of a similar tenor authorized by a particular resolution of the
Board of Directors or in one or more indentures supplemental hereto.

 

19

 

“Significant
Subsidiary” means any Restricted Subsidiary that would be a
“Significant Subsidiary” of the Company within the meaning of Rule 1-02
under Regulation S-X promulgated by the Commission.

 

“Stated
Maturity” means, with respect to any Indebtedness, the date
specified in such Indebtedness as the fixed date on which the final payment of
principal of such Indebtedness is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such Indebtedness at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such
contingency has occurred).

 

“Stated
Maturity Date” has the meaning specified in Section 2.01 of the
First Supplemental Indenture.

 

“Subordinated
Obligation” means any Indebtedness of the Company (whether
outstanding on the Closing Date or thereafter Incurred) that is subordinate or
junior in right of payment to the Notes pursuant to a written agreement. “Subordinated
Obligation” of a Subsidiary Guarantor has a correlative meaning.

 

“Subsidiary”
of any Person means any corporation, association, partnership or other business
entity of which more than 50% of the total voting power of shares of Capital
Stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by (a) such Person, (b) such Person and one
or more Subsidiaries of such Person or (c) one or more Subsidiaries of
such Person.

 

“Subsidiary
Guarantee” means each Guarantee of the obligations with respect to
the Notes issued by a Restricted Subsidiary of the Company pursuant to the
terms of this Indenture.

 

“Subsidiary
Guarantor” means any Restricted Subsidiary that has issued a
Subsidiary Guarantee, including the Subsidiary Guarantors defined in the
preamble to the First Supplemental Indenture, and its successors and assigns
until released from its obligations under its Subsidiary Guarantee in
accordance with the terms of the Indenture. The initial Subsidiary Guarantors
are defined in the preamble to the First Supplemental Indenture.

 

“Successor
Company” has the meaning specified in Section 9.01(a).

 

“Successor
Guarantor” has the meaning specified in Section 9.02(b).

 

“Temporary
Cash Investments” means any of the following:  (a) any investment in direct obligations
of the United States of America or any agency thereof or obligations Guaranteed
by the United States of America or any agency thereof, (b) investments in
time deposit accounts, certificates of deposit and money market deposits maturing
within 365 days of the date of acquisition thereof issued by a bank or trust
company that is organized under the laws of the United States of America, any
state thereof or any foreign country recognized by the United States of America
having capital, surplus and undivided profits aggregating in excess of
$100,000,000 (or the foreign currency equivalent thereof) and whose long-term
debt is rated “A”

 

20

 

(or such similar equivalent
rating) or higher by at least one nationally recognized statistical rating
organization (as defined in Rule 436 under the Securities Act),
(c) repurchase obligations with a term of not more than 90 days for
underlying securities of the types described in clause (a) above entered into
with a bank meeting the qualifications described in clause (b) above,
(d) investments in commercial paper, maturing not more than 180 days after
the date of acquisition, issued by a corporation (other than an Affiliate of
the Company) organized and in existence under the laws of the United States of
America or any foreign country recognized by the United States of America with
a rating at the time as of which any investment therein is made of “P-1” (or
higher) according to Moody’s Investors Service, Inc. (“Moody’s”) or “A-1” (or higher) according to
Standard & Poor’s Ratings Service, a division of The McGraw-Hill Companies,
Inc. (“S&P”), and
(e) investments in securities with maturities of six months or less from
the date of acquisition issued or fully guaranteed by any state, commonwealth
or territory of the United States of America, or by any political subdivision
or taxing authority thereof, and rated at least “A” by S&P or “A” by
Moody’s.

 

“TIA”
or “Trust Indenture Act of 1939”
means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect
on March 15, 2006.

 

“Trade
Payables” means, with respect to any Person, any accounts payable or
any indebtedness or monetary obligation to trade creditors created, assumed or
Guaranteed by such Person arising in the ordinary course of business in
connection with the acquisition of goods or services.

 

“Treasury
Rate” means the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H.15 (519)
which has become publicly available at least two Business Days prior to the
date fixed for redemption (or, if such Statistical Release is no longer
published, any publicly available source for similar market data)) most nearly
equal to the then remaining term of the Notes to April 1, 2011; provided,
however, that if the then remaining term of the Notes to April 1, 2011 is not
equal to the constant maturity of a United States Treasury security for which a
weekly average yield is given, the Treasury Rate will be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury securities for which such yields are given,
except that if the then remaining term of the Notes to April 1, 2011 is less
than one year, the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one year will be used.

 

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

 

“Trust
Officer” means any officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

 

“Unrestricted
Subsidiary” means (a) any Subsidiary of the Company that at the
time of determination shall be designated an Unrestricted Subsidiary by the
Board of Directors in the manner provided below and (b) any Subsidiary of
an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary
of the Company (including any newly acquired or newly

 

21

 

formed Subsidiary of the
Company) to be an Unrestricted Subsidiary unless such Subsidiary or any of its
Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any
Lien on any property of, the Company or any other Subsidiary of the Company
that is not either a Subsidiary of the Subsidiary to be so designated or an
Unrestricted Subsidiary; provided, however, that either
(i) the Subsidiary to be so designated has total Consolidated assets of
$1,000 or less or (ii) if such Subsidiary has Consolidated assets greater
than $1,000, then such designation would be permitted under Section 3.07. The
Board of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided, however, that immediately after giving
effect to such designation (a) the Company could Incur $1.00 of additional
Indebtedness under Section 3.06(a), or the Company would have a
Consolidated Coverage Ratio equal to or greater than the Consolidated Coverage
Ratio of the Company immediately prior to such transaction and (b) no
Default shall have occurred and be continuing. Any such designation of a
Subsidiary as a Restricted Subsidiary or Unrestricted Subsidiary by the Board
of Directors shall be evidenced to the Trustee by promptly filing with the
Trustee a copy of the resolution of the Board of Directors giving effect to
such designation and an Officers’ Certificate certifying that such designation
complied with the foregoing provisions.

 

“Voting
Stock” of a Person means all classes of Capital Stock or other
interests (including partnership interests) of such Person then outstanding and
normally entitled (without regard to the occurrence of any contingency) to vote
in the election of directors, managers or trustees thereof.

 

Section 1.03.          Incorporation by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA, which are incorporated
by reference in and made a part of this Indenture. The following TIA terms have
the following meanings:

 

“indenture securities” means the Notes and
the Subsidiary Guarantees.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this
Indenture.

 

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

 

“obligor” on the indenture securities means
the Company, the Subsidiary Guarantors and any other obligor on the indenture
securities.

 

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

 

Section 1.04.          Rules of Construction. Unless the context otherwise
requires:

 

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

 

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

 

22

 

(c)           “or”
is not exclusive;

 

(d)           “including”
means including without limitation;

 

(e)           words
in the singular include the plural and words in the plural include the
singular;

 

(f)            unsecured
Indebtedness shall not be deemed to be subordinate or junior to Secured
Indebtedness merely by virtue of its nature as unsecured Indebtedness;

 

(g)           the
principal amount of any noninterest bearing or other discount security at any
date shall be the principal amount thereof that would be shown on a balance
sheet of the issuer dated such date prepared in accordance with GAAP; and

 

(h)           all
Section and similar references are to the Base Indenture, as amended and
supplemented by the First Supplemental Indenture, unless otherwise specified.

 

ARTICLE 2

THE NOTES

 

Section 2.01.          Designation and
Principal Amount. There is hereby authorized and established a new
series of Securities designated the “63⁄4% Senior Subordinated Notes due
2016.”  The Notes will initially be
limited to an aggregate principal amount of $400,000,000 (which amount does not
include Notes authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Securities of such series pursuant to
Sections 2.08, 2.09, 8.05 and 11.03 of the Base Indenture). The Notes will
initially be issued at a price equal to 100% of face amount. The principal of
the Notes shall be due and payable at the Stated Maturity Date. Subject to
Section 3.06, the Company may, from time to time and without the consent of the
Holders, issue additional Notes on terms and conditions identical to those of
the Notes (the “Additional Notes”), which Additional Notes shall increase the
aggregate principal amount of, and shall be consolidated and form a single
series with, the Notes. The Notes initially issued hereunder and any such
Additional Notes shall vote on all matters, and otherwise be treated as, a
single class for all purposes under the Indenture. The Stated Maturity of the
Notes shall be on April 1, 2016 (the “Stated Maturity Date”). The Notes
shall be unsecured and shall bear interest at the rate of 6.75% per annum, from
March 15, 2006 or from the most recent interest payment date (as defined below)
to which interest has been paid or duly provided for, as the case may be,
payable semi-annually on April 1 and October 1, commencing October 1, 2006
(each, an “interest payment date”), until the
principal thereof is paid or made available for payment. The Company shall pay
interest on overdue principal at the rate borne by the Notes plus 1% per annum,
and it shall pay interest on overdue installments of interest at the same rate
to the extent lawful.

 

Section 2.02.          Forms Generally. The
Notes shall be in substantially the forms set forth in this Section 2.02, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this First Supplemental Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may,

 

23

 

consistently herewith, be
determined by the officers executing such Notes, as evidenced by their
execution thereof.

 

(a)           Form
of Face of Note. The face of the Note shall be in substantially the
following form:

 

“[DEPOSITORY SECURITIES LEGEND: THIS NOTE IS
A DEPOSITORY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE)
OR A NOMINEE THEREOF, THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY NOTE
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF, TRANSFER OF, OR IN EXCHANGE
FOR, OR IN LIEU OF, THIS NOTE WILL BE A DEPOSITORY SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.](1)

 

ALLIANT TECHSYSTEMS INC.

 

	
  No.

  	
  $     

  

 

6 3⁄4% Senior Subordinated Note due 2016

 

CUSIP No.                       

ISIN No.                       

 

ALLIANT TECHSYSTEMS INC., a Delaware
corporation, promises to pay to                                 ,
the principal sum of                     
on April 1, 2016.

 

Interest Rate: 6.750%

Interest Payment Dates:  April 1 and October 1.

Record Dates: 
March 15 and September 15.

 

Additional provisions of this Note are set
forth on the other side of this Note.

 

(1) Include only in Notes that
are in the form of Depository Securities.

 

24

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	
   

  	
  ALLIANT TECHSYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

 

This is one of the Securities of
the Series designated herein and referred to in the within-mentioned Indenture.

 

	
   

  	
  THE BANK OF NEW YORK TRUST

  COMPANY, N.A.,

  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory”

  

 

 

(b)           Form
of Reverse of Note. The reverse of the Note shall be in
substantially the following form:

 

“REVERSE OF
SECURITY

 

6 3⁄4% Senior Subordinated Note due 2016

 

1.                                       Interest

 

ALLIANT TECHSYSTEMS INC., a Delaware
corporation (such corporation, and its successors and assigns under the
Indenture hereinafter referred to, being herein called the “Company”), promises
to pay interest on the principal amount of this Note at the rate per annum
shown above. The Company shall pay interest semiannually on April 1 and October
1 of each year, commencing October 1, 2006.

 

25

 

Interest on the Notes shall
accrue from the most recent date to which interest has been paid or duly
provided for or, if no interest has been paid or duly provided for, from March
15, 2006 until the principal hereof is due. Interest shall be computed on the
basis of a 360-day year of twelve 30-day months. The Company shall pay interest
on overdue principal at the rate borne by the Notes plus 1% per annum, and it
shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

 

2.                                       Method of Payment

 

The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders at the
close of business on the March 15 or September 15 next preceding the interest
payment date even if Notes are canceled after the record date and on or before
the interest payment date. Holders must surrender Notes to a Paying Agent to
collect principal payments. The Company shall pay principal, premium, if any,
and interest in money of the United States of America that at the time of
payment is legal tender for payment of public and private debts. Payments in
respect of the Notes represented by a Depository Security (including principal,
premium and interest) shall be made by wire transfer of immediately available
funds to the accounts specified by The Depository Trust Company or any
successor depositary. The Company will make all payments in respect of a
certificated Security (including principal, premium, if any, and interest), at
the office of the Paying Agent, except that, at the option of the Company,
payment of interest may be made by mailing a check to the registered address of
each Holder thereof.

 

3.                                       Paying Agent and Registrar

 

Initially, THE BANK OF NEW YORK TRUST
COMPANY, N.A., a United States banking corporation (the “Trustee”), will act as
Paying Agent and Registrar. The Company may appoint and change any Paying Agent
or Registrar without notice. The Company or any of its domestically
incorporated Restricted Subsidiaries may act as Paying Agent or Registrar.

 

4.                                       Indenture

 

The Company issued the Notes under an
Indenture dated as of March 15, 2006 (the “Base Indenture”), as amended and
supplemented by the First Supplemental Indenture dated as of March 15, 2006
(the “First Supplemental Indenture”, as amended and supplemented by the First
Supplemental Indenture, being referred to herein as the “Indenture”), among the
Company, the Subsidiary Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939 (15 U.S.C. ss.ss. 77aaa-77bbbb) as
in effect on the date of the Indenture (the “TIA”). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the Indenture.
The Notes are subject to all terms and provisions of the Indenture, and Holders
(as defined in the Indenture) are referred to the Indenture and the TIA for a
statement of such terms and provisions.

 

26

 

The Notes are senior subordinated unsecured
obligations of the Company limited initially to $400,000,000 aggregate
principal amount, which amount may be increased at the option of the Company if
it determines to reopen the Series of Securities of which this Note is a part
and sell additional Securities (subject to Section 2.01 of the First
Supplemental Indenture). The Indenture imposes certain limitations on the
ability of the Company and its Restricted Subsidiaries to, among other things,
make certain Investments and other Restricted Payments, pay dividends and other
distributions, incur Indebtedness, enter into consensual restrictions upon the
payment of certain dividends and distributions by such Restricted Subsidiaries,
enter into or permit certain transactions with Affiliates and make Asset
Dispositions. The Indenture also imposes limitations on the ability of the
Company and each Subsidiary Guarantor to consolidate or merge with or into any
other Person or convey, transfer or lease all or substantially all of its
property.

 

To guarantee the due and punctual payment of
the principal and interest, if any, on the Notes and all other amounts payable
by the Company under the Indenture and the Notes when and as the same shall be
due and payable, whether at maturity, by acceleration or otherwise, according
to the terms of the Notes and the Indenture, the Subsidiary Guarantors have,
jointly and severally, unconditionally guaranteed the Guaranteed Obligations on
a senior subordinated basis pursuant to the terms of the Indenture.

 

5.                                       Optional Redemption

 

(a)           Except
as set forth in the following paragraph, the Notes shall not be redeemable at
the option of the Company prior to April 1, 2011. Thereafter, the Notes shall
be redeemable at the option of the Company, in whole or in part, at the
following redemption prices (expressed as percentages of principal amount),
plus accrued and unpaid interest to the redemption date (subject to the right
of Holders of record on the relevant record date to receive interest due on the
relevant interest payment date), if redeemed during the 12-month period
commencing on April 1 of the years set forth below:

 

	
  YEAR

  	
   

  	
  REDEMPTION PRICE

  	
   

  
	
  2011

  	
   

  	
  103.375

  	
  %

  
	
  2012

  	
   

  	
  102.250

  	
  %

  
	
  2013

  	
   

  	
  101.125

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(b)           In
addition, prior to April 1, 2009, the Company may redeem up to a maximum of 35%
of the original aggregate principal amount of the Notes (calculated giving
effect to any issuance of Additional Notes) with the Net Cash Proceeds of one
or more Qualified Equity Offerings by the Company, at a redemption price equal
to 106.750% of the principal amount thereof, plus accrued and unpaid interest
to the redemption date (subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment
date); provided, however, that, after giving effect to any such
redemption, at least 65% of the original aggregate principal amount of the
Securities (calculated giving effect to any issuance of Additional Notes)

 

27

 

remains outstanding. Any such
redemption shall be made within 90 days of such Qualified Equity Offering and
otherwise in accordance with the procedures set forth in the Indenture.

 

(c)           At
any time prior to April 1, 2011, the Company may redeem all or part of the
Notes upon not less than 30 nor more than 60 days’ prior notice at a redemption
price equal to the sum of (i) 100% of the principal amount thereof, plus
(ii) the Applicable Premium as of the date of redemption, plus (iii)
accrued and unpaid interest to the date of redemption.

 

6.                                       Sinking Fund

 

The Notes are not subject to any sinking
fund.

 

7.                                       Notice of Redemption

 

Notice of redemption will be mailed by
first-class mail at least 30 days but not more than 60 days before the
redemption date to each Holder of Notes to be redeemed at his or her registered
address. Notes may be redeemed in part in whole multiples or $1,000 or any
whole multiple of $1,000. If notice of redemption has been given, the Notes or
portions of Notes specified in such notice shall become due and payable on the
date and at the place stated in such notice at the applicable redemption price,
together with interest accrued to the date fixed for redemption, and on and
after said date (unless the Company shall default in the payment of such Notes
at the redemption price, together with interest accrued to said date) interest
on the Notes or portions of Notes so called for redemption shall cease to
accrue.

