Document:

Exhibit No. 10.96

 

Russ
Berrie and Company, Inc.

111 Bauer Drive, Oakland, NJ
07436

(201) 337-9000  (800) 631-8465

 

September 28,
2005

 

Mr. Arnold
S. Bloom

8 Suzanne
Lane

Chappaqua,
NY 10514

 

Dear Arnold:

 

This letter serves to
confirm the severance arrangement between Russ Berrie and Company, Inc.
(the “Company”) and you.  In recognition
and appreciation for your many years of service and contribution to the
Company, the severance package consists of the following:

 

1.               Title; Termination
of Employment; Final Paycheck.  Effective
September 26 through December 31, 2005, you shall hold the title of,
and serve as, a Company Vice President.  Your
employment with the Company will terminate effective December 31,
2005.  You will be paid your final
paycheck in the usual manner.  That final
paycheck will include your regular pay through December 31, 2005.

 

2.               Severance Payments.  The Company will pay you severance for a
period of 12 months pursuant to the Company’s Severance Policy for Domestic
Vice Presidents (and Above).  Severance
payments will begin with the first pay period of 2006.  Severance will be paid at your current salary
rate (base pay not including bonuses, commissions or the like.  The severance will be paid over the course of
the severance period in accordance with the Company’s normal pay schedule (not
in a lump sum).  Notwithstanding the
terms of the Company’s Severance Policy for Domestic Vice Presidents (and
Above), the severance pay will continue even if you secure other employment
during the severance payment
period (but subject to the terms of the Release Agreement hereinafter
described).  In order to receive the
severance payments under the Company’s Severance Policy for Domestic Vice
Presidents (and Above), you must sign and deliver to the Company its form of
Release Agreement (a copy of which is attached hereto).

 

1

 

3.               Other Payments.  In addition to the severance payments
described in paragraph 2 above, the Company will also pay to you additional
severance in the amount of Two Thousand Six Hundred Fifteen Dollars ($2,615.00)
per regular pay period for a period of 26 pay periods, beginning with the first
pay period in 2006.  In order to receive
these additional severance payments, you must sign and deliver to the Company
its form of Release Agreement (referenced in paragraph 2 above).

 

4.               Benefit
Continuation.  Pursuant to the
Company’s Severance Policy for Domestic Vice Presidents (and Above), you are
entitled to remain on the Company’s family medical and family dental insurance
plans for a period of 12 months after termination of employment.  This means that you will be covered under
these insurance coverages from January 1 through December 31,
2006.  The premiums for this coverage during
that 12 month period are paid entirely by the Company.  In other words, the Company will pay your
premiums for the medical and dental coverage in which you were enrolled on the
date of your termination of employment.  The benefit continuation will
continue even if you secure other employment during the period of benefit
continuation (but subject to the terms of the above-referenced Release
Agreement).  As a condition to receiving
the 12 months of benefit continuation coverage, you must sign and deliver to
the Company the Company’s form of Release Agreement (referenced in paragraph 2
above).

 

5.               Other Benefits.  Pursuant to the Company’s
Severance Policy for Domestic Vice Presidents (and Above), during the 12 month
severance period, you are entitled to remain on all of the Company’s other
insurance plans for which you were eligible on the date of termination of your
employment.

 

6.               COBRA.  After the expiration of the benefit
continuation coverage described in paragraph 4 above, you will be entitled to
continue your benefits, at your expense, pursuant to the provisions of COBRA.
You will receive more information (including the cost) about COBRA directly
from the Company’s COBRA administrator (PayFlex Systems USA, Inc).  This
right to continue your benefits under COBRA would currently allow you to
continue your benefits (at your expense) for a period of 18 months commencing January 1,
2007.

 

7.               2005 Vacation.  You will be paid for all 2005 accrued and
unused vacation time (including carry-over time).  Our records indicate that you currently have
17 accrued and unused vacation (and carry-over) days.  You will be paid for these days (less the
vacation days, if any, that you use between now and December 31,
2005).  This vacation pay will be
included in your final paycheck (described in paragraph 1 above).

 

8.               Automobile
Allowance.  Pursuant to
the Company’s Severance Policy for Domestic Vice Presidents (and Above), you
are entitled to payment of your automobile allowance for a period of 60 days
following termination of

 

2

 

employment. 
You will receive payment of that allowance for the first 60 days of
2006.

 

9.               401(k) Plan.  Enclosed please find a letter explaining the
various alternatives regarding the monies you have in your 401(k) account.

 

10.        Executive
Deferred Compensation Plan. 
Our records indicate that you have monies in the Executive Deferred
Compensation Plan.  Enclosed please find
an informational sheet relating to your options with respect to these monies.

 

11.        Company Property.  On or prior to your date of termination of
employment, you are required to return all Company property and documents.

 

12.        Unemployment Benefits.  You may be entitled to file for unemployment
compensation providing that you meet your State’s criteria.  The Company agrees not to contest your
application for unemployment benefits.

 

The
above-described severance arrangement supercedes all other severance,
termination and all other provisions contained in any Company policies
(including, without limitation, the Company’s Severance Policy for Domestic
Vice Presidents (and Above)) and in any agreements between the Company and you
(including, without limitation, the stock option agreements between the Company
and you and the Company’s Change-in-Control Agreement).

 

Arnold, I wish you
the best in your future endeavors.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Anthony Cappiello

  	
   

  
	
   

  	
  Anthony Cappiello

  
	
   

  	
  EVP and CAO

  

 

cc:  A.
Gatto

       E. Goldenberg

 

3Exhibit No. 10.97

 

Russ
Berrie and Company, Inc.

111 Bauer Drive, Oakland, NJ
07436

(201) 337-9000  (800) 631-8465

 

September 28, 2005

 

Mr. Arnold S. Bloom

8 Suzanne Lane

Chappaqua, NY  10514

 

Dear Arnold:

 

This is to confirm your engagement, on a
consultant basis, by Russ Berrie and Company, Inc. (“RUSS”) beginning on January 1,
2006.  You are being engaged as an independent
contractor (not as an employee of RUSS). 
In your consulting role, you shall report to me and to Marc Goldfarb, RUSS’
Vice President and General Counsel.  The
work that you undertake in your consulting capacity shall be at my or Marc’s
direction.

 

You will be
compensated for the above-listed services at the rate of $920 per day.  You will be reimbursed for any out-or-pocket
expenses incurred by you in performing the consulting services requested (other
than your travel to and from RUSS’ Oakland, NJ corporate headquarters.  You will not be required to work for a
portion of a day unless you otherwise agree. 
You must submit an invoice each month setting forth the dates on which
you worked together with a brief description of your work.  You will be paid on a monthly basis, upon
submission, and our review of, such invoice. 
Payment will be made to you within thirty (30) days of the submission of
your invoice.  You will be solely
responsible for the payment of taxes and any other obligations with respect to
your consulting services and the compensation received.

 

You are
engaged for a period of at least thirty-nine (39) consulting days over a nine (9) month
period commencing on January 1, 2006. 
You will be engaged at least one (1) day per week during the first 39
weeks of 2006.  Based on business
necessity, you may be requested to consult for additional days but the Company
shall not be required to engage your consulting services for more than one day
per week for each of the first 39 weeks of 2006.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  /s/ Anthony Cappiello

  	
   

  
	
   

  	
  Anthony Cappiello

  
	
   

  	
  EVP and CAO

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  
	
   

  	
   

  
	
  Arnold S. Bloom

  	
   

  
	
   

  	
   

  
	
  /s/ Arnold S. Bloom

  	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Date: 

  	
   September
  28, 2005EXHIBIT 4.1

 

 

 

 

AHERN
RENTALS, INC.

 

91⁄4% SENIOR SECURED NOTES DUE 2013

 

 

INDENTURE

 

Dated as of
August 18, 2005

 

 

WELLS FARGO BANK, N.A.

 

Trustee

 

 

 

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture Act Section

  	
   

  	
  Indenture Section

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
   

  	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
  (a)(5)

  	
   

  	
  7.10

  	
   

  
	
   

  	
  (b)

  	
   

  	
  7.10

  	
   

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
   

  	
  (b)

  	
   

  	
  7.11

  	
   

  
	
   

  	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
   

  	
  (b)

  	
   

  	
  13.03

  	
   

  
	
   

  	
  (c)

  	
   

  	
  13.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
   

  	
  (b)(2)

  	
   

  	
  7.07

  	
   

  
	
   

  	
  (c)

  	
   

  	
  7.06; 13.02

  	
   

  
	
   

  	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.03; 13.02

  	
   

  
	
   

  	
  (c)(1)

  	
   

  	
  13.04

  	
   

  
	
   

  	
  (c)(2)

  	
   

  	
  13.04

  	
   

  
	
   

  	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
  (e)

  	
   

  	
  13.05

  	
   

  
	
   

  	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
   

  	
  (b)

  	
   

  	
  7.05; 13.02

  	
   

  
	
   

  	
  (c)

  	
   

  	
  7.01

  	
   

  
	
   

  	
  (d)

  	
   

  	
  7.01

  	
   

  
	
   

  	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last
  sentence)

  	
   

  	
  2.09

  	
   

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
   

  	
  (b)

  	
   

  	
  6.07

  	
   

  
	
   

  	
  (c)

  	
   

  	
  2.12

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
   

  	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  13.01

  	
   

  

 

N.A. means not applicable.

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

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1.

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS AND INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
   

  
	
  Section 1.02

  	
  Other Definitions

  	
   

  
	
  Section 1.03

  	
  Incorporation by Reference of Trust
  Indenture Act

  	
   

  
	
  Section 1.04

  	
  Rules of Construction

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  
	
   

  	
   

  	
   

  
	
  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Form and Dating

  	
   

  
	
  Section 2.02

  	
  Execution and Authentication

  	
   

  
	
  Section 2.03

  	
  Registrar and Paying Agent

  	
   

  
	
  Section 2.04

  	
  Paying Agent to Hold Money in Trust

  	
   

  
	
  Section 2.05

  	
  Holder Lists

  	
   

  
	
  Section 2.06

  	
  Transfer and Exchange

  	
   

  
	
  Section 2.07

  	
  Replacement Notes

  	
   

  
	
  Section 2.08

  	
  Outstanding Notes

  	
   

  
	
  Section 2.09

  	
  Treasury Notes

  	
   

  
	
  Section 2.10

  	
  Temporary Notes

  	
   

  
	
  Section 2.11

  	
  Cancellation

  	
   

  
	
  Section 2.12

  	
  Defaulted Interest

  	
   

  
	
  Section 2.13

  	
  Issuance of Additional Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  
	
   

  	
   

  	
   

  
	
  REDEMPTION AND PREPAYMENT

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Notices to Trustee

  	
   

  
	
  Section 3.02

  	
  Selection of Notes to Be Redeemed

  	
   

  
	
  Section 3.03

  	
  Notice of Redemption

  	
   

  
	
  Section 3.04

  	
  Effect of Notice of Redemption

  	
   

  
	
  Section 3.05

  	
  Deposit of Redemption Price

  	
   

  
	
  Section 3.06

  	
  Notes Redeemed in Part

  	
   

  
	
  Section 3.07

  	
  Optional Redemption

  	
   

  
	
  Section 3.08

  	
  Mandatory Redemption

  	
   

  
	
  Section 3.09

  	
  Offer to Purchase by Application of Excess Proceeds

  	
   

  

 

i

 

	
  ARTICLE 4.

  
	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Payment of Notes

  	
   

  
	
  Section 4.02

  	
  Maintenance of Office or Agency

  	
   

  
	
  Section 4.03

  	
  Reports

  	
   

  
	
  Section 4.04

  	
  Compliance Certificate

  	
   

  
	
  Section 4.05

  	
  Taxes

  	
   

  
	
  Section 4.06

  	
  Stay, Extension and Usury Laws

  	
   

  
	
  Section 4.07

  	
  Restricted Payments

  	
   

  
	
  Section 4.08

  	
  Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
   

  
	
  Section 4.09

  	
  Incurrence of Indebtedness and Issuance of Preferred Stock

  	
   

  
	
  Section 4.10

  	
  Asset Sales

  	
   

  
	
  Section 4.11

  	
  Transactions with Affiliates

  	
   

  
	
  Section 4.12

  	
  Liens

  	
   

  
	
  Section 4.13

  	
  Corporate Existence

  	
   

  
	
  Section 4.14

  	
  Offer to Repurchase upon Change of Control

  	
   

  
	
  Section 4.15

  	
  Payments for Consent

  	
   

  
	
  Section 4.16

  	
  Limitation on Sale and Leaseback Transactions

  	
   

  
	
  Section 4.17

  	
  Business Activities

  	
   

  
	
  Section 4.18

  	
  Designation of Restricted and Unrestricted Subsidiaries

  	
   

  
	
  Section 4.19

  	
  Limitation on Issuances of Guarantees of Indebtedness

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  
	
   

  	
   

  	
   

  
	
  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Merger, Consolidation or Sale of Assets

  	
   

  
	
  Section 5.02

  	
  Successor Corporation Substituted

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  
	
   

  	
   

  	
   

  
	
  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Events of Default

  	
   

  
	
  Section 6.02

  	
  Acceleration

  	
   

  
	
  Section 6.03

  	
  Other Remedies

  	
   

  
	
  Section 6.04

  	
  Waiver of Past Defaults

  	
   

  
	
  Section 6.05

  	
  Control by Majority

  	
   

  
	
  Section 6.06

  	
  Limitation on Suits

  	
   

  
	
  Section 6.07

  	
  Rights of Holders of Notes to Receive Payment

  	
   

  
	
  Section 6.08

  	
  Collection Suit by Trustee

  	
   

  
	
  Section 6.09

  	
  Trustee May File Proofs of Claim

  	
   

  
	
  Section 6.10

  	
  Priorities

  	
   

  
	
  Section 6.11

  	
  Undertaking for Costs

  	
   

  

 

ii

 

	
  ARTICLE 7.

  
	
   

  	
   

  	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Duties of Trustee

  	
   

  
	
  Section 7.02

  	
  Rights of Trustee

  	
   

  
	
  Section 7.03

  	
  Individual Rights of Trustee

  	
   

  
	
  Section 7.04

  	
  Trustee’s Disclaimer

  	
   

  
	
  Section 7.05

  	
  Notice of Defaults

  	
   

  
	
  Section 7.06

  	
  Reports by Trustee to Holders of the Notes

  	
   

  
	
  Section 7.07

  	
  Compensation and Indemnity

  	
   

  
	
  Section 7.08

  	
  Replacement of Trustee

  	
   

  
	
  Section 7.09

  	
  Successor Trustee by Merger, etc.

  	
   

  
	
  Section 7.10

  	
  Eligibility; Disqualification

  	
   

  
	
  Section 7.11

  	
  Preferential Collection of Claims Against Ahern Rentals

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  
	
   

  	
   

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
   

  
	
  Section 8.02

  	
  Legal Defeasance and Discharge

  	
   

  
	
  Section 8.03

  	
  Covenant Defeasance

  	
   

  
	
  Section 8.04

  	
  Conditions to Legal or Covenant Defeasance

  	
   

  
	
  Section 8.05

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

  	
   

  
	
  Section 8.06

  	
  Repayment to Ahern Rentals

  	
   

  
	
  Section 8.07

  	
  Reinstatement

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  
	
   

  	
   

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Without Consent of Holders of Notes

  	
   

  
	
  Section 9.02

  	
  With Consent of Holders of Notes

  	
   

  
	
  Section 9.03

  	
  Compliance with Trust Indenture Act

  	
   

  
	
  Section 9.04

  	
  Revocation and Effect of Consents

  	
   

  
	
  Section 9.05

  	
  Notation on or Exchange of Notes

  	
   

  
	
  Section 9.06

  	
  Trustee to Sign Amendments, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  
	
   

  	
   

  	
   

  
	
  NOTE GUARANTEES

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Guarantee

  	
   

  
	
  Section 10.02

  	
  Limitation on Guarantor Liability

  	
   

  
	
  Section 10.03

  	
  Execution and Delivery of Note Guarantee

  	
   

  
	
  Section 10.04

  	
  Guarantors May Consolidate, etc., on Certain Terms

  	
   

  
	
  Section 10.05

  	
  Releases Following Sale of Assets

  	
   

  

 

iii

 

	
  ARTICLE 11.

  
	
   

  	
   

  	
   

  
	
  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Satisfaction and Discharge

  	
   

  
	
  Section 11.02

  	
  Application of Trust Money

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  
	
   

  	
   

  	
   

  
	
  COLLATERAL AND SECURITY

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Security Documents

  	
   

  
	
  Section 12.02

  	
  Equal and Ratable Sharing of Collateral by Holders of Parity Lien
  Debt

  	
   

  
	
  Section 12.03

  	
  Ranking of Parity Liens

  	
   

  
	
  Section 12.04

  	
  Recordings and Opinions

  	
   

  
	
  Section 12.05

  	
  Collateral Trustee

  	
   

  
	
  Section 12.06

  	
  Authorization of Action to Be Taken

  	
   

  
	
  Section 12.07

  	
  Release of Security Interests in Respect of Notes

  	
   

  
	
  Section 12.08

  	
  Enforcement of Security Interests

  	
   

  
	
  Section 12.09

  	
  Certificates of Ahern Rentals

  	
   

  
	
  Section 12.10

  	
  Amendment of Security Documents

  	
   

  
	
  Section 12.11

  	
  Compliance with Trust Indenture Act

  	
   

  
	
  Section 12.12

  	
  Further Assurances; Insurance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13.

  
	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Trust Indenture Act Controls

  	
   

  
	
  Section 13.02

  	
  Notices

  	
   

  
	
  Section 13.03

  	
  Communication by Holders of Notes with Other Holders of Notes

  	
   

  
	
  Section 13.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
   

  
	
  Section 13.05

  	
  Statements Required in Certificate or Opinion

  	
   

  
	
  Section 13.06

  	
  Rules by Trustee and Agents

  	
   

  
	
  Section 13.07

  	
  No Personal Liability of Directors, Officers, Employees and
  Stockholders

  	
   

  
	
  Section 13.08

  	
  Governing Law

  	
   

  
	
  Section 13.09

  	
  No Adverse Interpretation of Other Agreements

  	
   

  
	
  Section 13.10

  	
  Successors

  	
   

  
	
  Section 13.11

  	
  Severability

  	
   

  
	
  Section 13.12

  	
  Counterpart Originals

  	
   

  
	
  Section 13.13

  	
  Table of Contents, Headings, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit A-1

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit A-2

  	
  FORM OF REGULATION S NOTE

  	
   

  
	
  Exhibit B

  	
  FORM OF CERTIFICATE OF TRANSFER

  	
   

  
	
  Exhibit C

  	
  FORM OF CERTIFICATE OF EXCHANGE

  	
   

  
	
  Exhibit D

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

  	
   

  

 

iv

 

	
  Exhibit E

  	
  FORM OF NOTE GUARANTEE

  	
   

  
	
  Exhibit F

  	
  FORM OF SUPPLEMENTAL INDENTURE

  	
   

  

 

v

 

INDENTURE dated as of August 18, 2005
between Ahern Rentals, Inc., a Nevada corporation (“Ahern
Rentals”), and Wells Fargo Bank, N.A., as trustee (the “Trustee”).

 

Ahern Rentals and the Trustee agree as
follows for the benefit of each other and for the equal and ratable benefit of
the Holders (as defined) of the 91⁄4% Series A Senior Secured Notes due 2013 (the
“Series A Notes”) and the 91⁄4% Series B
Senior Secured Notes due 2013 (the “Series B Notes”
and, together with the Series A Notes, the “Notes”):

 

ARTICLE 1.

DEFINITIONS AND INCORPORATION BY
REFERENCE

 

Section 1.01                                Definitions.

 

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

 

“Acquired Debt” means, with respect to any specified Person:

 

(1)                                  Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Subsidiary of such specified Person, whether or not such Indebtedness
is incurred in connection with, or in contemplation of, such other Person
merging with or into, or becoming a Restricted Subsidiary of, such specified
Person; and

 

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

 

“Additional Interest” means all
liquidated damages then owing pursuant to the Registration Rights Agreement.

 

“Additional Notes” means
additional notes (other than the Initial Notes) issued from time to time under
this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the
same series as the Initial Notes.

 

“Affiliate” of any specified Person means
any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.  For purposes of this definition, “control,” as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; provided
that beneficial ownership of 10% or more of the Voting Stock of a Person will
be deemed to be control unless a majority of the disinterested members of the
Board of Directors of Ahern Rentals determines that (a) a third Person
(that is not otherwise an Affiliate of Ahern Rentals) is the beneficial owner
of a greater percentage of the Voting Stock of such Person than the percentage
of Voting Stock of such Person beneficially owned by the specified Person and
(b) the specified Person does not otherwise control such Person.  For purposes of this definition, the terms “controlling,” “controlled by”
and “under common control with” have correlative
meanings.

 

 

“Ahern Rentals” means the party named as
such in the preamble to this Indenture until a successor replaces it in
accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder.

 

“Amended and Restated Mortgage” means
each amended and restated mortgage, deed of trust or deed to secure debt made
by Ahern Rentals or any of its Restricted Subsidiaries in favor or for the
benefit of the Priority Lien Agent or Collateral Trustee, as applicable.

 

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

 

“Asset Sale” means:

 

(1)                                  the
sale, lease, conveyance or other disposition of any assets or rights; provided that the sale, lease, conveyance or other
disposition of all or substantially all of the assets of Ahern Rentals and its
Restricted Subsidiaries taken as a whole will be governed by Section 4.14
hereof and/or Section 5.01 hereof and not by Section 4.10 hereof; and

 

(2)                                  the
issuance of Equity Interests in any of Ahern Rentals’ Restricted Subsidiaries
or the sale of Equity Interests in any of its Subsidiaries.

 

Notwithstanding the preceding, none of the
following items will be deemed to be an Asset Sale:

 

(1)                                  any
single transaction or series of related transactions that involves assets
having a Fair Market Value of less than $1.0 million;

 

(2)                                  a
transfer of assets between or among Ahern Rentals and its Restricted Subsidiaries;

 

(3)                                  an
issuance of Equity Interests by a Restricted Subsidiary of Ahern Rentals to
Ahern Rentals or to a Restricted Subsidiary of Ahern Rentals;

 

(4)                                  the
sale or lease of products, inventory of parts, merchandise or goods (including
new equipment or used equipment acquired for resale) held for sale (excluding
Rental Equipment), services or accounts receivable in the ordinary course of
business and any sale, conveyance or other disposition of damaged, worn-out or
obsolete assets in the ordinary course of business;

 

(5)                                  the
sale or other disposition of cash or Cash Equivalents; and

 

(6)                                  a
Restricted Payment that does not violate Section 4.07 hereof or a Permitted Investment.

 

“Attributable Debt” in respect of a sale and leaseback transaction means,
at the time of determination, the present value of the obligation of the lessee
for net rental payments during the remaining term of the lease included in such
sale and leaseback transaction including any period for which such lease has
been extended or may, at the option of the lessor, be extended.  Such present value shall be calculated using
a discount rate equal to the rate of interest implicit in such transaction,
determined in accordance with GAAP; provided, however, that if such sale and leaseback transaction results
in a Capital Lease

 

2

 

Obligation, the amount of
Indebtedness represented thereby will be determined in accordance with the
definition of “Capital Lease Obligation.”

 

“Bankruptcy Code” means Title 11, U.S.
Code, and the rules and regulations promulgated thereunder.

 

“beneficial owner” has the meaning
assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act),
such “person” will be deemed to have beneficial ownership of all securities
that such “person” has the right to acquire by conversion or exercise of other
securities, whether such right is currently exercisable or is exercisable only
after the passage of time.  The terms “beneficially owns” and “beneficially owned”
have a corresponding meaning.

 

“Board of Directors” means:

 

(1)                                  with
respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

 

(2)                                  with
respect to a partnership, the board of directors of the general partner of the
partnership;

 

(3)                                  with
respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

 

(4)                                  with
respect to any other Person, the board or committee of such Person serving a
similar function.

 

“Business Day” means any day other than a
Saturday, a Sunday or a day on which banking institutions in the City of New
York, the location of the Corporate Trust Office of the Trustee or at a place
of payment are authorized by law, regulation or executive order to remain
closed.

 

“Capital Lease Obligation” means, at the
time any determination is to be made, the amount of the liability in respect of
a capital lease that would at that time be required to be capitalized on a
balance sheet prepared 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.

 

“Capital Stock” means:

 

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

 

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

 

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

 

(4)                                  any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

 

3

 

“Cash Equivalents” means:

 

(1)                                  United
States dollars;

 

(2)                                  securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States
is pledged in support of those securities) having maturities of not more than
six months from the date of acquisition;

 

(3)                                  certificates
of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding six months and overnight bank deposits, in each case, with any lender
party to the Credit Agreement or with any domestic commercial bank having
capital and surplus in excess of $500.0 million and a Thomson Bank Watch
Rating of “B” or better;

 

(4)                                  repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (2) and (3) above entered into with
any financial institution meeting the qualifications specified in
clause (3) above;

 

(5)                                  commercial
paper having one of the two highest ratings obtainable from Moody’s or S&P,
in each case, maturing within six months after the date of acquisition; and

 

(6)                                  money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (1) through (5) of this definition.

 

“Casualty Event” means any taking under
power of eminent domain or similar proceeding and any insured loss, in each
case relating to property or other assets that constituted Collateral.

 

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

 

(1)                                  the
direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of Ahern
Rentals and its Subsidiaries taken as a whole to any “person” (as that term is
used in Section 13(d) of the Exchange Act) other than a Principal or a
Related Party of a Principal;

 

(2)                                  the
adoption of a plan relating to the liquidation or dissolution of Ahern Rentals;

 

(3)                                  the
consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any “person” (as defined above),
other than the Principals and their Related Parties, becomes the beneficial
owner, directly or indirectly, of more than 50% of the Voting Stock of Ahern
Rentals, measured by voting power rather than number of shares;

 

(4)                                  Ahern
Rentals consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, Ahern Rentals, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of Ahern
Rentals or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting
Stock of Ahern Rentals outstanding immediately prior to such transaction is
converted into or exchanged for Voting Stock (other than Disqualified Stock) of
the surviving or

 

4

 

transferee
Person constituting a majority of the outstanding shares of such Voting Stock
of such surviving or transferee Person (immediately after giving effect to such
issuance); or

 

(5)                                  after
an initial public offering of the Capital Stock of Ahern Rentals or any direct
or indirect parent of Ahern Rentals, the first day on which a majority of the
members of the Board of Directors of Ahern Rentals are not Continuing
Directors.

 

“Class” means (1) in the case of
Parity Lien Debt, every Series of Parity Lien Debt, taken together, and
(2) in the case of Priority Lien Debt, every Series of Priority Lien Debt,
taken together.

 

“Clearstream” means Clearstream Banking,
S.A.

 

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

 

“Collateral” means all existing and
future assets (whether real, personal or mixed) of Ahern Rentals or any of the
other Pledgors that are from time to time made subject, or purported to be made
subject, to the Lien of the Security Documents, which shall not include, at any
time, any assets or property with respect to which a Lien has not been granted
in favor of the Priority Lien Collateral Agent for the benefit of the holders
of Priority Lien Obligations.

 

“Collateral Trustee” means Wells Fargo
Bank, N.A., in its capacity as Collateral Trustee under the Intercreditor
Agreement and the Security Documents, together with its successors in such capacity.