 

8.                                       Repurchase of Notes at the Option of Holders Upon Change
of Control and Asset Dispositions

 

Upon a Change of Control, any Holder of Notes
will have the right, subject to certain conditions specified in the Indenture,
to cause the Company to repurchase all or any part of the Notes of such Holder
at a purchase price equal to 101% of the principal amount of the Notes to be
repurchased plus accrued and unpaid interest to the date of repurchase (subject
to the right of Holders of record on the relevant record date to receive
interest due on the relevant interest payment date that is on or prior to the
date of purchase) as provided in, and subject to the terms of, the Indenture;
provided, however, the Company shall not be obligated to purchase the Notes
upon a Change of Control in the event that it has optionally redeemed all the
Notes.

 

In accordance with Section 3.09 of the
Indenture, the Company will be required to offer to purchase Notes upon the
occurrence of certain events.

 

9.                                       Subordination

 

The Notes and Subsidiary Guarantees are
subordinated to Senior Indebtedness, as defined in the Indenture. To the extent
provided in the Indenture, Senior Indebtedness must be paid before the Notes
and Subsidiary Guarantees may be paid. The

 

28

 

Company and each Subsidiary Guarantor
agrees, and each Holder by accepting a Note agrees, to the subordination
provisions contained in the Indenture and authorizes the Trustee to give it
effect and appoints the Trustee as attorney-in-fact for such purpose.

 

10.                                 Denominations; Transfer; Exchange

 

The Notes are in fully registered form,
without coupons, in denominations of $1,000 and any whole multiple of $1,000. A
Holder may transfer or exchange Notes in accordance with the Indenture. Upon
any transfer or exchange, the Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements or transfer documents
and to pay any taxes required by law or permitted by the Indenture. The Company
will not be required to transfer or exchange any outstanding Notes selected for
redemption or purchase or to transfer or exchange any outstanding Notes for a
period of 15 days prior to the mailing of a notice of redemption or purchase of
Notes to be redeemed or purchased or within 15 days of an interest payment
date.

 

11.                                 Persons Deemed Owners

 

The registered Holder of this Note will be
treated as the owner of it for all purposes.

 

12.                                 Unclaimed Money

 

If money for the payment of principal or
interest remains unclaimed for two years, the Trustee and the Paying Agent
shall pay the money back to the Company at its written request unless an
abandoned property law designates another Person. After any such payment,
Holders entitled to the money must look to the Company for payment as general
creditors and the Trustee and the Paying Agent shall have no further liability
with respect to such monies.

 

13.                                 Discharge and Defeasance

 

Subject to certain conditions, the Company at
any time may terminate some of or all its obligations under the Notes and the
Indenture if the Company deposits with the Trustee money or U.S. Government
Obligations for the payment of principal and interest on the Notes to
redemption or maturity, as the case may be.

 

14.                                 Amendment, Waiver

 

Subject to certain exceptions set forth in the Indenture,
the Indenture or the Notes may be amended with the written consent of the
Holders of a majority in principal amount of the Notes then outstanding and any
past default or compliance with any provisions may be waived with the consent
of the Holders of a majority in principal amount of the Notes then outstanding
(including consents obtained in connection with a purchase of, or tender offer
or exchange offer for the Notes). Subject to certain exceptions set forth in
the Indenture, without the consent of any Holder, the Company, the Subsidiary
Guarantors and the Trustee may amend the Indenture to (i) convey, transfer,
assign, mortgage or pledge any property or assets to the Trustee as security
for

 

29

 

the Notes; (ii) evidence the succession of another
Person to the Company, or successive successions, and the assumption by the
successor Person of the covenants, agreements and obligations of the Company or
any Subsidiary Guarantor under the Indenture; (iii) add to the covenants
of the Company and the Subsidiary Guarantors such further covenants,
restrictions, conditions or provisions for the protection of the Holders of the
Notes; (iv) cure any ambiguity or correct or supplement any provision contained
in the Indenture that may be defective or inconsistent with any other provision
contained in the Indenture, or make such other provisions in regard to matters
or questions arising under the Indenture as the Board of Directors may deem
necessary or desirable and that shall not materially and adversely affect the
interests of the Holders of the Notes; (v) evidence and provide for the
acceptance of appointment under the Indenture by a successor trustee with
respect to the Notes and add to or change any of the provisions of the
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts under the Indenture by more than the one trustee pursuant to the
requirements of the Indenture; (vi) provide for uncertificated Notes in
addition to or in place of certificated Notes (provided,  however, that the uncertificated Notes are issued in registered
form for purposes of Section 163(f) of the Code, or in a manner such
that the uncertificated Notes are described in
Section 163(f)(2)(B) of the Code); (vii) to make any change in the
subordination provisions of the Indenture that would limit or terminate the
benefits available to any holder of Senior Indebtedness of the Company or a
Subsidiary Guarantor (or any Representative thereof) under such subordination
provisions; (viii) add additional Guarantees with respect to the Notes and
release any Subsidiary Guarantor in accordance with the provision of the
Indenture; (ix) provide for the issuance of Additional Notes; (x) conform
the text of the Indenture or the Notes to any provision of Description of
Notes; or (xi) comply with any requirement of the Commission in connection with
the qualification of the Indenture under the TIA.

 

15.                                 Defaults and Remedies

 

If an Event of Default (other than an Event
of Default relating to certain events of bankruptcy, insolvency or
reorganization of the Company) occurs and is continuing, the trustee or the
Holders of at least 25% in principal amount of the outstanding Notes by notice
to the Company may declare the principal of and accrued but unpaid interest on
all the Notes to be due and payable. Upon such a declaration, such principal
and interest will be due and payable immediately. However, if any Designated
Senior Indebtedness of the Company is outstanding, the Company may not pay the
Notes until five Business Days after such holders or the Representative of such
Designated Senior Indebtedness receives notice of such acceleration and,
thereafter, may pay the Notes only if the subordination provisions of the
Indenture otherwise permit payment at that time. If an Event of Default
relating to specified events of bankruptcy, insolvency or reorganization of the
Company occurs, the principal of and interest on all the Notes will become
immediately due and payable without any declaration or other act on the part of
the trustee or any Holders. Under certain circumstances, the Holders of a
majority in principal amount of the outstanding Notes may rescind any such
acceleration with respect to the Notes and its consequences.

 

30

 

No Holder of any Note shall have any right,
by virtue or by availing of any provision of the Indenture, to institute any
action or proceeding at law or in equity or in bankruptcy or otherwise with
respect to the Indenture, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy under
the Indenture, unless such Holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof and the
Holders of not less than 25% in aggregate principal amount of the Notes then
Outstanding shall have made written request upon the Trustee to institute such
action or proceedings in its own name as trustee under the Indenture and shall
have offered to the Trustee security or indemnity reasonably satisfactory to it
as it may require, against the costs, expenses and liabilities to be incurred
therein or thereby and the Trustee for 60 days after its receipt of such
notice, request and offer of security or indemnity shall have failed to
institute any such action or proceeding and no direction inconsistent with such
written request shall have been given to the Trustee during such 60-day period
by Holders of a majority in principal amount of the Notes then Outstanding. No
one or more Holders of Notes shall have any right in any manner whatever, by
virtue or by availing of any provision of the Indenture, to affect, disturb or
prejudice the rights of any other such Holder of Notes, or to obtain or seek to
obtain priority over or preference to any other such Holder or to enforce any
right under the Indenture, except in the manner provided in the Indenture and
for the equal, ratable and common benefit of all Holders of the Notes.

 

16.                                 Trustee Dealings With the Company

 

Subject to certain limitations imposed by the
TIA, the Trustee in its individual or any other capacity may become the owner
or pledgee of Notes and may otherwise deal with and collect obligations owed to
it by the Company or its Affiliates and may otherwise deal with the Company or
its Affiliates with the same rights it would have if it were not Trustee.

 

17.                                 No Recourse Against Others

 

No recourse under or upon any obligation,
covenant or agreement contained in the Indenture or in any Note shall be had
against any incorporator as such or against any past, present or future
shareholder, employee, officer or director of the Company, any Subsidiary
Guarantor or of any successor, either directly or through the Company, any
Subsidiary Guarantor or any successor, under any rule of law, statute or
constitutional provision or by the enforcement of any assessment or by any
legal or equitable proceeding or otherwise, all such liability being expressly
waived and released by the acceptance of the Notes by the Holders thereof and
as part of the consideration for the issue of the Notes.

 

18.                                 Authentication

 

This Note shall not be valid until an
authorized signatory of the Trustee (or an authenticating agent) signs
(manually or by facsimile) the certificate of authentication on the other side
of this Note.

 

31

 

19.                                 Abbreviations

 

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

 

20.                                 Governing Law

 

THIS SECURITY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

21.                                 CUSIP and ISIN Numbers

 

The Company has caused CUSIP and ISIN numbers
to be printed on the Notes and has directed the Trustee to use CUSIP and ISIN
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.

 

THE COMPANY WILL FURNISH TO ANY HOLDER OF
NOTES UPON WRITTEN REQUEST AND WITHOUT CHARGE TO THE HOLDER A COPY OF THE
INDENTURE WHICH HAS IN IT THE TEXT OF THIS SECURITY.

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

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

 

(Insert assignee’s soc. sec. or tax I.D. No.)

 

and irrevocably appoint
                                             
agent to transfer this 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
other side of this Note. Signature must be guaranteed by a participant in a
recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee.

 

32

 

OPTION OF HOLDER TO ELECT PURCHASE

 

IF YOU WANT TO ELECT TO HAVE THIS NOTE
PURCHASED BY THE COMPANY PURSUANT TO SECTION 3.09 (ASSET DISPOSITION) OR
3.11 (CHANGE OF CONTROL) OF THE INDENTURE, CHECK THE BOX:

 

ASSET DISPOSITION o CHANGE OF
CONTROL o

 

IF YOU WANT TO ELECT TO HAVE ONLY PART OF
THIS NOTE PURCHASED BY THE COMPANY PURSUANT TO SECTION 3.09 OR 3.11 OF THE
INDENTURE, STATE THE AMOUNT ($1,000 OR AN INTEGRAL MULTIPLE THEREOF):

 

$

 

	
   

  	
  Date:

  	
   

  	
    Your Signature:

  	
   

  	
   

  

 

(SIGN EXACTLY AS YOUR NAME APPEARS ON THE
OTHER SIDE OF THE NOTE)

 

	
   

  	
  SIGNATURE GUARANTEE:

  	
   

  	
   

  

 

SIGNATURE MUST BE GUARANTEED BY A PARTICIPANT
IN A RECOGNIZED SIGNATURE GUARANTY MEDALLION PROGRAM OR OTHER SIGNATURE
GUARANTOR ACCEPTABLE TO THE TRUSTEE.

 

SCHEDULE OF EXCHANGES OF NOTES(1)

 

The following exchanges of a part of this
Depository Security for certificated Securities or a part of another Depository
Security have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in principal amount

  of this Depository

  Security

  	
   

  	
  Amount of increase

  in principal amount

  of this Depository

  Security

  	
   

  	
  Principal amount of

  this Depository

  Security following

  such decrease (or

  increase)

  	
   

  	
  Signature of

  authorized officer of

  Trustee

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1) For Global Securities

 

33

 

Section 2.03.          Notes
in Global Form. The Notes shall be issued initially in permanent
global form as Depository Securities. The Notes will be deposited on behalf of
the purchasers of the Notes with the Securities Custodian and registered in the
name of Cede & Co.

 

Members of,
or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Depository Security held on their behalf by
the Depositary or by the Trustee as Securities Custodian or under such
Depository Security, and the Depositary may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of
such Depository Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall prevent the Company, the Trustee or any agent
of the Company or the Trustee from giving effect to any written certification,
proxy or other authorization furnished by the Depositary nor impair, as between
the Depositary and its Agent Members, the operation of customary practices of
such Depositary governing the exercise of the rights of a holder of a
beneficial interest in any Depository Security.

 

Section 2.04.          Certain
Sections of Base Indenture Not Applicable. The
provisions of Sections 7.05, 11.07, 14.11 and 14.12 and of Article 12 of the
Base Indenture shall not apply to the Notes.

 

ARTICLE 3

AMENDMENTS TO THE BASE INDENTURE

 

Section 3.01.          Provisions Applicable
Only to the Notes. The provisions contained in the First
Supplemental Indenture shall apply to the Notes only and not to any other
series of Security issued under the Base Indenture and any covenants provided
herein are expressly being included solely for the benefit of the Notes and not
for the benefit of any other series of Securities issued under the Base
Indenture. These amendments shall be effective for so long as there remain any
Notes Outstanding.

 

Section 3.02.          Amendment of Article 2
of the Base Indenture. Article 2 of the Base Indenture is hereby
amended, subject to Section 3.01 hereof and, with respect to the Notes only, to
delete the fifth paragraph of Section 2.07, including clauses (a) and (b)
thereof, in its entirety and to replace it with the following:

 

If the Company defaults in a payment of
interest on the Securities, the Company shall pay the defaulted interest (plus
interest on such defaulted interest to the extent lawful) (“defaulted interest”) in any lawful manner. The
Company may pay the defaulted interest to the Persons who are Holders on a
subsequent special record date. The Company shall fix or cause to be fixed any
such special record date and payment date to the reasonable satisfaction of the
Trustee and shall promptly mail or cause to be mailed to each Holder a notice
that states the special record date, the payment date and the amount of
defaulted interest to be paid.

 

Section 3.03.          Amendment of Article 3
of the Base Indenture. Article 3 of the Base Indenture is hereby
amended, subject to Section 3.01 hereof and, with respect to the Notes only, to
delete Section 3.05 in its entirety and replace it with the following:

 

34

 

“SECTION 3.05     Intentionally
Omitted.

 

SECTION 3.06       Limitation on Indebtedness. (a) The
Company will not, and will not permit any Restricted Subsidiary to, Incur,
directly or indirectly, any Indebtedness; provided, however, that
the Company or any Restricted Subsidiary may Incur Indebtedness if on the date
of such Incurrence and after giving effect thereto and to the application of
the net proceeds therefrom the Consolidated Coverage Ratio would be greater
than 2.0 to 1.0.

 

(b)           Notwithstanding
Section 3.06(a), the Company and its Restricted Subsidiaries may Incur the
following Indebtedness:

 

(i)            Indebtedness
under Credit Facilities in an aggregate principal amount not to exceed
$700,000,000, less the aggregate amount of all Net Available Cash from Asset
Dispositions applied by the Company or any Restricted Subsidiary thereof to
permanently repay any such Indebtedness pursuant to Section 3.09.

 

(ii)           Indebtedness
of the Company owed to and held by any Restricted Subsidiary or Indebtedness of
a Restricted Subsidiary owed to and held by the Company or any other Restricted
Subsidiary; provided, however, that (1) any subsequent
issuance or transfer of any Capital Stock or any other event that results in
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any
subsequent transfer of any such Indebtedness (except to the Company or a
Restricted Subsidiary) shall be deemed, in each case, to constitute the
Incurrence of such Indebtedness by the issuer thereof, (2) if the Company
is the obligor on such Indebtedness, such Indebtedness is expressly
subordinated to all obligations with respect to the Notes and (3) if a
Subsidiary Guarantor is the obligor on such Indebtedness, such Indebtedness is
expressly subordinated to all obligations of such Subsidiary Guarantor with
respect to its Subsidiary Guarantee;

 

(iii)          Indebtedness
(1) represented by the Notes (not including any Additional Notes issued
under Section 2.01 of the First Supplemental Indenture) and the Subsidiary
Guarantees or (2) outstanding on the Closing Date (other than the
Indebtedness described in clauses (i) and (ii) above);

 

(iv)          the
Incurrence by the Company or any Restricted Subsidiary of the Company of
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to Refinance Indebtedness (other than intercompany Indebtedness) that was
permitted by the Indenture to be Incurred under Section 3.06(a) or Sections
3.06(b)(iii), (iv), (vi) or (xii);

 

(v)           Indebtedness
(1) in respect of workers’ compensation claims, self-insurance obligations,
performance bonds, bankers’

 

35

 

acceptances, letters of credit,
surety or appeal bonds, completion guarantees or similar arrangements provided
by the Company and the Restricted Subsidiaries in the ordinary course of their
business, and (2) under Hedging Obligations entered into for bona fide
hedging purposes of the Company and its Restricted Subsidiaries in the ordinary
course of business and not for speculation;

 

(vi)          Purchase
Money Indebtedness and Capitalized Lease Obligations in an aggregate principal
amount at any time outstanding, including any Refinancing Indebtedness Incurred
to Refinance any Indebtedness Incurred pursuant to this clause (vi), not to
exceed of the greater of (1) $100,000,000 and (2) 5% of Consolidated
Tangible Assets;

 

(vii)         Indebtedness
of the Company or any of its Restricted Subsidiaries arising from
(1) agreements providing for indemnification, adjustment of purchase price
or similar obligations, or from guarantees, letters of credit, surety bonds or
performance bonds securing any obligations of the Company or any of its
Restricted Subsidiaries, in each case incurred or assumed in connection with
the disposition of any business or assets, other than Guarantees of
Indebtedness by, or other credit support provided by, the Company or any of its
Restricted Subsidiaries in contemplation of, in connection with, as
consideration in, or to provide all or any portion of the funds or credit
support utilized to consummate, such transaction; provided that the maximum
aggregate liability in respect of all such Indebtedness permitted by this
clause (vii) shall at no time exceed the gross proceeds actually received by
the Company and its Restricted Subsidiaries from the sale of such business or
assets; and (2) agreements providing for indemnification, adjustment of
purchase price or earnout or similar obligations, in each case incurred or
assumed in connection with the acquisition of any business or assets;

 

(viii)        Indebtedness
consisting of Guarantees by the Company or any Subsidiary Guarantor of Senior
Indebtedness of the Company or any Restricted Subsidiary otherwise permitted
under this Section 3.06;

 

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

 

(x)            Indebtedness
of the Company or any of its Restricted Subsidiaries constituting reimbursement
obligations with respect to letters of credit issued in the ordinary course of
business; provided that, upon the drawing of such letters of credit or the Incurrence
of such Indebtedness,

 

36

 

such obligations are reimbursed
within 30 days following such drawing or Incurrence;

 

(xi)           Indebtedness
of the Company (and Guarantees thereof by any Subsidiary Guarantor) to the
extent that the net proceeds thereof are promptly deposited to defease or to
satisfy and discharge the Notes; and

 

(xii)          Indebtedness
(other than Indebtedness permitted to be Incurred pursuant to Section 3.06(a)
or any other clause of this Section 3.06(b)) in an aggregate principal amount
on the date of Incurrence that, when added to all other Indebtedness Incurred
pursuant to this clause (xii) and then outstanding, will not exceed
$100,000,000.

 

(c)           Notwithstanding
any other provision of this Section 3.06, the maximum amount of Indebtedness
that the Company or any Restricted Subsidiary may Incur pursuant to this
Section 3.06 shall not be deemed to be exceeded solely as a result of
fluctuations in the exchange rates of currencies. For purposes of determining
the outstanding amount of any particular Indebtedness Incurred pursuant to this
Section 3.06;

 

(i)            Indebtedness
Incurred pursuant to the Credit Agreement prior to or on the Closing Date shall
be treated as Incurred pursuant to Section 3.06(b)(i) above,

 

(ii)           Indebtedness
permitted by this Section 3.06 need not be permitted solely by reference to one
provision permitting such Indebtedness but may be permitted in part by one such
provision and in part by one or more other provisions of this Section 3.06
permitting such Indebtedness, and

 

(iii)          in
the event that Indebtedness meets the criteria of more than one of the types of
Indebtedness described in this Section 3.06, the Company, in its sole
discretion, shall classify (and, except as provided in Section 3.06(c)(i), may
later reclassify) such Indebtedness and only be required to include the amount
of such Indebtedness in one of such clauses.

 

SECTION 3.07       Limitation on Restricted Payments.

 

(a)           The
Company will not, and will not permit any Restricted Subsidiary, directly or
indirectly, to:

 

(i)            declare
or pay any dividend, make any distribution on or in respect of its Capital
Stock or make any similar payment (including any payment in connection with any
merger or consolidation involving the Company or any Subsidiary of the Company)
to the direct or indirect holders of its Capital Stock, except
(x) dividends or distributions payable solely in its Capital Stock (other
than Disqualified Stock) and

 

37

 

(y) dividends or
distributions payable to the Company or a Restricted Subsidiary (and, if such
Restricted Subsidiary has shareholders other than the Company or other
Restricted Subsidiaries, to its other shareholders on a pro rata basis or on a
basis more favorable to the Company and its Restricted Subsidiaries than pro
rata),

 

(ii)           purchase,
repurchase, redeem, retire or otherwise acquire for value any Capital Stock of
the Company held by Persons other than the Company or a Restricted Subsidiary,

 

(iii)          purchase,
repurchase, redeem, retire, defease or otherwise acquire for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment any
Subordinated Obligations (other than the purchase, repurchase redemption,
retirement, defeasance or other acquisition for value of Subordinated
Obligations acquired in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of
the date of acquisition), or

 

(iv)          make
any Investment (other than a Permitted Investment) in any Person

 

(any such dividend, distribution,
payment, purchase, redemption, repurchase, defeasance, retirement, other
acquisition or Investment being herein referred to as a “Restricted Payment”) if at the time the
Company or such Restricted Subsidiary makes such Restricted Payment:

 

(1)           a
Default shall have occurred and be continuing (or would result therefrom);

 

(2)           the
Company could not Incur at least $1.00 of additional Indebtedness under Section
3.06(a); or

 

(3)           the
aggregate amount of such Restricted Payment and all other Restricted Payments
(the amount so expended, if other than in cash, to be determined in good faith
by the Board of Directors, whose determination shall be conclusive and
evidenced by a resolution of the Board of Directors) declared or made
subsequent to April 1, 2001 (other than Restricted Payments excluded pursuant
to Section 3.07(b) below) would exceed the sum, without duplication, of:

 

(A)          50%
of the Consolidated Net Income accrued during the period (treated as one
accounting period) from April 1, 2001, to the end of the most recent fiscal
quarter for which financial statements are publicly available prior to the date
of such Restricted Payment (or, in case such Consolidated Net Income is a
deficit, minus 100% of such deficit);

 

38

 

(B)           the
aggregate Net Cash Proceeds received by the Company from the issue or sale of
its Capital Stock (other than Disqualified Stock) subsequent to April 1, 2001
(other than an issuance or sale to (x) a Restricted Subsidiary of the
Company or (y) an employee stock ownership plan or other trust established
by the Company or any of its Subsidiaries);

 

(C)           the
aggregate Fair Market Value of any assets or property received by the Company
from the issue or sale of its Capital Stock (other than Disqualified Stock)
subsequent to the Closing Date (other than an issuance or sale to (x) a
Restricted Subsidiary of the Company or (y) an employee stock ownership
plan or other trust established by the Company or any of its Subsidiaries);

 

(D)          the
amount by which Indebtedness of the Company or its Restricted Subsidiaries
issued after April 1, 2001 is reduced on the Company’s consolidated balance
sheet upon the conversion or exchange of such Indebtedness for Capital Stock
(other than Disqualified Stock) of the Company (less the amount of any cash or
the Fair Market Value of other property distributed by the Company or any
Restricted Subsidiary upon such conversion or exchange); and

 

(E)           with
respect to Investments (other than Permitted Investments) made by the Company
and its Restricted Subsidiaries after April 1, 2001, an amount equal to the net
reduction in such Investments in any Person resulting from repayments of loans
or advances, or other transfers of assets, in each case to the Company or any
Restricted Subsidiary or from the net cash proceeds from the sale of any such
Investment (except, in each case, to the extent any such payment or proceeds
are included in the calculation of Consolidated Net Income), from dividends or
other distributions or payments on such Investments, or from the release of any
Guarantee (except to the extent any amounts are paid under such Guarantee) or
from redesignations of Unrestricted Subsidiaries as Restricted Subsidiaries,
not to exceed, in each case, the amount of such Investments previously made by
the Company or any Restricted Subsidiary in such Person or Unrestricted
Subsidiary after April 1, 2001.

 

39

 

(b)                                 The provisions of Section 3.07(a) shall not
prohibit:

 

(i)                                     any dividend or distribution in respect of, or any
purchase, repurchase, redemption, retirement or other acquisition for value of
Capital Stock of the Company or Subordinated Obligations of the Company or any
Subsidiary Guarantor made by exchange for, or out of the proceeds of the
substantially concurrent sale of, Capital Stock of the Company (other than
Disqualified Stock and other than Capital Stock issued or sold to a Restricted
Subsidiary of the Company or an employee stock ownership plan or other trust
established by the Company or any of its Subsidiaries); provided, however,
that:

 

(1)                                  such dividend, distribution, purchase, repurchase,
redemption, retirement or other acquisition for value shall be excluded in the
calculation of the amount of Restricted Payments, and

 

(2)                                  the Net Cash Proceeds or the Fair Market Value of
any assets or property received from such sale applied in the manner set forth
in this clause (i) will be excluded from the calculation of amounts under
paragraphs 3(B) or 3(C), as applicable, of Sections 3.07(a);

 

(ii)                                  any prepayment, repayment, purchase, repurchase,
redemption, retirement, defeasance or other acquisition for value of
Subordinated Obligations of the Company or any Subsidiary Guarantor made by
exchange for, or out of the proceeds of the substantially concurrent sale of,
Refinancing Indebtedness; provided,
however, that such prepayment, repayment, purchase, repurchase,
redemption, retirement, defeasance or other acquisition for value will be
excluded in the calculation of the amount of Restricted Payments;

 

(iii)                               any prepayment, repayment, purchase, repurchase,
redemption, retirement, defeasance or other acquisition for value of
Subordinated Obligations from Net Available Cash to the extent permitted by
Section 3.09; provided, however, that such prepayment, repayment,
purchase, repurchase, redemption, retirement, defeasance or other acquisition
for value shall be excluded in the calculation of the amount of Restricted
Payments;

 

(iv)                              dividends paid within 60 days after the date
of declaration thereof if at such date of declaration such dividends would have
complied with this Section 3.07; provided, however, that such
dividends (without duplication) will be included in the calculation of the
amount of Restricted Payments;

 

40

 

(v)                                 any purchase, repurchase, redemption, retirement or
other acquisition for value of shares of, or options to purchase shares of,
common stock of the Company or any of its Subsidiaries from employees, former
employees, directors or former directors of the Company or any of its
Subsidiaries (or permitted transferees of such employees, former employees,
directors or former directors), pursuant to the terms of agreements (including
employment agreements) or plans (or amendments thereto) approved by the Board
of Directors under which such individuals purchase or sell or are granted the
option to purchase or sell, shares of such common stock; provided, however, that the aggregate amount of such purchases,
repurchases, redemptions, retirements and other acquisitions for value shall
not exceed $10,000,000 in any calendar year; provided  further, however,
that such purchases, repurchases, redemptions, retirements and other
acquisitions for value shall be excluded in the calculation of the amount of
Restricted Payments;

 

(vi)                              the repurchase of Capital Stock deemed to occur
upon the exercise of options or warrants to the extent that such Capital Stock
represents all or a portion of the exercise price thereof; provided, however,
that such repurchases shall be excluded from the calculation of the amount of
Restricted Payments;

 

(vii)                           the declaration and payment of regularly scheduled
or accrued dividends to holders of any class or series of Disqualified Stock of
the Company or any Restricted Subsidiary of the Company issued on or after the
Closing Date in accordance with Section 3.06; provided, however,
that such payment shall be excluded from the calculation of the amount of
Restricted Payments; or

 

(viii)                        other Restricted Payments in an aggregate amount
not to exceed $150,000,000; provided, however, that such
Restricted Payments shall be excluded from the calculation of the amount of
Restricted Payments.

 

SECTION 3.08                    Limitation on Restrictions on
Distributions from Restricted Subsidiaries. The Company will not, and will not permit any Restricted Subsidiary to,
create or otherwise cause or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary to:

 

(a)                                  pay dividends or make any other distributions on
its Capital Stock or pay any Indebtedness or other obligations owed to the
Company;

 

(b)                                 make any loans or advances to the Company; or

 

41

 

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

 

except:

 

(i)                                     any encumbrance or restriction pursuant to
applicable law, rule, regulation or order or an agreement in effect at or
entered into on the Closing Date;

 

(ii)                                  any encumbrance or restriction with respect to a
Restricted Subsidiary pursuant to an agreement relating to any Indebtedness
Incurred by such Restricted Subsidiary prior to the date on which such
Restricted Subsidiary was acquired by the Company or any Restricted Subsidiary
(other than Indebtedness Incurred as consideration in, in contemplation of, or
to provide all or any portion of the funds or credit support utilized to
consummate the transaction or series of related transactions pursuant to which
such Restricted Subsidiary became a Restricted Subsidiary or was otherwise
acquired by the Company) and outstanding on such date;

 

(iii)                               any encumbrance or restriction pursuant to an
agreement effecting a Refinancing of Indebtedness Incurred pursuant to an
agreement referred to in clause (i) or (ii) of this Section 3.08 or
this clause (iii) or contained in any amendment to an agreement referred
to in clause (i) or (ii) of this Section 3.08 or this clause (iii);
provided, however, that the encumbrances and restrictions contained
in any such Refinancing agreement or amendment, taken as a whole, are not
materially less favorable to the Holders than the encumbrances and restrictions
contained in such predecessor agreements;

 

(iv)                              in the case of clause (c), any encumbrance or
restriction (1) that restricts in a customary manner the subletting, assignment
or transfer of any property or asset that is a lease, license or similar
contract; (2) contained in security agreements or mortgages securing Indebtedness
of a Restricted Subsidiary to the extent such encumbrance or restriction
restricts the transfer of the property subject to such security agreements or
mortgages; or (3) arising or agreed to in the ordinary course of
business, not relating to any Indebtedness, and that does not,
individually or in the aggregate, detract from the value of property or assets
of the Company or any Restricted Subsidiary thereof in any manner material to
the Company or any Restricted Subsidiary thereof;

 

(v)                                 any encumbrance or restriction on cash or other
deposits or net worth imposed by customers or lessors or required

 

42

 

by insurance, surety or bonding
companies, in each case under contracts entered into in the ordinary course of
business;

 

(vi)                              with respect to a Restricted Subsidiary, any
encumbrance or restriction imposed pursuant to an agreement entered into for
the sale or disposition of all or substantially all the Capital Stock or assets
of such Restricted Subsidiary pending the closing of such sale or disposition;

 

(vii)                           provisions limiting the disposition or distribution
of assets or property in joint venture agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements entered
into in the ordinary course of business;

 

(viii)                        any encumbrance or restriction existing under, by
reason of or with respect to Indebtedness Incurred by any Subsidiary Guarantor
permitted to be Incurred under Section 3.06,  provided that the Board of Directors determines (as
evidenced by a resolution of the Board of Directors) in good faith at
the time such Indebtedness is Incurred that such encumbrance or restriction
would not impair the ability of the Company to make payments of interest and
principal on the Notes when due; or

 

(ix)                                existing under, by reason of or with respect to
Indebtedness Incurred by Foreign Subsidiaries permitted to be Incurred under
Section 3.06.

 

SECTION 3.09  Limitation
on Sales of Assets and Subsidiary Stock

 

(a)                                  The Company will not, and will not permit any
Restricted Subsidiary to, make any Asset Disposition unless:

 

(i)                                     the Company or such Restricted Subsidiary receives
consideration (including by way of relief from, or by any other Person assuming
sole responsibility for, any liabilities, contingent or otherwise) at the time
of such Asset Disposition at least equal to the Fair Market Value of the shares
and assets subject to such Asset Disposition,

 

(ii)                                  at least 75% of the consideration thereof received
by the Company or such Restricted Subsidiary is in the form of cash, assets
useful in a Permitted Business or Permitted Securities; provided that the amount of any Designated
Non-Cash Consideration received by the Company or any of its Restricted
Subsidiaries in such Asset Disposition shall be deemed cash for the purposes of
this provision (but for no other purpose) so long as such amount, taken
together with the Fair Market Value when received of all other Designated
Non-Cash Consideration that

 

43

 

is at that time outstanding (i.e., that has not been sold for or
otherwise converted into cash), does not exceed $25,000,000, and

 

(iii)                               an amount equal to 100% of the Net Available Cash
from such Asset Disposition is applied by
the Company (or such Restricted Subsidiary, as the case may be) within
360 days after the later of the date of such Asset Disposition or the
receipt of such Net Available Cash:

 

(1)                                  first,
to the extent the Company elects (or is required by the terms of any Indebtedness),
to prepay, repay, purchase, repurchase, redeem, retire, defease or otherwise
acquire for value Senior Indebtedness of the Company, Senior Indebtedness of a
Subsidiary Guarantor or Indebtedness of a Restricted Subsidiary that is not a
Subsidiary Guarantor (in each case other than Indebtedness owed to the Company
or an Affiliate of the Company);

 

(2)                                  second,
to the extent of the balance of Net Available Cash after application, in
accordance with clause (1), to the extent the Company or such Restricted
Subsidiary elects, to reinvest in Additional Assets (including by means of an
Investment in Additional Assets by a Restricted Subsidiary with Net Available
Cash received by the Company or another Restricted Subsidiary);

 

(3)                                  third,
to the extent of the balance of such Net Available Cash after application in
accordance with clauses (1) and (2), to make an Offer (as defined in
Section 3.09(b)) to purchase Notes pursuant to and subject to the conditions of
Section 3.09(b); provided, however, that if the Company elects
(or is required by the terms of any other Senior Subordinated Indebtedness),
such Offer may be made ratably (determined based upon the respective principal
amounts of
the Notes and such other Senior Subordinated Indebtedness being purchased or
repaid) to purchase the Notes and to purchase or otherwise repay such other Senior
Subordinated Indebtedness of the Company, and

 

(4)                                  fourth,
to the extent of the balance of such Net Available Cash after application
in accordance with clauses (1), (2) and (3), for any general corporate
purpose not prohibited by the terms of this Indenture;

 

provided, however that in connection with any prepayment,
repayment, purchase, repurchase, redemption, retirement, defeasance or other
acquisition for value of Indebtedness pursuant to clause (1) or (3) above,
the Company or such Restricted Subsidiary shall retire such Indebtedness and
shall cause the related loan commitment (if any) to be permanently reduced in
an amount equal to the

 

44

 

principal amount so prepaid, repaid, purchased, repurchased, redeemed,
retired, defeased or otherwise acquired for value.