 

“Consolidated Cash Flow” means, with respect to any specified
Person for any period, the Consolidated Net Income of such Person for such
period plus, without duplication:

 

(1)                                  an
amount equal to any extraordinary loss plus any net loss realized by such
Person or any of its Restricted Subsidiaries in connection with an Asset Sale,
to the extent such losses were deducted in computing such Consolidated Net
Income; plus

 

(2)                                  provision
for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period (and to the extent not included in the foregoing,
Permitted Shareholder Tax Distributions), to the extent that such provision for
taxes or Permitted Shareholder Tax Distributions was deducted in computing such
Consolidated Net Income; plus

 

(3)                                  the
Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such
Consolidated Net Income; plus

 

(4)                                  depreciation,
amortization (including amortization of intangibles but excluding amortization
of prepaid cash expenses other than debt issuance costs to the extent they
relate to the issuance of any debt after the sale of the notes and the closing
of the Credit Agreement) and other noncash expenses (excluding any such noncash
expense to the extent that it represents an accrual of or reserve for cash
expenses in any future period or amortization of a prepaid cash expense other
than debt issuance costs to the extent they relate to the issuance of any debt
after the sale of the notes and the closing of the Credit Agreement) of such
Person and its Restricted Subsidiaries for such period to the extent that such
depreciation, amortization and other noncash expenses were deducted in computing
such Consolidated Net Income; minus

 

(5)                                  noncash
items increasing such Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business,

 

5

 

in each case,
on a consolidated basis and determined in accordance with GAAP.

 

Notwithstanding the preceding, the provision
for taxes based on the income or profits of, and the depreciation and amortization
and other noncash expenses of, a Restricted Subsidiary of Ahern Rentals will be
added to Consolidated Net Income to compute Consolidated Cash Flow of Ahern
Rentals only to the extent that a corresponding amount would be permitted at
the date of determination to be dividended to Ahern Rentals by such Restricted
Subsidiary without prior governmental approval (that has not been obtained),
and without direct or indirect restriction pursuant to the terms of its charter
and all agreements, instruments, judgments, decrees, orders, statutes, rules
and governmental regulations applicable to that Restricted Subsidiary or its
stockholders.

 

“Consolidated Net Income” means, with
respect to any Person, for any period, the aggregate of the Net Income of such
Person and its Restricted Subsidiaries for such period, on a consolidated
basis, determined in accordance with GAAP; provided, however, that:

 

(1)                                  the
Net Income of any Person, other than a Restricted Subsidiary of the referent
Person, will be included only to the extent of the amount of dividends or
distributions paid to the referent Person or a Restricted Subsidiary of such
referent Person;

 

(2)                                  the
Net Income (but not to the extent Net Income represents a loss) of any
Restricted Subsidiary of the Person in question that is subject to any
restriction or limitation on the payment of dividends or the making of other
distributions will be excluded to the extent of such restriction or limitation;

 

(3)                                  the
Net Income of any Person acquired in a pooling of interests transaction for any
period prior to the date of such acquisition will be excluded;

 

(4)                                  any
net gain (but not loss) resulting from an Asset Sale by the Person in question
or any of its Restricted Subsidiaries other than in the ordinary course of
business will be excluded;

 

(5)                                  extraordinary
gains and losses will be excluded;

 

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

 

(7)                                  in
the case of a successor to the referent Person by consolidation or merger or as
a transferee of the referent Person’s assets, any earnings of the successor
corporation prior to such consolidation, merger or transfer of assets will be excluded;

 

(8)                                  charges
with respect to Indebtedness retired with the proceeds of the Notes shall be
excluded;

 

(9)                                  charges
for amortization of goodwill in excess of amortization on a straight-line,
40 year basis shall be excluded; and

 

(10)                            all
gains, losses, charges or write-offs with respect to an election to be taxed as
an “S corporation” under Subchapter S of the Code shall be excluded.

 

6

 

“Continuing Directors” means, as of any
date of determination, any member of the Board of Directors of Ahern Rentals
who:

 

(1)                                  was
a member of such Board of Directors on the date of this Indenture; or

 

(2)                                  was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

 

“Corporate Trust Office of the Trustee”
means the principal office of the Trustee at which at any time its corporate
trust business shall be administered, which office at the date hereof is
located at Corporate Trust Services, Sixth & Marquette; N9303-120;
Minneapolis, MN 55479, Attention: 
Corporate Trust Administration: Ahern Rentals Notes, or such other
address as the Trustee may designate from time to time by notice to the Holders
and Ahern Rentals, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from
time to time by notice to the Holders and Ahern Rentals).

 

“Credit Agreement” means that certain
amended and restated loan and security agreement, to be dated as of the date of
this Indenture, by and among Ahern Rentals, the lenders party thereto, Bank of
America, N.A., as administrative agent, and Wachovia Bank, National
Association, as collateral agent and syndication agent, including any related
notes, guarantees, collateral documents, instruments and agreements executed in
connection therewith, and, in each case, as amended, restated, modified,
renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional investors)
in whole or in part from time to time.

 

“Credit Agreement Agent” means, at any
time, the Person serving at such time as the “Collateral Agent” under the
Credit Agreement or any other representative then most recently designated in
accordance with the applicable provisions of the Credit Agreement, together
with its successors in such capacity.

 

“Credit Facilities” means one or more
debt facilities (including, without limitation, the Credit Agreement) or
commercial paper facilities, in each case, with banks or other institutional
lenders 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)
or letters of credit, in each case, as amended, restated, modified, renewed, refunded,
replaced (whether upon or after termination or otherwise) or refinanced
(including by means of sales of debt securities to institutional investors) in
whole or in part from time to time.

 

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

 

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

 

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

 

“Depositary” means, with respect to the
Notes issuable or issued in whole or in part in global form, the Person
specified in Section 2.03 hereof as the Depositary with respect to the Notes,
and any and

 

7

 

all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

 

“Discharge of Priority Lien Obligations”
means the occurrence of all of the following:

 

(1)                                  termination
or expiration without replacement of all commitments to extend credit that
would constitute Priority Lien Debt;

 

(2)                                  payment
in full in cash of the principal of and interest and premium, if any, on all
Priority Lien Debt (other than any undrawn letters of credit);

 

(3)                                  discharge
or cash collateralization (at the lower of (a) 110% of the aggregate
undrawn amount and (b) the percentage of the aggregate undrawn amount required
for release of liens under the terms of the applicable Priority Lien Document)
of all outstanding letters of credit constituting Priority Lien Debt; and

 

(4)                                  payment
in full in cash of all other Priority Lien Obligations that are outstanding and
unpaid at the time the Priority Lien Debt is paid in full in cash (other than
any obligations for taxes, costs, indemnifications, reimbursements, damages and
other liabilities in respect of which no claim or demand for payment has been
made at such time).

 

Notwithstanding the foregoing, if any holder
of Priority Lien Debt or the Priority Lien Collateral Agent must return or disgorge
any payment or proceeds of Collateral, then Discharge of Priority Lien Obligations
is not deemed to have occurred.

 

“Disqualified Stock” means any Capital
Stock that, by its terms (or by the terms of any security into which it is
convertible, or for which it is exchangeable, in each case, at the option of
the holder of the Capital Stock), or upon the happening of any event, matures
or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise,
or redeemable at the option of the holder of the Capital Stock, in whole or in
part, on or prior to the date that is 91 days after the date on which the
notes mature.  Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders of the Capital Stock have the right to require Ahern
Rentals to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that Ahern Rentals may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 4.07. 
The amount of Disqualified Stock deemed to be outstanding at any time
for purposes of this Indenture will be the maximum amount that Ahern Rentals
and its Restricted Subsidiaries may become obligated to pay upon the maturity
of, or pursuant to any mandatory redemption provisions of, such Disqualified
Stock, exclusive of accrued dividends.

 

“Dividend Limitation”
means the product of the Maximum Tax Rate and Federal Taxable Income.

 

“equally and ratably” means, in reference
to sharing of Liens or proceeds thereof as between the holders of Secured Obligations
within the same Class, that such Liens or proceeds will be allocated and
distributed first to the Secured Debt Representative for each outstanding
Series of Secured Debt within that Class, for the account of the holders of
such Series of Secured Debt, ratably in proportion to the principal of, and
interest and premium (if any) and reimbursement obligations (contingent or
otherwise) with respect to letters of credit, if any, outstanding (whether or
not drawings have been made under such letters of credit) on each outstanding Series
of Secured Debt within that Class when the allocation or distribution is made.

 

8

 

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

 

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

 

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

 

“Exchange Notes” means the Notes issued
in the Exchange Offer pursuant to Section 2.06(f) hereof.

 

“Exchange Offer” has the meaning set
forth in the Registration Rights Agreement.

 

“Exchange Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

 

“Existing Indebtedness” means
Indebtedness of Ahern Rentals and its Subsidiaries (other than Indebtedness
under the Credit Agreement) in existence on the date of this Indenture, until
such amounts are repaid.

 

“Fair Market Value” means the value that
would be paid by a willing buyer to an unaffiliated willing seller in a
transaction not involving distress or necessity of either party, determined in
good faith by the Board of Directors of Ahern Rentals (unless otherwise
provided in this Indenture).

 

“Federal Taxable Income” means the
taxable income of Ahern Rentals for any taxable year computed pursuant to Section 1363(b)
(or any successor provision) of the Code or, if Ahern Rentals becomes a partnership
for U.S. federal income tax purposes, Section 703(a) (or any successor
provision) of the Code, but calculated as if the taxable year of Ahern Rentals
ended on the date with respect to which such taxable income calculation is
made, reduced, but not below zero, by the amount of any Suspended Losses which
are treated as incurred by Ahern Rentals in, and allowed as deductions on the
tax returns of Ahern Rentals’ stockholders (or partners) for, such taxable
year.

 

“Fixed Charge Coverage Ratio” means with
respect to any specified Person for any period, the ratio of the Consolidated
Cash Flow of such Person for such period to the Fixed Charges of such Person
for such period.  In the event that the
specified Person or any of its Restricted Subsidiaries incurs, assumes,
guarantees, repays, repurchases, redeems, defeases or otherwise discharges any
Indebtedness (other than ordinary working capital borrowings) or issues,
repurchases or redeems preferred stock subsequent to the commencement of the
period for which the Fixed Charge Coverage Ratio is being calculated and on or
prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the “Calculation Date”),
then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect
to such incurrence, assumption, guarantee, repayment, repurchase, redemption,
defeasance or other discharge of Indebtedness, or such issuance, repurchase or
redemption of preferred stock, and the use of the proceeds therefrom, as if the
same had occurred at the beginning of the applicable four-quarter reference
period.

 

In addition, for purposes of calculating the
Fixed Charge Coverage Ratio:

 

(1)                                  acquisitions
that have been made by the specified Person or any of its Restricted
Subsidiaries, including through mergers or consolidations, or any Person or any
of its Restricted Subsidiaries acquired by the specified Person or any of its
Restricted Subsidiaries, and including any related financing transactions and
including increases in ownership of Restricted Subsidiaries,

 

9

 

during the
four-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date will be given pro forma effect (in accordance
with Regulation S-X under the Securities Act) as if they had occurred on
the first day of the four-quarter reference period;

 

(2)                                  the
Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses (and ownership interests
therein) disposed of prior to the Calculation Date will be excluded;

 

(3)                                  the
Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the
extent that the obligations giving rise to such Fixed Charges will not be
obligations of the specified Person or any of its Restricted Subsidiaries
following the Calculation Date;

 

(4)                                  any
Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter
period;

 

(5)                                  any
Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such
four-quarter period; and

 

(6)                                  if
any Indebtedness bears a floating rate of interest, the interest expense on
such Indebtedness will be calculated as if the rate in effect on the Calculation
Date had been the applicable rate for the entire period (taking into account
any Hedging Obligation applicable to such Indebtedness if such Hedging
Obligation has a remaining term as at the Calculation Date in excess of
12 months).

 

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

 

(1)                                  the
consolidated interest expense of such Person and its Restricted Subsidiaries
for such period, whether paid or accrued, including, without limitation,
amortization of debt issuance costs (to the extent such costs relate to the issuance
of any debt after the sale of the Notes and the closing of the Credit
Agreement) and original issue discount, noncash interest payments, the interest
component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, imputed interest with
respect to Attributable Debt, commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers’ acceptance financings
(excluding any premium or penalty paid on or prior to the date of this
Indenture in connection with the redemption, repurchase or retirement of
Indebtedness of such Person prior to the stated maturity thereof pursuant to
the agreements governing such Indebtedness), and net of the effect of all
payments made or received pursuant to Hedging Obligations in respect of
interest rates; plus

 

(2)                                  the
consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period; plus

 

(3)                                  any
interest on Indebtedness of another Person that is guaranteed by such Person or
one of its Restricted Subsidiaries or secured by a Lien on assets of such
Person or one of its Restricted Subsidiaries, whether or not such guarantee or
Lien is called upon; plus

 

10

 

(4)                                  the
product of (a) all dividends, whether paid or accrued and whether or not
in cash, on any series of preferred stock of such Person or any of its Restricted
Subsidiaries, other than dividends on Equity Interests payable solely in Equity
Interests of Ahern Rentals (other than Disqualified Stock) or to Ahern Rentals
or a Restricted Subsidiary of Ahern Rentals, times
(b) a fraction, the numerator of which is one and the denominator of which
is one minus the then current combined federal, state and local statutory tax
rate of such Person, expressed as a decimal, in each case, determined on a
consolidated basis in accordance with GAAP.

 

“GAAP” means generally accepted
accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect on the date of this Indenture.

 

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

 

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

 

“Government Securities” means direct
non-callable obligations of, or guaranteed by, the United States of America for
the payment of which guarantee or obligations the full faith and credit of the
United States is pledged.

 

“guarantee” means a guarantee other than
by endorsement of negotiable instruments for collection in the ordinary course
of business, direct or indirect, in any manner including, without limitation,
by way of a pledge of assets or through letters of credit or reimbursement
agreements in respect thereof, of all or any part of any Indebtedness (whether
arising by virtue of partnership arrangements, or by agreements to keep-well,
to purchase assets, goods, securities or services, to take or pay or to
maintain financial statement conditions or otherwise).

 

“Guarantors” means each Subsidiary of
Ahern Rentals, if any, that executes a Note Guarantee in accordance with the
provisions of this Indenture and its respective successors and assigns.

 

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

 

(1)                                  interest
rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

 

(2)                                  other
agreements or arrangements designed to manage interest rates or interest rate
risk; and

 

(3)                                  other
agreements or arrangements designed to protect such Person against fluctuations
in currency exchange rates or commodity prices.

 

“Holder” means a Person in whose name a
Note is registered.

 

“IAI Global Note” means a Global Note substantially in the
form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered

 

11

 

in the name of the Depositary
or its nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes sold to Institutional Accredited Investors.

 

“Indebtedness” means, with respect to any
specified Person, any indebtedness of such Person (excluding accrued expenses
and trade payables), whether or not contingent:

 

(1)                                  in
respect of borrowed money;

 

(2)                                  evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or
reimbursement agreements in respect thereof);

 

(3)                                  in
respect of bankers’ acceptances;

 

(4)                                  representing
Capital Lease Obligations or Attributable Debt in respect of sale and leaseback
transactions;

 

(5)                                  representing
the balance deferred and unpaid of the purchase price of any property or
services due more than six months (or, in the case of rental equipment acquired
for use in a Permitted Business, more than one year) after such property is
acquired or such services are completed; or

 

(6)                                  representing
any Hedging Obligations,

 

if and to the
extent any of the preceding items (other than letters of credit, Attributable
Debt and Hedging Obligations) would appear as a liability upon a balance sheet
of the specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person)
and, to the extent not otherwise included, the guarantee by the specified
Person of any Indebtedness of any other Person.

 

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

 

“Initial Notes” means the first
$200,000,000 aggregate principal amount of Notes issued under this Indenture on
the date hereof.

 

“Initial Purchasers” means CIBC World
Markets Corp. and Banc of America Securities LLC.

 

“insolvency or liquidation proceeding”
means:

 

(1)                                  any
case commenced by or against Ahern Rentals or any other Pledgor under Title 11,
U.S. Code or any similar federal or state law for the relief of debtors, any
other proceeding for the reorganization, recapitalization or adjustment or
marshalling of the assets or liabilities of Ahern Rentals or any other Pledgor,
any receivership or assignment for the benefit of creditors relating to Ahern
Rentals or any other Pledgor or any similar case or proceeding relative to
Ahern Rentals or any other Pledgor or its creditors, as such, in each case
whether or not voluntary;

 

(2)                                  any
liquidation, dissolution, marshalling of assets or liabilities or other winding
up of or relating to Ahern Rentals or any other Pledgor, in each case whether
or not voluntary and whether or not involving bankruptcy or insolvency; or

 

12

 

(3)                                  any
other proceeding of any type or nature in which substantially all claims of
creditors of Ahern Rentals or any other Pledgor are determined and any payment
or distribution is or may be made on account of such claims.

 

“Institutional Accredited Investor” means
an institution that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act that is not also a QIB.

 

“Intercreditor Agreement” means the
Intercreditor Agreement, dated as of the date of this Indenture, among Ahern
Rentals, the Collateral Trustee, the Priority Lien Collateral Agent and the
Control Agent (as defined under the Intercreditor Agreement), as amended, supplemented
or otherwise modified from time to time.

 

“Investments” means, with respect to any
Person, all direct or indirect investments by such Person in other Persons
(including Affiliates) in the forms of loans (including guarantees or other
obligations), advances or capital contributions (excluding commission, travel
and similar advances to officers and employees made in the ordinary course of
business), purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that are or would
be classified as investments on a balance sheet prepared in accordance with
GAAP.  If Ahern Rentals or any Subsidiary
of Ahern Rentals sells or otherwise disposes of any Equity Interests of any
direct or indirect Subsidiary of Ahern Rentals such that, after giving effect
to any such sale or disposition, such Person is no longer a Subsidiary of Ahern
Rentals, Ahern Rentals will be deemed to have made an Investment on the date of
any such sale or disposition equal to the Fair Market Value of Ahern Rentals’
Investments in such Subsidiary that were not sold or disposed of in an amount
determined as provided in the final paragraph of Section 4.07.  The acquisition by Ahern Rentals or any
Subsidiary of Ahern Rentals of a Person that holds an Investment in a third Person
will be deemed to be an Investment by Ahern Rentals or such Subsidiary in such
third Person in an amount equal to the Fair Market Value of the Investments
held by the acquired Person in such third Person in an amount determined as
provided in the final paragraph of Section 4.07.  Except as otherwise provided in this
Indenture, the amount of an Investment will be determined at the time the
Investment is made and without giving effect to subsequent changes in value.

 

“Letter of Transmittal” means the letter
of transmittal to be prepared by Ahern Rentals and sent to all Holders of the
Notes for use by such Holders in connection with the Exchange Offer.

 

“Lien” means, with respect to any asset,
any mortgage, lien, pledge, charge, security interest or encumbrance of any
kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title
retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction.

 

“Lien Priority Confirmation” means:

 

(1)                                  as
to any Series of Parity Lien Debt, the written agreement of the holders of such
Series of Parity Lien Debt, as set forth in this Indenture, credit agreement or
other agreement governing such Series of Parity Lien Debt, for the enforceable
benefit of all holders of each existing and future Series of Priority Lien
Debt, each existing and future Priority Lien Agent and each existing and future
holder of Permitted Prior Liens to be bound by Sections 12.02 and 12.03 herein
and the provisions of the Intercreditor Agreement; and

 

(2)                                  as
to any Series of Priority Lien Debt, the written agreement of the holders of
such Series of Priority Lien Debt, as set forth in the Credit Agreement or
other agreement governing

 

13

 

such Series of
Priority Lien Debt, for the enforceable benefit of all holders of each existing
and future Series of Parity Lien Debt, each existing and future Parity Lien
Representative and each existing and future holder of Permitted Prior Liens to
be bound by the provisions of the Intercreditor Agreement.

 

“Maximum Tax Rate” means, for a
particular taxable year, the sum of the highest marginal U.S. federal income
tax rate, the highest marginal U.S. state income tax rate and, where
applicable, the highest marginal local income tax rate, in each case applicable
to any shareholder (or partner, if Ahern Rentals becomes a partnership for U.S.
federal income tax purposes) of Ahern Rentals, or such higher rate as may be
determined by a Tax Accountant to take into account any additional pass-through
liability of any shareholder (or partner) as a result of application of alternative
minimum tax (“AMT”), calculated as though such
shareholder (or partner) has no items of income, gain, loss, deduction or
credit, other than items attributable to Ahern Rentals, has no available AMT
exemption amount, and is taxed at the highest marginal AMT rate.

 

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

 

“Mortgage” means a mortgage, deed of
trust or deed to secure debt made by Ahern Rentals or any of its Restricted
Subsidiaries in favor or for the benefit of the Priority Lien Agent or the
Collateral Trustee on behalf of the Holders of the Notes, as the case may be,
in form and substance required to grant a security interest in real property in
the state in which the property is located.

 

“Net Income” means, with respect to any
specified Person, the net income (loss) of such Person, determined in
accordance with GAAP and before any reduction in respect of preferred stock
dividends, excluding, however:

 

(1)                                  any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: 
(a) any Asset Sale; or (b) the disposition of any securities
by such Person or any of its Restricted Subsidiaries or the extinguishment of
any Indebtedness of such Person or any of its Restricted Subsidiaries; and

 

(2)                                  any
extraordinary gain (but not loss), together with any related provision for
taxes on such extraordinary gain (but not loss).

 

“Net Proceeds” means the aggregate cash
proceeds received by Ahern Rentals or any of its Restricted Subsidiaries in
respect of:

 

(1)                                  any
Asset Sale (including, without limitation, any cash received upon the sale or
other disposition of any noncash consideration received in any Asset Sale), net
of the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the Asset Sale, taxes paid or
payable as a result of the Asset Sale (and to the extent not included in the
foregoing, that portion of any Permitted Shareholder Tax Distributions
attributable thereto); and

 

(2)                                  any
Casualty Events,

 

in each case,
after taking into account any available tax credits or deductions and any tax
sharing arrangements, and amounts required to be applied to the repayment of
Indebtedness secured by a Lien on the asset or assets that were the subject of
such Asset Sale or Casualty Event, as the case may be, and any reserve for
adjustment in respect of the sale price of such asset or assets established in
accordance with GAAP.

 

14

 

“Non-Recourse Debt” means Indebtedness:

 

(1)                                  as
to which neither Ahern Rentals nor any of its Restricted Subsidiaries
(a) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (b) is
directly or indirectly liable as a guarantor or otherwise, or
(c) constitutes the lender;

 

(2)                                  no
default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted
Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness of Ahern Rentals or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or cause the payment of the Indebtedness
to be accelerated or payable prior to its Stated Maturity; and

 

(3)                                  as
to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of Ahern Rentals or any of its Restricted Subsidiaries.

 

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

 

“Note Documents” means each indenture,
the Notes and the Security Documents.

 

“Note Guarantee” means the guarantee by
each Guarantor of Ahern Rentals’ obligations under this Indenture and the
Notes, executed pursuant to the provisions of this Indenture.

 

“Notes” has the meaning assigned to it in
the preamble to this Indenture.  The Initial
Notes and the Additional Notes shall be treated as a single class for all
purposes under this Indenture, and unless the context otherwise requires, all
references to the Notes shall include the Initial Notes and any Additional
Notes.

 

“Obligations” means any principal
(including reimbursement obligations with respect to letters of credit whether
or not drawn), interest, premium (if any), fees, indemnifications,
reimbursements, expenses and other liabilities payable under the documentation
governing any Indebtedness (including, without limitation and in any event,
with respect to the Credit Agreement, any “Obligations” as defined in the
Credit Agreement as in effect on the date of this Indenture).

 

“Officer” means, with respect to any
Person, the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any
Assistant Treasurer, the Controller, the Secretary or any Vice-President of
such Person.

 

“Officers’ Certificate” means a
certificate signed on behalf of Ahern Rentals or a Guarantor, as applicable, by
two Officers of Ahern Rentals or such Guarantor, one of whom must be the
principal executive officer, the principal financial officer, the treasurer or
the principal accounting officer of Ahern Rentals or such Guarantor, that meets
the requirements of Section 13.05 hereof.

 

“Opinion of Counsel” means an opinion
from legal counsel who is reasonably acceptable to the Trustee that meets the requirements
of Section 13.05 hereof.  The counsel may
be an employee of or counsel to Ahern Rentals, any Subsidiary of Ahern Rentals
or the Trustee.

 

“Parity Lien” means a Lien granted by a
security document to the Collateral Trustee, at any time, upon any property of
Ahern Rentals or any other Pledgor to secure Parity Lien Obligations.

 

15

 

“Parity Lien Debt” means:

 

(1)                                  the
Notes issued on the date of this Indenture;

 

(2)                                  up
to $5.0 million in aggregate principal amount of Indebtedness (including
Additional Notes) at any time outstanding that is secured equally and ratably
with the Notes by a Parity Lien that was permitted to be incurred and so secured
under each applicable Secured Debt Document; provided
that Ahern Rentals incurs such Indebtedness pursuant to Section 4.09(a); and

 

(3)                                  any
other Indebtedness that would be permitted to be incurred pursuant to Section
4.09(a) to the extent that the Fixed Charge Coverage Ratio would have been at
least 3.00 to 1.00 at the time such Indebtedness is incurred, determined on a
pro forma basis (including pro forma application of the net proceeds
therefrom), as if the additional Indebtedness had been incurred at the beginning
of such four-quarter period;

 

provided
that, in the case of any Indebtedness referred to in clause (2) or
(3) of this definition:

 

(a)                                  on
or before the date on which such Indebtedness is incurred by Ahern Rentals or
the applicable Restricted Subsidiary, if any, such Indebtedness is designated
by Ahern Rentals, in an Officers’ Certificate delivered to each Parity Lien
Representative and the Collateral Trustee, as “Parity Lien Debt” for the
purposes of this Indenture and the Intercreditor Agreement;

 

(b)                                 such
Indebtedness is governed by an indenture, credit agreement or other agreement
that includes a Sharing Confirmation and a Lien Priority Confirmation; and

 

(c)                                  all
requirements set forth in the Security Documents as to the confirmation, grant
or perfection of the Collateral Trustee’s Liens to secure such Indebtedness or
Obligations in respect thereof are satisfied (and the satisfaction of such
requirements and the other provisions of this clause (c) will be
conclusively established if Ahern Rentals delivers to the Collateral Trustee an
Officers’ Certificate stating that such requirements and other provisions have
been satisfied and that such Indebtedness is “Parity Lien Debt”).

 

“Parity Lien Documents” means,
collectively, the Note Documents and the indenture, credit agreement or other
agreement governing each other Series of Parity Lien Debt and the Security Documents.

 

“Parity Lien Obligations” means Parity
Lien Debt and all other Obligations in respect thereof.

 

“Parity Lien Representative” means:

 

(1)                                  in
the case of the Notes, the Trustee; or

 

(2)                                  in
the case of any other Series of Parity Debt, the trustee, agent or
representative of the holders of such Series of Parity Lien Debt who maintains
the transfer register for such Series of Parity Lien Debt and (a) is
appointed as a Parity Lien Representative (for purposes related to the administration
of the Security Documents) pursuant to the indenture, credit agreement or other
agreement governing such Series of Parity Lien Debt, together with its
successors in such capacity, and (b) has become a party to the
Intercreditor Agreement by executing a joinder in the form required under the
Intercreditor Agreement.

 

16

 

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

 

“Permitted Business” means any business
conducted by Ahern Rentals on the date the Notes are originally issued under
this Indenture and any businesses that, in the good faith judgment of the Board
of Directors of Ahern Rentals, are reasonably related, ancillary or
complementary thereto, or reasonable extensions thereof.