 

Notwithstanding the foregoing provisions of
this Section 3.09, the Company and the Restricted Subsidiaries will not be
required to apply any Net Available Cash in accordance with this Section 3.09
except to the extent that the aggregate Net Available Cash from all Asset
Dispositions that is not applied in accordance with this Section 3.09 exceeds
$25,000,000.

 

For the purposes of this Section 3.09, the
following are deemed to be cash:

 

(A)                              the
assumption of Indebtedness of the Company (other than obligations in respect of
Disqualified Stock of the Company) or any Restricted Subsidiary (other than
obligations in respect of Disqualified Stock and Preferred Stock of a
Subsidiary Guarantor) and the release of the Company or such Restricted
Subsidiary from all liability on such Indebtedness in connection with such
Asset Disposition and

 

(B)                                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.

 

(b)                                 In the event of an Asset Disposition that requires
the purchase of Notes pursuant to Section 3.09(a)(iii)(3), the Company will be
required (i) to purchase Notes tendered pursuant to an offer by the
Company for the Notes (the “Offer”)
at a purchase price of 100% of their principal amount plus accrued and unpaid
interest thereon to the date of purchase (subject to the right of Holders of
record on the relevant date to receive interest due on the relevant interest
payment date) in accordance with the procedures, including prorating in the
event of oversubscription, set forth in this Indenture and (ii) to
purchase or otherwise repay other Senior Subordinated Indebtedness of the
Company on the terms and to the extent contemplated thereby at the purchase price set forth in the
relevant documentation (including accrued and unpaid interest to the date of
acquisition, the “purchase price”), provided that to the extent the
purchase price of any such Senior Subordinated Indebtedness exceeds 100%
of the principal amount thereof, plus accrued and unpaid interest thereon to the date of acquisition, the Company shall
not use any Net Available Cash to pay such purchase price, except as permitted
by the next sentence. If the aggregate purchase price of Notes (and
other Senior Subordinated Indebtedness) tendered pursuant to the Offer is less
than the Net Available Cash allotted to the purchase of the Notes (and other
Senior Subordinated Indebtedness), the Company shall apply the remaining Net
Available Cash in accordance with Section 3.09(a)(iii)(4). The Company shall
not be required to make an Offer for Notes (and other Senior Subordinated Indebtedness)
pursuant to this Section 3.09 if the Net Available Cash available therefor
(after application of the proceeds as provided in clauses (1) and (2) of
Section 3.09(a)(iii)) is less than $25,000,000 for any particular Asset
Disposition (which lesser amount will be carried forward for purposes of
determining whether

 

45

 

an Offer is required with respect
to the Net Available Cash from any subsequent Asset Disposition).

 

(c)                                  (i)                                     Promptly, and in any event within 10 days after the
Company becomes obligated to make an Offer, the Company shall be obligated to
deliver to the Trustee and send or, at the request of the Company have the
Trustee send, in the name and on behalf of the Company, by first-class mail to
each Holder, a written notice stating that the Holder may elect to have its
Notes purchased by the Company either in whole or in part (subject to prorating
as hereinafter described in the event the Offer is oversubscribed) in integral
multiples of $1,000 of principal amount, at the applicable purchase price. The
notice shall specify a purchase date not less than 30 days nor more than 60
days after the date of such notice (the “Purchase
Date”) and shall contain such information concerning the business of
the Company which the Company in good faith believes will enable such Holders
to make an informed decision (which at a minimum shall include (1) the most
recently filed Annual Report on Form 10-K (including audited consolidated
financial statements) of the Company, the most recent subsequently filed
Quarterly Report on Form 10-Q and any Current Report on Form 8-K of the Company
filed subsequent to such Quarterly Report, other than Current Reports
describing Asset Dispositions otherwise described in the offering materials (or
corresponding successor reports); provided that in lieu of providing the
reports specified in this subclause (1), the Company may, at its option, notify
the holders that such reports are available to them in electronic format
through the SEC’s EDGAR system, (2) a description of material developments in
the Company’s business subsequent to the date of the latest of such reports,
and (3) if material, appropriate pro forma financial information) and all
instructions and materials necessary to tender Notes pursuant to the Offer,
together with the address referred to in clause (iii).

 

(ii)                                  Not later than the date upon which written notice
of an Offer is delivered to the Trustee as provided above, the Company shall
deliver to the Trustee an Officers’ Certificate as to (1) the amount of the
Offer (the “Offer Amount”), (2)
the allocation of the Net Available Cash from the Asset Dispositions pursuant
to which such Offer is being made and (3) the compliance of such allocation
with the provisions of Section 3.09(a) and (b). On the Business Day
immediately preceding the Purchase Date, the Company shall irrevocably deposit
with the Trustee or with a paying agent (or, if the Company is acting as its
own paying agent, segregate and hold in trust) an amount equal to the Offer
Amount to be invested in Temporary Cash Investments and to be held for payment
in accordance with the provisions of this Section. Upon the expiration of the
period for which the Offer remains open (the “Offer
Period”), the Company shall deliver to the Trustee for cancellation
the Notes or portions thereof that have been properly tendered to and are to be
accepted by the

 

46

 

Company. The Trustee (or the
Paying Agent, if not the Trustee) shall, on the Purchase Date, mail or deliver
payment to each tendering Holder in the amount of the purchase price. In the
event that the Offer Amount delivered by the Company to the Trustee is greater
than the purchase price of the Notes tendered, the Trustee shall deliver the
excess to the Company promptly after the expiration of the Offer Period for
application in accordance with this Section 3.09.

 

(iii)                               Holders electing to have a Note purchased shall be
required to surrender the Note, with an appropriate form duly completed, to the
Company at the address specified in the notice at least three Business Days
prior to the Purchase Date. Holders shall be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day
prior to the Purchase Date, a facsimile transmission or letter setting forth
the name of the Holder, the principal amount of the Note which was delivered by
the Holder for purchase and a statement that such Holder is withdrawing his
election to have such Note purchased. If at the expiration of the Offer Period
the aggregate principal amount of Notes surrendered by holders thereof plus the
purchase price of other Senior Subordinated Indebtedness of the Company or the
Subsidiary Guarantors being purchased or otherwise repaid exceeds the amount of
Net Available Cash, the Company shall select the Notes and other Senior
Subordinated Indebtedness to be purchased on a pro rata basis (with such
adjustments as may be deemed appropriate by the Company so that only Notes and
other Senior Subordinated Indebtedness in denominations of $1,000, or integral
multiples thereof, shall be purchased). Holders whose Notes are purchased only
in part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered.

 

(iv)                              At the time the Company delivers Notes to the
Trustee which are to be accepted for purchase, the Company shall also deliver
an Officers’ Certificate stating that such Notes are to be accepted by the
Company pursuant to and in accordance with the terms of this Section. A Note
shall be deemed to have been accepted for purchase at the time the Trustee,
directly or through an agent, mails or delivers payment therefor to the
surrendering Holder.

 

(v)                                 The Company shall comply, to the extent applicable,
with the requirements of Section 14(e) of the Securities Exchange Act and any
other securities laws or regulations in connection with the repurchase of Notes
pursuant to this Section 3.09. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section 3.09,
the Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Section 3.09 by
virtue thereof.

 

47

 

SECTION 3.10                    Limitation on Transactions with
Affiliates

 

(a)                              The Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, enter into or conduct any
transaction or series of related transactions (including, the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
Affiliate of the Company (an “Affiliate
Transaction”) unless such Affiliate Transaction is on terms
(i) that are no less favorable to the Company or such Restricted
Subsidiary, as the case may be, than those that could be obtained at the time
of such transaction in arm’s-length dealings with a Person who is not such an
Affiliate, (ii) that, in the event such Affiliate Transaction involves an
aggregate amount in excess of $15,000,000, (1)  are set forth in writing
and (2)  have been approved by a majority of the members of the Board of
Directors having no personal stake in such Affiliate Transaction, and
(iii) that, in the event such Affiliate Transaction involves an amount in
excess of $25,000,000, have been determined by a nationally recognized
appraisal or investment banking firm to be fair, from a financial point of
view, to the Company and its Restricted Subsidiaries.

 

(b)                                 The provisions of Section 3.10(a) shall not
prohibit (i) any Permitted Investment or any Restricted Payment permitted
to be paid pursuant to Section 3.07, (ii) any employment arrangements, employee benefit plans or arrangements
(including pension plans, health and life insurance plans, retiree medical
plans, deferred compensation plans, indemnification agreements, stock options
and restricted stock and stock ownership plans) or related trust agreements or
similar arrangements, in each case, approved by the Board of Directors and any
grant or issuance of securities, or other payments, awards or grants in
cash, securities or otherwise pursuant to, or the funding of any of the
foregoing, (iii) loans or advances to employees in the ordinary course of
business of the Company, but in any event not to exceed $5,000,000 in the
aggregate outstanding at any one time, (iv) the payment of reasonable fees
to directors of the Company or its Subsidiaries, (v) any transaction
between the Company and a Restricted Subsidiary or between Restricted
Subsidiaries, or (vi) the provision by Persons who may be deemed
Affiliates of the Company of investment advisory services to the Company or its
Restricted Subsidiaries with respect to the Company’s or its Restricted
Subsidiaries’ employee benefit plans.

 

SECTION 3.11                    Change of Control

 

(a)                              Upon the occurrence of a Change of Control, each
Holder will have the right to require the Company to purchase all or any part
of such Holder’s Notes at a purchase price in cash equal to 101% of the principal
amount thereof plus accrued and unpaid interest to the date of purchase
(subject to the right of Holders of record on the relevant record date to
receive interest due on the relevant interest payment date); provided, however,
that notwithstanding the occurrence of a Change of Control, the Company shall
not be obligated to purchase the Notes pursuant to this Section 3.11 in
the event that it has exercised its right to redeem all the Notes, in
accordance with the terms of Section 5 of the

 

48

 

form of reverse of Note described
in Section 2.02(b) of the First Supplemental Indenture. In the event that at
the time of such Change of Control the terms of the Bank Indebtedness restrict
or prohibit the repurchase of Notes pursuant to this Section 3.11, then
prior to the mailing of the notice to Holders provided for in
Section 3.11(b) below but in any event within 45 days following any Change
of Control, the Company shall (A) repay in full all Bank Indebtedness or,
if doing so will allow the purchase of Notes, offer to repay in full all Bank
Indebtedness and repay the Bank Indebtedness of each lender who has accepted
such offer or (B) obtain the requisite consent under the agreements
governing the Bank Indebtedness to permit the repurchase of the Notes as
provided for in Section 3.11(b).

 

(b)                                 Within 45 days following any Change of Control, the
Company shall mail a notice to each Holder with a copy to the Trustee (the “Change of Control Offer”) stating:

 

(i)                                     that a Change of Control has occurred and that such
Holder has the right to require the Company to purchase all or a portion of
such Holder’s Notes at a purchase price in cash equal to 101% of the principal
amount thereof, plus accrued and unpaid interest to the date of purchase
(subject to the right of Holders of record on the relevant record date to
receive interest on the relevant interest payment date);

 

(ii)                                  the circumstances and relevant facts and financial
information regarding such Change of Control;

 

(iii)                               the purchase date (which shall be no earlier than
30 days nor later than 60 days from the date such notice is mailed); and

 

(iv)                              the instructions determined by the Company,
consistent with this Section 3.11, that a Holder must follow in order to have
its Notes purchased.

 

(c)                                  Holders electing to have a Note purchased shall be
required to surrender the Note, with an appropriate form duly completed, to the
Company at the address specified in the notice at least three Business Days
prior to the purchase date. Holders shall be entitled to withdraw their
election if the Trustee or the Company receives not later than one Business Day
prior to the purchase date a facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note which was delivered for
purchase by the Holder and a statement that such Holder is withdrawing his
election to have such Note purchased. Holders whose Notes are purchased only in
part shall be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered.

 

(d)                                 On the purchase date, all Notes purchased by the
Company under this Section 3.11 shall be delivered to the Trustee for
cancellation, and the

 

49

 

Company shall pay the purchase
price plus accrued and unpaid interest to the Holders entitled thereto.

 

(e)                                  Notwithstanding the foregoing provisions of this
Section 3.11, the Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in Section 3.11(b) applicable to a Change of
Control Offer made by the Company and purchases all Notes validly tendered and
not withdrawn under such Change of Control Offer.

 

(f)                                    At the time the Company delivers Notes to the
Trustee which are to be accepted for purchase, the Company shall also deliver
an Officers’ Certificate stating that such Notes are to be accepted by the
Company pursuant to and in accordance with the terms of this Section 3.11.
A Note shall be deemed to have been accepted for purchase at the time the
Trustee, directly or through an agent, mails or delivers payment therefor to
the surrendering Holder.

 

(g)                                 Prior to any Change of Control Offer, the Company
shall deliver to the Trustee an Officers’ Certificate stating that all
conditions precedent contained herein to the right of the Company to make such
offer have been complied with.

 

(h)                                 The Company will comply, to the extent applicable,
with the requirements of Section 14(e) of the Securities Exchange Act and
any other securities laws or regulations in connection with the repurchase of
Notes pursuant to this Section. To the extent that the provisions of any
securities laws or regulations conflict with provisions of this Section, the
Company will comply with the applicable securities laws and regulations and
will not be deemed to have breached its obligations under this Section by
virtue thereof.

 

SECTION 3.12                    Further Instruments and Acts. Upon request of the Trustee, the Company shall
execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of
this Indenture.

 

SECTION 3.13                    Future Subsidiary Guarantors. The Company will cause each Restricted Subsidiary which guarantees any Indebtedness of the
Company or any Domestic Subsidiary of the Company to become a Subsidiary
Guarantor, and, if applicable, to execute and deliver to the Trustee a
supplemental indenture substantially in the form of Appendix A to the First
Supplemental Indenture pursuant to which such Subsidiary will Guarantee payment
of the Notes. Each Subsidiary Guarantee will be limited to an amount not to
exceed the maximum amount that can be Guaranteed by that Subsidiary Guarantor
without rendering the Subsidiary Guarantee, as it relates to such Subsidiary
Guarantor, voidable under applicable law relating to fraudulent conveyance or
fraudulent transfer or similar laws affecting the rights of creditors
generally.

 

50

 

SECTION 3.14                    Limitation on Lines of Business. The Company shall not, and shall not permit any
Restricted Subsidiary to, engage in any business, other than a Permitted
Business.

 

SECTION 3.15                    Limitation on Senior Subordinated
Debt. The Company will not Incur
any Indebtedness if such Indebtedness is subordinate or junior in ranking in
any respect to any Senior Indebtedness unless such Indebtedness is Senior
Subordinated Indebtedness or is expressly subordinated in right of payment to
the Notes. No Subsidiary Guarantor will Incur any Indebtedness if such
Indebtedness is by its terms expressly subordinate or junior in ranking in any
respect to any Senior Indebtedness of such Subsidiary Guarantor unless such
Indebtedness is Senior Subordinated Indebtedness of such Subsidiary Guarantor
or is expressly subordinated in right of payment to the Subsidiary Guarantee of
such Subsidiary Guarantor. For purposes of the foregoing, no Indebtedness will
be deemed to be subordinated in right of payment to any other Indebtedness of
the Company or any Subsidiary Guarantor, as applicable, solely by reason of any
Liens or Guarantees arising or created in respect of such other Indebtedness of
the Company or any Subsidiary Guarantor or by virtue of the fact that the
holders of any Secured Indebtedness have entered into intercreditor agreements
giving one or more of such holders priority over the other holders in the
collateral held by them.

 

SECTION 3.16                    Limitation on Liens. The Company will not Incur any Secured Indebtedness
which is not Senior Indebtedness unless contemporaneously therewith effective
provision is made to secure the Notes equally and ratably with (or on a senior
basis to, in the case of Indebtedness subordinated in right of payment to the
Notes) such Secured Indebtedness for so long as such Secured Indebtedness is
secured by a Lien. In addition, no Subsidiary Guarantor will Incur any Secured
Indebtedness that is not Senior Indebtedness of such Subsidiary Guarantor
unless contemporaneously therewith effective provision is made to secure the
Subsidiary Guarantee of such Subsidiary Guarantor equally and ratably with (or
on a senior basis to, in the case of Indebtedness subordinated in right of
payment to such Subsidiary Guarantee) such Secured Indebtedness for as long as
such Secured Indebtedness is secured by a Lien.

 

SECTION 3.17                    Covenant Suspension

 

(a)                                  If on any date following the date hereof (i) the Notes are rated Baa3 or better by Moody’s and
BBB- or better by S&P (or, if either such entity ceases to rate the Notes
for reasons outside of the control of the Company, the equivalent investment
grade credit rating from any other “nationally recognized statistical rating
organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under
the Securities Exchange Act selected by the Company as a replacement agency)
and (ii) no Default or Event of Default shall have occurred and be continuing,
then, beginning on that day and subject to the provisions of subsection (c)
below, and notwithstanding anything in this Article 3 to the contrary, the
following covenants hereunder will be suspended:

 

(i)                                     Section 3.06;

 

51

 

(ii)                                  Section 3.07;

 

(iii)                               Section 3.08;

 

(iv)                              Section 3.09;

 

(v)                                 Section 3.10; and

 

(vi)                              Section 9.01(c).

 

(b)                                 During any period that the foregoing covenants have
been suspended, the Board of Directors may not designate any of its
Subsidiaries as Unrestricted Subsidiaries pursuant to the definition of
“Unrestricted Subsidiary.”

 

(c)                                  Notwithstanding the foregoing, if the rating
assigned by either such rating agency should subsequently decline to below Baa3
or BBB-, respectively, the foregoing covenants will be reinstituted as of and from the date
of such rating decline. Calculations under the reinstated Section 3.07 will be made as if Section 3.07 had been
in effect since the date of the Indenture, except that no Default will be
deemed to have occurred solely by reason of a Restricted Payment made while
that covenant was suspended. Also, any encumbrance or restriction of the type referred to in Section 3.08 incurred during the suspension period shall not result in a
Default when such covenant is re-instituted.”

 

Section 3.04.                             Amendment
and Restatement of Section 5.01 of the Base Indenture. Section 5.01
of the Base Indenture is hereby amended and restated in its entirety, subject
to Section 3.01 hereof and, with respect to the Notes only, to read as follows:

 

“SECTION 5.01.  Event of Default Defined; Acceleration of Maturity; Waiver
of Default.  “Event of
Default” means any one of the following events which shall have
occurred and be continuing (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

 

(a)                                  a default in any payment of interest on any Note
when due and payable whether or not prohibited by Article 13 of the Indenture
or Article 5 of the First Supplemental Indenture continued for 30 days,

 

(b)                                 a default in the payment of principal of any Note
when due and payable at its Stated Maturity, upon required redemption or
repurchase, upon declaration or otherwise, whether or not such payment is
prohibited by Article 13 of the Indenture or Article 5 of the First
Supplemental Indenture,

 

(c)                                  the failure by the Company or any Subsidiary
Guarantor to comply with its obligations under Article 9,

 

52

 

(d)                                 the failure by the Company or any Restricted
Subsidiary to comply for 45 days after notice with any of its obligations under
Article 3 and Section 4.03 (in each case other than a failure to purchase
Notes),

 

(e)                                  the failure by the Company or any Restricted
Subsidiary to comply for 60 days after notice with its other agreements
contained in the Notes or the Indenture,

 

(f)                                    the failure by the Company or any Subsidiary to pay
any Indebtedness within any applicable grace period after final maturity or the
acceleration of any such Indebtedness by the holders thereof because of a
default if the total amount of such Indebtedness unpaid or accelerated exceeds
$35,000,000 or its foreign currency equivalent and such failure continues for
10 days after receipt of the notice specified below,

 

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

 

(i)                                     commences a voluntary case;

 

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

 

(iii)                               consents to the appointment of a Custodian of it or
for any substantial part of its property; or

 

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

 

or takes any comparable action under
any foreign laws relating to insolvency;

 

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

 

(i)                                     is for relief against the Company or any
Significant Subsidiary in an involuntary case;

 

(ii)                                  appoints a Custodian of the Company or any
Significant Subsidiary or for any substantial part of its property; or

 

(iii)                               orders the winding up or liquidation of the Company
or any Significant Subsidiary;

 

or any similar relief is granted
under any foreign laws and the order or decree remains unstayed and in effect
for 60 days;

 

(i)                                     the rendering of any judgment or decree for the
payment of money in excess of $35,000,000 
or its foreign currency equivalent (in excess of the amount for which
liability for payment is covered by enforceable insurance

 

53

 

policies issued by solvent third
party insurers) against the Company or a Restricted Subsidiary if:

 

(i)                                     an enforcement proceeding thereon is commenced by
any creditor or

 

(ii)                                  such judgment or decree remains outstanding for a
period of 90 days following such judgment and is not paid, discharged, waived
or stayed; or

 

(j)                                     any Subsidiary Guarantee of a Subsidiary Guarantor
holding more than 5% of the Company’s Consolidated assets or generating more
than 5% of the Company’s Consolidated sales or net income as of and for the
twelve months ended on the end of the most recent fiscal quarter for which
financial statements are publicly available ceases to be in full force and
effect (except as contemplated by the terms thereof) or any such Subsidiary
Guarantor or Person acting by or on behalf of any such Subsidiary Guarantor
denies or disaffirms such Subsidiary Guarantor’s obligations under the
indenture or any Subsidiary Guarantee and such Default continues for 10 days
after receipt of the notice specified in the indenture.

 

The term “Bankruptcy Law” means Title 11, UNITED
STATES CODE, or any similar Federal or state law for the relief of debtors. The
term “Custodian” means any
receiver, trustee, assignee, liquidator, custodian or similar official under
any Bankruptcy Law.

 

A Default under clause (d), (e)
or (f) will not constitute an Event of Default until the Trustee notifies the
Company or the Holders of at least 25% in principal amount of the Notes then
Outstanding notify the Company and the Trustee of the Default and the Company
or the Subsidiary Guarantor, as applicable, does not cure such Default within
the time specified in clause (d), (e) or (f) hereof after receipt of such notice.

 

If an Event of Default (other
than an Event of Default under clause (g) or (h) with respect to the Company)
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the Notes then Outstanding by notice to the Company may
declare the principal of and accrued but unpaid interest on all the Notes to be
due and payable. Upon such a declaration, such principal and interest will be
due and payable immediately. However, if any Designated Senior Indebtedness of
the Company is outstanding, the Company may not pay the Notes until five
Business Days after such holders or the Representative of such Designated
Senior Indebtedness receives notice of such acceleration and, thereafter, may
pay the Notes only if Article 13 otherwise permits payment at that time.

 

If an Event of Default relating
to clause (g) or (h) with respect to the Company occurs, the principal of and
interest on all the Notes will become immediately due and payable without any
declaration or other act on the part of the trustee or any Holders. The Holders
of a majority in principal amount of the Notes by notice to the Trustee may
rescind an acceleration and its consequences if the rescission would not
conflict with any

 

54

 

judgment or decree and if all
existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of acceleration. No
such rescission shall affect any subsequent Default or impair any right consequent
thereto.”

 

Section 3.05.                             Amendment
and Restatement of Article 8 of the Base Indenture. Article 8 of
the Base Indenture is hereby amended and restated in its entirety, subject to
Section 3.01 hereof and, with respect to the Notes only, to read as follows:

 

ARTICLE 8

AMENDMENT

 

SECTION 8.01.                 Amendments Without Consent of
Holders.  The Company,
the Subsidiary Guarantors and the Trustee may amend this Indenture or the Notes
without notice to or consent of any Holder to:

 

(a)                            convey, transfer, assign, mortgage or pledge any
property or assets to the trustee as security for the Notes;

 

(b)                             evidence the succession of another Person to the
Company, or successive successions, and the assumption by the successor Person
of the covenants, agreements and obligations of the Company or any Subsidiary
Guarantor under the Indenture pursuant to Article 9;

 

(c)                            add to the covenants of the Company and the
Subsidiary Guarantors such further covenants, restrictions, conditions or
provisions for the protection of the Holders of Notes;

 

(d)                             cure any ambiguity or correct or supplement any
provision contained in the Indenture that may be defective or inconsistent with
any other provision contained in the Indenture, or make such other provisions
in regard to matters or questions arising under the Indenture as the Board of
Directors may deem necessary or desirable and that shall not materially and
adversely affect the interests of the Holders of Notes;

 

(e)                            evidence and provide for the acceptance of
appointment under the Indenture by a successor trustee with respect to the
Notes and add to or change any of the provisions of the Indenture as shall be
necessary to provide for or facilitate the administration of the trusts under
the Indenture by more than the one trustee pursuant to the requirements of the
Indenture;

 

(f)                              provide for uncertificated Notes in addition to or
in place of certificated Notes (provided, however, that the
uncertificated Notes are issued in registered form for purposes of
Section 163(f) of the Code, or in a manner such that the
uncertificated Notes are described in Section 163(f)(2)(B) of the
Code);

 

(g)                           make any change in the subordination provisions of
the Indenture that would limit or terminate the benefits available to any
holder of Senior

 

55

 

Indebtedness of the Company or a
Subsidiary Guarantor (or any Representative thereof) under such subordination
provisions;

 

(h)                             add additional Guarantees with respect to the Notes
and release any Subsidiary Guarantor in accordance with the Section 4.06 of the
First Supplemental Indenture;

 

(i)                                     to provide for the issuance of Additional Notes;

 

(j)                             conform the text of the Indenture or the Notes to
any provision of the Description of Notes; or

 

(k)   comply with any requirement
of the Commission in connection with the qualification of the Indenture under
the TIA.

 

An amendment under this Section 8.01 may not
make any change that adversely affects the rights under Article 13 of the
Indenture or Article 5 of the First Supplemental Indenture of any holder of
Senior Indebtedness of the Company or a Subsidiary Guarantor then outstanding
unless the holders of such Senior Indebtedness (or any group or Representative
thereof authorized to give a consent) consent to such change.

 

After an amendment under this Section 8.01
becomes effective, the Company shall mail to Holders a notice briefly
describing such amendment. The failure to give such notice to all Holders, or
any defect therein, shall not impair or affect the validity of an amendment
under this Section 8.01

 

SECTION 8.02.                 Amendment with Consent of
Holders.  The Indenture
and the Notes may be amended with the written consent of the Holders of a
majority in principal amount of the Notes then Outstanding and any past default
or compliance with any provisions of the Indenture may be waived with the
consent of the Holders of a majority in principal amount of the Notes then
Outstanding (including consents obtained in connection with a tender offer or
exchange for the Notes). However, without the consent of each Holder affected,
an amendment may not:

 

(a)                                  reduce the amount of Notes whose Holders must
consent to an amendment,

 

(b)                 reduce the rate of or extend the time for payment of interest on any
Note,

 

(c)                  reduce the principal of or extend the Stated Maturity of any Note,

 

(d)                 reduce the premium payable upon the redemption of any Note or change the
time at which any Note may be redeemed as described under Section 5 of the form
of reverse of Note described in Section 2.02(b) of the First Supplemental
Indenture,

 

(e)                  make any Note payable in money other than that stated in the Note,

 

56

 

(f)                    make any change to Article 13 of the Indenture or
Article 5 of the First Supplemental Indenture that adversely affects the rights
of any Holder,

 

(g)                 impair the right of any Holder to receive payment of principal of, and
interest on, such Holder’s Notes on or after the due dates therefor or
institute suit for the enforcement of any payment on or with respect to such
Holder’s Notes,

 

(h)                 make any change in this Article 8 which requires each Holder’s consent or
in the waiver provisions or

 

(i)                     modify any Subsidiary Guarantee in any manner
materially adverse to the Holders.

 

It shall not be necessary for the consent of
the Holders under this Section 8.02 to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent approves the
substance thereof.

 

An amendment under this Section 8.02 may not
make any change that adversely affects the rights under Article 13 of the
Indenture or Article 5 of the First Supplemental Indenture of any holder of
Senior Indebtedness then outstanding unless the holders of such Senior
Indebtedness (or any group or Representative thereof authorized to give a
consent) consent to such change.

 

After an amendment under this Section 8.02
becomes effective, the Company shall mail to Holders a notice briefly
describing such amendment. The failure to give such notice to all Holders, or
any defect therein, shall not impair or affect the validity of an amendment
under this Section 8.02.

 

SECTION 8.03.                 Compliance With Trust Indenture
Act. Every amendment to this
Indenture or the Notes shall comply with the TIA as then in effect.

 

SECTION 8.04.                 Revocation and Effect of Consents
and Waivers.

 

(a)  A
consent to an amendment or a waiver by a Holder of a Note shall bind the Holder
and every subsequent Holder of that Note or portion of the Note that evidences
the same debt as the consenting Holder’s Note, even if notation of the consent
or waiver is not made on the Note. However, any such Holder or subsequent
Holder may revoke the consent or waiver as to such Holder’s Note or portion of
the Note if the Trustee receives the notice of revocation before the date on
which the Trustee receives an Officers’ Certificate from the Company certifying
that the requisite number of consents have been received. After an amendment or
waiver becomes effective, it shall bind every Holder. An amendment or waiver
becomes effective upon the (i) receipt by the Company or the Trustee of the
requisite number of consents, (ii) satisfaction of conditions to effectiveness
as set forth in this Indenture and any indenture supplemental hereto containing
such amendment or waiver and (iii) execution of such amendment or waiver (or
supplemental indenture) by the Company and the Trustee.

 

57

 

(b)                                 The Company may, but shall not be obligated to, fix
a record date for the purpose of determining the Holders entitled to give their
consent or take any other action described above or required or permitted to be
taken pursuant to this Indenture. If a record date is fixed, then notwithstanding
Section 8.04(a), those Persons who were Holders at such record date (or their
duly designated proxies), and only those Persons, shall be entitled to give
such consent or to revoke any consent previously given or to take any such
action, whether or not such Persons continue to be Holders after such record
date.

 

SECTION 8.05.                 Notation on or Exchange of Notes. If an amendment changes the terms of a Note, the
Trustee may require the Holder of the Note to deliver it to the Trustee. The
Trustee may place an appropriate notation on the Note regarding the changed
terms and return it to the Holder. Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Note shall issue and the Trustee
shall authenticate a new Note that reflects the changed terms. Failure to make
the appropriate notation or to issue a new Note shall not affect the validity
of such amendment.

 

SECTION 8.06.                 Trustee to Sign Amendments. The Trustee shall sign any amendment authorized
pursuant to this Article 8 if the amendment does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. If, in the reasonable
judgment of the Trustee, it does, the Trustee may but need not sign it. In
signing such amendment the Trustee shall be entitled to receive indemnity
reasonably satisfactory to it and to receive, and (subject to Section 6.01)
shall be fully protected in relying upon, an Officers’ Certificate and an
Opinion of Counsel stating that such amendment is authorized or permitted by this
Indenture and that such amendment is the valid and binding obligation of the
Company and the Subsidiary Guarantors enforceable against them in accordance
with its terms, subject to customary exceptions, and complies with the
provisions hereof.

 

SECTION 8.07.                 Payment for Consent. Neither the Company nor any Affiliate of the
Company shall, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Indenture or the Notes unless such consideration is offered
to be paid to all Holders that so consent, waive or agree to amend in the time
frame set forth in solicitation documents relating to such consent, waiver or
agreement.”

 

Section 3.06.                             Amendment
and Restatement of Article 9 of the Base Indenture. Article 9 of
the Base Indenture is hereby amended and restated in its entirety, subject to
Section 3.01 hereof and, with respect to the Notes only, to read as follows:

 

58

 

ARTICLE 9

MERGER AND CONSOLIDATION

 

“SECTION 9.01.       Company May Consolidate, etc. on Certain Terms.  The Company will not consolidate with
or merge with or into, or convey, transfer or lease all or substantially all
its assets to, any Person, unless:

 

(a)                                  the resulting, surviving or transferee Person (the
“Successor Company”) will be a
corporation, limited partnership or limited liability company organized and
existing under the laws of the United States of America, any State thereof or
the District of Columbia and the Successor Company (if not the Company) will
expressly assume, by a supplemental indenture, executed and delivered to the
Trustee, in form reasonably satisfactory to the Trustee, all the obligations of
the Company under the Notes and the Indenture; provided that in the case
where the Surviving Company is not a corporation, a co-obligor on the Notes is
a corporation;

 

(b)                                 immediately after giving effect to such transaction
(and treating any Indebtedness which becomes an obligation of the Successor
Company or any Restricted Subsidiary as a result of such transaction as having
been Incurred by the Successor Company or such Restricted Subsidiary at the
time of such transaction), no Default shall have occurred and be continuing;

 

(c)                                  immediately after giving effect to such
transaction, the Successor Company would have a Consolidated Coverage Ratio
equal to or greater than the Consolidated Coverage Ratio of the Company
immediately prior to such transaction or would be able to Incur an additional
$1.00 of Indebtedness under Section 3.06(a).

 

(d)                                 the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with the Indenture.

 

The Successor Company will succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture, and the predecessor Company (except in the case of a lease of
all or substantially all its assets) will be released from the obligation to
pay the principal of and interest on the Notes.

 

SECTION 9.02.             Subsidiary Guarantors May
Consolidate, etc. on Certain Terms. The Company will not permit any Subsidiary Guarantor to consolidate with
or merge with or into, or convey, transfer or lease all or substantially all of
its assets to any Person unless:

 

(a)                                  immediately after giving effect to such transaction
(and, in the case of clause (b)(i) below, treating any Indebtedness which
becomes an obligation of the Successor Guarantor or any Restricted Subsidiary
as a result of such transaction as having been Incurred by the Successor
Guarantor or such Restricted

 

59

 

Subsidiary at the time of such
transaction), no Default shall have occurred and be continuing;

 

(b)                                 either:

 

(i)                                     the resulting, surviving or transferee Person (the
“Successor Guarantor”) will be a
corporation limited partnership or limited liability company organized and
existing under the laws of the United States of America, any State thereof or
the District of Columbia, and such Person (if not such Subsidiary Guarantor)
will expressly assume, by a supplemental indenture, executed and delivered to
the Trustee, in form reasonably satisfactory to the Trustee, all the
obligations of such Subsidiary Guarantor under its Subsidiary Guarantee; or

 

(ii)                                  such consolidation, merger, conveyance or transfer
complies with Section 3.09; and

 

(c)                                  the Company shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture (if any)
comply with the Indenture.