 

“Permitted Dividend Amount” means, with
respect to any taxable period, the amount (determined by a Tax Accountant) by
which the Dividend Limitation for the taxable year exceeds the aggregate
Permitted Shareholder Tax Distributions previously paid, if any, by Ahern
Rentals to the shareholders of Ahern Rentals for such taxable year, including
distributions paid or loans made by Ahern Rentals with respect to such taxable
year not later than 105 days after the end of that taxable year; provided that:

 

(1)                                  if,
at the end of any taxable year of Ahern Rentals, the Dividend Limitation for
such year exceeds the aggregate Permitted Shareholder Tax Distributions paid by
Ahern Rentals for such year pursuant to Section 4.07, the Permitted Dividend
Amount for the following taxable year shall be increased effective the first
day of such year by the amount of such excess;

 

(2)                                  if,
at the end of any taxable year of Ahern Rentals, the aggregate Permitted
Shareholder Tax Distributions paid by Ahern Rentals for such year exceed the
Dividend Limitation for such year, the Permitted Dividend Amount for purposes
of calculating any further distributions for such taxable year shall be zero
and the amount of such excess shall be treated as having been paid by Ahern
Rentals on the first day of the following taxable year (and, if necessary,
succeeding taxable years); and

 

(3)                                  if
Ahern Rentals’ S Corporation election made pursuant to Code Section 1362
(or any successor provision) shall be determined to be invalid, or is revoked
or terminated, subject to the right of Ahern Rentals to seek relief pursuant to
Code Section 1362(f) or any similar provision), and if Ahern Rentals is
not treated as a partnership for U.S. federal income tax purposes, then the
Permitted Dividend Amount for Ahern Rentals shall be zero from and after the
date of such invalidity, revocation, termination or cessation.

 

“Permitted Investments” means:

 

(1)                                  any
Investment in Ahern Rentals or in a Restricted Subsidiary of Ahern Rentals;

 

(2)                                  any
Investment in Cash Equivalents;

 

(3)                                  any
Investment by Ahern Rentals or any Restricted Subsidiary of Ahern Rentals in a
Person, if as a result of such Investment:

 

(a)                                  such
Person becomes a Restricted Subsidiary of Ahern Rentals; or

 

(b)                                 such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, Ahern
Rentals or a Restricted Subsidiary of Ahern Rentals;

 

(4)                                  any
Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10;

 

17

 

(5)                                  any
acquisition of assets or Capital Stock solely in exchange for the issuance of
Equity Interests (other than Disqualified Stock) of Ahern Rentals;

 

(6)                                  any
Investments received in compromise or resolution of (A) obligations of
trade creditors or customers that were incurred in the ordinary course of
business of Ahern Rentals or any of its Restricted Subsidiaries, including pursuant
to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of any trade creditor or customer; or (B) litigation,
arbitration or other disputes with Persons who are not Affiliates;

 

(7)                                  Investments
represented by Hedging Obligations;

 

(8)                                  loans
or advances to employees other than executives restricted by the Sarbanes-Oxley
Act of 2002 made in the ordinary course of business of Ahern Rentals or the
Restricted Subsidiary of Ahern Rentals in an aggregate principal amount not to
exceed $500,000 at any one time outstanding;

 

(9)                                  repurchases
of the Notes and any Note Guarantees; and

 

(10)                            other
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 (10) that are at the time outstanding not to exceed
$5.0 million.

 

“Permitted Liens” means:

 

(1)                                  Liens
held by the Priority Lien Collateral Agent securing (a) Priority Lien Debt
in an aggregate principal amount not exceeding the Priority Lien Cap and
(b) all related Priority Lien Obligations;

 

(2)                                  Liens
held by the Collateral Trustee equally and ratably securing the Initial Notes
and all future Parity Lien Debt and other Parity Lien Obligations;

 

(3)                                  Liens
in favor of Ahern Rentals or any Guarantor;

 

(4)                                  Liens
on property of a Person existing at the time such Person is merged with or into
or consolidated with Ahern Rentals or any Subsidiary of Ahern Rentals; provided that such Liens were in existence prior to the
contemplation of such merger or consolidation and do not extend to any assets
other than those of the Person merged into or consolidated with Ahern Rentals
or the Subsidiary;

 

(5)                                  Liens
on property (including Capital Stock) existing at the time of acquisition of
the property by Ahern Rentals or any Subsidiary of Ahern Rentals; provided that such Liens were in existence prior to, such
acquisition, and not incurred in contemplation of, such acquisition;

 

(6)                                  Liens
to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

 

(7)                                  (a)
Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
Section 4.09(b)(4) and (b) Liens securing trade payables incurred in the
ordinary course of

 

18

 

business, in
each case covering only the assets acquired with or financed by such
Indebtedness or giving rise to such trade payables;

 

(8)                                  Liens
existing on the date of this Indenture;

 

(9)                                  Liens
for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided
that any reserve or other appropriate provision as is required in conformity
with GAAP has been made therefor;

 

(10)                            Liens
imposed by law, such as carriers’, warehousemen’s, landlords’ and mechanics’
Liens, in each case, incurred in the ordinary course of business;

 

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

 

(12)                            Liens
created for the benefit of (or to secure) the Notes or the Note Guarantees;

 

(13)                            Liens
to secure any Permitted Refinancing Indebtedness permitted to be incurred under
this Indenture; provided, however,
that:

 

(a)                                  the
new Lien shall be limited to all or part of the same property and assets that secured
or, under the written agreements pursuant to which the original Lien arose,
could secure the original Lien (plus improvements and accessions to, such
property or proceeds or distributions thereof); and

 

(b)                                 the
Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount, or, if greater,
committed amount, of the Permitted Refinancing Indebtedness and (y) an
amount necessary to pay any fees and expenses, including premiums, related to
such renewal, refunding, refinancing, replacement, defeasance or discharge;

 

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

 

(15)                            Liens
securing reimbursement obligations with respect to letters of credit which
encumber (a) in the case of commercial letters of credit, documents and
other property relating to such letters of credit and products and proceeds
thereof, and (b) in the case of other letters of credit, only cash and
marketable securities and documents and other property relating to such letters
of credit and the products and proceeds thereof;

 

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

 

19

 

(17)                            Liens
constituting rights of or obligations to lessees and renters from Ahern Rentals
or any of its Restricted Subsidiaries incurred in the ordinary course of
business; and

 

(18)                            Liens
incurred in the ordinary course of business of Ahern Rentals or any Subsidiary
of Ahern Rentals with respect to obligations that do not exceed
$5.0 million at any one time outstanding.

 

“Permitted Prior Liens” means:

 

(1)                                  Liens
described in clause (1) of the definition of “Permitted Liens”;

 

(2)                                  Liens
described in clause (4), (5), (7)(a) or (8) of the definition of
“Permitted Liens”; and

 

(3)                                  Permitted
Liens that arise by operation of law and are not voluntarily granted, to the
extent entitled by law to priority over the security interests created by the
Security Documents.

 

“Permitted Refinancing Indebtedness”
means any Indebtedness of Ahern Rentals or any of its Restricted Subsidiaries
issued in exchange for, or the net proceeds of which are used to renew, refund,
refinance, replace, defease or discharge, other Indebtedness of Ahern Rentals
or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

 

(1)                                  the
principal amount (or accreted value, if applicable) of such Permitted Refinancing
Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness renewed, refunded, refinanced, replaced,
defeased or discharged (plus all accrued interest on the Indebtedness and the
amount of all fees and expenses, including premiums, incurred in connection
therewith);

 

(2)                                  such
Permitted Refinancing Indebtedness has a final maturity date equal to or later
than the final maturity date of, and has a Weighted Average Life to Maturity
equal to or greater than the Weighted Average Life to Maturity of, the
Indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged;

 

(3)                                  if
the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged
is subordinated in right of payment to the notes, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and is subordinated in right of payment to, the notes on terms at least as
favorable to the holders of notes as those contained in the documentation
governing the Indebtedness being renewed, refunded, refinanced, replaced,
defeased or discharged; and

 

(4)                                  such
Indebtedness is incurred either by Ahern Rentals or by the Restricted
Subsidiary who is the obligor on the Indebtedness being renewed, refunded,
refinanced, replaced, defeased or discharged.

 

“Permitted Shareholder Tax Distributions”
means cash distributions and/or loans made by Ahern Rentals to its shareholders
(or partners if Ahern Rentals becomes a partnership for U.S. federal income tax
purposes) in amounts computed by a Tax Accountant to be necessary to permit the
shareholders (or partners) of Ahern Rentals to pay their estimated and final
U.S. federal, state and local income tax liabilities attributable to the income
of Ahern Rentals (including any pass-through income recognized by Ahern Rentals
with respect to any of its Subsidiaries) to the extent such taxes are not
payable directly by Ahern

 

20

 

Rentals or its Subsidiaries; provided, however, that
the amount of such distributions or loans shall not exceed the Permitted
Dividend Amount.  Permitted Shareholder
Tax Distributions may not be made more frequently than quarterly with respect to
each period for which an installment of estimated tax would be required to be
paid by the shareholders (or partners) of Ahern Rentals.  Notwithstanding the foregoing limitation with
respect to the Permitted Dividend Amount, if in any year Ahern Rentals’ shareholders
(or partners) are required to pay additional taxes with respect to a prior
year’s tax return which are attributable to the taxable income of Ahern Rentals
(because of an audit by a taxing authority or an amended return the filing of
which is required in the reasonable judgment of Ahern Rentals), the amount of
Permitted Shareholder Tax Distributions which may be paid in such later year
shall be increased by the amount of such additional taxes, and any interest and
penalties with respect thereto, as determined by a Tax Accountant.

 

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

 

“Pledgors” means Ahern Rentals, any
future Guarantors and any other Person (if any) that provides collateral
security for any Secured Obligations.

 

“Principals” means Don F. Ahern and John
Paul Ahern, Jr.

 

“Priority Lien” means a Lien granted by a
Priority Lien Document to the Priority Lien Collateral Agent, at any time, upon
any property of Ahern Rentals or any other Pledgor to secure Priority Lien Obligations.

 

“Priority Lien Agent” means (1) the
Credit Agreement Agent or (2) in the case of any other Series of Priority
Lien Debt, the trustee, agent or representative of the holders of such Series
of Priority Lien Debt who maintains the transfer register for such Series of
Priority Lien Debt and is appointed as a representative of the Priority Lien
Debt (for purposes related to the administration of the Security Documents)
pursuant to the credit agreement, indenture or other agreement governing such
Series of Priority Lien Debt.

 

“Priority Lien Cap” means, as of any
date, the principal amount outstanding under the Credit Agreement and/or the
Indebtedness outstanding under any other Credit Facility, in an aggregate
principal amount not to exceed the sum of the amount provided by
clause (1) of the definition of “Permitted Debt,” as of any date, less the
amount of Parity Lien Debt incurred after the date of this Indenture the net
proceeds of which are used to repay any term Priority Lien Debt or to repay any
revolving credit Indebtedness that constitutes Priority Lien Debt and effect a
corresponding commitment reduction thereunder.  For purposes of this definition, all letters
of credit will be deemed to have a principal amount equal to the maximum
potential liability of Ahern Rentals and its Restricted Subsidiaries
thereunder, and all Hedging Obligations will be valued at zero.

 

“Priority Lien Collateral Agent” means
the Credit Agreement Agent or, after the Discharge of Priority Lien Obligations
in respect of the Credit Agreement, a single representative of all holders of
Priority Liens most recently designated by Ahern Rentals in an Officers’
Certificate delivered to the trustee and the collateral agent or the successor
of such representative in its capacity as such.

 

“Priority Lien Debt” means:

 

(1)                                  Indebtedness
under the Credit Agreement that was permitted to be incurred and secured under
each applicable Secured Debt Document (or as to which the lenders under the
Credit Agreement (or the Credit Agreement Agent) obtained an Officers’
Certificate (or a representation

 

21

 

or warranty is
made by Ahern Rentals to such lenders) at the time of incurrence to the effect
that such Indebtedness was permitted to be incurred and secured by all
applicable Secured Debt Documents);

 

(2)                                  Indebtedness
under any other Credit Facility that is secured equally and ratably with the
Credit Agreement by a Priority Lien that was permitted to be incurred and so
secured under each applicable Secured Debt Document; provided,
in the case of any Indebtedness referred to in this clause (2), that:

 

(a)                                  on
or before the date on which such Indebtedness is incurred by Ahern Rentals or
the applicable Restricted Subsidiary, such Indebtedness is designated by Ahern
Rentals, in an Officers’ Certificate delivered to each representative of the
Priority Debt and the Collateral Trustee, as “Priority Lien Debt” for the
purposes of the Secured Debt Documents;

 

(b)                                 such
Indebtedness is governed by a credit agreement or other agreement that includes
a Sharing Confirmation; and

 

(c)                                  all
requirements set forth in the Intercreditor Agreement as to the confirmation,
grant or perfection of the Priority Lien Collateral Agent’s Lien to secure such
Indebtedness or Obligations in respect thereof are satisfied (and the
satisfaction of such requirements and the other provisions of this
clause (c) will be conclusively established if Ahern Rentals delivers to
the Collateral Trustee an Officers’ Certificate stating that such requirements
and other provisions have been satisfied and that such Indebtedness is “Priority
Lien Debt”); and

 

(3)                                  Hedging
Obligations incurred to hedge or manage interest rate risk with respect to
Priority Lien Debt; provided that:

 

(a)                                  such
Hedging Obligations are secured by a Priority Lien on all of the assets and
properties that secure Indebtedness under the Credit Facility in respect of
which such Hedging Obligations are incurred; and

 

(b)                                 such
Priority Lien is senior to or on a parity with the Priority Liens securing
Indebtedness under the Credit Facility in respect of which such Hedging
Obligations are incurred.

 

“Priority Lien Documents” means the
Credit Agreement and any other Credit Facility pursuant to which any Priority
Lien Debt is incurred, each Lien Priority Confirmation and the Priority Lien
Security Documents.

 

“Priority Lien Obligations” means the
Priority Lien Debt and all other Obligations in respect of Priority Lien Debt
(including, without limitation and in any event, with respect to the Credit
Agreement, any “Obligations” as defined in the Credit Agreement as in effect on
the date of this Indenture).

 

“Priority Lien Security Documents” means
each Sharing Confirmation and Lien Priority Confirmation, and
all security agreements, pledge agreements, collateral assignments, mortgages,
deeds of trust, collateral agency agreements, control agreements or other
grants or transfers for security executed and delivered by Ahern Rentals or any
other Pledgor creating (or purporting to create) a Priority Lien upon Collateral
in favor of the Priority Lien Collateral Agent, in each case, as amended,
modified, renewed, restated or replaced, in whole or in part, from time to
time, in accordance with its terms.

 

22

 

“Public Equity Offering” means an offer
and sale of Capital Stock (other than Disqualified Stock) of Ahern Rentals
pursuant to a registration statement that has been declared effective by the
SEC pursuant to the Securities Act (other than a registration statement on
Form S-8 or otherwise relating to equity securities issuable under any
employee benefit plan of Ahern Rentals).

 

“QSSS Election” means the election to
treat any Person as a qualified subchapter S subsidiary pursuant to Code Section 1361(b)(3).

 

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of the date hereof, among Ahern Rentals
and the Initial Purchasers, as such agreement may be amended, modified or
supplemented from time to time, and with respect to any Additional Notes, one
or more registration rights agreements among Ahern Rentals, the Guarantors, if
any, and the other parties thereto, as such agreement(s) may be amended,
modified or supplemented from time to time, relating to rights given by Ahern
Rentals to the purchasers of Additional Notes to register such Additional Notes
under the Securities Act.

 

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

 

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

 

“Related Party” means:

 

(1)                                  any
immediate family member of any Principal;

 

(2)                                  in
the event of the death or permanent disability of any Principal, any heir or
devisee of such Principal, or any executor or similar legal representative of
such Principal pending final disposition of such Principal’s Equity Interests
in Ahern Rentals; or

 

(3)                                  any
trust, corporation, partnership, limited liability company or other entity, the
beneficiaries, stockholders, partners, members, owners or Persons beneficially
holding an 80% or more controlling interest of which consist of any one or more
Principals and/or such other Persons referred to in the immediately preceding
clauses (1) and (2).

 

“Rental Equipment” means any assets or
equipment owned by Ahern Rentals or any of its Restricted Subsidiaries, the
principal purpose of which has been for rental or leasing by Ahern Rentals or
any of its Restricted Subsidiaries in a Permitted Business.

 

“Required Parity Debtholders” means, at
any time, the holders of a majority in aggregate principal amount of all Parity
Lien Debt then outstanding.  For purposes
of this definition, Parity Lien Debt registered in the name of, or beneficially
owned by, Ahern Rentals or any Affiliate of Ahern Rentals will be deemed not to
be outstanding.

 

“Responsible Officer,” when used with
respect to the Trustee, means any officer within the Corporate Trust
Administration of the Trustee (or any successor group of the Trustee),
including any vice president, assistant vice president, assistant secretary,
trust officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers
and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge of and familiarity
with the particular subject.

 

23

 

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

 

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

 

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

 

“Restricted Subsidiary” of a Person means
any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

 

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

 

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

 

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

 

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

 

“S Corporation” means a small business
corporation within the meaning of Code Section 1361 (or any successor
provision) for which an election is in effect under Code Section 1362(a)
(or any successor provision).

 

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

 

“Sale of Collateral” means any Asset Sale
involving a sale or other disposition of Collateral.

 

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

 

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

 

“Secured Debt” means Parity Lien Debt and
Priority Lien Debt.

 

“Secured Debt Documents” means the Parity
Lien Documents and the Priority Lien Documents.

 

“Secured Debt Representative” means each
Parity Lien Representative and the Priority Lien Agent.

 

“Secured Obligations” means Parity Lien
Obligations and Priority Lien Obligations.

 

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

 

“Security Documents” means each Sharing
Confirmation and Lien Priority Confirmation, and all security agreements,
pledge agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements or other agreements, documents, grants or
transfers for security executed and delivered by Ahern Rentals or any other
Pledgor or which is otherwise necessary in creating (or purporting to create) a
Parity Lien upon Collateral in favor of the Collateral Trustee, in each case,
as amended, modified, renewed, restated or replaced, in whole or in part, from
time to time, in accordance with its terms and Section 12.10.

 

“Series of Parity Lien Debt” means,
severally, the Notes and each other issue or series of Parity Lien Debt for
which a single transfer register is maintained.

 

24

 

“Series of Priority Lien Debt” means,
severally, the Indebtedness outstanding under the Credit Agreement and any
other Credit Facility that constitutes Priority Lien Debt.

 

“Series of Secured Debt” means each
Series of Parity Lien Debt and each Series of Priority Lien Debt.

 

“Sharing Confirmation” means, as to any
Series of Parity Lien Debt, the written agreement of the holders of such Series
of Parity Lien Debt, as set forth in the indenture, credit agreement or other
agreement governing such Series of Parity Lien Debt, for the enforceable
benefit of all holders of each other existing and future Series of Parity Lien
Debt and each existing and future Parity Lien Representative that all Parity
Lien Obligations will be and are secured equally and ratably by all Liens at
any time granted by Ahern Rentals or any other Pledgor to secure any
Obligations in respect of such Series of Parity Lien Debt, whether or not upon
property otherwise constituting Collateral, that all such Liens will be
enforceable by the Collateral Trustee for the benefit of all holders of Parity
Lien Obligations equally and ratably, and that the holders of Obligations in
respect of such Series of Parity Lien Debt are bound by the provisions in the
Intercreditor Agreement relating to the order of application of proceeds from
enforcement of such Liens, and consent to and direct the Collateral Trustee to
perform its obligations under the Intercreditor Agreement and the other
Security Documents.

 

“Shelf Registration Statement” means the
Shelf Registration Statement as defined in the Registration Rights Agreement.

 

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

 

“Stated Maturity” means, with respect to
any installment of interest or principal on any series of Indebtedness, the
date on which the payment of interest or principal was scheduled to be paid in
the documentation governing such Indebtedness as of the date of this Indenture,
and will not include any contingent obligations to repay, redeem or repurchase
any such interest or principal prior to the date originally scheduled for the
payment thereof.

 

“Subsidiary” means, with respect to any
specified Person:

 

(1)                                  any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) to vote in
the election of directors, managers or trustees of the corporation, association
or other business entity is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person (or a
combination thereof); and

 

(2)                                  any
partnership (a) the sole general partner or the managing general partner
of which is such Person or a Subsidiary of such Person or (b) the only
general partners of which are that Person or one or more Subsidiaries of that
Person (or any combination thereof).

 

“Suspended Losses” means the aggregate
amount of losses and deductions of Ahern Rentals which has been taken into account
by the shareholders of Ahern Rentals and disallowed under Code Sections 1366(d)
or 704(d) (or any successor provision) in a prior taxable year.

 

25

 

“Tax Accountant” means (1) the
independent accounting firm that has prepared the filed federal tax returns of
Ahern Rentals, if any, and the Principals for each of the last three tax years
as of the date of determination, (2) any one of the four largest
nationally recognized independent accounting firms, or (3) any other independent
accounting firm approved by Ahern Rentals.

 

“TIA” means the Trust Indenture Act of 1939
(15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date on which this
Indenture is qualified under the TIA.

 

“Trustee” means the party named as such
in the preamble to this Indenture until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

 

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

 

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

 

“Unrestricted Subsidiary” means any
Subsidiary of Ahern Rentals that is designated by the Board of Directors of
Ahern Rentals as an Unrestricted Subsidiary pursuant to a resolution of the
Board of Directors, but only to the extent that such Subsidiary:

 

(1)                                  has
no Indebtedness other than Non-Recourse Debt;

 

(2)                                  except
as permitted by Section 4.11, is not party to any agreement, contract, arrangement
or understanding with Ahern Rentals or any Restricted Subsidiary of Ahern
Rentals unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to Ahern Rentals or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of Ahern Rentals;

 

(3)                                  is
a Person with respect to which neither Ahern Rentals nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(4)                                  has
not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of Ahern Rentals or any of its Restricted Subsidiaries.

 

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

 

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

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years
obtained by dividing:

 

(1)                                  the
sum of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness,
by (b) the number of years (calculated

 

26

 

to the nearest
one-twelfth) that will elapse between such date and the making of such payment;
by

 

(2)                                  the
then outstanding principal amount of such Indebtedness.

 

Section 1.02                                Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Acceleration Notice”

  	
   

  	
  6.02

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.14

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.14

  	
   

  
	
  “Change of Control Payment Date”

  	
   

  	
  4.14

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “Fixed Charge Coverage Ratio”

  	
   

  	
  4.09

  	
   

  
	
  “Incur”

  	
   

  	
  4.09

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “New Maximum Amount”

  	
   

  	
  4.09

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Offer Period”

  	
   

  	
  3.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Payment Default”

  	
   

  	
  6.01

  	
   

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  	
   

  

 

Section 1.03                                Incorporation
by Reference of Trust Indenture Act.

 

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

 

The following TIA terms used in this
Indenture have the following meanings:

 

“indenture securities” means the Notes;

 

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

 

“indenture to be qualified” means this Indenture;

 

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

 

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

 

27

 

Section 1.04                                Rules
of Construction.

 

Unless the context otherwise requires:

 

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

 

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

 

(c)                                  “or” is not exclusive;

 

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

 

(e)                                  provisions apply to successive events and transactions; and

 

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

 

ARTICLE 2.

THE NOTES

 

Section 2.01                                Form
and Dating.

 

(a)                                  General.  The Notes
and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A hereto.  The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage.  Each Note shall be dated the date
of its authentication.  The Notes shall
be in denominations of $1,000 and integral multiples thereof.

 

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

 

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

 

(c)                                  Euroclear and Cedel Procedures Applicable.  The provisions of the “Operating Procedures
of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear”
and the “General

 

28

 

Terms and Conditions of Cedel Bank” and “Customer Handbook” of Cedel
Bank shall be applicable to transfers of beneficial interests in the Regulation
S Global Notes that are held by Participants through Euroclear or Cedel Bank.

 

Section 2.02                                Execution
and Authentication.

 

One or more Officers shall sign the Notes for
Ahern Rentals by manual or facsimile signature. 
Ahern Rentals’ seal shall be reproduced on the Notes and may be in
facsimile form.

 

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

 

A Note shall not be valid until authenticated
by the manual signature of the Trustee. 
The signature shall be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The Trustee shall, upon a written order of
Ahern Rentals signed by one or more Officers (an “Authentication
Order”), authenticate the Initial Notes for original issue up to
$200,000,000 in aggregate principal amount and, upon delivery of any Authentication
Order at any time and from time to time thereafter, the Trustee shall
authenticate Additional Notes and Exchange Notes for original issue in an aggregate
principal amount specified in such Authentication Order.

 

The Trustee may appoint an authenticating
agent acceptable to Ahern Rentals to authenticate Notes.  An authenticating agent may authenticate
Notes whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent has the same rights as an Agent to deal with
Holders or an Affiliate of Ahern Rentals.

 

Section 2.03                                Registrar
and Paying Agent.

 

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

 

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

 

Section 2.04                                Paying
Agent to Hold Money in Trust.

 

Ahern Rentals shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent will hold in
trust for the benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal, premium, if any, or interest on the Notes,
and will notify the Trustee of any default by Ahern Rentals in making any such
payment.  Ahern Rentals at any time may
require a

 

29

 

Paying Agent
to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than Ahern Rentals or a Subsidiary) shall have no further
liability for the money.  If Ahern
Rentals or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent.  Upon any bankruptcy or
reorganization proceedings relating to Ahern Rentals, the Trustee shall serve
as Paying Agent for the Notes.

 

Section 2.05                                Holder
Lists.

 

The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of all Holders and shall otherwise comply with TIA
§ 312(a).  If the Trustee is not the
Registrar, Ahern Rentals shall furnish to the Trustee at least seven Business
Days before each interest payment date and at such other times as the Trustee
may request in writing, a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of the Holders of Notes and
Ahern Rentals shall otherwise comply with TIA § 312(a).

 

Section 2.06                                Transfer
and Exchange.

 

(a)                                  Transfer and Exchange of Global Notes.  A Global Note may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.  All Global Notes
will be exchanged by Ahern Rentals for Definitive Notes if (i) Ahern Rentals
delivers to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by Ahern Rentals within 120 days after the date of
such notice from the Depositary or (ii) Ahern Rentals in its sole discretion
determines that the Global Notes (in whole but not in part) should be exchanged
for Definitive Notes and delivers a written notice to such effect to the
Trustee.  Upon the occurrence of either
of the preceding events in (i) or (ii) above, Definitive Notes shall be issued
in such names as the Depositary shall instruct the Trustee.  Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 2.07 and 2.10
hereof.  Every Note authenticated and
delivered in exchange for, or in lieu of, a Global Note or any portion thereof,
pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note.  A Global Note may not be exchanged for
another Note other than as provided in this Section 2.06(a); however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b), (c) or (f) hereof.

 

(b)                                 Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial
interests in the Global Notes shall be effected
through the Depositary, in accordance with the provisions of this Indenture and
the Applicable Procedures.  Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on
transfer comparable to those set forth herein to the extent required by the
Securities Act.  Transfers of beneficial
interests in the Global Notes also shall require compliance with either subparagraph
(i) or (ii) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

 

(i)                                     Transfer of Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global
Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend; provided, however, that
prior to the expiration of the Restricted Period, transfers of beneficial interests
in the Regulation S Global Note may not be made to a U.S. Person or for the account
or benefit of a U.S. Person (other than an Initial Purchaser).  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written

 

30

 

orders or instructions shall be required to
be delivered to the Registrar to effect the transfers described in this Section
2.06(b)(i).