 

In the case of clause (b)(i) above, the
Successor Guarantor will succeed to, and be substituted for, and may exercise
every right and power of, such Subsidiary Guarantor under the Indenture, and
the predecessor Subsidiary Guarantor (except in the case of a lease of all or
substantially all its assets) will be released from the obligation to pay the
principal of and interest on the Notes.

 

SECTION 9.03.             Certain Exceptions. Notwithstanding Sections 9.01 and 9.02:

 

(a)                                  any Restricted Subsidiary may consolidate with,
merge into or transfer all or part of its properties and assets to the Company
or any Subsidiary Guarantor; and

 

(b)                                 the Company may merge with an Affiliate
incorporated solely for the purpose of reincorporating the Company in another
jurisdiction to realize tax or other benefits.”

 

Section 3.07.                             Amendment
of Article 10 of the Base Indenture.

 

(a)                                                                                  Section 10.01 of the Base Indenture is hereby
amended and restated in its entirety, subject to Section 3.01 hereof and, with
respect to the Notes only, to read as follows:

 

60

 

SECTION 10.01.           Satisfaction and Discharge of
Indenture; Defeasance.

 

(a)  When (i) all outstanding
Notes (other than Notes replaced or paid pursuant to Section 2.08) have
been canceled or delivered to the Trustee for cancellation or (ii) all
outstanding Notes have become due and payable, whether at maturity or as a
result of the mailing of a notice of redemption pursuant to Article 11
hereof or will become due and payable within one year, and the Company irrevocably
deposits with the Trustee funds in an amount sufficient or U.S. Government
Obligations, the principal of and interest on which will be sufficient, or a
combination thereof sufficient, in the written opinion of a nationally
recognized firm of independent public accountants delivered to the Trustee
(which opinion shall only be required to be delivered if U.S. Government
Obligations have been so deposited), to pay the principal of and interest, on
the outstanding Notes when due at maturity or upon redemption of, including
interest thereon to maturity or such redemption date (other than Notes replaced
or paid pursuant to Section 2.08), and if in either case the Company pays
all other sums payable hereunder by the Company, then this Indenture shall,
subject to Section 10.01(c), cease to be of further effect. The Trustee
shall acknowledge satisfaction and discharge of this Indenture on demand of the
Company accompanied by an Officers’ Certificate and an Opinion of Counsel and
at the cost and expense of the Company.

 

(b)                                 Subject to Sections 10.01(c) and 10.02, the
Company at any time may terminate (i) all of its obligations under the
Notes and this Indenture (“legal defeasance option”) or (ii) its
obligations under Sections 3.06, 3.07, 3.08, 3.09, 3.10, 3.11, 3.13, 3.14,
3.15, 3.16 and 4.03, the operation of Section 5.01(d), 5.01(f), 5.01(g)
(with respect to Significant Subsidiaries of the Company only), 5.01(h) (with
respect to Significant Subsidiaries of the Company only), 5.01(i) (with respect
to Restricted Subsidiaries of the Company only), 5.01(j), and 9.01(c) and (d)
(“covenant defeasance option”). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option. In
the event that the Company terminates all of its obligations under the Notes
and this Indenture by exercising its legal defeasance option, the obligations
under the Subsidiary Guarantees shall each be terminated simultaneously with
the termination of such obligations.

 

If the Company exercises its legal defeasance
option, payment of the Notes may not be accelerated because of an Event of
Default. If the Company exercises its covenant defeasance option, payment of
the Notes may not be accelerated because of an Event of Default specified in
Section 5.01(d), 5.01(f), 5.01(g) (with respect to Significant Subsidiaries of
the Company only), 5.01(h) (with respect to Significant Subsidiaries of the
Company only), 5.01(i) (with respect to Restricted Subsidiaries of the Company
only), 5.01(j) or because of the failure of the Company to comply with
Section 9.01(c) and (d).

 

Upon satisfaction of the conditions set forth
herein and upon request of the Company, the Trustee shall acknowledge in
writing the discharge of those obligations that the Company terminates.

 

61

 

(c)                                  Notwithstanding clauses (a) and (b) above, the
Company’s obligations in Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09,
2.10, 3.02 and 6.07 and in this Article 10 shall survive until the Notes
have been paid in full. Thereafter, the Company’s obligations in
Sections 6.07 and 10.05 and the Trustee’s obligations under
Section 10.04 shall survive.”

 

(b)                                                                                 Section 10.02 of the Base Indenture is hereby
amended, subject to Section 3.01 hereof and, with respect to the Notes only, to
add the following after clause (iii) thereof:

 

(iv)                              the deposit does not constitute a default under any
other agreement binding on the Company and is not prohibited by Article 13 of
the Indenture or Article 5 of the First Supplemental Indenture;

 

(v)                                 the Company delivers to the Trustee an Opinion of
Counsel to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940; and

 

(vi)                              the Company delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by
this Article 10 have been complied with.”

 

Section 3.08.                             Amendment
and Restatement of Article 13 of the Base Indenture. Article 13 of
the Base Indenture is hereby amended and restated in its entirety, subject to
Section 3.01 hereof and, with respect to the Notes only, to read as follows:

 

ARTICLE 13

SUBORDINATION

 

SECTION 13.01.           Agreement to Subordinate. The Company agrees, and each Holder by accepting
a Note agrees, that the Indebtedness evidenced by the Notes is subordinated in
right of payment, to the extent and in the manner provided in this Article 13,
to the prior payment in full of all Senior Indebtedness of the Company and that
the subordination is for the benefit of and enforceable by the holders of such
Senior Indebtedness. The Notes shall in all respects rank pari passu with all
other Senior Subordinated Indebtedness of the Company and only Indebtedness of
the Company that is Senior Indebtedness of the Company shall rank senior to the
Notes in accordance with the provisions set forth herein. All provisions of
this Article 13 shall be subject to Section 13.12.

 

SECTION 13.02.           Liquidation, Dissolution,
Bankruptcy. Upon any payment or
distribution of the assets of the Company to creditors upon a total or partial
liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:

 

(a)                                  holders of Senior Indebtedness of the Company will
be entitled to receive payment in full in cash of such Senior Indebtedness
before the Holders

 

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will be entitled to receive any
payment of principal of or interest on the Notes; and

 

(b)                                 until the Senior Indebtedness of the Company is
paid in full, any payment or distribution to which Holders would be entitled
but for this Article 13 shall be made to holders of such Senior Indebtedness as
their interests may appear, except that Holders may receive any debt securities
that are subordinated to such Senior Indebtedness to at least the same extent
as the Notes.

 

SECTION 13.03.           Default on Senior Indebtedness. The Company may not pay the principal of, premium
(if any) or interest on the Notes or make any deposit pursuant to Section 10.01
and may not otherwise purchase, repurchase, redeem or otherwise acquire or
retire for value any Notes (collectively, “pay
the Notes”) if (a) any Designated Senior Indebtedness of the Company
is not paid when due or (b) any other default on Designated Senior Indebtedness
of the Company occurs and the maturity of such Designated Senior Indebtedness
is accelerated in accordance with its terms unless, in either case, (i) the
default has been cured or waived and any such acceleration has been rescinded
or (ii) such Designated Senior Indebtedness has been paid in full; provided,
however, that the Company may pay the Notes without regard to the
foregoing if the Company and the Trustee receive written notice approving such
payment from the Representative of the Designated Senior Indebtedness with
respect to which either of the events set forth in clause (a) or (b) of this
sentence has occurred and is continuing. During the continuance of any default
(other than a default described in clause (a) or (b) of the preceding sentence)
with respect to any Designated Senior Indebtedness of the Company pursuant to
which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods, the Company may not pay the
Notes for a period (a “Payment Blockage
Period”) commencing upon the receipt by the Trustee (with a copy to
the Company) of written notice (a “Blockage
Notice”) of such default from the Representative of such Designated
Senior Indebtedness specifying an election to effect a Payment Blockage Period
and ending 179 days thereafter (or earlier if such Payment Blockage Period is
terminated (a) by written notice to the Trustee and the Company from the Person
or Persons who gave such Blockage Notice, (b) by repayment in full of such Designated
Senior Indebtedness or (c) because the default giving rise to such Blockage
Notice is no longer continuing). Notwithstanding the provisions described in
the immediately preceding sentence (but subject to the provisions contained in
the first sentence of this Section and the next sentence of this Section),
unless the holders of such Designated Senior Indebtedness or the Representative
of such holders shall have accelerated the maturity of such Designated Senior
Indebtedness, the Company may resume payments on the Notes after the end of
such Payment Blockage Period, including any missed payments. Not more than one
Blockage Notice may be given in any consecutive 360 day period, irrespective of
the number of defaults with respect to Designated Senior Indebtedness during
such period. However,, that if any Blockage Notice within such 360 day period
is given by or on behalf of any holders of Designated Senior Indebtedness other
than the Bank Indebtedness, the Representative of the Bank Indebtedness may
give another Blockage Notice within such period. In no event, however, may the
total number of days during which any Payment Blockage Period or

 

63

 

Periods is in effect exceed 179
days in the aggregate during any 360 consecutive day period. For purposes of
this Section, no default or event of default that existed or was continuing on
the date of the commencement of any Payment Blockage Period with respect to the
Designated Senior Indebtedness initiating such Payment Blockage Period shall
be, or be made, the basis of the commencement of a subsequent Payment Blockage
Period by the Representative of such Designated Senior Indebtedness, whether or
not within a period of 360 consecutive days, unless such default or event of
default shall have been cured or waived for a period of not less than 90
consecutive days.

 

SECTION 13.04.           Acceleration of Payment of Notes. If payment of the Notes is accelerated because of
an Event of Default, the Company or the Trustee (provided, that the
Trustee shall have received written notice from the Company, on which notice
the Trustee is entitled to conclusively rely) will promptly notify the holders
of the Designated Senior Indebtedness of the Company (or their Representative)
of the acceleration. If any Designated Senior Indebtedness of the Company is
outstanding, the Company may not pay the Notes until five Business Days after
such holders or the Representative of such Designated Senior Indebtedness
receive notice of such acceleration and, thereafter, may pay the Notes only if
this Article 13 otherwise permits payment at that time.

 

SECTION 13.05.           When Distribution Must Be Paid
Over. If a distribution is made to
Holders that because of this Article 13 should not have been made to them, the
Holders who receive the distribution shall hold it in trust for holders of
Senior Indebtedness of the Company and pay it over to them as their interests
may appear.

 

SECTION 13.06.           Subrogation. After all Senior Indebtedness of the Company is
paid in full and until the Notes are paid in full, Holders shall be subrogated
to the rights of holders of such Senior Indebtedness to receive distributions
applicable to Senior Indebtedness. A distribution made under this Article 13 to
holders of such Senior Indebtedness which otherwise would have been made to
Holders is not, as between the Company and Holders, a payment by the Company on
such Senior Indebtedness.

 

SECTION 13.07.           Relative Rights. This Article 13 defines the relative rights of
Holders and holders of Senior Indebtedness of the Company. Nothing in this
Indenture shall:

 

(a)                                  impair, as between the Company and Holders, the
obligation of the Company, which is absolute and unconditional, to pay
principal of and interest on the Notes in accordance with their terms; or

 

(b)                                 prevent the Trustee or any Holder from exercising
its available remedies upon a Default, subject to the rights of holders of
Senior Indebtedness of the Company to receive distributions otherwise payable
to Holders.

 

SECTION 13.08.           Subordination May Not Be Impaired
by Company. No right of any holder
of Senior Indebtedness of the Company to enforce the

 

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subordination of the Indebtedness
evidenced by the Notes shall be impaired by any act or failure to act by the
Company or by its failure to comply with this Indenture.

 

SECTION 13.09.           Rights of Trustee and Paying
Agent. Notwithstanding Section
13.03, the Trustee or Paying Agent may continue to make payments on the Notes
and shall not be charged with knowledge of the existence of facts that would
prohibit the making of any such payments unless, not less than two Business
Days prior to the date of such payment, a Trust Officer of the Trustee receives
notice satisfactory to it that payments may not be made under this Article 13. The
Company, the Registrar, the Paying Agent, a Representative or a holder of
Senior Indebtedness of the Company may give the notice; provided, however,
that, if an issue of Senior Indebtedness of the Company has a Representative,
only the Representative may give the notice.

 

The Trustee in its individual or
any other capacity may hold Senior Indebtedness of the Company with the same
rights it would have if it were not Trustee. The Registrar and the Paying Agent
may do the same with like rights. The Trustee shall be entitled to all the
rights set forth in this Article 13 with respect to any Senior Indebtedness of
the Company which may at any time be held by it, to the same extent as any
other holder of such Senior Indebtedness; and nothing in Article 6 shall deprive the Trustee of any of its
rights as such holder. Nothing in this Article 13 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 6.07 or any other Section
of this Indenture.

 

SECTION 13.10.           Distribution or Notice to
Representative. Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness
of the Company, the distribution may be made and the notice given to their
Representative (if any).

 

SECTION 13.11.           Article 13 Not to Prevent Events
of Default or Limit Right to Accelerate. The failure to make a payment pursuant to the Notes by reason of any
provision in this Article 13 shall not be construed as preventing the
occurrence of a Default. Nothing in this Article 13 shall have any effect on
the right of the Holders or the Trustee to accelerate the maturity of the
Notes.

 

SECTION 13.12.           Trust Monies Not Subordinated. Notwithstanding anything contained herein to the
contrary, payments from money or the proceeds of U.S. Government Obligations
held in trust under Article 10 by the Trustee for the payment of principal of
and interest on the Notes shall not be subordinated to the prior payment of any
Senior Indebtedness of the Company or subject to the restrictions set forth in
this Article 13, and none of the Holders shall be obligated to pay over any
such amount to the Company or any holder of Senior Indebtedness of the Company
or any other creditor of the Company.

 

SECTION 13.13.           Trustee Entitled to Rely. Upon any payment or distribution pursuant to this
Article 13, the Trustee and the Holders shall be entitled to conclusively rely
(a) upon any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 13.02 are pending, (b) upon a

 

65

 

certificate of the liquidating
trustee or agent or other Person making such payment or distribution to the
Trustee or to the Holders or (c) upon the Representatives for the holders of
Senior Indebtedness of the Company for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of such
Senior Indebtedness and other Indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article 13. In the event that the
Trustee determines, in good faith, that evidence is required with respect to
the right of any Person as a holder of Senior Indebtedness of the Company to
participate in any payment or distribution pursuant to this Article 13, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and other facts pertinent to the rights of such
Person under this Article 13, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment. The provisions of Sections
6.01 and 6.02 shall be applicable to all actions or omissions of actions by the
Trustee pursuant to this Article 13.

 

SECTION 13.14.           Trustee to Effectuate
Subordination. Each Holder by
accepting a Note authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to acknowledge or effectuate the
subordination between the Holders and the holders of Senior Indebtedness of the
Company as provided in this Article 13 and appoints the Trustee as
attorney-in-fact for any and all such purposes.

 

SECTION 13.15.           Trustee Not Fiduciary for Holders
of Senior Indebtedness. The
Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness of the Company and shall not be liable to any such holders if it
shall mistakenly pay over or distribute to Holders or the Company or any other
Person, money or assets to which any holders of Senior Indebtedness of the
Company shall be entitled by virtue of this Article 13 or otherwise.

 

SECTION 13.16.           Reliance by Holders of Senior
Indebtedness on Subordination Provisions. Each Holder by accepting a Note acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement
and a consideration to each holder of any Senior Indebtedness of the Company,
whether such Senior Indebtedness was created or acquired before or after the
issuance of the Notes, to acquire and continue to hold, or to continue to hold,
such Senior Indebtedness and such holder of such Senior Indebtedness shall be
deemed conclusively to have relied on such subordination provisions in
acquiring and continuing to hold, or in continuing to hold, such Senior
Indebtedness.”

 

Section 3.09.                             Amendment
of Article 14 of the Base Indenture. Article 14 of the Base Indenture
is hereby amended by amending and restating Sections 14.01, 14.04 and 14.06,
and by adding the following Sections 14.13, 14.14, and 14.15, each subject to
Section 3.01 hereof and, with respect to the Notes only, as follows:

 

66

 

SECTION 14.01. Incorporators,
Shareholders, Officers and Directors of Company Exempt from Individual
Liability.  No director, officer, employee, incorporator,
stockholder, member, manager or partner of the Company or any Subsidiary
Guarantor, as such, will have any liability for any obligations of the Company
or the Subsidiary Guarantors under the Notes, the Indenture, the Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Notes by accepting a note waives
and releases all such liability. The waiver and release are part of the
consideration.

 

SECTION 14.04. Notices. Any notice or communication shall be in writing and
delivered in person or mailed by first-class mail or facsimile with receipt
confirmed addressed as follows:

 

if to the Company:

 

Alliant Techsystems Inc.

5050 Lincoln Drive

Edina, MN 55436

Facsimile: 
(952) 351-3027

Attention of: 
Keith D. Ross

 

if to the Trustee:

 

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

2 North LaSalle Street, Suite 1020

Chicago, IL 60602

Facsimile: (312) 827-8542

Attention: Corporate Trust Department

 

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

 

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

 

Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders. If a notice
or communication is mailed in the manner provided above, it is duly given,
whether or not the addressee receives it.