 

(ii)                                  All Other Transfers and Exchanges of Beneficial Interests in Global
Notes.  In connection with all
transfers and exchanges of beneficial interests that are not subject to Section
2.06(b)(i) above, the transferor of such beneficial interest must deliver to
the Registrar either (A) (1) a written order from a Participant or an Indirect
Participant given to the Depositary in accordance with the Applicable
Procedures directing the Depositary to credit or cause to be credited a
beneficial interest in another Global Note in an amount equal to the beneficial
interest to be transferred or exchanged and (2) instructions given in
accordance with the Applicable Procedures containing information regarding the
Participant account to be credited with such increase or (B) (1) a written order
from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to cause to
be issued a Definitive Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary to the
Registrar containing information regarding the Person in whose name such Definitive
Note shall be registered to effect the transfer or exchange referred to in (1)
above.  Upon consummation of an Exchange
Offer by Ahern Rentals in accordance with Section 2.06(f) hereof, the requirements
of this Section 2.06(b)(ii) shall be deemed to have
been satisfied upon receipt by the Registrar of the instructions contained in
the Letter of Transmittal delivered by the Holder of such beneficial interests
in the Restricted Global Notes.  Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or otherwise
applicable under the Securities Act, the Trustee shall adjust the principal
amount of the relevant Global Note(s) pursuant to Section 2.06(h) hereof.

 

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

 

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

 

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

 

(C)                                if the transferee will take delivery in the form of a
beneficial interest in the IAI Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications and
certificates and Opinion of Counsel required by item (3) thereof, if
applicable.

 

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

 

(A)                              such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of the beneficial interest

 

31

 

to
be transferred, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1)
a broker-dealer, (2) a Person participating in the distribution of the Exchange
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of Ahern
Rentals;

 

(B)                                such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

 

(C)                                such transfer is effected by a broker-dealer pursuant to the
Exchange Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D)                               the Registrar receives the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

32

 

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

 

(B)                                if
such beneficial interest is being transferred to a QIB in accordance with Rule
144A under the Securities Act, a certificate to the effect set forth in Exhibit
B hereto, including the certifications in item (1) thereof;

 

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

 

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

 

(E)                                 if
such beneficial interest is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through (D) above,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3)
thereof, if applicable;

 

(F)                                 if
such beneficial interest is being transferred to Ahern Rentals or any of its Subsidiaries,
a certificate to the effect set forth in Exhibit B hereto, including the certifications
in item (3)(b) thereof; or

 

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

 

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

 

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

 

(A)                              such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of such beneficial interest, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of

 

33

 

Transmittal
that it is not (1) a broker-dealer, (2) a Person participating in the
distribution of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of Ahern Rentals;

 

(B)                                such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

 

(C)                                such transfer is effected by a broker-dealer pursuant to the
Exchange Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D)                               the Registrar receives the following:

 

(1)                                  if
the holder of such beneficial interest in a Restricted Global Note proposes to
exchange such beneficial interest for a Definitive Note that does not bear the
Private Placement Legend, a certificate from such holder in the form of Exhibit
C hereto, including the certifications in item (1)(b) thereof; or

 

(2)                                  if
the holder of such beneficial interest in a Restricted Global Note proposes to
transfer such beneficial interest to a Person who shall take delivery thereof
in the form of a Definitive Note that does not bear the Private Placement
Legend, a certificate from such holder in the form of Exhibit B hereto,
including the certifications in item (4) thereof;

 

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

 

(iii)                               Beneficial Interests in Unrestricted Global Notes to Unrestricted
Definitive Notes.  If any
holder of a beneficial interest in an Unrestricted Global Note proposes to
exchange such beneficial interest for a Definitive Note or to transfer such
beneficial interest to a Person who takes delivery thereof in the form of a
Definitive Note, then, upon satisfaction of the conditions set forth in Section
2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal amount of
the applicable Global Note to be reduced accordingly pursuant to Section
2.06(h) hereof, and Ahern Rentals shall execute and the Trustee shall authenticate
and deliver to the Person designated in the instructions a Definitive Note in
the appropriate principal amount.  Any
Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iii) shall be registered in such name
or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through instructions from
the Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive
Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c)(iii)
shall not bear the Private Placement Legend.

 

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

 

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

 

34

 

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

 

(B)                                if
such Restricted Definitive Note is being transferred to a QIB in accordance
with Rule 144A under the Securities Act, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (1) thereof;

 

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

 

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

 

(E)                                 if
such Restricted Definitive Note is being transferred to an Institutional Accredited
Investor in reliance on an exemption from the registration requirements of the
Securities Act other than those listed in subparagraphs (B) through (D) above,
a certificate to the effect set forth in Exhibit B hereto, including the
certifications, certificates and Opinion of Counsel required by item (3)
thereof, if applicable;

 

(F)                                 if
such Restricted Definitive Note is being transferred to Ahern Rentals or any of
its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or

 

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

 

the Trustee
shall cancel the Restricted Definitive Note, increase or cause to be increased
the aggregate principal amount of, in the case of clause (A) above, the
appropriate Restricted Global Note, in the case of clause (B) above, the 144A
Global Note, in the case of clause (C) above, the Regulation S Global Note, and
in all other cases, the IAI Global Note.

 

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

 

(A)                              such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is
an affiliate (as defined in Rule 144) of Ahern Rentals;

 

(B)                                such transfer is effected pursuant to the Shelf Registration
Statement in accordance with the Registration Rights Agreement;

 

35

 

(C)                                such transfer is effected by a broker-dealer pursuant to the
Exchange Registration Statement in accordance with the Registration Rights Agreement;
or

 

(D)                               the Registrar receives the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)                                  Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes
and such Holder’s compliance with the provisions of this Section 2.06(e), the
Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or
exchange, the requesting Holder shall present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. 
In addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following
provisions of this Section 2.06(e):

 

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

 

36

 

(A)                              if the transfer will be made pursuant to Rule 144A under the
Securities Act, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (1) thereof;

 

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

 

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

 

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

 

(A)                              such
exchange or transfer is effected pursuant to the Exchange Offer in accordance
with the Registration Rights Agreement and the Holder, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the applicable
Letter of Transmittal that it is not (1) a broker-dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is
an affiliate (as defined in Rule 144) of Ahern Rentals;

 

(B)                                any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

 

(C)                                any
such transfer is effected by a broker-dealer pursuant to the Exchange
Registration Statement in accordance with the Registration Rights Agreement; or

 

(D)                               the Registrar receives the following:

 

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

 

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

 

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

 

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

 

37

 

Registrar shall register the Unrestricted Definitive Notes pursuant to
the instructions from the Holder thereof.

 

(f)                                    Exchange Offer.  Upon
the occurrence of the Exchange Offer in accordance with the Registration Rights
Agreement, Ahern Rentals shall issue and, upon receipt of an Authentication
Order in accordance with Section 2.02, the Trustee shall authenticate (i) one
or more Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance by Persons that certify in the applicable Letters of
Transmittal that (x) they are not broker-dealers, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of Ahern Rentals, and accepted for exchange
in the Exchange Offer and (ii) Definitive Notes in an aggregate principal
amount equal to the principal amount of the Restricted Definitive Notes
accepted for exchange in the Exchange Offer. 
Concurrently with the issuance of such Notes, the Trustee shall cause
the aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and Ahern Rentals shall execute and the Trustee shall
authenticate and deliver to the Persons designated by the Holders of Definitive
Notes so accepted Definitive Notes in the appropriate principal amount.

 

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

 

(i)                                     Private Placement Legend.

 

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

 

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

 

THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO (X) THE DATE (THE
“RESALE RESTRICTION TERMINATION DATE”) WHICH IS TWO YEARS (OR SUCH SHORTER
PERIOD AS MAY BE PRESCRIBED BY RULE 144(k) (OR ANY SUCCESSOR PROVISION
THEREOF) UNDER THE SECURITIES ACT) AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF (OR ANY PREDECESSOR OF THIS SECURITY) AND THE LAST DATE ON WHICH AHERN
RENTALS OR ANY AFFILIATE OF AHERN RENTALS WAS THE OWNER OF THIS SECURITY (OR
ANY PREDECESSOR OF SUCH SECURITY) OR (Y) SUCH LATER DATE, IF ANY, AS MAY
BE REQUIRED BY APPLICABLE LAW, ONLY (A) TO AHERN RENTALS OR ITS
AFFILIATES, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO

 

38

 

LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A
PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED
IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) INSIDE THE UNITED STATES TO AN
INSTITUTIONAL ACCREDITED INVESTOR WITHIN THE MEANING OF SUBPARAGRAPH (a)(1),
(2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER,
FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM THE TRUSTEE), (E) PURSUANT TO OFFERS AND SALES TO
NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, PURSUANT TO RULE 904 OF REGULATION
S OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT SUBJECT TO AHERN RENTALS’ AND THE TRUSTEE’S
RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR
(F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM. 
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
RESALE RESTRICTION TERMINATION DATE.

 

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

 

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

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY
(AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR
THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE, (II) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.06(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE
TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV)
THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR
WRITTEN CONSENT OF AHERN RENTALS.

 

39

 

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

 

(i)                                     General Provisions Relating to Transfers and Exchanges.

 

(i)                                     To
permit registrations of transfers and exchanges, Ahern Rentals shall execute
and the Trustee shall authenticate Global Notes and Definitive Notes upon Ahern
Rentals’ order or at the Registrar’s request.

 

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

 

(iii)                               The
Registrar shall not be required to register the transfer of or exchange any
Note selected for redemption in whole or in part, except the unredeemed portion
of any Note being redeemed in part.

 

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

 

(v)                                 Ahern
Rentals shall not be required (A) to issue, to register the transfer of or to exchange
any Notes during a period beginning at the opening of business 15 days before
the day of any selection of Notes for redemption under Section 3.02 hereof and
ending at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Note so selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part or (C)
to register the transfer of or to exchange a Note between a record date and the
next succeeding Interest Payment Date.

 

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

 

(vii)                           The
Trustee shall authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

 

40

 

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

 

Section 2.07                                Replacement
Notes.

 

If any mutilated Note is surrendered to the
Trustee or Ahern Rentals or the Trustee receives evidence to its satisfaction
of the destruction, loss or theft of any Note, Ahern Rentals shall issue and
the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement
Note if the Trustee’s requirements are met. 
If required by the Trustee or Ahern Rentals, an indemnity bond must be
supplied by the Holder that is sufficient in the judgment of the Trustee and
Ahern Rentals (and which may insure up to the total amount of principal,
interest and premium, if any) to protect Ahern Rentals, the Trustee, any Agent
and any authenticating agent from any loss that any of them may suffer if a
Note is replaced.  Ahern Rentals and the
Trustee may charge for their expenses in replacing a Note.

 

Every replacement Note is an additional
obligation of Ahern Rentals and shall be entitled to all of the benefits of
this Indenture equally and proportionately with all other Notes duly issued hereunder.

 

Section 2.08                                Outstanding
Notes.

 

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

 

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

 

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

 

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

 

Section 2.09                                Treasury
Notes.

 

In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by Ahern Rentals, or by any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
Ahern Rentals, shall be considered as though not outstanding, except that for
the purposes of determining whether the Trustee shall be protected in relying
on any such direction, waiver or consent, only Notes that the Trustee knows are
so owned shall be so disregarded.

 

Section 2.10                                Temporary
Notes.

 

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

 

41

 

delay,
Ahern Rentals shall prepare and the Trustee shall authenticate definitive Notes
in exchange for temporary Notes.

 

Holders of temporary Notes shall be entitled
to all of the benefits of this Indenture.

 

Section 2.11                                Cancellation.

 

Ahern Rentals at any time may deliver Notes
to the Trustee for cancellation.  The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all
Notes surrendered for registration of transfer, exchange, payment, replacement
or cancellation and shall destroy canceled Notes (subject to the record
retention requirement of the Exchange Act). 
Certification of the destruction of all canceled Notes shall be delivered
to Ahern Rentals.  Ahern Rentals may not
issue new Notes to replace Notes that it has paid or that have been delivered
to the Trustee for cancellation.

 

Section 2.12                                Defaulted
Interest.

 

If Ahern Rentals defaults in a payment of
interest on the Notes, it shall pay the defaulted interest in any lawful manner
plus, to the extent lawful, interest payable on the defaulted interest, to the
Persons who are Holders on a subsequent special record date, in each case at
the rate provided in the Notes and in Section 4.01 hereof.  Ahern Rentals shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note
and the date of the proposed payment. 
Ahern Rentals shall fix or cause to be fixed each such special record
date and payment date, provided that
no such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest. 
At least 15 days before the special record date, Ahern Rentals (or, upon
the written request of Ahern Rentals, the Trustee in the name and at the
expense of Ahern Rentals) shall mail or cause to be mailed to Holders a notice
that states the special record date, the related payment date and the amount of
such interest to be paid.

 

Section 2.13                                Issuance
of Additional Notes

 

Ahern Rentals shall be entitled, from time to
time, subject to its compliance with Sections 4.09 and 4.12 hereof, without consent
of the Holders, to issue Additional Notes, under this Indenture with identical
terms as the Notes other than with respect to (i) the date of issuance, (ii)
the issue price, (iii) the amount of interest payable on the first interest
payment date and (iv) any adjustments in order to conform to and ensure
compliance with the Securities Act (or other applicable securities laws). The
Notes, any Additional Notes and all Exchange Notes issued in exchange therefor
shall be treated as a single class for all purposes under this Indenture.

 

With respect to any Additional Notes, Ahern
Rentals shall set forth in an Officers’ Certificate pursuant to a resolution of
the Board of Directors of Ahern Rentals, copies of which shall be delivered to
the Trustee, the following information:

 

(1)                                  the aggregate principal amount of such Additional Notes to
be authenticated and delivered pursuant to this Indenture;

 

(2)                                  the
issue price, the issue date and the CUSIP number of such Additional Notes; provided, however, that
no Additional Notes may be issued at a price that would cause such Additional Notes
to have “original issue discount” within the meaning of Section 1273 of the
Code; and

 

42

 

(3)                                  whether such Additional Notes shall be issued in the form of
Restricted Global Notes or Exchange Notes.

 

ARTICLE 3.

REDEMPTION AND PREPAYMENT

 

Section 3.01                                Notices
to Trustee.

 

If Ahern Rentals elects to redeem Notes
pursuant to the optional redemption provisions of Section 3.07 hereof, it shall
furnish to the Trustee, at least 30 days but not more than 60 days before a redemption
date, an Officers’ Certificate setting forth (i) the clause of this Indenture
pursuant to which the redemption shall occur, (ii) the redemption date, (iii)
the principal amount of Notes to be redeemed and (iv) the redemption price.

 

Section 3.02                                Selection
of Notes to Be Redeemed.

 

If less than all of the Notes are to be
redeemed at any time, the Trustee shall, subject to the procedures of the
Depositary, select the Notes to be redeemed or purchased among the Holders of
the Notes in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed or, if the Notes are
not so listed, on a pro rata basis,
by lot or in accordance with any other method the Trustee considers fair and
appropriate.  In the event of partial
redemption by lot, the particular Notes to be redeemed shall be selected,
unless otherwise provided herein, not less than 30 nor more than 60 days prior
to the redemption date by the Trustee from the outstanding Notes not previously
called for redemption.

 

The Trustee shall promptly notify Ahern
Rentals in writing of the Notes selected for redemption and, in the case of any
Note selected for partial redemption, the principal amount thereof to be
redeemed.  Notes and portions of Notes
selected shall be in amounts of $1,000 or whole multiples of $1,000; except
that if all of the Notes of a Holder are to be redeemed, the entire outstanding
amount of Notes held by such Holder, even if not a multiple of $1,000, shall be
redeemed.  Except as provided in the
preceding sentence, provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

 

Section 3.03                                Notice
of Redemption.

 

Subject to the provisions of Section 3.09
hereof, at least 30 days but not more than 60 days before a redemption date,
Ahern Rentals shall mail or cause to be mailed, by first class mail, a notice
of redemption to each Holder whose Notes are to be redeemed at its registered
address, except that redemption notices may be mailed more than 60 days prior
to a redemption date if the notice is issued in connection with a defeasance of
the Notes or a satisfaction and discharge of this Indenture.

 

The notice shall identify the Notes to be
redeemed and shall state:

 

(a)                                  the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  if any Note is being redeemed in part, the portion of the
principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note

 

43

 

or Notes in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original Note;

 

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

 

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

 

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

 

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

 

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

 

At Ahern Rentals’ request, the Trustee shall
give the notice of redemption in Ahern Rentals’ name and at its expense; provided, however, that
Ahern Rentals shall have delivered to the Trustee, at least 45 days prior to
the redemption date, an Officers’ Certificate requesting that the Trustee give
such notice and setting forth the information to be stated in such notice as
provided in the preceding paragraph.

 

Section 3.04                                Effect
of Notice of Redemption.

 

Once notice of redemption is mailed in
accordance with Section 3.03 hereof, Notes called for redemption become
irrevocably due and payable on the redemption date at the redemption
price.  A notice of redemption may not be
conditional.

 

Section 3.05                                Deposit
of Redemption Price.

 

Prior to 10:00 a.m. Eastern Time on the
redemption date, Ahern Rentals shall deposit with the Trustee or with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest on all Notes to be redeemed on that date.  The Trustee or the Paying Agent shall
promptly return to Ahern Rentals any money deposited with the Trustee or the
Paying Agent by Ahern Rentals in excess of the amounts necessary to pay the
redemption price of, and accrued interest on, all Notes to be redeemed.

 

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

 

Section 3.06                                Notes
Redeemed in Part.

 

Upon surrender of a Note that is redeemed in
part, Ahern Rentals shall issue and, upon Ahern Rentals’ written request, the
Trustee shall authenticate for the Holder at the expense of Ahern Rentals a new
Note equal in principal amount to the unredeemed portion of the Note
surrendered.

 

44

 

Section 3.07                                Optional
Redemption.

 

(a)                                  At
any time prior to August 15, 2008, Ahern Rentals may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes issued
under this Indenture at a redemption price of 109.250% of the principal amount,
plus accrued and unpaid interest and Additional Interest, if any, to the
redemption date, with the net cash proceeds of one or more Public Equity Offerings;
provided that:

 

(1)                                  at
least 65% of the aggregate principal amount of Notes originally issued under
this Indenture (excluding Notes held by Ahern Rentals and its Subsidiaries, if
any) remains outstanding immediately after the occurrence of such redemption;
and

 

(2)                                  the redemption occurs within 90 days of the date of the
closing of such Public Equity Offering.

 

(b)                                 On
or after August 15, 2009, Ahern Rentals may redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Additional Interest, if any, on the
Notes redeemed, to the applicable redemption date, if redeemed during the
twelve-month period beginning on August 15 of the years indicated below,
subject to the rights of Holders of Notes on the relevant record date to
receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  104.625

  	
  %

  
	
  2010

  	
   

  	
  102.313

  	
  %

  
	
  2011 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)                                  Except
pursuant to the preceding paragraphs, the Notes will not be redeemable at Ahern
Rentals’ option prior to August 15, 2009. 
Unless Ahern Rentals defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for
redemption on the applicable redemption date.

 

(d)                                 Any
redemption pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

 

Section 3.08                                Mandatory
Redemption.

 

Ahern Rentals shall not be required to make
mandatory redemption payments with respect to the Notes.

 

Section 3.09                                Offer
to Purchase by Application of Excess Proceeds.

 

In the event that, pursuant to Section 4.10
hereof, Ahern Rentals shall be required to commence an offer to all Holders to
purchase Notes (an “Asset Sale Offer”),
it shall follow the procedures specified below.

 

The Asset Sale Offer shall remain open for a
period of 20 Business Days following its commencement and no longer, except to
the extent that a longer period is required by applicable law (the “Offer Period”).  No
later than five Business Days after the termination of the Offer Period (the “Purchase Date”), Ahern Rentals shall purchase the principal
amount of Notes required to be purchased pursuant to

 

45

 

Section 4.10 hereof (the “Offer Amount”) or, if less than the Offer Amount has been
tendered, all Notes tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

 

If the Purchase Date is on or after an
interest record date and on or before the related interest payment date, any
accrued and unpaid interest shall be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional
interest shall be payable to Holders who tender Notes pursuant to the Asset
Sale Offer.

 

Upon the commencement of an Asset Sale Offer,
Ahern Rentals shall send, by first class mail, a notice to the Trustee and each
of the Holders, with a copy to the Trustee. 
The notice shall contain all instructions and materials necessary to
enable such Holders to tender Notes pursuant to the Asset Sale Offer.  The Asset Sale Offer shall be made to all
Holders.  The notice, which shall govern
the terms of the Asset Sale Offer, shall state:

 

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

 

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

 

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

 

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

 

(e)                                  that Holders electing to have a Note purchased pursuant to
an Asset Sale Offer may elect to have Notes purchased in integral multiples of
$1,000 only;

 

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

 

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

 

(h)                                 that,
if the aggregate principal amount of Notes surrendered by Holders exceeds the
Offer Amount, Ahern Rentals shall select the Notes to be purchased on a pro rata basis (with such adjustments as may be deemed
appropriate by Ahern Rentals so that only Notes in denominations of $1,000, or
integral multiples thereof, shall be purchased); and

 

(i)                                     that Holders whose Notes were purchased only in part shall
be issued new Notes equal in principal amount to the unpurchased portion of the
Notes surrendered (or transferred by book-entry transfer).

 

46

 

On or before the Purchase Date, Ahern Rentals
shall, to the extent lawful, accept for payment, on a pro rata
basis to the extent necessary, the Offer Amount of Notes or portions thereof
tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has
been tendered, all Notes tendered, and shall deliver to the Trustee an Officers’
Certificate stating that such Notes or portions thereof were accepted for
payment by Ahern Rentals in accordance with the terms of this Section
3.09.  Ahern Rentals, the Depositary or
the Paying Agent, as the case may be, shall promptly (but in any case not later
than five days after the Purchase Date) mail or deliver to each tendering
Holder an amount equal to the purchase price of the Notes tendered by such
Holder and accepted by Ahern Rentals for purchase, and Ahern Rentals shall
promptly issue a new Note, and the Trustee, upon written request from Ahern
Rentals shall authenticate and mail or deliver such new Note to such Holder, in
a principal amount equal to any unpurchased portion of the Note
surrendered.  Any Note not so accepted
shall be promptly mailed or delivered by Ahern Rentals to the Holder
thereof.  Ahern Rentals shall publicly
announce the results of the Asset Sale Offer on the Purchase Date.

 

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

 

ARTICLE 4.

COVENANTS

 

Section 4.01                                Payment
of Notes.

 

Ahern Rentals shall pay or cause to be paid
the principal of, premium, if any, and interest on the Notes on the dates and
in the manner provided in the Notes. 
Principal, premium, if any, and interest shall be considered paid on the
date due if the Paying Agent, if other than Ahern Rentals or a Subsidiary
thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by
Ahern Rentals in immediately available funds and designated for and sufficient
to pay all principal, premium, if any, and interest then due.

 

Ahern Rentals shall pay interest (including
post-petition interest in any proceeding under the Bankruptcy Code) on overdue
principal at the rate equal to 1% per annum in excess of the then applicable interest
rate on the Notes to the extent lawful; it shall pay interest (including
post-petition interest in any proceeding under the Bankruptcy Code) on overdue
installments of interest (without regard to any applicable grace period) at the
same rate to the extent lawful.

 

Section 4.02                                Maintenance
of Office or Agency.

 

Ahern Rentals shall maintain an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon Ahern Rentals
in respect of the Notes and this Indenture may be served.  Ahern Rentals shall give prompt written
notice to the Trustee of the location, and any change in the location, of such
office or agency.  If at any time Ahern
Rentals shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee.

 

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

 

47

 

Ahern Rentals hereby designates the Corporate
Trust Office of the Trustee as one such office or agency of Ahern Rentals in accordance
with Section 2.03.

 

Section 4.03                                Reports.

 

Whether or not required by the rules and
regulations of the SEC, so long as any Notes are outstanding, Ahern Rentals
will furnish to the Holders of Notes or cause the Trustee at Ahern Rentals’
expense to furnish to the Holders of Notes, within the time periods specified
in the SEC’s rules and regulations:

 

(1)                                  all quarterly and annual reports that would be required to
be filed with the SEC on Forms 10-Q and 10-K if Ahern Rentals were required to
file such reports; and

 

(2)                                  all current reports that would be required to be filed with
the SEC on Form 8-K if Ahern Rentals were required to file such reports.

 

All such reports will be prepared in all
material respects in accordance with all of the rules and regulations
applicable to such reports.  Each annual
report on Form 10-K will include a report on Ahern Rentals’ consolidated
financial statements by Ahern Rentals’ certified independent accountants.  In addition, following the completion of the
exchange offer contemplated by the registration rights agreement, Ahern Rentals
will file a copy of each of the reports referred to in clauses
(1) and (2) above with the SEC for public availability within the
time periods specified in the rules and regulations applicable to such reports
(unless the SEC will not accept such a filing) and will post the reports on its
website within those time periods.

 

If, at any time after completion of the
Exchange Offer contemplated by the Registration Rights Agreement, Ahern Rentals
is no longer subject to the periodic reporting requirements of the Exchange Act
for any reason, Ahern Rentals will nevertheless continue filing the reports
specified in the preceding paragraphs of this Section 4.03 with the SEC within
the time periods specified above unless the SEC will not accept such a
filing.  Ahern Rentals will not take any
action for the purpose of causing the SEC not to accept any such filings.  If, notwithstanding the foregoing, the SEC
will not accept Ahern Rentals’ filings for any reason, Ahern Rentals will post
the reports referred to in the preceding paragraphs on its website within the
time periods that would apply if Ahern Rentals were required to file those reports
with the SEC.

 

If Ahern Rentals has designated any of its
Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual
financial information required by the preceding paragraphs will include a
reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial
condition and results of operations of Ahern Rentals and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of Ahern Rentals.

 

In addition, Ahern Rentals agrees that, for
so long as any Notes remain outstanding, if at any time Ahern Rentals and the
Guarantors are not required to file with the SEC the reports required by the
preceding paragraphs, they will furnish to the Holders of Notes and to
securities analysts and prospective investors, upon their request, the
information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

 

48

 

Section 4.04                                Compliance
Certificate.

 

(a)                                  Ahern
Rentals and each Guarantor (to the extent that such Guarantor is so required
under the TIA) shall deliver to the Trustee, within 90 days after the end of
each fiscal year, an Officers’ Certificate stating that a review of the
activities of Ahern Rentals and its Subsidiaries or such Guarantor during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether Ahern Rentals or such Guarantor, if
any, has kept, observed, performed and fulfilled its obligations under this Indenture,
and further stating, as to each such Officer signing such certificate, that to
the best of his or her knowledge Ahern Rentals or such Guarantor has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default shall have occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action Ahern Rentals or
the applicable Guarantor is taking or proposes to take with respect thereto)
and that to the best of his or her knowledge no event has occurred and remains
in existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a description
of the event and what action Ahern Rentals or the applicable Guarantor is
taking or proposes to take with respect thereto.

 

(b)                                 So
long as not contrary to the then current recommendations of the American
Institute of Certified Public Accountants, the year-end financial statements
delivered pursuant to Section 4.03(a) above shall be accompanied by a written
statement of Ahern Rentals’ independent public accountants (who shall be a firm
of established national reputation) that in making the examination necessary
for certification of such financial statements, nothing has come to their
attention that would lead them to believe that Ahern Rentals has violated any
provisions of Article 4 or Article 5 hereof or, if any such violation has occurred,
specifying the nature and period of existence thereof, it being understood that
such accountants shall not be liable directly or indirectly to any Person for
any failure to obtain knowledge of any such violation.

 

(c)                                  Ahern
Rentals shall, so long as any of the Notes are outstanding, deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of
Default, an Officers’ Certificate specifying such Default or Event of Default
and what action Ahern Rentals is taking or proposes to take with respect
thereto.

 

Section 4.05                                Taxes.

 

Ahern Rentals shall pay, and shall cause each
of its Subsidiaries to pay, prior to delinquency, all material taxes,
assessments, and governmental levies except such as are contested in good faith
and by appropriate proceedings or where the failure to effect such payment is
not adverse in any material respect to the Holders of the Notes.

 

Section 4.06                                Stay,
Extension and Usury Laws.

 

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

 

49

 

Section 4.07                                Restricted
Payments.

 

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

 

(i)                                     declare
or pay any dividend or make any other payment or distribution on account of
Ahern Rentals’ or any of its Restricted Subsidiaries’ Equity Interests
(including, without limitation, any payment in connection with any merger or
consolidation involving Ahern Rentals or any of its Restricted Subsidiaries) or
to the direct or indirect holders of Ahern Rentals’ or any of its Restricted
Subsidiaries’ Equity Interests in their capacity as such (other than dividends
or distributions payable in Equity Interests (other than Disqualified Stock) of
Ahern Rentals and other than dividends or distributions to Ahern Rentals or a
Restricted Subsidiary of Ahern Rentals);

 

(ii)                                  purchase, redeem or otherwise acquire or retire for value
(including, without limitation, in connection with any merger or consolidation
involving Ahern Rentals) any Equity Interests of Ahern Rentals or any direct or
indirect parent of Ahern Rentals;

 

(iii)                               make
any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness of Ahern Rentals or any Guarantor
that is contractually subordinated to the Notes or to any Note Guarantee (excluding
any intercompany Indebtedness between or among Ahern Rentals and any of its
Restricted Subsidiaries), except a payment of interest or principal at the
Stated Maturity thereof; or

 

(iv)                              make any Restricted Investment

 

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

 

(1)                                  no Default or Event of Default has occurred and is continuing
or would occur as a consequence of such Restricted Payment;

 

(2)                                  Ahern
Rentals would, at the time of such Restricted Payment and after giving pro
forma effect thereto as if such Restricted Payment had been made at the
beginning of the applicable four-quarter period, have been permitted to incur
at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio Provision (as defined below); and

 

(3)                                  such
Restricted Payment, together with the aggregate amount of all other Restricted Payments
made by Ahern Rentals and its Restricted Subsidiaries since the date of this Indenture
(excluding Restricted Payments permitted by clauses (2), (3), (4), (7),
(8) and (9) of paragraph (b) below), is less than the sum, without
duplication, of:

 

(A)                              50%
of the Consolidated Net Income of Ahern Rentals for the period (taken as one
accounting period) from the beginning of the first fiscal quarter commencing
after the date of this Indenture to the end of Ahern Rentals’ most recently
ended fiscal quarter for which internal financial statements are available at
the time of such Restricted Payment (or, if such Consolidated Net Income for
such period is a deficit, less 100% of such deficit); plus

 

(B)                                100%
of the aggregate net cash proceeds received by Ahern Rentals since the date of
this Indenture as a contribution to its common equity capital or from the

 

50

 

issue or sale of Equity Interests of Ahern
Rentals (other than Disqualified Stock) or from the issue or sale of convertible
or exchangeable Disqualified Stock or convertible or exchangeable debt
securities of Ahern Rentals that have been converted into or exchanged for such
Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of Ahern Rentals); plus

 

(C)                                to
the extent that any Restricted Investment that was made after the date of this
indenture is sold for cash or otherwise liquidated or repaid for cash, the
lesser of (i) the cash return of capital with respect to such Restricted
Investment (less the cost of disposition, if any) and (ii) the initial
amount of such Restricted Investment; plus

 

(D)                               to
the extent that any Unrestricted Subsidiary of Ahern Rentals designated as such
after the date of this Indenture is redesignated as a Restricted Subsidiary after
the date of this Indenture, the lesser of (i) the Fair Market Value of
Ahern Rentals’ Investment in such Subsidiary as of the date of such redesignation
and (ii) such Fair Market Value as of the date on which such Subsidiary
was originally designated as an Unrestricted Subsidiary after the date of this
Indenture; plus

 

(E)                                 100%
of any dividends received by Ahern Rentals or a Restricted Subsidiary of Ahern
Rentals that is a Guarantor after the date of this Indenture from an
Unrestricted Subsidiary of Ahern Rentals, to the extent that such dividends
were not otherwise included in the Consolidated Net Income of Ahern Rentals for
such period.

 

(b)                                 The
provisions of Section 4.07(a) shall not prohibit:

 

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

 

(2)                                  the
making of any Restricted Payment in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a Subsidiary of
Ahern Rentals) of, Equity Interests of Ahern Rentals (other than Disqualified
Stock) or from the substantially concurrent contribution of common equity
capital to Ahern Rentals; provided that
the amount of any such net cash proceeds that are utilized for any such
Restricted Payment will be excluded from Section 4.07(a)(3)(B);

 

(3)                                  the repurchase, redemption, defeasance or other acquisition
or retirement for value of Indebtedness of Ahern Rentals or any Guarantor that
is contractually subordinated to the notes or to any Note Guarantee with the
net cash proceeds from a substantially concurrent incurrence of Permitted
Refinancing Indebtedness;

 

(4)                                  the payment of any dividend (or, in the case of any
partnership or limited liability company, any similar distribution) by a
Restricted Subsidiary of Ahern Rentals to the holders of its Equity Interests
on a pro rata basis;

 

(5)                                  the
declaration and payment of Permitted Shareholder Tax Distributions with respect
to a period during which Ahern Rentals is or was an S Corporation or a
partnership for U.S. federal income tax purposes; provided
that the shareholders of Ahern Rentals (or partners of Ahern Rentals, if Ahern
Rentals becomes a partnership for U.S. federal income tax purposes) apply such
Permitted Shareholder Tax Distribution (excluding amounts representing a
distribution

 

51

 

of cash necessary to make the total
distributions proportionate among shareholders (or partners)) to the payment of
taxes attributable to the income of Ahern Rentals (including any pass through
income recognized by Ahern Rentals with respect to any of its Subsidiaries)
within 30 days of such distribution;

 

(6)                                  so
long as no Default has occurred and is continuing or would be caused thereby,
the repurchase, redemption or other acquisition or retirement for value of any
Equity Interests of Ahern Rentals or any Restricted Subsidiary of Ahern Rentals
held by any current or former officer, director or employee of Ahern Rentals or
any of its Restricted Subsidiaries pursuant to any equity subscription
agreement, stock option agreement, shareholders’ agreement or similar
agreement; provided that the aggregate price paid
for all such repurchased, redeemed, acquired or retired Equity Interests may
not exceed $250,000 in any twelve-month period;

 

(7)                                  the repurchase of Equity Interests deemed to occur upon the
exercise of stock options to the extent such Equity Interests represent a
portion of the exercise price of those stock options;

 

(8)                                  so
long as no Default has occurred and is continuing or would be caused thereby,
the declaration and payment of regularly scheduled or accrued dividends to
holders of any class or series of Disqualified Stock of Ahern Rentals or any
Restricted Subsidiary of Ahern Rentals issued on or after the date of this
Indenture in accordance with the Fixed Charge Coverage Ratio Provision; and

 

(9)                                  so
long as no Default has occurred and is continuing or would be caused thereby,
other Restricted Payments in an aggregate amount not to exceed
$5.0 million.

 

The amount of all Restricted Payments (other
than cash) will be the Fair Market Value on the date of the Restricted Payment
of the asset(s) or securities proposed to be transferred or issued by Ahern
Rentals or such Restricted Subsidiary, as the case may be, pursuant to the
Restricted Payment.  The Fair Market
Value of any assets or securities (other than assets or securities with a
public trading market) that are required to be valued by this Section 4.07 will
be determined by the Board of Directors of Ahern Rentals whose resolution with
respect thereto will be delivered to the Trustee.  The Board of Directors’ determination must be
based upon an opinion or appraisal issued by an accounting, appraisal or
investment banking firm of national standing if the Fair Market Value exceeds
$5.0 million.

 

Section 4.08                                Dividend
and Other Payment Restrictions Affecting Subsidiaries.

 

(a)                                  Ahern
Rentals shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create or permit to exist or become effective any
consensual encumbrance or restriction on the ability of any Restricted
Subsidiary to:

 

(1)                                  pay
dividends or make any other distributions on its Capital Stock to Ahern Rentals
or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits, or pay any indebtedness owed to
Ahern Rentals or any of its Restricted Subsidiaries;

 

(2)                                  make loans or advances to Ahern Rentals or any of its
Restricted Subsidiaries; or

 

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

 

52

 

(b)                                 However,
the preceding restrictions in Section 4.08(a) will not apply to
encumbrances or restrictions existing under or by reason of:

 

(1)                                  agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date
of this Indenture and any amendments, restatements, modifications, renewals,
supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications,
renewals, supplements, refundings, replacements or refinancings are not
materially more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in those agreements on the
date of this Indenture;

 

(2)                                  this Indenture, the Notes and the Note Guarantees;

 

(3)                                  applicable law, rule, regulation or order;

 

(4)                                  any
instrument governing Indebtedness or Capital Stock of a Person acquired by
Ahern Rentals or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness or Capital Stock was incurred
in connection with or in contemplation of such acquisition), which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person, or the property or assets of the Person, so acquired;
provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to
be incurred;

 

(5)                                  customary non-assignment provisions in contracts and
licenses entered into in the ordinary course of business;

 

(6)                                  purchase
money obligations for property acquired in the ordinary course of business and
Capital Lease Obligations that impose restrictions on the property purchased or
leased of the nature described in Section 4.08(a)(3);

 

(7)                                  any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending the sale or other disposition;

 

(8)                                  Permitted
Refinancing Indebtedness; provided that
the restrictions contained in the agreements governing such Permitted
Refinancing Indebtedness are not materially more restrictive, taken as a whole,
than those contained in the agreements governing the Indebtedness being
refinanced;

 

(9)                                  Liens
permitted to be incurred under the provisions of Section 4.12 that limit
the right of the debtor to dispose of the assets subject to such Liens;

 

(10)                            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, which limitation is applicable only to
the assets or property that are the subject of such agreements and, if the
assets or property subject to any such agreement have an aggregate Fair Market
Value of more than $10.0 million, such agreement has been entered into
with the approval of Ahern Rentals’ Board of Directors; and

 

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

 

53

 

Section 4.09                                Incurrence
of Indebtedness and Issuance of Preferred Stock.

 

(a)                                  Ahern
Rentals shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect
to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and Ahern Rentals shall not issue any
Disqualified Stock and shall not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that Ahern Rentals may incur Indebtedness
(including Acquired Debt) or issue Disqualified Stock, and Ahern Rentals’
Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or
issue preferred stock, if the Fixed Charge Coverage Ratio for Ahern Rentals’
most recently ended four full fiscal quarters for which internal financial statements
are available immediately preceding the date on which such additional
Indebtedness is incurred or such Disqualified Stock or preferred stock is
issued, as the case may be, would have been at least 2.25 to 1.00 (the “Fixed Charge Coverage Ratio Provision”), determined on a pro
forma basis (including a pro forma application of the net proceeds therefrom),
as if the additional Indebtedness had been incurred or the Disqualified Stock
or the preferred stock had been issued, as the case may be, at the beginning of
such four-quarter period.

 

(b)                                 The
provisions of Section 4.09(a) will not prohibit the incurrence of any of
the following items of Indebtedness (collectively, “Permitted
Debt”):

 

(1)                                  the
incurrence by Ahern Rentals and any of its Restricted Subsidiaries of
additional Indebtedness and letters of credit under Credit Facilities in an
aggregate principal amount at any one time outstanding under this
clause (1) (with letters of credit being deemed to have a principal amount
equal to the maximum potential liability of Ahern Rentals and its Restricted
Subsidiaries thereunder) not to exceed the greater of
(a) $175.0 million and (b) the sum of (I) 85% of accounts receivable,
plus (II) the lesser of (A) 85% net orderly liquidation value of
rental and sale equipment and other equipment (including transportation
equipment but excluding aircraft) and (B) 95% of net book value of rental
and sale equipment and other equipment (including transportation equipment but
excluding aircraft), plus (III) the lesser of (A) 85% of net orderly
liquidation value of spare parts and merchandise inventory and (B) 60% of
net book value of spare parts and merchandise inventory, in the case of each of
(a) and (b) less the aggregate amount of all Net Proceeds of Asset
Sales applied by Ahern Rentals or any of its Restricted Subsidiaries since the
date of this Indenture to repay any term Indebtedness under a Credit Facility
or to repay any revolving credit Indebtedness under a Credit Facility and
effect a corresponding commitment reduction thereunder pursuant to Section
4.10;

 

(2)                                  the incurrence by Ahern Rentals and its Restricted
Subsidiaries of the Existing Indebtedness;

 

(3)                                  the incurrence by Ahern Rentals of Indebtedness represented
by the Notes to be issued on the date of this Indenture and the Exchange Notes
to be issued pursuant to the Registration Rights Agreement;

 

(4)                                  the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money
obligations, in each case, incurred for the purpose of financing all or any
part of the purchase price or cost of design, construction, installation or
improvement of property, plant or equipment used in the business of Ahern
Rentals or any of its Restricted Subsidiaries, in an aggregate principal
amount, including all Permitted Refinancing Indebtedness incurred to renew,
refund, refinance, replace, defease or discharge any Indebtedness incurred
pursuant to this clause (4), not to exceed $20.0 million at any time
outstanding;

 

54

 

(5)                                  the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used
to renew, refund, refinance, replace, defease or discharge, any Indebtedness
(other than intercompany Indebtedness) that was permitted by this Indenture to
be incurred pursuant to Section 4.09(a) or clause (2), (3), (4),
(5) or (12) of this Section 4.09(b);

 

(6)                                  the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among Ahern Rentals and any of its
Restricted Subsidiaries; provided, however, that:

 

(a)                                  if
Ahern Rentals or any Guarantor is the obligor on such Indebtedness and the
payee is not Ahern Rentals or a Guarantor, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations then due
with respect to the Notes, in the case of Ahern Rentals, or the Note Guarantee,
in the case of a Guarantor; and

 

(b)                                 (i) any
subsequent issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than Ahern Rentals or a Restricted
Subsidiary of Ahern Rentals and (ii) any sale or other transfer of any
such Indebtedness to a Person that is not either Ahern Rentals or a Restricted
Subsidiary of Ahern Rentals, will be deemed, in each case, to constitute an incurrence
of such Indebtedness by Ahern Rentals or such Restricted Subsidiary, as the
case may be, that was not permitted by this clause (6);

 

(7)                                  the
issuance by any of Ahern Rentals’ Restricted Subsidiaries to Ahern Rentals or
to any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

 

(a)                                  any
subsequent issuance or transfer of Equity Interests that results in any such
preferred stock being held by a Person other than Ahern Rentals or a Restricted
Subsidiary of Ahern Rentals and

 

(b)                                 any sale or other transfer of any such preferred stock to a
Person that is not either Ahern Rentals or a Restricted Subsidiary of Ahern
Rentals

 

will be deemed,
in each case, to constitute an issuance of such preferred stock by such
Restricted Subsidiary that was not permitted by this clause (7);

 

(8)                                  the incurrence by Ahern Rentals or any of its Restricted
Subsidiaries of Hedging Obligations in the ordinary course of business;

 

(9)                                  the
guarantee by Ahern Rentals or any of its Restricted Subsidiaries of Indebtedness
of Ahern Rentals or a Restricted Subsidiary of Ahern Rentals that was permitted
to be incurred by another provision of this Section 4.09; provided
that if the Indebtedness being guaranteed is subordinated to the notes, then
the guarantee shall be subordinated to the same extent as the Indebtedness
guaranteed; provided  further
that any Restricted Subsidiary of Ahern Rentals that guarantees other
Indebtedness pursuant to this clause (9) also shall concurrently
guarantee, or already be a Guarantor with respect to, the Notes pursuant to Section
4.19;

 

(10)                            the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of Indebtedness
in respect of workers’ compensation claims, self-insurance obligations, bankers’
acceptances, performance and surety bonds in the ordinary course of business;

 

55

 

(11)                            the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against
insufficient funds, so long as such Indebtedness is covered within five
business days; and

 

(12)                            the
incurrence by Ahern Rentals or any of its Restricted Subsidiaries of additional
Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding, including all Permitted Refinancing Indebtedness
incurred to renew, refund, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (12), not to exceed
$5.0 million.

 

Ahern Rentals shall not incur, and shall not
permit any Guarantor to incur, any Indebtedness (including Permitted Debt) that
is contractually subordinated in right of payment to any other Indebtedness of
Ahern Rentals or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee
on substantially identical terms; provided, however, that no Indebtedness will be deemed to be contractually
subordinated in right of payment to any other Indebtedness of Ahern Rentals
solely by virtue of being unsecured or by virtue of being secured on a first or
junior Lien basis.

 

For purposes of determining compliance with
this Section 4.09, in the event that an item of proposed Indebtedness
meets the criteria of more than one of the categories of Permitted Debt
described in clauses (b)(1) through (b)(12) above, or is entitled to
be incurred pursuant to Section 4.09(a), Ahern Rentals will be permitted
to classify such item of Indebtedness on the date of its incurrence, or later
reclassify all or a portion of such item of Indebtedness, in any manner that
complies with this Section 4.09. 
Indebtedness under Credit Facilities outstanding on the date on which
notes are first issued and authenticated under this Indenture will initially be
deemed to have been incurred on such date in reliance on the exception provided
by clause (1) of the definition of “Permitted Debt.”

 

The accrual of interest, the accretion or
amortization of original issue discount, the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms, the
reclassification of preferred stock as Indebtedness due to a change in
accounting principles, and the payment of dividends on Disqualified Stock in
the form of additional shares of the same class of Disqualified Stock will not
be deemed to be an incurrence of Indebtedness or an issuance of Disqualified
Stock for purposes of this Section 4.09; provided, in
each such case, that the amount of any such accrual, accretion or payment is included
in Fixed Charges of Ahern Rentals as accrued. 
Notwithstanding any other provision of this Section 4.09, the
maximum amount of Indebtedness that Ahern Rentals or any Restricted Subsidiary
may incur pursuant to this Section 4.09 shall not be deemed to be exceeded
solely as a result of fluctuations in exchange rates or currency values.

 

The amount of any Indebtedness outstanding as
of any date will be:

 

(1)                                  the accreted value of the Indebtedness, in the case of any
Indebtedness issued with original issue discount;

 

(2)                                  the principal amount of the Indebtedness, in the case of any
other Indebtedness; and

 

(3)                                  in respect of Indebtedness of another Person secured by a
Lien on the assets of the specified Person, the lesser of:

 

(a)                                  the Fair Market Value of such assets at the date of
determination; and

 

56

 

(b)                                 the amount of the Indebtedness of the other Person.

 

Section 4.10                                Asset
Sales.

 

(a)                                  Ahern
Rentals shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

 

(1)                                  Ahern
Rentals (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the Fair Market
Value of the assets or Equity Interests issued or sold or otherwise disposed
of;

 

(2)                                  at least 75% of the consideration received in the Asset Sale
by Ahern Rentals or such Restricted Subsidiary is in the form of cash.  For purposes of this provision, each of the
following will be deemed to be cash:

 

(a)                                  any
liabilities, as shown on Ahern Rentals’ most recent consolidated balance sheet,
of Ahern Rentals or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the notes
or any Note Guarantee) that are assumed by the transferee of any such assets
pursuant to a customary novation agreement that releases Ahern Rentals or such
Restricted Subsidiary from further liability;

 

(b)                                 any
securities, notes or other obligations received by Ahern Rentals or any such
Restricted Subsidiary from such transferee that are contemporaneously, subject
to ordinary settlement periods, converted by Ahern Rentals or such Restricted
Subsidiary into cash, to the extent of the cash received in that conversion;
and

 

(c)                                  any stock or assets of the kind referred to in
Section 4.10(b)(2) or (4); and

 

(3)                                  in
the case of an Asset Sale that constitutes a Sale of Collateral or a Casualty
Event occurring after the Discharge of Priority Lien Obligations, Ahern Rentals
(or the Restricted Subsidiary, as the case may be) shall deposit the Net
Proceeds from such Asset Sale or Casualty Event as cash collateral in a
segregated account held by the Collateral Trustee or its agent to secure the
Secured Obligations pending application of the Net Proceeds otherwise in
accordance with this Section 4.10.

 

Pending the final application of any Net
Proceeds, Ahern Rentals may temporarily reduce revolving credit borrowings.

 

(b)                                 Within
360 days after the receipt of any Net Proceeds from an Asset Sale, Ahern
Rentals (or the applicable Restricted Subsidiary, as the case may be) may apply
such Net Proceeds, at its option:

 

(1)                                  to
repay Priority Lien Debt and, if such Priority Lien Debt is revolving credit
Indebtedness (except for temporary reductions contemplated in the immediately
preceding paragraph), to correspondingly reduce commitments with respect
thereto;

 

(2)                                  to
acquire all or substantially all of the assets of, or any Capital Stock of,
another Permitted Business, if, after giving effect to any such acquisition of
Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of
Ahern Rentals;

 

57

 

(3)                                  to
make a capital expenditure; or

 

(4)                                  to acquire other assets that are not classified as current
assets under GAAP and that are used or useful in a Permitted Business.

 

Any Net Proceeds from Asset Sales that are
not applied or invested as provided in this Section 4.10(b) will constitute “Excess Proceeds.” 
When the aggregate amount of Excess Proceeds exceeds $10.0 million,
within 30 days thereof, Ahern Rentals shall make an Asset Sale Offer to
all Holders of Notes and all holders of Parity Lien Debt containing provisions
similar to those set forth in this Indenture with respect to offers to purchase
or redeem with the proceeds of sales of assets to purchase the maximum
principal amount of Notes and such Parity Lien Debt that may be purchased out
of the Excess Proceeds.  The offer price
in any Asset Sale Offer will be equal to 100% of the principal amount plus
accrued and unpaid interest and Additional Interest, if any, to the date of
purchase, and will be payable in cash. 
If any Excess Proceeds remain after consummation of an Asset Sale Offer,
Ahern Rentals may use those Excess Proceeds for any purpose not otherwise
prohibited by this Indenture.  If the
aggregate principal amount of Notes and Parity Lien Debt tendered into such
Asset Sale Offer exceeds the amount of Excess Proceeds, Ahern Rentals will
select the Notes and such Parity Lien Debt to be purchased on a pro rata basis.  Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds will be
reset at zero.

 

Ahern Rentals shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent those laws and regulations are applicable
in connection with each repurchase of notes pursuant to an Asset Sale
Offer.  To the extent that the provisions
of any securities laws or regulations conflict with the Asset Sale provisions
of this Indenture, Ahern Rentals will comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations
under the Asset Sale provisions of this Indenture by virtue of such compliance.

 

Section 4.11                                Transactions
with Affiliates.

 

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

 

(1)                                  the
Affiliate Transaction is on terms that are not materially less favorable to
Ahern Rentals or the relevant Restricted Subsidiary than those that would have
been obtained in a comparable transaction by Ahern Rentals or such Restricted
Subsidiary with an unrelated Person; and

 

(2)                                  Ahern
Rentals delivers to the Trustee:

 

(a)                                  with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $3.0 million,
a resolution of the Board of Directors of Ahern Rentals set forth in an
Officers’ Certificate certifying that such Affiliate Transaction complies with
this Section 4.11(a) and that such Affiliate Transaction has been approved
by a majority of the disinterested members of the Board of Directors of Ahern
Rentals; and

 

(b)                                 with
respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $7.5 million,
an opinion as to the fairness to Ahern Rentals or such Subsidiary of such
Affiliate Transaction from a financial

 

58

 

point
of view issued by an accounting, appraisal or investment banking firm of
national standing.

 

(b)                                 The
following items will not be deemed to be Affiliate Transactions and, therefore,
will not be subject to the provisions of Section 4.11(a):

 

(1)                                  any
employment agreement, employee benefit plan, officer or director
indemnification agreement or any similar arrangement entered into by Ahern
Rentals or any of its Restricted Subsidiaries in the ordinary course of
business and payments pursuant thereto;

 

(2)                                  transactions between or among Ahern Rentals and/or its
Restricted Subsidiaries;

 

(3)                                  transactions
with a Person (other than an Unrestricted Subsidiary of Ahern Rentals) that is
an Affiliate of Ahern Rentals solely because Ahern Rentals owns, directly or
through a Restricted Subsidiary, an Equity Interest in, or controls, such
Person;

 

(4)                                  payment of reasonable directors’ fees to Persons who are not
otherwise Affiliates of Ahern Rentals;

 

(5)                                  any issuance of Equity Interests (other than Disqualified
Stock) of Ahern Rentals to Affiliates of Ahern Rentals;

 

(6)                                  Restricted
Payments and Permitted Investments that are permitted by Section 4.07
hereof;

 

(7)                                  loans or advances to employees in the ordinary course of
business not to exceed $1.0 million in the aggregate at any one time
outstanding; and

 

(8)                                  purchases
of equipment and related parts from Affiliates of Ahern Rentals in the ordinary
course of business; provided that
such purchases are on terms that are not materially less favorable to Ahern
Rentals or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by Ahern Rentals or such Restricted
Subsidiary with an unrelated Person; provided, further that to the extent the aggregate amount of such
purchases exceeds $15 million during any fiscal year, Ahern Rentals delivers to
the Trustee a resolution of the Board of Directors of Ahern Rentals set forth
in an Officers’ Certificate certifying that such purchases comply with the
provisions set forth above in this clause (8) and that such purchases have
been approved, in the aggregate, by a majority of the disinterested members of
the Board of Directors of Ahern Rentals.

 

Section 4.12                                Liens.

 

Ahern Rentals shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, create, incur,
assume or suffer to exist any Lien of any kind on any
asset now owned or hereafter acquired, except Permitted Liens.

 

Section 4.13                                Corporate
Existence.

 

Subject to Article 5 hereof, Ahern Rentals
shall do or cause to be done all things necessary to preserve and keep in full
force and effect (i) its corporate existence, and the corporate, partnership or
other existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of
Ahern Rentals or any such Subsidiary and (ii) the rights

 

59

 

(charter and statutory), licenses and
franchises of Ahern Rentals and its Subsidiaries; provided,
however, that Ahern Rentals shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of Ahern Rentals and its Subsidiaries, taken as
a whole, and that the loss thereof is not adverse in any material respect to
the Holders of the Notes.

 

Section 4.14                                Offer
to Repurchase upon Change of Control.

 

(a)                                  Upon
the occurrence of a Change of Control, Ahern Rentals shall make an offer (a “Change of Control Offer”) to each Holder to repurchase all
or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s
Notes at a purchase price equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest on the Notes
repurchased, if any, to the date of purchase (the “Change of
Control Payment”). Within 10 days following any Change of Control,
Ahern Rentals shall mail a notice to each Holder describing the transaction or
transactions that constitute the Change of Control and stating:

 

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

 

(2)                                  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 business days from the date such notice is mailed (the “Change of Control Payment
Date”);

 

(3)                                  that any Note not tendered will continue to accrue interest;

 

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

 

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

 

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

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an integral
multiple thereof.

 

Ahern Rentals shall comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change in Control.  To the extent that the provisions of any
securities laws or regulations conflict with the provisions of Section 3.09 or
4.14 of this

 

60

 

Indenture, Ahern Rentals will comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 or this Section 4.14 by virtue of
such conflict.

 

(b)                                 On
the Change of Control Payment Date, Ahern Rentals will, to the extent lawful:

 

(1)                                  accept for payment all Notes or portions of Notes properly
tendered pursuant to the Change of Control Offer;

 

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

 

(3)                                  deliver or cause to be delivered to the Trustee the Notes
properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by Ahern
Rentals.

 

The Paying Agent will promptly pay to each
Holder of Notes properly tendered the Change of Control Payment for such Notes,
and the Trustee will promptly authenticate and mail (or cause to be transferred
by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided
that each new Note will be in a principal amount of $1,000 or an integral
multiple of $1,000.  Ahern Rentals will
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

 

(c)                                  Ahern
Rentals will not be required to make a Change of Control Offer upon a Change of
Control if (1) a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set
forth in this Indenture applicable to a Change of Control Offer made by Ahern
Rentals and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer or (2) notice of redemption has been given
pursuant to this Indenture as described above in Section 3.07, unless and
until there is a default in payment of the applicable redemption price.