 

SECTION 14.06. Payments Due on Legal Holidays.  Unless
otherwise specified in a Note, if the date of maturity of interest on or
principal or premium, if any, of the Notes or the date fixed for redemption,
repurchase or repayment of any Note shall be a Legal Holiday, payment of
interest or principal or premium, if any, need not be made on such date, but
may be made on the next succeeding Business Day with the same force and effect
as if made on the date of maturity or the date fixed for redemption, and no
interest shall accrue for the period after such date. If a regular record date
is a Legal Holiday, the record date shall not be affected.

 

67

 

SECTION 14.13. Communication by
Holders With Other Holders. Holders may communicate pursuant to
Section 312(b) of the TIA with other Holders with respect to their rights under
this Indenture or the Securities. The Company, the Trustee, the Registrar and
anyone else shall have the protection of Section 312(c) of the TIA.

 

SECTION 14.14. When Securities
Disregarded. In determining whether the Holders of the required
principal amount of Securities have concurred in any direction, waiver or
consent, Securities owned by the Company, any Subsidiary Guarantor or by any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any Subsidiary Guarantor shall be
disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which a Trust Officer actually
knows are so owned shall be so disregarded. Subject to the foregoing, only
Securities outstanding at the time shall be considered in any such
determination.

 

SECTION 14.15. Rules by Trustee,
Paying Agent and Registrar. The Trustee may make reasonable rules
for action by or a meeting of Holders. The Registrar and the Paying Agent may make
reasonable rules for their functions.”

 

ARTICLE 4

SUBSIDIARY GUARANTEES

 

Section 4.01.                             Subsidiary
Guarantees. (a)  Each Subsidiary Guarantor hereby jointly
and severally irrevocably and unconditionally guarantees, as a primary obligor
and not merely as a surety, to each Holder and to the Trustee and its
successors and assigns (i) the full and punctual payment when due, whether
at Stated Maturity, by acceleration, by redemption or otherwise, of all
obligations of the Company under this Indenture (including obligations to the
Trustee) and the Notes, whether for payment of principal of or interest on the
Notes and all other monetary obligations of the Company under this Indenture
and the Notes and (ii) the full and punctual performance within applicable
grace periods of all other obligations of the Company whether for fees,
expenses, indemnification or otherwise under this Indenture and the Notes (all
the foregoing being hereinafter collectively called the “Guaranteed
Obligations”). Each Subsidiary Guarantor further agrees that the
Guaranteed Obligations may be extended or renewed, in whole or in part, without
notice or further assent from each such Subsidiary Guarantor, and that each
such Subsidiary Guarantor shall remain bound under this Article 4
notwithstanding any extension or renewal of any Guaranteed Obligation.

 

(b)                                 Each Subsidiary Guarantor waives presentation to,
demand of payment from and protest to the Company of any of the Guaranteed
Obligations and also waives notice of protest for nonpayment. Each Subsidiary
Guarantor waives notice of any Default under the Notes or the Guaranteed
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be
affected by (i) the failure of any Holder or the Trustee to assert any
claim or demand or to enforce any right or remedy against the Company or any
other Person under this Indenture, the Notes or any other agreement or
otherwise; (ii) any extension or renewal of any thereof; (iii) any
rescission, waiver, amendment or modification of any of the terms or provisions
of this Indenture, the Notes or any other agreement; (iv) the release of any
security held by any Holder

 

68

 

or the Trustee for the
Guaranteed Obligations or any of them; (v) the failure of any Holder or
Trustee to exercise any right or remedy against any other guarantor of the
Guaranteed Obligations; or (vi) any change in the ownership of such Subsidiary
Guarantor, except as provided in Section 4.02(b) of the First Supplemental
Indenture.

 

(c)                                  Each Subsidiary Guarantor hereby waives any right
to which it may be entitled to have its obligations hereunder divided among the
Subsidiary Guarantors, such that such Subsidiary Guarantor’s obligations would
be less than the full amount claimed. Each Subsidiary Guarantor hereby waives
any right to which it may be entitled to have the assets of the Company first
be used and depleted as payment of the Company’s or such Subsidiary Guarantor’s
obligations hereunder prior to any amounts being claimed from or paid by such
Subsidiary Guarantor hereunder. Each Subsidiary Guarantor hereby waives any
right to which it may be entitled to require that the Company be sued prior to
an action being initiated against such Subsidiary Guarantor.

 

(d)                                 Each Subsidiary Guarantor further agrees that its
Subsidiary Guarantee herein constitutes a guarantee of payment, performance and
compliance when due (and not a guarantee of collection) and waives any right to
require that any resort be had by any Holder or the Trustee to any security
held for payment of the Guaranteed Obligations.

 

(e)                                  The Subsidiary Guarantee of each Subsidiary
Guarantor is, to the extent and in the manner set forth in Article 5 of
the First Supplemental Indenture, subordinated and subject in right of payment
to the prior payment in full of the principal of and premium, if any, and
interest on all Senior Indebtedness of the relevant Subsidiary Guarantor and is
made subject to such provisions of this Indenture.

 

(f)                                    Except as expressly set forth in
Section 10.01(b) of the Indenture and Sections 4.02 and 4.06 of the First Supplemental Indenture, the
obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense of setoff, counterclaim, recoupment or termination
whatsoever or by reason of the invalidity, illegality or unenforceability of
the Guaranteed Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Subsidiary Guarantor herein shall not be
discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under this
Indenture, the Notes or any other agreement, by any waiver or modification of
any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of any Subsidiary Guarantor or would otherwise operate as
a discharge of any Subsidiary Guarantor as a matter of law or equity.

 

(g)                                 Except as otherwise provided herein, each
Subsidiary Guarantor agrees that its Subsidiary Guarantee shall remain in full
force and effect until payment in full of all the Guaranteed Obligations. Each
Subsidiary Guarantor further agrees that its Subsidiary Guarantee herein shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal of or interest on any Guaranteed Obligation
is rescinded or must

 

69

 

otherwise be restored by any
Holder or the Trustee upon the bankruptcy or reorganization of the Company or
otherwise.

 

(h)                                 In furtherance of the foregoing and not in
limitation of any other right which any Holder or the Trustee has at law or in
equity against any Subsidiary Guarantor by virtue hereof, upon the failure of
the Company to pay the principal of or interest on any Guaranteed Obligation
when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Guaranteed
Obligation, each Subsidiary Guarantor hereby promises to and shall, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid,
in cash, to the Holders or the Trustee an amount equal to the sum of
(i) the unpaid principal amount of such Guaranteed Obligations,
(ii) accrued and unpaid interest on such Guaranteed Obligations (but only
to the extent not prohibited by law) and (iii) all other monetary
obligations of the Company to the Holders and the Trustee.

 

(i)                                     Each Subsidiary Guarantor agrees that it shall not
be entitled to any right of subrogation in relation to the Holders in respect
of any Guaranteed Obligations guaranteed hereby until payment in full of all
Guaranteed Obligations and all obligations to which the Guaranteed Obligations
are subordinated as provided in Article 5 of the First Supplemental
Indenture. Each Subsidiary Guarantor further agrees that, as between it, on the
one hand, and the Holders and the Trustee, on the other hand, (i) the
maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as
provided in Article 5 of the Indenture for the purposes of any Subsidiary
Guarantee herein, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the Guaranteed Obligations
guaranteed hereby, and (ii) in the event of any declaration of
acceleration of such Guaranteed Obligations as provided in Article 5 of
the Indenture, such Guaranteed Obligations (whether or not due and payable)
shall forthwith become due and payable by such Subsidiary Guarantor for the
purposes of this Section 4.01.

 

(j)                                     Each Subsidiary Guarantor also agrees to pay any
and all costs and expenses (including reasonable attorney’s fees and expenses)
incurred by the Trustee or any Holder in enforcing any rights under this
Section 4.01.

 

(k)                                  Upon request of the Trustee, each Subsidiary
Guarantor shall execute and deliver such further instruments and do such
further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

 

Section 4.02.                             Limitation
on Liability. (a)  Any term or provision of this Indenture to
the contrary notwithstanding, the maximum aggregate amount of the Guaranteed
Obligations guaranteed hereunder by any Subsidiary Guarantor shall not exceed
the maximum amount that can be hereby guaranteed without rendering this
Indenture, as it relates to such Subsidiary Guarantor, voidable under
applicable law relating to fraudulent conveyance or fraudulent transfer or
similar laws affecting the rights of creditors generally.

 

(b)                                 A Subsidiary Guarantee as to any Subsidiary
Guarantor shall terminate and be of no further force or effect and such
Subsidiary Guarantor shall be deemed to be released from all obligations under
this Article 4 upon (i) the sale by the Company or a Restricted

 

70

 

Subsidiary of the Capital Stock
of such Subsidiary Guarantor in compliance with Section 3.09 of the
Indenture, if as a result of such sale, such Subsidiary Guarantor ceases to be
a Restricted Subsidiary, (ii) the designation of any Subsidiary Guarantor to be
an Unrestricted Subsidiary in compliance with the definition of “Unrestricted
Subsidiary”, (iii) legal defeasance or covenant defeasance or satisfaction and
discharge of the Notes in compliance with the provisions of Article 10 of the
Indenture, or (iv) the release of such Subsidiary Guarantor from its guarantee
of all Indebtedness of the Company and all Domestic Subsidiaries.

 

(c)                                  At the request of the Company, the Trustee shall
execute and deliver an appropriate instrument, in the form provided by the
Company, evidencing the release of any Subsidiary Guarantor pursuant to Section
4.02(b) of the First Supplemental Indenture.

 

Section 4.03.                             Successors
and Assigns. Subject to Article 9, this Article 4 shall be
binding upon each Subsidiary Guarantor and its successors and assigns and shall
inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges conferred upon that party in this
Indenture and in the Notes shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions of this
Indenture.

 

Section 4.04.                             No
Waiver. Neither a failure nor a delay on the part of either the
Trustee or the Holders in exercising any right, power or privilege under this
Article 4 shall operate as a waiver thereof, nor shall a single or partial
exercise thereof preclude any other or further exercise of any right, power or
privilege. The rights, remedies and benefits of the Trustee and the Holders
herein expressly specified are cumulative and not exclusive of any other
rights, remedies or benefits which either may have under this Article 4 at
law, in equity, by statute or otherwise.

 

Section 4.05.                             Modification.
No modification, amendment or waiver of any provision of this
Article 4, nor the consent to any departure by any Subsidiary Guarantor
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Trustee, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. No notice to
or demand on any Subsidiary Guarantor in any case shall entitle such Subsidiary
Guarantor to any other or further notice or demand in the same, similar or
other circumstances.

 

Section 4.06.                             Execution of Supplemental Indenture for Future
Subsidiary Guarantors. Each Subsidiary which is required
to become a Subsidiary Guarantor pursuant to Section 3.13, shall promptly
execute and deliver to the Trustee a supplemental indenture in the form of
Appendix A hereto pursuant to which such Subsidiary shall become a Subsidiary
Guarantor under this Article 4 and shall guarantee the Guaranteed
Obligations. Concurrently with the execution and delivery of such supplemental
indenture, the Company shall deliver to the Trustee an Opinion of Counsel and
an Officers’ Certificate to the effect that such supplemental indenture has
been duly authorized, executed and delivered by such Subsidiary and that,
subject to the application of bankruptcy, insolvency, moratorium, fraudulent
conveyance or transfer and other similar laws relating to creditors’ rights
generally and to the principles of equity, whether considered in a proceeding
at law or in equity, the Subsidiary Guarantee of such Subsidiary Guarantor is a
valid and binding obligation of such Subsidiary Guarantor, enforceable against

 

71

 

such Subsidiary Guarantor in
accordance with its terms and as to such other matters as the Trustee may
reasonably request.

 

Section 4.07.                             Non-Impairment.
The failure to endorse a Subsidiary Guarantee on any Note shall not affect
or impair the validity thereof.

 

ARTICLE 5

SUBORDINATION OF THE SUBSIDIARY GUARANTEES

 

Section 5.01.                             Agreement
to Subordinate. Each Subsidiary Guarantor agrees, and each Holder by
accepting a Note agrees, that the obligations of a Subsidiary Guarantor
hereunder are subordinated in right of payment, to the extent and in the manner
provided in this Article 5, to the prior payment in full of all Senior Indebtedness
of such Subsidiary Guarantor and that the subordination is for the benefit of
and enforceable by the holders of such Senior Indebtedness of such Subsidiary
Guarantor. The obligations hereunder with respect to a Subsidiary Guarantor
shall in all respects rank pari passu with all other Senior Subordinated
Indebtedness of such Subsidiary Guarantor and shall rank senior to all existing
and future Subordinated Obligations of such Subsidiary Guarantor; and only
Indebtedness of such Subsidiary Guarantor that is Senior Indebtedness of such
Subsidiary Guarantor shall rank senior to the obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee in accordance with the provisions set
forth herein.

 

Section 5.02.                             Liquidation,
Dissolution, Bankruptcy. Upon any payment or distribution
of the assets of a Subsidiary Guarantor to creditors upon a total or partial
liquidation or a total or partial dissolution of such Subsidiary Guarantor or
in a bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to such Subsidiary Guarantor or its property:

 

(a)                                  holders of Senior Indebtedness of such Subsidiary
Guarantor shall be entitled to receive payment in full in cash of such Senior
Indebtedness before Holders shall be entitled to receive any payment pursuant
to any Guaranteed Obligations from such Subsidiary Guarantor; and

 

(b)                                 until the Senior Indebtedness of such Subsidiary
Guarantor is paid in full, any payment or distribution to which Holders would
be entitled but for this Article 5 shall be made to holders of such Senior
Indebtedness as their respective interests may appear, except that Holders may
receive any debt securities that are subordinated to such Senior Indebtedness
to at least the same extent as the Subsidiary Guarantees.

 

Section 5.03.                             Default
on Designated Senior Indebtedness of a Subsidiary Guarantor. A Subsidiary
Guarantor may not make any payment pursuant to any of the Guaranteed
Obligations or purchase, repurchase, redeem or otherwise acquire or retire for
value any Securities (collectively, “pay its Guarantee”) if
(a) any Designated Senior Indebtedness of such Subsidiary Guarantor is not
paid when due or (b) any other default on Designated Senior Indebtedness
of such Subsidiary Guarantor occurs and the maturity of such Designated Senior
Indebtedness is accelerated in accordance with its terms unless, in either
case, (i) the default has been cured or waived and any such acceleration
has been rescinded or (ii) such Designated Senior Indebtedness has been
paid in full; provided, however, that such Subsidiary Guarantor

 

72

 

may pay its Guarantee without
regard to the foregoing if such Subsidiary Guarantor and the Trustee receive
written notice approving such payment from the Representative of the holders of
the Designated Senior Indebtedness with respect to which either of the events
in clause (a) or (b) of this sentence has occurred and is continuing. During
the continuance of any default (other than a default described in clause (a)
or (b) of the preceding sentence) with respect to any Designated Senior
Indebtedness of a Subsidiary Guarantor pursuant to which the maturity thereof
may be accelerated immediately without further notice (except such notice as
may be required to effect such acceleration) or the expiration of any
applicable grace periods, such Subsidiary Guarantor may not pay its Guarantee
for a period (a “Guarantee Payment Blockage
Period”) commencing upon the receipt by the Trustee (with a copy to
such Subsidiary Guarantor and the Company) of written notice (a “Guarantee Blockage Notice”) of such default
from the Representative of the holders of the Designated Senior Indebtedness of
such Subsidiary Guarantor specifying an election to effect a Guarantee Payment
Blockage Period and ending 179 days thereafter (or earlier if such Guarantee
Payment Blockage Period is terminated (a) by written notice to the Trustee
(with a copy to such Subsidiary Guarantor and the Company) from the Person or
Persons who gave such Guarantee Blockage Notice, (b) because such
Designated Senior Indebtedness has been repaid in full or (c) because the
default giving rise to such Guarantee Blockage Notice is no longer continuing).
Notwithstanding the provisions described in the immediately preceding sentence
(but subject to the provisions contained in the first sentence of this
Section 5.03 and the next sentence of this Section 5.03), unless the
holders of such Designated Senior Indebtedness or the Representative of such
holders shall have accelerated the maturity of such Designated Senior
Indebtedness, such Subsidiary Guarantor may resume to paying its Subsidiary
Guarantee after such Guarantee Payment Blockage Period, including any missed
payments. Not more than one Guarantee Blockage Notice may be given with respect
to a Subsidiary Guarantor in any consecutive 360-day period, irrespective of
the number of defaults with respect to Designated Senior Indebtedness of such
Subsidiary Guarantor during such period; provided, however, that if any
Guarantee Blockage Notice within such 360-day period is given by or on behalf
of any holders of Designated Senior Indebtedness of such Subsidiary Guarantor
other than the Bank Indebtedness, the Representative of the Bank Indebtedness
may give another Guarantee Blockage Notice within such period; provided
further, however, that in no event may the total number of days during which
any Guarantee Payment Blockage Period or Periods is in effect exceed 179 days
in the aggregate during any 360 consecutive day period. For purposes of this
Section 5.03, no default or event of default that existed or was
continuing on the date of the commencement of any Guarantee Payment Blockage
Period with respect to the Designated Senior Indebtedness initiating such
Guarantee Payment Blockage Period shall be, or be made, the basis of the
commencement of a subsequent Guarantee Payment Blockage Period by the
Representative of such Designated Senior Indebtedness, whether or not within a
period of 360 consecutive days, unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

 

Section 5.04.                             Demand
for Payment. If payment of the Notes is accelerated because of an
Event of Default and a demand for payment is made on a Subsidiary Guarantor
pursuant to Article 4, the Trustee (provided that the Trustee shall have
received written notice from the Company or such Subsidiary Guarantor, on which
notice the Trustee shall be entitled to conclusively rely) shall promptly
notify the holders of the Designated Senior Indebtedness of such Subsidiary
Guarantor (or the Representative of such holders) of such demand. If any
Designated Senior Indebtedness of such Subsidiary Guarantor is outstanding,
such Subsidiary

 

73

 

Guarantor may not pay its
Guarantee until five Business Days after such holders or the Representative of
the holders of the Designated Senior Indebtedness of such Subsidiary Guarantor
receive notice of such demand and, thereafter, may pay its Guarantee only if
this Article 5 otherwise permits payment at that time.