 

Section 4.15                                Payments
for Consent.

 

Ahern Rentals shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to
be paid any consideration to or for the benefit of any Holder of Notes 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 and is paid to all Holders of the Notes that consent, waive or agree
to amend in the time frame set forth in the solicitation documents relating to
such consent, waiver or agreement.

 

Section 4.16                                Limitation
on Sale and Leaseback Transactions.

 

Ahern Rentals shall not, and shall not permit
any of its Restricted Subsidiaries to, enter into any sale and leaseback transaction;
provided that Ahern Rentals or any
Restricted Subsidiary may enter into a sale and leaseback transaction if:

 

(1)                                  Ahern
Rentals or that Restricted Subsidiary, as applicable, could have
(a) incurred Indebtedness in an amount equal to the Attributable Debt
relating to such sale and leaseback transaction under the Fixed Charge Coverage
Ratio Provision and (b) incurred a Lien to secure such Indebtedness
pursuant to Section 4.12;

 

(2)                                  the gross cash proceeds of that sale and leaseback
transaction are at least equal to the Fair Market Value, as determined in good
faith by the Board of Directors of Ahern Rentals

 

61

 

and set forth in an Officers’ Certificate
delivered to the Trustee, of the property that is the subject of that sale and
leaseback transaction; and

 

(3)                                  the transfer of assets in that sale and leaseback
transaction is permitted by, and Ahern Rentals applies the proceeds of such
transaction in compliance with, Section 4.10.

 

Section 4.17                                Business
Activities.

 

Ahern Rentals shall not, and shall not permit
any of its Restricted Subsidiaries to, engage in any business other than Permitted
Businesses, except to such extent as would not be material to Ahern Rentals and
its Restricted Subsidiaries taken as a whole.

 

Section 4.18                                Designation
of Restricted and Unrestricted Subsidiaries.

 

The Board of Directors of Ahern Rentals may
designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that
designation would not cause a Default. 
If a Restricted Subsidiary is designated as an Unrestricted Subsidiary,
the aggregate Fair Market Value of all outstanding Investments owned by Ahern
Rentals and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted
will be deemed to be an Investment made as of the time of the designation and
will reduce the amount available for Restricted Payments under Section 4.07
or under one or more clauses of the definition of Permitted Investments, as
determined by Ahern Rentals.  That
designation will only be permitted if the Investment would be permitted at that
time and if the Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.  The Board of Directors of
Ahern Rentals may redesignate any Unrestricted Subsidiary to be a Restricted
Subsidiary if that redesignation would not cause a Default.

 

Any designation of a Subsidiary of Ahern
Rentals as an Unrestricted Subsidiary will be evidenced to the Trustee by
filing with the Trustee a certified copy of a resolution of the Board of
Directors giving effect to such designation and an Officers’ Certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 4.07.  If, at
any time, any Unrestricted Subsidiary would fail to meet the requirements as an
Unrestricted Subsidiary (including failure to meet the definition of an
Unrestricted Subsidiary), it will thereafter cease to be an Unrestricted Subsidiary
for purposes of this Indenture and any Indebtedness of such Subsidiary will be
deemed to be incurred by a Restricted Subsidiary of Ahern Rentals as of such
date and, if such Indebtedness is not permitted to be incurred as of such date
under Section 4.09, Ahern Rentals will be in default of Section 4.09.

 

The Board of Directors of Ahern Rentals may
at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary
of Ahern Rentals; provided that such designation
will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary
of Ahern Rentals of any outstanding Indebtedness of such Unrestricted
Subsidiary, and such designation will only be permitted if (1) such
Indebtedness is permitted under Section 4.09, calculated on a pro forma
basis as if such designation had occurred at the beginning of the four-quarter
reference period; and (2) no Default or Event of Default would be in existence
following such designation.

 

Section 4.19                                Limitation
on Issuances of Guarantees of Indebtedness.

 

Ahern Rentals shall not permit any of its
Restricted Subsidiaries, directly or indirectly, to guarantee the payment of
any other Indebtedness of Ahern Rentals unless such Restricted Subsidiary
simultaneously (i) executes and delivers a supplemental indenture
providing for the guarantee of the payment of the Notes by such Restricted
Subsidiary, which guarantee will be senior to or pari passu
with such Restricted Subsidiary’s guarantee of such other Indebtedness and
(ii) becomes a party to each Security Document in which Ahern Rentals is a
party.

 

62

 

The Note Guarantee of a Guarantor shall
automatically and unconditionally be released:

 

(1)                                  in
connection with any sale or other disposition of all or substantially all of
the assets of that Guarantor (including by way of merger or consolidation) to a
Person that is not (either before or after giving effect to such transaction)
Ahern Rentals or a Restricted Subsidiary of Ahern Rentals, if the sale or other
disposition does not violate Sections 3.09 and 4.10;

 

(2)                                  in connection with any sale or other disposition of all of
the Capital Stock of that Guarantor to a Person that is not (either before or
after giving effect to such transaction) Ahern Rentals or a Restricted
Subsidiary of Ahern Rentals, if the sale or other disposition does not violate
Sections 3.09 and 4.10;

 

(3)                                  if
Ahern Rentals designates any Restricted Subsidiary that is a Guarantor to be an
Unrestricted Subsidiary in accordance with the applicable provisions of this
Indenture;

 

(4)                                  upon
legal defeasance or satisfaction and discharge of this Indenture as provided in
Articles 8 and 11 hereof, or

 

(5)                                  in accordance with the terms of the Intercreditor Agreement.

 

ARTICLE 5.

SUCCESSORS

 

Section 5.01                                Merger,
Consolidation or Sale of Assets.

 

Ahern Rentals shall not, directly or
indirectly:  (1) consolidate or
merge with or into another Person; or (2) sell, assign, transfer, convey
or otherwise dispose of all or substantially all of the properties or assets of
Ahern Rentals and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to another Person, unless:

 

(1)                                  either:  (a) Ahern Rentals is the surviving
corporation; or (b) the Person formed by or surviving any such consolidation
or merger (if other than Ahern Rentals) or to which such sale, assignment,
transfer, conveyance or other disposition has been made is a corporation organized
or existing under the laws of the United States, any state of the United States
or the District of Columbia;

 

(2)                                  the
Person formed by or surviving any such consolidation or merger (if other than
Ahern Rentals) or the Person to which such sale, assignment, transfer,
conveyance or other disposition has been made assumes all the obligations of
Ahern Rentals under the Notes, this Indenture and the Registration Rights
Agreement pursuant to agreements reasonably satisfactory to the Trustee;

 

(3)                                  immediately
after such transaction, no Default or Event of Default exists; and

 

(4)                                  Ahern
Rentals or the Person formed by or surviving any such consolidation or merger
(if other than Ahern Rentals), or to which such sale, assignment, transfer,
conveyance or other disposition has been made will, on the date of such transaction
after giving pro forma effect thereto and any related financing transactions as
if the same had occurred at the beginning of the applicable four-quarter
period, be permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio Provision.

 

63

 

In addition, Ahern Rentals shall not,
directly or indirectly, lease all or substantially all of the properties and
assets of it and its Restricted Subsidiaries taken as a whole, in one or more
related transactions, to any other Person.

 

This Section 5.01 will not apply to:

 

(1)                                  a
merger of Ahern Rentals with an Affiliate solely for the purpose of
reincorporating Ahern Rentals in another jurisdiction; or

 

(2)                                  any
consolidation or merger, or any sale, assignment, transfer, conveyance, lease
or other disposition of assets between or among Ahern Rentals and any of its
Restricted Subsidiaries.

 

Section 5.02                                Successor
Corporation Substituted.

 

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

 

ARTICLE 6.

DEFAULTS AND REMEDIES

 

Section 6.01                                Events
of Default.

 

Each of the following is an “Event of Default”:

 

(1)                                  default
for 30 days in the payment when due of interest on, or Additional
Interest, if any, with respect to, the Notes;

 

(2)                                  default
in the payment when due (at maturity, upon redemption or otherwise) of the
principal of, or premium, if any, on, the Notes;

 

(3)                                  failure
by Ahern Rentals or any of its Restricted Subsidiaries for 30 days after
notice to Ahern Rentals by the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding voting as a single
class to comply with Section 4.07, 4.09, 4.10, 4.14 or 5.01;

 

(4)                                  failure
by Ahern Rentals or any of its Restricted Subsidiaries for 60 days after
notice to Ahern Rentals by the Trustee or the Holders of at least 25% in
aggregate principal amount of the Notes then outstanding voting as a single
class to comply with any of the other agreements in this Indenture;

 

64

 

(5)                                  default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by Ahern Rentals or any of its Restricted Subsidiaries (or the payment of which
is guaranteed by Ahern Rentals or any of its Restricted Subsidiaries), whether
such Indebtedness or guarantee now exists, or is created after the date of this
Indenture, if that default:

 

(a)                                  is
caused by a failure to pay a scheduled payment or payment at maturity of
principal of, or interest or premium, if any, on, such Indebtedness prior to
the expiration of the grace period provided in such Indebtedness on the date of
such default (a “Payment Default”); or

 

(b)                                 results
in the acceleration of such Indebtedness prior to its express maturity,

 

and, in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which
there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $5.0 million or more;

 

(6)                                  failure
by Ahern Rentals or any of its Restricted Subsidiaries to pay final judgments
entered by a court or courts of competent jurisdiction aggregating in excess of
$5.0 million, which judgments are not paid, discharged or stayed for a
period of 60 days;

 

(7)                                  the
occurrence of any of the following:

 

(a)                                  except
as permitted by this Indenture, any security document ceases for any reason to
be fully enforceable; provided that
it will not be an Event of Default under this clause (7)(a) if the sole
result of the failure of one or more Security Documents to be fully enforceable
is that any Parity Lien purported to be granted under such Security Documents
on Collateral, individually or in the aggregate, having a Fair Market Value of
not more than $5.0 million ceases to be an enforceable and perfected
second-priority security interest and, in the case of Collateral consisting of
titled vehicles, ceases to be an enforceable second-priority security interest,
subject only to Permitted Prior Liens;

 

(b)                                 any
Parity Lien purported to be granted under any security document on Collateral,
individually or in the aggregate, having a Fair Market Value in excess of
$5.0 million ceases to be an enforceable and perfected second-priority
security interest and, in the case of Collateral consisting of titled vehicles,
ceases to be an enforceable second-priority security interest, subject only to
Permitted Prior Liens; or

 

(c)                                  Ahern
Rental or any other Pledgor, or any Person acting on behalf of any of them,
denies or disaffirms, in writing, any obligation of Ahern Rental or any other
Pledgor set forth in or arising under any security document;

 

(8)                                  except
as permitted by this Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in
full force and effect, or any Guarantor, or any Person acting on behalf of any
Guarantor, denies or disaffirms its obligations under its Note Guarantee;

 

(9)                                  Ahern
Rentals or any of its Significant Subsidiaries or any group of Restricted
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary
pursuant to or within the meaning of the Bankruptcy Code:

 

65

 

(A)                              commences
a voluntary case,

 

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

 

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

 

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

 

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

 

(10)                            a
court of competent jurisdiction enters an order or decree under the Bankruptcy
Code that:

 

(A)                              is
for relief against Ahern Rentals or any of its Significant Subsidiaries or any
group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary in an involuntary case;

 

(B)                                appoints
a custodian of Ahern Rentals or any of its Significant Subsidiaries or any
group of Restricted Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary or for all or substantially all of the property of Ahern Rentals or
any of its Significant Subsidiaries or any group of Restricted Subsidiaries
that, taken as a whole, would constitute a Significant Subsidiary; or

 

(C)                                orders
the liquidation of Ahern Rentals or any of its Significant Subsidiaries or any
group of Restricted Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary;

 

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

 

Section 6.02                                Acceleration.

 

In the case of an Event of Default specified
in clause (9) or (10) of Section 6.01 hereof, all outstanding Notes
will become due and payable immediately without further action or notice.  If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable immediately
by giving notice in writing to Ahern Rentals and the Trustee specifying the
respective Event of Default (the “Acceleration Notice”).

 

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

 

In the case of any Event of Default occurring
by reason of any willful action (or inaction) taken (or not taken) by or on
behalf of Ahern Rentals with the intention of avoiding payment of the premium
that Ahern Rentals would have had to pay if Ahern Rentals then had elected to
redeem the Notes pursuant to Section 3.07, an equivalent premium will also
become and be immediately due and payable to the extent

 

66

 

permitted by law upon the acceleration of the
Notes.  If an Event of Default occurs
prior to August 15, 2009, by reason of any willful action (or inaction)
taken (or not taken) by or on behalf of Ahern Rentals with the intention of
avoiding the prohibition on redemption of the Notes prior to August 15,
2009, then, upon acceleration of the Notes, an additional premium shall also
become and be immediately due and payable in an amount, for each of the years
beginning on August 15 of the years set forth below, as set forth below (expressed
as a percentage of the principal amount of the Notes on the date of payment
that would otherwise be due but for the provisions of this sentence):

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  109.250

  	
  %

  
	
  2006

  	
   

  	
  108.094

  	
  %

  
	
  2007

  	
   

  	
  106.938

  	
  %

  
	
  2008

  	
   

  	
  105.781

  	
  %

  

 

Section 6.03                                Other
Remedies.

 

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

 

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

 

Section 6.04                                Waiver
of Past Defaults.

 

Holders of not less than a majority in
aggregate principal amount of the then outstanding Notes by notice to the
Trustee may on behalf of the Holders of all of the Notes waive an existing
Default or Event of Default and its consequences hereunder, except a continuing
Default or Event of Default in the payment of the principal of, premium, if
any, or interest on, the Notes (including in connection with an offer to
purchase) (provided, however,
that the Holders of a majority in aggregate principal amount of the then outstanding
Notes may rescind an acceleration and its consequences, including any related
payment default that resulted from such acceleration).  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

Section 6.05                                Control
by Majority.

 

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

 

67

 

Section 6.06                                Limitation
on Suits.

 

A Holder of a Note may pursue a remedy with
respect to this Indenture or the Notes only if:

 

(a)                                  the
Holder of a Note gives to the Trustee written notice that an Event of Default
is continuing;

 

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

 

(c)                                  such
Holder of a Note or Holders of Notes offer and, if requested, provide to the
Trustee reasonable security or indemnity against any loss, liability or
expense;

 

(d)                                 the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of security or
indemnity; and

 

(e)                                  the
Holders of a majority in principal amount of the then outstanding Notes do not
give the Trustee a direction inconsistent with the request within such 60-day
period.

 

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

 

Section 6.07                                Rights
of Holders of Notes to Receive Payment.

 

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

 

Section 6.08                                Collection
Suit by Trustee.

 

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

 

Section 6.09                                Trustee
May File Proofs of Claim.

 

The Trustee is authorized to file such proofs
of claim and other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders of the Notes allowed in any judicial proceedings
relative to Ahern Rentals (or any other obligor upon the Notes), its creditors
or its property and shall be entitled and empowered to collect, receive and
distribute any money or other property payable or deliverable on any such
claims and any custodian in any such judicial proceeding is hereby authorized
by each Holder to make such payments to the Trustee, and in the event that the
Trustee shall consent to the making of such payments directly to the Holders,
to pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due the Trustee under Section 7.07

 

68

 

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

 

Section 6.10                                Priorities.

 

Subject to the Intercreditor Agreement and
Section 12.02, if the Trustee collects any money or other property pursuant to
this Article, it shall pay out the money or other property in the following
order:

 

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

 

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

 

Third:  to Ahern Rentals or to such party as a court
of competent jurisdiction shall direct.

 

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

 

Section 6.11                                Undertaking
for Costs.

 

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

 

ARTICLE 7.

TRUSTEE

 

Section 7.01                                Duties
of Trustee.

 

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

 

69

 

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

 

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

 

(ii)                                  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. 
However, the Trustee shall examine the certificates and opinions to
determine whether or not they conform to the requirements of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

(e)                                  No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability.  The
Trustee shall be under no obligation to exercise any of its rights and powers
under this Indenture at the request of any Holders, unless such Holder shall
have offered to the Trustee security and indemnity satisfactory to it against
any loss, liability or expense.

 

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

 

Section 7.02                                Rights
of Trustee.

 

(a)                                  The
Trustee may conclusively rely upon any document believed by it to be genuine
and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

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

 

70

 

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

 

(d)                                 The
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within the rights or powers
conferred upon it by this Indenture. The Trustee shall not be liable for any
claims, losses, liabilities, damages, costs, expenses, judgments (including
attorney’s fees and expenses) due to forces beyond its reasonable control,
including strikes, work stoppages, acts of God and interruptions, losses or
malfunctions of utilities, communications or computer (software or hardware)
services.

 

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

 

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

 

(g)                                 Except
as required hereunder or under the other Parity Lien Documents, or as required
in its capacity as Collateral Trustee, the Trustee shall not be bound to make
any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it sees fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall
be entitled to examine the books, records and premises of Ahern Rentals, its
Subsidiaries and Guarantors, personally or by agent or attorney, and shall incur
no liability or additional liability of any kind by reason of such inquiry or
investigation.

 

(h)                                 The
Trustee shall not be deemed to have notice of any Default or Event of Default
except any Default or Event of Default of which the Trustee shall have received
written notification at the Corporate Trust Office of the Trustee (given in
accordance with Section 13.02 hereof and specifically identifying such Default
or Event of Default) or a Responsible Officer of the Trustee has actual
knowledge thereof.

 

(i)                                     The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
whether as the Trustee, Collateral Trustee, Paying Agent, Registrar or
otherwise, and to each agent and other Person employed to act hereunder, and to
the Trustee or any successor when acting in its capacity as the Trustee,
Collateral Trustee or any other capacity under the Intercreditor Agreement, the
Security Documents and other Parity Lien Documents to the same extent as if
explicitly set forth in the Intercreditor Agreement, the Security Documents and
other Parity Lien Documents.

 

(j)                                     The
Trustee may request that Ahern Rentals or the Guarantors, as the case may be,
deliver an Officer’s Certificate setting forth the names of individuals and/or
titles of officers authorized at such time to take specified actions pursuant
to this Agreement, which Officer’s Certificate may be signed by any Person
authorized to sign an Officer’s Certificate, including any Person specified as
so authorized in any such certificate previously delivered and not superseded.

 

(k)                                  The
Trustee shall not be deemed to have notice of or have a duty to determine
whether any information that it may receive with respect to Ahern Rentals or any
Guarantor, or that it or any

 

71

 

Holder of the Notes may provide to the Holders, is material, nonpublic
information of a type that should not be used by the recipient to trade in
securities of Ahern Rentals, except for such information identified by Ahern
Rentals in writing on the face thereof as material, non-public
information.  The Trustee shall not be responsible
for how such information is used or for obtaining any agreement from the
recipient of such information with respect to the use thereof.

 

Section 7.03                                Individual
Rights of Trustee.

 

The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
Ahern Rentals or any Affiliate of Ahern Rentals with the same rights it would
have if it were not Trustee.  However, in
the event that the Trustee acquires any conflicting interest it must eliminate
such conflict within 90 days, apply to the SEC for permission to continue as
trustee or resign.  Any Agent may do the
same with like rights and duties.  The
Trustee is also subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04                                Trustee’s
Disclaimer.

 

The Trustee shall not be responsible for and
makes no representation as to the validity or adequacy of this Indenture or the
Notes, it shall not be accountable for Ahern Rentals’ use of the proceeds from
the Notes or any money paid to Ahern Rentals or upon Ahern Rentals’ direction
under any provision of this Indenture, it shall not be responsible for the use
or application of any money received by any Paying Agent other than the
Trustee, and it shall not be responsible for any statement or recital herein or
any statement in the Notes or any other document in connection with the sale of
the Notes or pursuant to this Indenture other than its certificate of
authentication.

 

Section 7.05                                Notice
of Defaults.

 

If a Default or Event of Default occurs and
is continuing and if it is known to the Trustee, the Trustee shall mail to
Holders of Notes a notice of the Default or Event of Default within the later
of 90 days after it occurs or becomes known to the Trustee.  Except in the case of a Default or Event of
Default in payment of principal of, premium, if any, or interest on any Note,
the Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of the Notes.

 

Section 7.06                                Reports
by Trustee to Holders of the Notes.

 

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

 

A copy of each report at the time of its
mailing to the Holders of Notes shall be mailed to Ahern Rentals and filed with
the SEC and each stock exchange on which the Notes are listed in accordance
with TIA § 313(d).  Ahern Rentals
shall promptly notify the Trustee when the Notes are listed on any stock
exchange.

 

72

 

Section 7.07                                Compensation
and Indemnity.

 

Ahern Rentals shall pay to the Trustee from
time to time reasonable compensation for its acceptance of this Indenture and
services hereunder pursuant to the rate sheets or similar rate and fee information
provided by the Trustee to Ahern Rentals from time to time.  The Trustee’s compensation shall not be limited
by any law on compensation of a trustee of an express trust.  Ahern Rentals shall reimburse the Trustee
promptly, and in any event within 30 days, upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services.  Such
expenses shall include the reasonable compensation, disbursements and expenses
of the Trustee’s agents and counsel. Ahern Rentals will pay the Trustee’s
agents and counsel directly upon Trustee’s request.

 

Ahern Rentals shall indemnify the Trustee
against any and all losses, liabilities or expenses incurred by it arising out
of or in connection with the acceptance or administration of its duties under
this Indenture, including the costs and expenses of enforcing this Indenture
against Ahern Rentals (including this Section 7.07) and defending itself
against any claim (whether asserted by Ahern Rentals or any Holder or any other
person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability
or expense may be attributable to its negligence or bad faith.  The Trustee shall notify Ahern Rentals
promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify Ahern
Rentals shall not relieve Ahern Rentals of its obligations hereunder.  Ahern Rentals shall defend the claim and the
Trustee shall cooperate in the defense. 
The Trustee may have separate counsel and Ahern Rentals shall pay the
reasonable fees and expenses of such counsel. 
Ahern Rentals need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld.

 

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

 

To secure Ahern Rentals’ payment obligations
in this Section, the Trustee shall have a Lien prior to the Notes on all money
or property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Notes. 
Such Lien shall survive the satisfaction and discharge of this
Indenture.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 6.01(7) or (8) hereof occurs,
the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of
administration under the Bankruptcy Code.

 

Section 7.08                                Replacement
of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the successor
Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign in writing at any time
and be discharged from the trust hereby created by so notifying Ahern
Rentals.  The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and Ahern Rentals in writing.  Ahern Rentals may remove the Trustee if:

 

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

 

(b)                                 the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under the Bankruptcy Code;

 

73

 

(c)                                  a
custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the
Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a
vacancy exists in the office of Trustee for any reason, Ahern Rentals shall
promptly appoint a successor Trustee. 
Within one year after the successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by Ahern Rentals.

 

If a successor Trustee does not take office
within 60 days after the retiring Trustee resigns or is removed, the retiring
Trustee, Ahern Rentals, or the Holders of at least 10% in principal amount of the
then outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

If the Trustee, after written request by any
Holder who has been a Holder for at least six months, fails to comply with
Section 7.10, such Holder may petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee and to Ahern Rentals.  Thereupon, the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture.  The successor Trustee shall mail a notice of
its succession to Holders.  The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, provided all
sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof.  Notwithstanding
replacement of the Trustee pursuant to this Section 7.08, Ahern Rentals’
obligations under Section 7.07 hereof shall continue for the benefit of the
retiring Trustee.

 

Section 7.09                                Successor
Trustee by Merger, etc.

 

If the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further
act shall be the successor Trustee.

 

Section 7.10                                Eligibility;
Disqualification.

 

There shall at all times be a Trustee
hereunder that is a corporation organized and doing business under the laws of
the United States of America or of any state thereof that is authorized under
such laws to exercise corporate trustee power, that is subject to supervision
or examination by federal or state authorities and that has a combined capital
and surplus of at least $100 million as set forth in its most recent published
annual report of condition.

 

This Indenture shall always have a Trustee
who satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

 

Section 7.11                                Preferential
Collection of Claims Against Ahern Rentals.

 

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

 

74

 

ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01                                Option
to Effect Legal Defeasance or Covenant Defeasance.

 

Ahern Rentals may, at the option of its Board
of Directors evidenced by a resolution set forth in an Officers’ Certificate,
at any time, elect to have either Section 8.02 or 8.03 hereof applied to all outstanding
Notes and any Note Guarantees upon compliance with the conditions set forth
below in this Article 8.

 

Section 8.02                                Legal
Defeasance and Discharge.

 

Upon Ahern Rentals’ exercise under Section
8.01 hereof of the option applicable to this Section 8.02, Ahern Rentals
shall, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from its obligations with respect to
all outstanding Notes on the date the conditions set forth below are satisfied
(hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that
Ahern Rentals shall be deemed to have paid and discharged the entire
Indebtedness represented by the outstanding Notes, which shall thereafter be
deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the
other Sections of this Indenture referred to in (a) and (b) below, and to have
satisfied all its other obligations under such Notes and this Indenture (and
the Trustee, on demand of and at the expense of Ahern Rentals, shall execute
proper instruments acknowledging the same), except for the following provisions
which shall survive until otherwise terminated or discharged hereunder:  (a) the rights of Holders of outstanding
Notes to receive payments in respect of the principal of, premium, if any, and
interest and Additional Interest, if any, on such Notes when such payments are
due from the trust referred to in Section 8.04, (b) Ahern Rentals’
obligations with respect to such Notes under Article 2 and Section 4.02 hereof,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and Ahern Rentals’ and the Guarantors’ obligations in connection therewith and
(d) this Article 8.  Subject to
compliance with this Article 8, Ahern Rentals may exercise its option under
this Section 8.02 notwithstanding the prior exercise of its option under Section
8.03 hereof.

 

Section 8.03                                Covenant
Defeasance.

 

Upon Ahern Rentals’ exercise under Section
8.01 hereof of the option applicable to this Section 8.03, Ahern Rentals shall,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be released from its obligations under the covenants contained in Sections
3.03, 4.03, 4.04, 4.05, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15,
4.16, 4.17, 4.18 and 4.19 hereof and clause (4) of Section 5.01 hereof with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes).  For this purpose,
Covenant Defeasance means that, with respect to the outstanding Notes, Ahern
Rentals may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.01 hereof, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby.  In addition, upon
Ahern Rentals’ exercise under Section 8.01 hereof of the option applicable to
this Section 8.03, subject to the satisfaction of the conditions

 

75

 

set forth in Section 8.04 hereof, Sections
6.01(3) through 6.01(6) hereof shall not constitute Events of Default.

 

Section 8.04                                Conditions
to Legal or Covenant Defeasance.