 

Section 5.05.                             When
Distribution Must Be Paid Over. If a payment or distribution is
made to Holders that because of this Article 5 should not have been made
to them, the Holders who receive the payment or distribution shall hold such
payment or distribution in trust for holders of the Senior Indebtedness of the
relevant Subsidiary Guarantor and pay it over to them as their respective
interests may appear.

 

Section 5.06.                             Subrogation.
After all Senior Indebtedness of a Subsidiary Guarantor is paid in full
and until the Notes are paid in full in cash, Holders shall be subrogated to
the rights of holders of Senior Indebtedness of such Subsidiary Guarantor to
receive distributions applicable to Senior Indebtedness of such Subsidiary
Guarantor. A distribution made under this Article 5 to holders of Senior
Indebtedness of such Subsidiary Guarantor which otherwise would have been made
to Holders is not, as between such Subsidiary Guarantor and Holders, a payment
by such Subsidiary Guarantor on Senior Indebtedness of such Subsidiary
Guarantor.

 

Section 5.07.                             Relative
Rights. This Article 5 defines the relative rights of
Holders and holders of Senior Indebtedness of a Subsidiary Guarantor. Nothing in
this Indenture shall:

 

(a)                                  impair, as between a Subsidiary Guarantor and
Holders, the obligation of a Subsidiary Guarantor which is absolute and
unconditional, to make payments with respect to the Guaranteed Obligations to
the extent set forth in Article 4 of the First Supplemental Indenture; or

 

(b)                                 prevent the Trustee or any Holder from exercising
its available remedies upon a Default by a Subsidiary Guarantor under its
obligations with respect to the Guaranteed Obligations, subject to the rights
of holders of Senior Indebtedness of such Subsidiary Guarantor to receive
distributions otherwise payable to Holders.

 

Section 5.08.                             Subordination
May Not Be Impaired by a Subsidiary Guarantor. No right of any
holder of Senior Indebtedness of a Subsidiary Guarantor to enforce the
subordination of the obligations of such Subsidiary Guarantor hereunder shall
be impaired by any act or failure to act by such Subsidiary Guarantor or by its
failure to comply with this Indenture.

 

Section 5.09.                             Rights
of Trustee and Paying Agent. Notwithstanding Section 5.03
of the First Supplemental Indenture, the Trustee or the Paying Agent may
continue to make payments on the Notes and shall not be charged with knowledge
of the existence of facts that would prohibit the making of any such payments
unless, not less than two Business Days prior to the date of such payment, a
Trust Officer of the Trustee receives notice satisfactory to it that payments
may not be made under this Article 5. A Subsidiary Guarantor, the
Registrar, the Paying Agent, a Representative or a holder of Senior Indebtedness
of a Subsidiary Guarantor

 

74

 

may give the notice; provided,
however, that if an issue of Senior Indebtedness of a Subsidiary Guarantor has
a Representative, only the Representative may give the notice.

 

The Trustee in its individual or any other
capacity may hold Senior Indebtedness of a Subsidiary Guarantor with the same
rights it would have if it were not Trustee. The Registrar and the Paying Agent
may do the same with like rights. The Trustee shall be entitled to all the
rights set forth in this Article 5 with respect to any Senior Indebtedness
of a Subsidiary Guarantor which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness of such Subsidiary Guarantor;
and nothing in Article 6 of the Indenture shall deprive the Trustee of any
of its rights as such holder. Nothing in this Article 5 shall apply to
claims of, or payments to, the Trustee under or pursuant to Section 6.07
of this Indenture or any other Section of this Indenture.

 

Section 5.10.                             Distribution
or Notice to Representative. Whenever a distribution is to be
made or a notice given to holders of Senior Indebtedness of a Subsidiary
Guarantor, the distribution may be made and the notice given to their
Representative (if any).

 

Section 5.11.                             Article
5 Not to Prevent Events of Default or Limit Right to Accelerate. The failure of
a Subsidiary Guarantor to make a payment on any of its obligations by reason of
any provision in this Article 5 shall not be construed as preventing the
occurrence of a default by such Subsidiary Guarantor under such obligations. Nothing
in this Article 5 shall have any effect on the right of the Holders or the
Trustee to make a demand for payment on a Subsidiary Guarantor pursuant to
Article 5 of the First Supplemental Indenture.

 

Section 5.12.                             Trustee
Entitled to Rely. Upon any payment or distribution pursuant to this Article 5, the
Trustee and the Holders shall be entitled to conclusively rely (a) upon
any order or decree of a court of competent jurisdiction in which any
proceedings of the nature referred to in Section 5.02 of the First
Supplemental Indenture are pending, (b) upon a certificate of the
liquidating trustee or agent or other Person making such payment or
distribution to the Trustee or to the Holders or (c) upon the
Representatives for the holders of Senior Indebtedness of a Subsidiary
Guarantor for the purpose of ascertaining the Persons entitled to participate in
such payment or distribution, the holders of the Senior Indebtedness of a
Subsidiary Guarantor and other Indebtedness of a Subsidiary Guarantor, the
amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 5. In the
event that the Trustee determines, in good faith, that evidence is required
with respect to the right of any Person as a holder of Senior Indebtedness of a
Subsidiary Guarantor to participate in any payment or distribution pursuant to
this Article 5, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness of such Subsidiary Guarantor held by such Person, the extent to
which such Person is entitled to participate in such payment or distribution
and other facts pertinent to the rights of such Person under this
Article 5, and, if such evidence is not furnished, the Trustee may defer
any payment to such Person pending judicial determination as to the right of
such Person to receive such payment. The provisions of Sections 6.01 and
6.02 of this Indenture shall be applicable to all actions or omissions of
actions by the Trustee pursuant to this Article 5.

 

75

 

Section 5.13.                             Trustee
to Effectuate Subordination. Each Holder by accepting a Note
authorizes and directs the Trustee on his or her behalf to take such action as
may be necessary or appropriate to acknowledge or effectuate the subordination
between the Holders and the holders of Senior Indebtedness of each of the
Subsidiary Guarantors as provided in this Article 5 and appoints the
Trustee as attorney-in-fact for any and all such purposes.

 

Section 5.14.                             Trustee
Not Fiduciary for Holders of Senior Indebtedness of a Subsidiary Guarantor. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness of a Subsidiary Guarantor and shall not be liable to any such
holders if it shall mistakenly pay over or distribute to Holders or the
relevant Subsidiary Guarantor or any other Person, money or assets to which any
holders of Senior Indebtedness of such Subsidiary Guarantor shall be entitled
by virtue of this Article 5 or otherwise.

 

Section 5.15.                             Reliance
by Holders of Senior Indebtedness of a Subsidiary Guarantor on Subordination
Provisions. Each Holder by accepting a Note acknowledges and agrees
that the foregoing subordination provisions are, and are intended to be, an
inducement and a consideration to each holder of any Senior Indebtedness of a
Subsidiary Guarantor, whether such Senior Indebtedness was created or acquired
before or after the issuance of the Notes, to acquire and continue to hold, or
to continue to hold, such Senior Indebtedness and such holder of Senior
Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness.

 

Section 5.16.                             Defeasance.
Notwithstanding anything contained herein to the contrary, payments from
money or the proceeds of U.S. Government Obligations held in trust under
Article 10 of the Indenture by the Trustee for the payment of principal of, and
interest on, the Notes shall not be subordinated to the prior payment of any
Senior Indebtedness of any Subsidiary Guarantor or subject to the restrictions
set forth in this Article 5, and none of the Holders shall be obligated to
pay over any such amount to a Subsidiary Guarantor or any holder of Senior
Indebtedness of Subsidiary Guarantor or any other creditor of a Subsidiary
Guarantor.

 

ARTICLE 6

MISCELLANEOUS PROVISIONS

 

Section 6.01.                             Governing
Law. THE FIRST SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

Section 6.02.                             Successors
and Assigns of Company Bound by Indenture. All the covenants, stipulations,
promises and agreements in the First Supplemental Indenture contained by or on
behalf of the Company shall bind its successors and assigns, whether so
expressed or not.

 

Section 6.03.                             Counterparts.
The First Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

 

76

 

Section 6.04.                             Conflict
of any Provision of Indenture with Trust Indenture Act. If any
provision of the First Supplemental Indenture limits, qualifies or conflicts
with another provision of the Indenture that is required to be included by the
TIA, as in force at the date the First Supplemental Indenture is executed, the
provision required by the TIA shall control.

 

Section 6.05.                             Consent
to Jurisdiction. Any legal suit, action or proceeding arising out of or
based upon the Indenture, the First Supplemental Indenture, the Notes or any
Subsidiary Guarantee or the transactions contemplated by any of the foregoing
may be instituted in the federal courts of the United States of America located
in the City of New York or the courts of the State of New York in each case
located in the Borough of Manhattan of the City of New York (collectively, the
“Specified Courts”), and each party irrevocably submits to the non-exclusive
jurisdiction of such courts in any such suit, action or proceeding. Service of
any process, summons, notice or document by mail (to the extent allowed under
any applicable statute or rule of court) to such party’s address set forth in
Section 14.04 shall be effective service of process for any suit, action or
other proceeding brought in any such court. The parties irrevocably and
unconditionally waive any objection to the laying of venue of any suit, action
or other proceeding in the Specified Courts and irrevocably and unconditionally
waive and agree not to plead or claim in any such court has been brought in an
inconvenient forum.

 

[the remainder of this page is intentionally left blank]

 

77

 

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

 

	
   

  	
  ALLIANT
  TECHSYSTEMS INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Keith D. Ross

  	
   

  
	
   

  	
   

  	
  Name:
  Keith D. Ross

  
	
   

  	
   

  	
  Title:
  Senior Vice President, General Counsel

  and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ATK COMMERCIAL AMMUNITION

  COMPANY INC.

  
	
   

  	
   

  	
  ATK COMMERCIAL AMMUNITION

  HOLDINGS COMPANY INC.

  
	
   

  	
   

  	
  ATK MISSILE SYSTEMS COMPANY LLC

  
	
   

  	
   

  	
  ATK ORDNANCE AND GROUND
  SYSTEMS

  LLC

  
	
   

  	
   

  	
  ATK SPACE SYSTEMS INC.

  
	
   

  	
   

  	
  ATK TACTICAL SYSTEMS COMPANY LLC

  
	
   

  	
   

  	
  ATK THIOKOL INC.

  
	
   

  	
   

  	
  ALLIANT AMMUNITION SYSTEMS

  COMPANY LLC

  
	
   

  	
   

  	
  ALLIANT AMMUNITION AND
  POWDER

  COMPANY LLC

  
	
   

  	
   

  	
  ALLIANT LAKE CITY SMALL
  CALIBER

  AMMUNITION COMPANY LLC

  
	
   

  	
   

  	
  ALLIANT SOUTHERN
  COMPOSITES

  COMPANY LLC

  
	
   

  	
   

  	
  AMMUNITION ACCESSORIES INC.

  
	
   

  	
   

  	
  COMPOSITE OPTICS, INCORPORATED

  
	
   

  	
   

  	
  FEDERAL CARTRIDGE COMPANY

  
	
   

  	
   

  	
  GASL, INC.

  
	
   

  	
   

  	
  MICRO CRAFT INC.

  
	
   

  	
   

  	
  MISSION RESEARCH CORPORATION

  
	
   

  	
   

  	
  NEW RIVER ENERGETICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Keith D. Ross

  	
   

  
	
   

  	
   

  	
  Name:
  Keith D. Ross

  
	
   

  	
   

  	
  Title:
  Vice President and Secretary

  
					

 

 

Signature
Page to First Supplemental Indenture

 

 

	
   

  	
  THE
  BANK OF NEW YORK TRUST

  COMPANY, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  D.G. Donovan

  	
   

  
	
   

  	
   

  	
  Name:
  D.G. Donovan

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

 

Signature Page to First
Supplemental Indenture

 

78

 

Schedule I

 

Subsidiary Guarantors

 

ATK COMMERCIAL AMMUNITION COMPANY INC.

ATK COMMERCIAL AMMUNITION HOLDINGS COMPANY INC.

ATK MISSILE SYSTEMS COMPANY LLC

ATK ORDNANCE AND GROUND SYSTEMS LLC

ATK SPACE SYSTEMS INC.

ATK TACTICAL SYSTEMS COMPANY LLC

ATK THIOKOL INC.

ALLIANT AMMUNITION SYSTEMS COMPANY LLC

ALLIANT AMMUNITION AND POWDER COMPANY LLC

ALLIANT LAKE CITY SMALL CALIBER AMMUNITION COMPANY
LLC

ALLIANT SOUTHERN COMPOSITES COMPANY LLC

AMMUNITION ACCESSORIES INC.

COMPOSITE OPTICS, INCORPORATED

FEDERAL CARTRIDGE COMPANY

GASL, INC.

MICRO CRAFT INC.

MISSION RESEARCH CORPORATION

NEW RIVER ENERGETICS, INC.

 

I-1

 

Appendix A

 

FORM OF SUPPLEMENTAL INDENTURE

 

[SECOND] SUPPLEMENTAL INDENTURE (this
“[Second] Supplemental Indenture”) dated as of
                ,
among [GUARANTOR] (the “New Guarantor”), a subsidiary of ALLIANT TECHSYSTEMS
INC. (or its successor), a [Delaware] corporation (the “Company”), [EXISTING
GUARANTORS] and THE BANK OF NEW YORK TRUST COMPANY, N.A., a United States
banking corporation, as trustee under the indenture referred to below (the
“Trustee”).

 

W I T N E S S E T H :

 

WHEREAS the Company has heretofore executed
and delivered to the Trustee an Indenture dated as of March 15, 2006 (the “Base
Indenture”), as amended and supplemented by the First Supplemental Indenture
thereto by and among the Company, the Trustee and [OLD GUARANTORS] (the
“Existing Guarantors”) dated as of March 15, 2006 (together with the Base
Indenture, the “First Supplemental Indenture”), providing for the issuance of an
aggregate principal amount of up to $400,000,000 of 63⁄4% Senior Subordinated
Notes due 2016 (the “Notes”);

 

WHEREAS Section 3.13 of the Indenture
provides that under certain circumstances the Company is required to cause the
New Guarantor to execute and deliver to the Trustee a supplemental indenture
pursuant to which the New Guarantor shall unconditionally guarantee all the
Company’s obligations under the Notes pursuant to a Subsidiary Guarantee on the
terms and conditions set forth herein; and

 

WHEREAS pursuant to Section 8.01(h) of
the Indenture, the Trustee, the Company and the Existing Guarantors are
authorized to execute and deliver this [Second] Supplemental Indenture;

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the New Guarantor, the Company, the Existing Guarantors
and the Trustee mutually covenant and agree for the equal and ratable benefit
of the holders of the Notes as follows:

 

1.                                       AGREEMENT TO GUARANTEE. The New Guarantor hereby
agrees, jointly and severally with all the Existing Guarantors, to
unconditionally guarantee the Company’s obligations under the Notes on the
terms and subject to the conditions set forth in Articles 4 and 5 of the
First Supplemental Indenture and to be bound by all other applicable provisions
of the Indenture and the Notes.

 

2.                                       RATIFICATION OF INDENTURE; SUPPLEMENTAL INDENTURES
PART OF INDENTURE. Except as expressly amended hereby, the Indenture is in all
respects ratified and confirmed and all the terms, conditions and provisions
thereof shall remain in full force and effect. This [Second] Supplemental
Indenture shall form a part of the Indenture for all

 

A-1

 

purposes, and every holder of
Notes heretofore or hereafter authenticated and delivered shall be bound
hereby.

 

3.                                       GOVERNING LAW. THIS [SECOND] SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF
LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.

 

4.                                       TRUSTEE MAKES NO REPRESENTATION. The Trustee makes
no representation as to the validity or sufficiency of this [Second]
Supplemental Indenture.

 

5.                                       COUNTERPARTS. The parties may sign any number of
copies of this [Second] Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement.

 

6.                                       EFFECT OF HEADINGS. The Section headings herein are
for convenience only and shall not effect the construction thereof.

 

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

 

	
   

  	
  [NEW GUARANTOR],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLIANT TECHSYSTEMS INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [EXISTING GUARANTORS],

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

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

  as Trustee,

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

A-2

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