 

The following shall be the conditions to the
application of either Section 8.02 or 8.03 hereof to the outstanding Notes:

 

In order to exercise either Legal Defeasance
or Covenant Defeasance:

 

(a)                                  Ahern
Rentals must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders, cash in United States dollars, non-callable Government Securities,
or a combination thereof, in such amounts as will be sufficient, in the opinion
of a nationally recognized investment bank, appraisal firm or firm of
independent public accountants, to pay the principal of and interest and
premium and Additional Interest, if any, on the outstanding Notes on the stated
date for payment thereof or on the applicable redemption date, as the case may
be, and Ahern Rentals must specify whether the Notes are being defeased to such
stated date for payment or to a particular redemption date;

 

(b)                                 in
the case of an election under Section 8.02 hereof, Ahern Rentals shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the
Trustee confirming that (A) Ahern Rentals has received from, or there has
been published by, the Internal Revenue Service a ruling or (B) since the date
of this Indenture, there has been a change in the applicable federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the outstanding Notes will not
recognize income, gain or loss for federal income tax purposes as a result of
such Legal Defeasance and will be subject to U.S. federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such Legal Defeasance had not occurred;

 

(c)                                  in
the case of an election under Section 8.03 hereof, Ahern Rentals shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the
Trustee confirming that the Holders of the outstanding Notes will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such
Covenant Defeasance and will be subject to U.S. federal income tax on the same
amounts, in the same manner and at the same times as would have been the case
if such Covenant Defeasance had not occurred;

 

(d)                                 no
Default or Event of Default shall have occurred and be continuing on the date
of such deposit (other than a Default or Event of Default resulting from the
borrowing of funds to be applied to such deposit), or insofar as Section
6.01(9) or 6.01(10) hereof is concerned, at any time in the period ending on
the 91st day after the date of deposit, and the deposit shall not result in a
breach or violation of, or constitute a default under, any other instrument to
which Ahern Rentals or any Guarantor is a party or by which Ahern Rentals or
any Guarantor is bound;

 

(e)                                  such
Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which Ahern Rentals or any of its
Subsidiaries is a party or by which Ahern Rentals or any of its Subsidiaries is
bound;

 

(f)                                    the
Company shall have delivered to the Trustee an Opinion of Counsel (which may be
subject to customary exceptions) to the effect that on the 91st day following
the deposit,

 

76

 

the trust funds will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally;

 

(g)                                 Ahern
Rentals shall have delivered to the Trustee an Officers’ Certificate stating
that the deposit was not made by Ahern Rentals with the intent of preferring
the Holders over any other creditors of Ahern Rentals or with the intent of
defeating, hindering, delaying or defrauding any other creditors of Ahern
Rentals or others; and

 

(h)                                 Ahern
Rentals shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for or
relating to the Legal Defeasance or the Covenant Defeasance have been complied
with.

 

Section 8.05                                Deposited
Money and Government Securities to Be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.06 hereof, all money and
non-callable Government Securities (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of
this Section 8.05, the “Trustee”)
pursuant to Section 8.04 hereof in respect of the outstanding Notes shall be
held in trust and applied by the Trustee, in accordance with the provisions of
such Notes and this Indenture, to the payment, either directly or through any
Paying Agent (including Ahern Rentals acting as Paying Agent) as the Trustee
may determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

 

Ahern Rentals shall pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against the
cash or non-callable Government Securities deposited pursuant to Section 8.04
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the outstanding Notes.

 

Anything in this Article 8 to the contrary
notwithstanding, the Trustee shall deliver or pay to Ahern Rentals from time to
time upon the request of Ahern Rentals any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion
of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee (which may be the
opinion delivered under Section 8.04(a) hereof), are in excess of the amount
thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

 

Section 8.06                                Repayment
to Ahern Rentals.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by Ahern Rentals, in trust for the payment of the
principal of, premium, if any, or interest on any Note and remaining unclaimed
for two years after such principal, and premium, if any, or interest has become
due and payable shall be paid to Ahern Rentals on its request or (if then held
by Ahern Rentals) shall be discharged from such trust; and the Holder of such
Note shall thereafter look only to Ahern Rentals for payment thereof, and all liability
of the Trustee or such Paying Agent with respect to such trust money, and all
liability of Ahern Rentals as trustee thereof, shall thereupon cease; provided, however, that
the Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of Ahern Rentals cause to be published once, in The New York Times and The Wall Street Journal
(national edition), notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such notification or publication, any unclaimed balance of such money then
remaining will be repaid to Ahern Rentals.

 

77

 

Section 8.07                                Reinstatement.

 

If the Trustee or Paying Agent is unable to
apply any United States dollars or non-callable Government Securities in accordance
with Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then Ahern Rentals’ obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with
Section 8.02 or 8.03 hereof, as the case may be; provided,
however, that, if Ahern Rentals makes
any payment of principal of, premium, if any, or interest on any Note following
the reinstatement of its obligations, Ahern Rentals shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money held
by the Trustee or Paying Agent.

 

ARTICLE 9.

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01                                Without
Consent of Holders of Notes.

 

Notwithstanding Section 9.02 of this
Indenture, Ahern Rentals, the Guarantors and the Trustee may amend or
supplement this Indenture, the Note Guarantees or the Notes without the consent
of any Holder of a Note:

 

(a)                                  to
cure any ambiguity, defect or inconsistency;

 

(b)                                 to
provide for uncertificated Notes in addition to or in place of certificated
Notes or to alter the provisions of Article 2 hereof (including the related
definitions) in a manner that does not materially adversely affect any Holder;

 

(c)                                  to
provide for the assumption of Ahern Rentals’ or a Guarantor’s obligations to
the Holders of the Notes and Note Guarantees by a successor to Ahern Rentals
pursuant to Article 5 hereof;

 

(d)                                 to
make any change that would provide any additional rights or benefits to the
Holders of the Notes or that does not adversely affect the legal rights
hereunder of any Holder of the Note;

 

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

 

(f)                                    to
conform the text of this Indenture, the Note Guarantees or the Notes to any
provision of the Description of Notes to the extent that such provision in the
Description of Notes was intended to be a verbatim recitation of a provision of
this Indenture, the Note Guarantees or the Notes;

 

(g)                                 to
provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Indenture as of the date of this Indenture;

 

(h)                                 to
allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee
with respect to the Notes; or

 

78

 

(i)                                     to
make, complete or confirm any grant of Collateral permitted or required by this
Indenture or any of the Security Documents or any release of Collateral that
becomes effective as set forth in this Indenture, any of the Security Documents
or the Intercreditor Agreement.

 

Upon the request of Ahern Rentals accompanied
by a resolution of its Board of Directors authorizing the execution of any such
amended or supplemental Indenture, and upon receipt by the Trustee of the
documents described in Section 13.04 hereof, the Trustee shall join with Ahern
Rentals and the Guarantors in the execution of any amended or supplemental
Indenture authorized or permitted by the terms of this Indenture and to make
any further appropriate agreements and stipulations that may be therein contained,
but the Trustee shall not be obligated to enter into such amended or
supplemental Indenture that affects its own rights, duties or immunities under
this Indenture or otherwise.

 

Section 9.02                                With
Consent of Holders of Notes.

 

Except as provided below in this Section
9.02, Ahern Rentals and the Trustee may amend or supplement this Indenture (including
Section 3.09, 4.10 and 4.14 hereof), the Note Guarantees and the Notes with the
consent of the Holders of at least a majority in principal amount of the Notes
then outstanding voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or
Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment
default resulting from an acceleration that has been rescinded) or compliance
with any provision of this Indenture, the Note Guarantees or the Notes may be
waived with the consent of the Holders of a majority in principal amount of the
then outstanding Notes voting as a single class (including consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes).

 

Upon the request of Ahern Rentals accompanied
by a resolution of its Board of Directors authorizing the execution of any such
amended or supplemental Indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in
Section 13.04 hereof, the Trustee shall join with Ahern Rentals in the
execution of such amended or supplemental Indenture unless such amended or
supplemental Indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but shall not be obligated to, enter into such amended or
supplemental Indenture.

 

It shall not be necessary for the consent of
the Holders of Notes under this Section 9.02 to approve the particular form of
any proposed amendment or waiver, but it shall be sufficient if such consent
approves the substance thereof.

 

After an amendment, supplement or waiver
under this Section becomes effective, Ahern Rentals shall mail to the Holders
of Notes affected thereby a notice briefly describing the amendment, supplement
or waiver.  Any failure of Ahern Rentals
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such amended or supplemental Indenture or
waiver.  Subject to Sections 6.04 and
6.07 hereof, the Holders of a majority in aggregate principal amount of the
Notes then outstanding voting as a single class may waive compliance in a
particular instance by Ahern Rentals with any provision of this Indenture or
the Notes.  However, without the consent
of each Holder affected, an amendment or waiver under this Section 9.02 may not
(with respect to any Notes held by a non-consenting Holder):

 

(a)                                  reduce
the principal amount of Notes whose Holders must consent to an amendment,
supplement or waiver;

 

79

 

(b)                                 reduce
the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of the Notes except as provided above
with respect to Sections 3.09, 4.10 and 4.14 hereof;

 

(c)                                  reduce
the rate of or change the time for payment of interest, including default interest,
on any Note;

 

(d)                                 waive
a Default or Event of Default in the payment of principal of or interest or
premium, or Additional Interest, if any, on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes and a waiver of the payment
default that resulted from such acceleration);

 

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

 

(f)                                    make
any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of,
or interest or premium, or Additional Interest, if any, on the Notes;

 

(g)                                 waive
a redemption payment with respect to any Note (other than a payment required by
Sections 4.10 and 4.14 hereof);

 

(h)                                 release
any Guarantor from any of its obligations under its Note Guarantee or this
Indenture, except in accordance with the terms of this Indenture or the
Intercreditor Agreement;

 

(i)                                     release
any Collateral from the Liens created by the Security Documents except as
specifically provided for in this Indenture, the Security Documents or the
Intercreditor Agreement; or

 

(j)                                     make
any change in the preceding amendment and waiver provisions.

 

In addition, any amendment to, or waiver of,
the provisions of this Indenture or any security document that has the effect
of releasing all or substantially all of the Collateral from the Liens securing
the Notes will require the consent of the Holders of at least 66 2¤3%
in aggregate principal amount of the Notes then outstanding.

 

Section 9.03                                Compliance
with Trust Indenture Act.

 

Every amendment or supplement to this
Indenture or the Notes shall be set forth in a amended or supplemental
Indenture that complies with the TIA as then in effect.

 

Section 9.04                                Revocation
and Effect of Consents.

 

Until an amendment, supplement or waiver
becomes effective, a consent to it by a Holder of a Note is a continuing
consent by the Holder of a Note and every subsequent Holder of a Note or portion
of the Note that evidences the same debt as the consenting Holder’s Note, even
if notation of the consent is not made on any Note.  However, any such Holder of a Note or
subsequent Holder of the Note may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the waiver, supplement
or amendment becomes effective.  An
amendment, supplement or waiver becomes effective in accordance with its terms
and thereafter binds every Holder.

 

80

 

Section 9.05                                Notation
on or Exchange of Notes.

 

The Trustee may place an appropriate notation
about an amendment, supplement or waiver on any Note thereafter authenticated.  Ahern Rentals in exchange for all Notes may
issue and the Trustee shall, upon receipt of an Authentication Order,
authenticate new Notes that reflect the amendment, supplement or waiver.

 

Failure to make the appropriate notation or
issue a new Note shall not affect the validity and effect of such amendment, supplement
or waiver.

 

Section 9.06                                Trustee
to Sign Amendments, etc.

 

The Trustee shall sign any amended or
supplemental Indenture authorized pursuant to this Article Nine if the
amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. 
Ahern Rentals may not sign an amendment or supplemental Indenture until
the Board of Directors approves it.  In
executing any amended or supplemental indenture, the Trustee shall be entitled
to receive and (subject to Section 7.01 hereof) shall be fully protected in
relying upon, in addition to the documents required by Section 13.04 hereof, an
Officers’ Certificate and an Opinion of Counsel stating that the execution of
such amended or supplemental indenture is authorized or permitted by this Indenture.

 

ARTICLE 10.

NOTE GUARANTEES

 

Section 10.01                          Guarantee.

 

Subject to this Article 10, each of the
Guarantors hereby, jointly and severally, unconditionally guarantees to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Notes or the obligations of Ahern Rentals hereunder or
thereunder, that:  (a) the principal of,
premium and Additional Interest, if any, and interest on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration, redemption
or otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of Ahern Rentals to the
Holders, the Trustee and the Collateral Trustee will be promptly paid in full
or performed, all in accordance with the terms thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations,
that same will be promptly paid in full when due or performed in accordance
with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.  Failing payment
when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors shall be jointly and severally obligated to pay
the same immediately.  Each Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

 

The Guarantors hereby agree that their
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against Ahern Rentals, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.  Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of Ahern Rentals, any right to require a
proceeding first against Ahern Rentals, protest, notice and all demands
whatsoever and covenant that this Note Guarantee shall

 

81

 

not be discharged except by complete performance
of the obligations contained in the Notes and this Indenture.

 

If any Holder or the Trustee is required by
any court or otherwise to return to Ahern Rentals, the Guarantors or any
custodian, trustee, liquidator or other similar official acting in relation to
either Ahern Rentals or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.

 

Each Guarantor agrees that it shall not be entitled
to any right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed
hereby.  Each Guarantor further agrees
that, as between the Guarantors, on the one hand, and the Holders and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 hereof for the purposes of
this Note Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any declaration of acceleration of such obligations as
provided in Article 6 hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of
this Note Guarantee.  The Guarantors
shall have the right to seek contribution from any non-paying Guarantor so long
as the exercise of such right does not impair the rights of the Holders under
the Guarantee.

 

Section 10.02                          Limitation
on Guarantor Liability.

 

Each Guarantor, and by its acceptance of
Notes, each Holder, hereby confirms that it is the intention of all such
parties that the Note Guarantee of such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or
state law to the extent applicable to any Note Guarantee.  To effectuate the foregoing intention, the Trustee,
the Holders and the Guarantors hereby irrevocably agree that the obligations of
such Guarantor will, after giving effect to such maximum amount and all other
contingent and fixed liabilities of such Guarantor that are relevant under such
laws, and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article 10, result
in the obligations of such Guarantor under its Note Guarantee not constituting
a fraudulent transfer or conveyance.

 

Section 10.03                          Execution
and Delivery of Note Guarantee.

 

To evidence its Note Guarantee set forth in
Section 10.01, each Guarantor hereby agrees that a notation of such Note Guarantee
substantially in the form included in Exhibit E shall be endorsed by an Officer
of such Guarantor on each Note authenticated and delivered by the Trustee and
that this Indenture shall be executed on behalf of such Guarantor by its
President or one of its Vice Presidents.

 

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

 

If an Officer whose signature is on this
Indenture or on the Note Guarantee no longer holds that office at the time the
Trustee authenticates the Note on which a Note Guarantee is endorsed, the Note
Guarantee shall be valid nevertheless.

 

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

 

82

 

In the event that Ahern Rentals creates or
acquires any new Subsidiaries subsequent to the date of this Indenture, Ahern
Rentals shall cause such Subsidiaries to execute supplemental indentures to
this Indenture and Note Guarantees in the form and substance of Exhibits E and
F in accordance with Article 10, to the extent required by Section 4.19.

 

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

 

Except as otherwise provided in Section
10.05, no Guarantor may consolidate with or merge with or into (whether or not
such Guarantor is the surviving Person) another Person whether or not
affiliated with such Guarantor unless:

 

(a)                                  subject
to Section 10.05 hereof, the Person formed by or surviving any such consolidation
or merger (if other than a Guarantor or Ahern Rentals) unconditionally assumes
all the obligations of such Guarantor, pursuant to a supplemental indenture in
the form and substance of Exhibit F hereto, under the Notes, this Indenture and
the Note Guarantee on the terms set forth herein or therein; and

 

(b)                                 immediately
after giving effect to such transaction, no Default or Event of Default exists.

 

In case of any such consolidation, merger,
sale or conveyance and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee, of the Note Guarantee
endorsed upon the Notes and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person shall succeed to and be substituted for the Guarantor
with the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to
be signed any or all of the Note Guarantees to be endorsed upon all of the
Notes issuable hereunder which theretofore shall not have been signed by Ahern
Rentals and delivered to the Trustee. 
All the Note Guarantees so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Note Guarantees theretofore
and thereafter issued in accordance with the terms of this Indenture as though
all of such Note Guarantees had been issued at the date of the execution
hereof.

 

Except as set forth in Articles 4 and 5
hereof, and notwithstanding clauses (a) and (b) above, nothing contained in
this Indenture or in any of the Notes shall prevent any consolidation or merger
of a Guarantor with or into Ahern Rentals or another Guarantor, or shall prevent
any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to Ahern Rentals or another Guarantor.

 

Section 10.05                          Releases
Following Sale of Assets.

 

In the event of a sale or other disposition
of all of the assets of any Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all the capital stock of any
Guarantor, in each case to a Person that is not (either before or after giving
effect to such transactions) a Restricted Subsidiary of Ahern Rentals, then
such Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the capital stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all or substantially all of the assets of such Guarantor) will
be released and relieved of any obligations under its Note Guarantee; provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.10 hereof.  Upon delivery by Ahern Rentals to the Trustee
of an Officers’ Certificate and an Opinion of Counsel to the effect that such
sale or other disposition was made by Ahern Rentals in accordance with the
provisions of this Indenture, including without limitation 

 

83

 

Section 4.10 hereof, the Trustee shall
execute any documents reasonably requested in order to evidence the release of
any Guarantor from its obligations under its Note Guarantee.

 

Any Guarantor not released from its
obligations under its Note Guarantee shall remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Guarantor under this Indenture as provided in this Article 10.

 

ARTICLE 11.

SATISFACTION AND DISCHARGE

 

Section 11.01                          Satisfaction
and Discharge.

 

This Indenture will be discharged and will
cease to be of further effect as to all Notes issued hereunder, when:

 

(1)                                  either:

 

(a)                                  all
Notes that have been authenticated (except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has theretofore
been deposited in trust and thereafter repaid to Ahern Rentals) have been
delivered to the Trustee for cancellation; or

 

(b)                                 all
Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise
or will become due and payable within one year and Ahern Rentals or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee
as trust funds in trust solely for the benefit of the Holders, cash in U.S.
dollars, non-callable Government Securities or a combination thereof, in such
amounts as will be sufficient without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on the Notes not
delivered to the Trustee for cancellation for principal, premium and Additional
Interest, if any, and accrued interest to the date of maturity or redemption;

 

(2)                                  no
Default or Event of Default shall have occurred and be continuing on the date
of such deposit or shall occur as a result of such deposit and such deposit
will not result in a breach or violation of, or constitute a default under, any
other instrument to which the Company or any Guarantor is a party or by which
the Company or any Guarantor is bound;

 

(3)                                  Ahern
Rentals or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture; and

 

(4)                                  Ahern
Rentals has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes at
maturity or the redemption date, as the case may be.

 

In addition, Ahern Rentals must deliver an
Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent to satisfaction and discharge have been satisfied.

 

Notwithstanding the satisfaction and
discharge of this Indenture, if money shall have been deposited with the
Trustee pursuant to subclause (b) of clause (1) of this Section, the provisions
of Section 11.02 and Section 8.06 shall survive.

 

84

 

The Collateral shall be released from the
Lien securing the Notes, as provided in Section 12.07 upon a satisfaction and
discharge in accordance with the provisions described above.

 

Section 11.02                          Application
of Trust Money.

 

Subject to the provisions of Section 8.06,
all money deposited with the Trustee pursuant to Section 11.01 shall be held in
trust and applied by it, in accordance with the provisions of the Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including Ahern Rentals acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the Trustee;
but such money need not be segregated from other funds except to the extent
required by law.

 

If the Trustee or Paying Agent is unable to
apply any money or Government Securities in accordance with Section 11.01 by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, Ahern Rentals’ and any Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 11.01; provided that
if Ahern Rentals has made any payment of principal of, premium, if any, or
interest on any Notes because of the reinstatement of its obligations, Ahern
Rentals shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money or Government Securities held by the
Trustee or Paying Agent.

 

ARTICLE 12.

COLLATERAL AND SECURITY

 

Section 12.01                          Security
Documents.

 

(a)                                  The
payment of principal of and interest and premium and Additional Interest, if
any, on the Notes will be secured, equally and ratably, by a security interest
in the Collateral, subject only to Permitted Prior Liens, as provided in the
Security Documents.  Any Guarantor shall,
upon becoming a Guarantor, become a party to each applicable Security Document
as shall be necessary or appropriate to grant and create a valid Lien on and
security interest in the personal property of such Guarantor of the type described
in the definition of “Collateral” in the Security Documents and, to the extent
required by the Credit Agreement, all real property owned by such Guarantor, in
each case, subject to no Liens other than Permitted Liens.

 

(b)                                 If
at any time after the date of this Indenture, Ahern Rentals or any Guarantor
acquires in fee simple any real property or any entity which owns in fee simple
any real property becomes a Guarantor, and a Mortgage or Amended and Restated
Mortgage on such real property is granted by Ahern Rentals or such Guarantor to
the Priority Lien Agent for the benefit of the holders of Priority Lien Obligations,
then Ahern Rentals or such Guarantor shall grant to the Collateral Trustee for
the benefit of the Holders of the Notes a Mortgage or Amended and Restated Mortgage,
as appropriate, on such real property that is not already covered by the
Security Documents.  All such Mortgages
or Amended and Restated Mortgages, as appropriate, shall be substantially
similar to the corresponding Mortgage or Amended and Restated Mortgage in favor
of the Priority Lien Agent (other than the priority thereof and the Obligations
secured thereby).  In connection
therewith, Ahern Rentals shall deliver title insurance policies, proper fixture
filings under the UCC on Form UCC-1, opinions of counsel, surveys and insurance
certificates, in each case, in form and substance reasonably satisfactory to
the Collateral Trustee.

 

85

 

Section 12.02                          Equal
and Ratable Sharing of Collateral by Holders of Parity Lien Debt; Order of
Application.

 

Notwithstanding:

 

(1)                                  anything
to the contrary contained in the Security Documents;

 

(2)                                  the
time of incurrence of any Series of Parity Lien Debt;

 

(3)                                  the
order or method of attachment or perfection of any Liens securing any Series of
Parity Lien Debt;

 

(4)                                  the
time or order of filing or recording of financing statements, mortgages or
other documents filed or recorded to perfect any Lien upon any Collateral;

 

(5)                                  the
time of taking possession or control over any Collateral;

 

(6)                                  any
Parity Lien not having been perfected or being or having become subordinated,
by equitable subordination or otherwise, to any other Lien; or

 

(7)                                  the
rules for determining priority under any law governing relative priorities of
Liens,

 

(a) all Parity
Liens granted at any time by Ahern Rentals or any other Pledgor will secure,
equally and ratably with the Notes, all present and future Parity Lien
Obligations and (b) subject to the Intercreditor Agreement, all proceeds of or
distribution of property received with respect to any Collateral granted at any
time by Ahern Rentals or any Pledgor shall be allocated and distributed in the
following order:

 

First:  to the Trustee and the Collateral Trustee,
their respective agents and attorneys for amounts due under Section 7.07 hereof
or under any Security Document, including payment of all compensation, expense
and liabilities incurred, and all advances made, by the Trustee and the
Collateral Trustee and the costs and expenses of collection;

 

Second:
to the respective Parity Lien Representatives for application to the Parity
Lien Obligations equally and ratably, until all Parity Lien Obligations have
been paid in full in cash or the cash amount held by the Parity Lien
Representatives in respect of all Parity Lien Obligations is sufficient to pay
all Parity Lien Obligations in full in cash; and

 

Third:
any surplus remaining after the payment or distribution in full of the cash or
other property as described in the preceding clauses will be paid or
distributed to Ahern Rentals (or the applicable Pledgor, as the case may be),
its successors or assigns, or as a court of competent jurisdiction may direct.

 

This Section 12.02 is intended for the
benefit of, and will be enforceable as a third party beneficiary by, each
present and future holder of Parity Lien Obligations, each present and future
Parity Lien Representative and the Collateral Trustee as holder of Parity
Liens.  The Parity Lien Representative of
each future Series of Parity Lien Debt will be required to deliver a Sharing
Confirmation to the Collateral Trustee and the Trustee at the time of
incurrence of such Series of Parity Lien Debt.

 

86

 

Section 12.03                          Ranking
of Parity Liens.

 

Notwithstanding:

 

(1)                                  anything
to the contrary contained in the Security Documents;

 

(2)                                  the
time of incurrence of any Series of Secured Debt;

 

(3)                                  the
order or method of attachment or perfection of any Liens securing any Series of
Secured Debt;

 

(4)                                  the
time or order of filing or recording of financing statements, mortgages or
other documents filed or recorded to perfect any Lien upon any Collateral;

 

(5)                                  the
time of taking possession or control over any Collateral;

 

(6)                                  any
Priority Lien not having been perfected or being or having become subordinated,
by equitable subordination or otherwise, to any other Lien; or

 

(7)                                  the
rules for determining priority under any law governing relative priorities of
Liens,

 

all Parity
Liens granted at any time by Ahern Rentals or any other Pledgor will be subject
and subordinate to all Priority Liens securing Priority Lien Obligations up to
the Priority Lien Cap including, for the avoidance of doubt, the Obligations
under the Credit Agreement, on the terms set forth in the Intercreditor Agreement.

 

This Section 12.03 is intended for the
benefit of, and will be enforceable as a third party beneficiary by, each
present and future holder of Priority Lien Obligations, each present and future
Priority Lien Agent and the Collateral Trustee as holder of Parity Liens.  No other Person will be entitled to rely on,
have the benefit of or enforce these provisions.  The Parity Lien Representative of each future
Series of Parity Lien Debt will be required to deliver a Lien Priority
Confirmation to the Collateral Trustee and each Priority Lien Agent at the time
of incurrence of such Series of Parity Lien Debt.

 

This Section 12.03 is intended solely to set
forth the relative ranking of the Liens securing Parity Lien Debt as against
the Priority Liens.  Neither the Notes
nor any other Parity Lien Obligations nor the exercise or enforcement of any
right or remedy for the payment or collection thereof (other than as provided
in the Intercreditor Agreement) is intended to be, or will ever be by reason of
the foregoing provision, in any respect subordinated, deferred, postponed, restricted
or prejudiced.

 

Section 12.04                          Recordings
and Opinions.

 

(a)                                  Promptly
after (but in any event not more than 60 days after) the execution and delivery
of this Indenture, or upon the later completion of all necessary filings, to
the extent required by TIA § 314(b)(i), Ahern Rentals shall furnish to the
Trustee an Opinion of Counsel either:

 

(1)                                  stating
that, in the opinion of such counsel, all action has been taken with respect to
the recording, registering and filing of this Indenture, financing statements
or other instruments necessary to make effective the Lien intended to be
created by the Security Documents, and reciting with respect to the security
interests in the Collateral, the details of such action; or

 

87

 

(2)                                  stating
that, in the opinion of such counsel, no such action is necessary to make such
Lien effective.

 

Such Opinion of Counsel may assume the due
and proper filing of financing statements and the due and proper recordation of
documents and instruments with federal, state and county officials, to the
extent that such financing statements, documents and instruments have been
presented for filing or recordation, or to the extent that such counsel has
reviewed a file stamped copy or a recorded copy of any such financing
statement, document or instrument.

 

(b)                                 Ahern
Rentals will furnish to the Collateral Trustee and the Trustee within 90 days
after the end of each fiscal year, an Opinion of Counsel, dated as of such
date, either:

 

(1)                                  (A)
stating that, in the opinion of such counsel, action has been taken with
respect to the recording, registering, filing, re-recording, re-registering and
re-filing of this Indenture, financing statements or continuation statements as
is necessary to maintain the Lien of the Security Documents and reciting with
respect to the security interests in the Collateral the details of such action
or referring to prior Opinions of Counsel in which such details are given, and
(B) stating that, in the opinion of such counsel, based on relevant laws
as in effect on the date of such Opinion of Counsel, all financing statements
and continuation statements have been executed and filed that are necessary as
of such date and during the succeeding 12 months to maintain the lien on this
Indenture and reciting the details of such actions; or

 

(2)                                  stating
that, in the opinion of such counsel, no such action is necessary to maintain
such Lien and assignment.

 

(c)                                  Immediately
prior to the issuance of the Exchange Notes and annually thereafter, Ahern
Rentals will furnish to the Trustee and the Collateral Trustee an Opinion of
Counsel with respect to the effectiveness and perfection of the Liens intended
to be created by the Security Documents. 
Ahern Rentals will otherwise comply with the provisions of TIA
§ 314(b).

 

Section 12.05                          Collateral
Trustee.

 

(a)                                  The
Collateral Trustee, which shall initially be the Trustee, will hold the Parity
Liens granted to it to secure the Parity Lien Obligations pursuant to the
Security Documents.

 

(b)                                 Neither
the Trustee nor the Collateral Trustee nor any of their respective officers,
directors, employees, attorneys or agents will be responsible for the
existence, genuineness, value or protection of any Collateral, for the
legality, enforceability, effectiveness or sufficiency of the Security
Documents, for the creation, perfection, priority, sufficiency or protection of
any Lien securing Parity Lien Obligations, or for any failure to demand,
collect, foreclose or realize upon or otherwise enforce any of the Liens securing
Parity Lien Obligations or for any delay in doing so.

 

(c)                                  The
Collateral Trustee is subject to any directions given to it by the Trustee from
time to time as required or permitted by this Indenture.  Except as directed by the Trustee and as
required or permitted by this Indenture, until the Discharge of Priority Lien
Obligations, the Collateral Trustee shall not be obligated:

 

(1)                                  to
act upon directions purported to be delivered to it by any other Person;

 

(2)                                  to
foreclose upon or otherwise enforce any Lien; or

 

88

 

(3)                                  to
take any other action whatsoever with regard to any or all of the Security
Documents, the Liens created thereby or the Collateral.

 

Ahern Rentals shall deliver to each Secured
Debt Representative copies of all Security Documents delivered to the
Collateral Trustee or the Priority Lien Collateral Agent.

 

(d)                                 The
Collateral Trustee shall be accountable only for amounts that it actually
receives as a result of the enforcement of Liens securing Parity Lien
Obligations.

 

(e)                                  In
acting as Collateral Trustee, the Collateral Trustee may rely upon and enforce
each and all of the rights, powers, protections, immunities, indemnities and
benefits of the Trustee under Article 7 mutatis mutandis,
and, in connection therewith, references to the Trustee shall be deemed to
include the Collateral Trustee and references to this Indenture shall be deemed
to include the Security Documents and the Intercreditor Agreement.

 

(f)                                    Each
successor Trustee will become the successor Collateral Trustee as and when the
successor Trustee becomes the Trustee.

 

Section 12.06                          Authorization
of Action to Be Taken.

 

(a)                                  Each
Holder of Notes, by its acceptance thereof, consents and agrees to the terms of
each of the Security Documents and the Intercreditor Agreement, as originally
in effect and as amended, supplemented or replaced from time to time in
accordance with its terms or the terms of this Indenture, authorizes and
directs the Trustee and the Collateral Trustee to enter into the Security
Documents, authorizes and empowers the Trustee to direct the Collateral Trustee
to enter into, and to execute and deliver, the Intercreditor Agreement, and
authorizes and empowers each of the Trustee and the Collateral Trustee to bind
the Holders of Notes as set forth in the Security Documents and the
Intercreditor Agreement and to perform its obligations and exercise its rights
and powers thereunder.

 

(b)                                 The
Collateral Trustee and the Trustee are authorized and empowered to receive for
the benefit of the Holders of Notes any funds collected or distributed under
the Security Documents and to make further distributions of such funds to the
Holders of Notes according to the provisions of this Indenture, the Security
Documents and the Intercreditor Agreement.

 

(c)                                  Subject
to the provisions of Sections 7.01, 7.02 and 12.05 hereof and the terms of the
Intercreditor Agreement, the Trustee may, in its sole discretion and without
the consent of the Holders of Notes, direct, on behalf of the Holders of Notes,
the Collateral Trustee to take all actions it deems necessary or appropriate in
order to:

 

(1)                                  foreclose
upon or otherwise enforce any or all of the Parity Liens;

 

(2)                                  enforce
any of the terms of the Security Documents; or

 

(3)                                  collect
and receive payment of any and all Parity Lien Obligations.

 

The Trustee is authorized and empowered to
institute and maintain, or direct the Collateral Trustee to institute and
maintain, such suits and proceedings as it may deem expedient to protect or
enforce the Liens securing Parity Lien Obligations or to prevent any impairment
of Collateral by any acts that may be unlawful or in violation of the Security
Documents or this Indenture, and such suits and proceedings as the Trustee or
the Collateral Trustee may deem expedient to preserve or protect its interests
and the interests of the Holders of Notes in the Collateral, including power to
institute and maintain suits or

 

89

 

proceedings to restrain the enforcement of or
compliance with any legislative or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of, or
compliance with, such enactment, rule or order would impair the security interest
hereunder or be prejudicial to the interests of Holders of Notes, the Trustee
or the Collateral Trustee.

 

(d)                                 Subject
to the terms of the Intercreditor Agreement and upon receipt of a notice stating
that Ahern Rentals has entered into a new Priority Lien Document, the
Collateral Trustee shall have the authority to enter into such documents and
agreements (including amendments or supplements to the Intercreditor Agreement)
as Ahern Rentals or the new Priority Lien Collateral Agent may request in order
to provide the new Priority Lien Collateral Agent the rights contemplated by
the Intercreditor Agreement.

 

Section 12.07                          Release
of Security Interests in Respect of Notes.

 

(a)                                  The
Liens on the Collateral securing the Notes shall be released:

 

(1)                                  in
whole upon payment in full of all amounts due in respect of the Notes;

 

(2)                                  in
whole upon satisfaction and discharge of this Indenture in accordance with
Section 11.01 hereof;

 

(3)                                  in
whole upon Legal Defeasance or Covenant Defeasance in accordance with Sections
8.02 and 8.03 hereof;

 

(b)                                 In
addition to the release provisions described in (a) above, the Liens shall be
released with respect to any asset constituting Collateral:

 

(1)                                  that
is sold or otherwise disposed of by Ahern Rentals or any Guarantor to a Person
other than Ahern Rentals or a Guarantor in a transaction permitted by this
Indenture and the Security Documents at the time of such sale of disposition;
or

 

(2)                                  that
is released from its Lien under the Credit Agreement and the Security
Documents; or

 

(3)                                  as
provided in the Intercreditor Agreement.

 

Section 12.08                          Enforcement
of Security Interests.

 

Subject to the terms of the Intercreditor
Agreement, if the Collateral Trustee at any time receives written notice that
any event has occurred that constitutes a default under any Parity Lien
Document entitling the Collateral Trustee to foreclose upon, collect or
otherwise enforce its security interests thereunder, it will promptly deliver
written notice thereof to each Parity Lien Representative.  Thereafter, the Collateral Trustee may await
direction by Holders of a majority in principal amount of the then outstanding
Notes and, subject to the terms of the Intercreditor Agreement, will act, or
decline to act as directed by Holders of a majority in principal amount of the
then outstanding Notes, in the exercise and enforcement of the Collateral
Trustee’s interests, rights, powers and remedies in respect of the Collateral
or under the Security Documents or applicable law and, following the initiation
of such exercise of remedies, the Collateral Trustee will act, or decline to
act, with respect to the manner of such exercise of remedies as directed by
Holders of a majority in principal amount of the then outstanding Notes.  Unless it has been directed to the contrary
by an instruction from Holders of a majority in principal amount of the then outstanding
Notes, the Collateral Trustee in any event may (but will not be obligated to)
take or refrain from

 

90

 

taking such action with respect to any
default under any Parity Lien Document as it may deem advisable and in the best
interest of the holders of Parity Lien Obligations.

 

Section 12.09                          Certificates
of Ahern Rentals.

 

Except for any release of Collateral required
or contemplated by the Intercreditor Agreement, Ahern Rentals will furnish to
the Trustee and the Collateral Trustee, prior to each proposed release of
Collateral pursuant to the Security Documents:

 

(1)                                  all
documents required by TIA § 314(d);

 

(2)                                  an
Officers’ Certificate certifying that all terms for release under this
Indenture and any applicable Security Documents have been satisfied and
specifying (a) the identity of the Collateral to be released and (b) the
applicable provisions of this Indenture and the Security Documents which
authorize that release; and

 

(3)                                  an
Opinion of Counsel to Ahern Rentals, to the effect that such accompanying
documents constitute all documents required by TIA § 314(d).

 

The Trustee and the Collateral Trustee may,
to the extent permitted by Sections 7.01 and 7.02 hereof, accept as conclusive
evidence of compliance with the foregoing provisions the appropriate statements
contained in such documents, Officers’ Certificate and such Opinion of Counsel.

 

Section 12.10                          Amendment
of Security Documents.

 

(a)                                  At
any time when any Priority Lien Obligations exist that have not been repaid in
full:

 

(1)                                  The
Collateral Trustee will not enter into, and the Trustee and the Holders of
Notes will not authorize or direct, any amendment of or supplement to any
security document relating to any Collateral that would make such security
document inconsistent in any material respect with the comparable provisions of
the Priority Lien Security Documents upon such Collateral and no such amendment
or supplement will be enforceable; and

 

(2)                                  Subject
only to clauses (2) and (3) of Section 12.10(c) hereof (to the extent not
inconsistent with the Intercreditor Agreement), any amendment, waiver or
consent agreed to, upon any terms and conditions, by Ahern Rentals or any
Guarantor and the Priority Lien Collateral Agent in respect of any provision of
any Priority Lien Security Document, except to the extent effectuating or
relating to any release of Liens (other than in the context of an amendment to
the applicable Credit Facility to increase permitted dispositions thereunder to
any Person other than Ahern Rentals or a Restricted Subsidiary of Ahern Rentals
or as provided in the Intercreditor Agreement), will automatically apply,
without the consent of any Holder of Notes, the Trustee or the Collateral
Trustee, on the same terms and subject to the same conditions, to the comparable
provision of the applicable Security Document, and will be effective upon the
delivery by the Priority Lien Collateral Agent of written notice of such
amendment, waiver or consent, and the terms and conditions thereof, to the
Trustee and the Collateral Trustee, if such notice states that such amendment,
waiver or consent has become effective as to such agreement and is, pursuant to
this Section 12.10, likewise effective as to the comparable provision of the
comparable Security Document.  Such
amendment, waiver or consent need not otherwise be confirmed by the Trustee,
the Collateral Trustee or any Holder of Notes in order to be effective.

 

91

 

(b)                                 For
the purposes of clause (1) of Section 12.10(a), (i) no inconsistency reflected
in the Security Documents delivered in connection with the issuance of the
Notes, as compared with the comparable provisions of the applicable Priority
Lien Security Documents then in effect, will be subject to the provisions of
clause (1) of Section 12.10(a), and (ii) any provision granting rights or
powers to the Collateral Trustee that are not granted to the holders of
Priority Liens securing Priority Lien Debt will constitute a material
inconsistency.

 

(c)                                  Except
as provided in the Intercreditor Agreement, no amendment or supplement to the
provisions of any Security Document will be effective without the approval of
the Collateral Trustee acting as directed by the Required Parity Debtholders, except
that:

 

(1)                                  any
amendment or supplement that has the effect solely of adding or maintaining
Collateral, securing additional Parity Lien Debt or preserving, perfecting or
establishing the priority of the Parity Liens thereon or the rights of the
Collateral Trustee therein, or adding or maintaining any guarantee, will become
effective when executed and delivered by Ahern Rentals or any other applicable
Pledgor party thereto and the Collateral Trustee;

 

(2)                                  no
amendment or supplement that reduces, impairs or adversely affects the right of
any holder of Parity Lien Debt:

 

(a)                                  to
vote its outstanding Parity Lien Debt as to any matter described as subject to
a direction by the Required Parity Debtholders (or amends the provisions of
this clause (2) or the definition of “Required Parity Debtholders”),

 

(b)                                 to
share in the order of application described in the Intercreditor Agreement and
Section 12.02 in the proceeds of enforcement of or realization on any Collateral
or

 

(c)                                  to
require that Parity Liens be released only as set forth in Sections 12.07.

 

will become
effective without the consent of the requisite percentage or number of holders
of each Series of Parity Lien Debt so affected under the applicable Parity Lien
Document; and

 

(3)                                  no
amendment or supplement that imposes any obligation upon the Collateral Trustee
or any Parity Lien Representative or adversely affects the rights of the
Collateral Trustee or any Parity Lien Representative, respectively, in its
individual capacity as such will become effective without the consent of the
Collateral Trustee or such Parity Lien Representative, respectively.

 

(d)                                 Any
amendment or supplement to the provisions of the Security Documents that
releases Collateral will be effective only in accordance with the requirements
as provided in the Intercreditor Agreement or as otherwise permitted in Section
12.07 without consent of any holder of Parity Liens.  Any amendment or supplement that results in
the Collateral Trustee’s Liens upon the Collateral no longer securing the Notes
and the other Obligations under this Indenture may only be effected in
accordance with the provisions described in Section 12.07.

 

Section 12.11                          Compliance
with Trust Indenture Act.

 

Ahern Rentals shall comply with the
provisions of TIA § 314.

 

92

 

To the extent applicable, Ahern Rentals shall
cause TIA § 313(b), relating to reports, and TIA § 314(d), relating
to the release of property or securities subject to the Lien of the Security
Documents, to be complied with.  Any
certificate or opinion required by TIA § 314(d) may be made by an officer
of Ahern Rentals except in cases where TIA § 314(d) requires that such
certificate or opinion be made by an independent Person, which Person will be
an independent engineer, appraiser or other expert selected by Ahern Rentals
and reasonably satisfactory to the Trustee. 
Notwithstanding anything to the contrary in this paragraph, Ahern
Rentals shall not be required to comply with all or any portion of TIA
§ 314(d) if it determines, in good faith based on advice of counsel, that
under the terms of TIA § 314(d) and/or any interpretation or guidance as
to the meaning thereof of the SEC and its staff, including “no action” letters
or exemptive orders, all or any portion of TIA § 314(d) is inapplicable to
one or a series of released Collateral.

 

Section 12.12                          Further
Assurances; Insurance.

 

(a)                                  Ahern
Rentals and each of the other Pledgors, if any, shall do or cause to be done
all acts and things that may be required, or that the Collateral Trustee from
time to time may reasonably request, to assure and confirm that the Collateral
Trustee holds, for the benefit of the holders of Parity Lien Obligations, duly
created and enforceable and perfected Liens upon the Collateral (including any
property or assets that are acquired or otherwise become Collateral after the
Notes are issued), in each case, as contemplated by, and with the Lien priority
required under, the Parity Lien Documents.

 

Upon the reasonable request of the Collateral
Trustee or any Parity Lien Representative at any time and from time to time,
Ahern Rentals and each of the other Pledgors, if any, will promptly execute,
acknowledge and deliver such Security Documents, instruments, certificates,
notices and other documents and take such other actions as shall be reasonably
required, or that the Collateral Trustee may reasonably request, to create,
perfect, protect, assure or enforce the Liens and benefits intended to be
conferred, in each case as contemplated by the Parity Lien Documents for the
benefit of the holders of Parity Lien Obligations.

 

(b)                                 Ahern
Rentals and the other Pledgors, if any, shall:

 

(1)                                  keep
their properties adequately insured at all times by financially sound and
reputable insurers;

 

(2)                                  maintain
such other insurance, to such extent and against such risks (and with such
deductibles, retentions and exclusions), including fire and other risks insured
against by extended coverage and coverage for acts of terrorism, as is
customary with companies in the same or similar businesses operating in the
same or similar locations, including public liability insurance against claims
for personal injury or death or property damage occurring upon, in, about or in
connection with the use of any properties owned, occupied or controlled by
them;

 

(3)                                  maintain
such other insurance as may be required by law; and

 

(4)                                  maintain
such other insurance as may be required by the Security Documents.

 

Upon the request of the Collateral Trustee,
Ahern Rentals and each of the other Pledgors, if any, will furnish to the
Collateral Trustee full information as to their property and liability
insurance carriers.  The Collateral
Trustee will be named as additional insured, with a waiver of subrogation, on
all insurance policies of Ahern Rentals and the other Pledgors and the
Collateral Trustee will be named as loss payee, with 10 days’ notice of
cancellation or material change, on all property and casualty insurance policies
of Ahern Rentals and the other Pledgors.

 

93

 

ARTICLE 13.

MISCELLANEOUS

 

Section 13.01                          Trust
Indenture Act Controls.

 

If any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by TIA §318(c), the imposed
duties shall control.

 

Section 13.02                          Notices.

 

Any notice or communication by Ahern Rentals,
any Guarantor or the Trustee to the others is duly given if in writing and delivered
in Person or mailed by first class mail (registered or certified, return
receipt requested), telex, telecopier or overnight air courier guaranteeing
next day delivery, to the others’ address:

 

If to Ahern Rentals and/or any Guarantor:

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

Telecopier No.:  (702) 367-7652

Attention:  Chief Financial Officer

 

With a copy to:

 

Stoel Rives LLP

Standard Insurance Center

900 SW Fifth Avenue, Suite 2600

Portland, OR 97204

Telecopier No.:  (503) 220-2480

Attention:  Robert Moorman

 

If to the Trustee:

 

Wells Fargo Bank, N.A.

Corporate Trust Services

Sixth Street & Marquette, N9303-120

Minneapolis, MN 55479

Telecopier No.:  (612) 667-9825

Attention:  Corporate Trust
Administration: Ahern Rentals Notes

 

Ahern Rentals, any Guarantor or the Trustee,
by notice to the others, may designate additional or different addresses for subsequent
notices or communications.

 

All notices and communications (other than
those sent to Holders) shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

 

94

 

Any notice or communication to a Holder shall
be mailed by first class mail, certified or registered, return receipt
requested, or by overnight air courier guaranteeing next day delivery to its address
shown on the register kept by the Registrar. 
Any notice or communication shall also be so mailed to any Person
described in TIA § 313(c), to the extent required by the TIA.  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 within the time prescribed, it is duly given, whether or
not the addressee receives it.

 

If Ahern Rentals mails a notice or
communication to Holders, it shall mail a copy to the Trustee and each Agent at
the same time.

 

Section 13.03                          Communication
by Holders of Notes with Other Holders of Notes.

 

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

 

Section 13.04                          Certificate
and Opinion as to Conditions Precedent.

 

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

 

(a)                                  an
Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 13.05 hereof)
stating that, in the opinion of the signers, all conditions precedent and covenants,
if any, provided for in this Indenture relating to the proposed action have
been satisfied; and

 

(b)                                 an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which shall include the statements set forth in Section 13.05 hereof) stating
that, in the opinion of such counsel, all such conditions precedent and covenants
have been satisfied.

 

Section 13.05                          Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to
compliance with a condition or covenant provided for in this Indenture (other
than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with
the provisions of TIA § 314(e) and shall include:

 

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

 

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

 

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

 

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

 

95

 

Section 13.06                          Rules
by Trustee and Agents.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. 
The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.

 

Section 13.07                          No
Personal Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer, employee, incorporator
or stockholder of Ahern Rentals or any Guarantor, as such, shall have any liability
for any obligations of Ahern Rentals or such Guarantor under the Notes, this
Indenture, the Note Guarantees, the Note Documents or for any claim based on,
in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for issuance of the Notes.

 

Section 13.08                          Governing
Law.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE
GUARANTEES 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.

 

Section 13.09                          No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret
any other indenture, loan or debt agreement of Ahern Rentals or its
Subsidiaries or of any other Person.  Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 

Section 13.10                          Successors.

 

All agreements of Ahern Rentals in this
Indenture and the Notes shall bind its successors.  All agreements of the Trustee in this
Indenture shall bind its successors.  All
agreements of each Guarantor in this Indenture shall bind its successors,
except as otherwise provided in Section 10.05.

 

Section 13.11                          Severability.

 

In case any provision in this Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

Section 13.12                          Counterpart
Originals.

 

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

 

Section 13.13                          Table
of Contents, Headings, etc.

 

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

 

[Signatures on following
page]

 

96

 

SIGNATURES

 

Dated as of August 18, 2005

 

	
   

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ HOWARD BROWN

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Howard Brown

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ TIMOTHY P MOWDY

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Timothy P. Mowdy

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

S-1

 

EXHIBIT A-1

 

[Face of Note]

 

CUSIP/CINS                         

 

91⁄4% [Series A] [Series B] Senior Secured Notes due 2013

 

	
  No.

  	
  $

  

 

AHERN RENTALS, INC.

 

promises to pay to

 

or registered assigns

 

the principal sum of

 

Dollars on August 15, 2013.

 

Interest Payment Dates: 
February 15 and August 15

 

Record Dates:  February 1
and August 1

 

Dated:  August 18, 2005

 

	
   

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (SEAL)

  

 

This is one of the Notes referred to

in the within-mentioned Indenture:

 

WELLS FARGO BANK, N.A.,
  as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-1-1

 

[Back of Note]

 

91⁄4% [Series A] [Series B] Senior Secured Notes due 2013

 

[Insert the
Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 

[Insert the
Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

 

Capitalized terms used herein shall have the
meanings assigned to them in the Indenture referred to below unless otherwise
indicated.

 

1.  INTEREST.  Ahern
Rentals, Inc., a Nevada corporation (“Ahern Rentals”),
promises to pay interest on the principal amount of this Note at 91⁄4% per annum
from August 18, 2005 until maturity. 
Ahern Rentals will pay interest semi-annually in arrears on
February 15 and August 15 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). 
Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided, further,
that the first Interest Payment Date shall be February 15, 2006.  Ahern Rentals shall pay interest (including
post-petition interest in any proceeding under the Bankruptcy Code) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the rate then in effect; it shall pay interest
(including post-petition interest in any proceeding under the Bankruptcy Code)
on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent
lawful.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

2.  METHOD OF PAYMENT. 
Ahern Rentals will pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on
August 1 or February 1 next preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest.  The Notes
will be payable as to principal, premium, if any, and interest at the office or
agency of Ahern Rentals maintained for such purpose, or, at the option of Ahern
Rentals, payment of interest may be made by check mailed to the Holders at
their addresses set forth in the register of Holders, and provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, and premium, if any, on, all Global
Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to Ahern Rentals or the Paying Agent.  Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

3.  PAYING AGENT AND REGISTRAR. 
Initially, Wells Fargo Bank, N.A., the Trustee under the Indenture, will
act as Paying Agent and Registrar.  Ahern
Rentals may change any Paying Agent or Registrar without notice to any
Holder.  Ahern Rentals or any of its
Subsidiaries may act in any such capacity.

 

4.  INDENTURE.  Ahern
Rentals issued the Notes under an Indenture dated as of August 18, 2005 (“Indenture”) between Ahern Rentals 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, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the provisions
of the Indenture shall govern

 

A-1-2

 

and be controlling.  The Initial Notes are secured obligations of
Ahern Rentals limited to $200,000,000 in aggregate principal amount.  In addition, Ahern Rentals shall be entitled,
subject to its compliance with Section 4.09 of the Indenture, to issue
Additional Notes.

 

5.  OPTIONAL REDEMPTION.

 

(a)                                  At
any time prior to August 15, 2008, Ahern Rentals may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes issued
under the Indenture at a redemption price of 109.250% of the principal amount,
plus accrued and unpaid interest and Additional Interest, if any, to the
redemption date, with the net cash proceeds of one or more Public Equity Offerings;
provided that:

 

(1)                                  at
least 65% of the aggregate principal amount of Notes originally issued under
the Indenture (excluding Notes held by Ahern Rentals and its Subsidiaries, if
any) remains outstanding immediately after the occurrence of such redemption;
and

 

(2)                                  the
redemption occurs within 90 days of the date of the closing of such Public
Equity Offering.

 

(b)                                 On
or after August 15, 2009, Ahern Rentals may redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Additional Interest, if any, on the
Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month
period beginning on August 15 of the years indicated below, subject to the
rights of Holders of Notes on the relevant record date to receive interest on
the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  104.625

  	
  %

  
	
  2010

  	
   

  	
  102.313

  	
  %

  
	
  2011 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)                                  Except
pursuant to the preceding paragraphs, the Notes will not be redeemable at Ahern
Rentals’ option prior to August 15, 2009. 
Unless Ahern Rentals defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for
redemption on the applicable redemption date.

 

6.  MANDATORY REDEMPTION. 
Except as set forth in paragraph 7 below, Ahern Rentals shall not be
required to make mandatory redemption payments with respect to the Notes.

 

7.  REPURCHASE AT OPTION OF HOLDER.

 

(a)                                  Upon
the occurrence of a Change of Control, Ahern Rentals shall make an offer (a “Change of Control Offer”) to each Holder to repurchase all
or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s
Notes at a purchase price equal to 101% of the aggregate principal amount
thereof plus accrued and unpaid interest and Additional Interest on the Notes
repurchased, if any, to the date of purchase (the “Change of
Control Payment”).  Within 10
days following any Change of Control, Ahern Rentals shall mail a notice to each
Holder describing the transaction or transactions that constitute the Change of
Control and stating:

 

A-1-3

 

(1)                                  that
the Change of Control Offer is being made pursuant to Section 4.14 of the
Indenture and that all Notes tendered will be accepted for payment;

 

(2)                                  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 business days from the date such notice is mailed (the “Change of Control Payment Date”);

 

(3)                                  that
any Note not tendered will continue to accrue interest;

 

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

 

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

 

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

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an integral
multiple thereof.

 

Ahern Rentals shall comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and
regulations thereunder to the extent those laws and regulations are applicable
in connection with the repurchase of the Notes as a result of a Change in
Control.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions
of Section 3.09 or 4.14 of the Indenture, Ahern Rentals shall comply with
the applicable securities laws and regulations and will not be deemed to have
breached its obligations under Section 3.09 or 4.14 of the Indenture by
virtue of such conflict.

 

(b)                                 On
the Change of Control Payment Date, Ahern Rentals will, to the extent lawful:

 

(1)                                  accept
for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

 

(2)                                  deposit
with the Paying Agent an amount equal to the Change of Control payment in
respect of all Notes or portions of Notes properly tendered; and

 

(3)                                  deliver
or cause to be delivered to the Trustee the Notes properly accepted together
with an Officers’ Certificate stating the aggregate principal amount of Notes
or portions of Notes being purchased by Ahern Rentals.

 

The Paying Agent will promptly pay to each
Holder of Notes properly tendered the Change of Control Payment for such Notes,
and the Trustee will promptly authenticate and mail (or cause to be

 

A-1-4

 

transferred by book entry) to each Holder a
new Note equal in principal amount to any unpurchased portion of the Notes surrendered,
if any; provided that each new Note will be in a
principal amount of $1,000 or an integral multiple of $1,000.  Ahern Rentals will publicly announce the
results of the Change of Control Offer on or as soon as practicable after the
Change of Control Payment Date.

 

(c)                                  Ahern
Rentals will not be required to make a Change of Control Offer upon a Change of
Control if (1) 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 the Indenture applicable to a Change of Control Offer made by Ahern Rentals
and purchases all Notes properly tendered and not withdrawn under the Change of
Control Offer or (2) notice of redemption has been given pursuant to
Section 3.07 of the Indenture, unless and until there is a default in payment
of the applicable redemption price.

 

8.  NOTICE OF REDEMPTION. 
Notice of redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder whose Notes are to be
redeemed at its registered address. 
Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed.  On and after the redemption
date interest ceases to accrue on Notes or portions thereof called for
redemption.

 

9.  DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and Ahern Rentals may require a Holder to pay any taxes and fees required
by law or permitted by the Indenture. 
Ahern Rentals need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of
any Note being redeemed in part.  Also,
Ahern Rentals need not exchange or register the transfer of any Notes for a
period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

 

10.  PERSONS DEEMED OWNERS. 
The registered Holder of a Note may be treated as its owner for all
purposes.

 

11.  AMENDMENT, SUPPLEMENT AND WAIVER.  The Indenture or the Notes may be amended or
supplemented only as provided in the Indenture.

 

12.  DEFAULTS AND REMEDIES. 
Events of Default are set forth in the Indenture.    If any Event of Default occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of
an Event of Default arising from certain events of bankruptcy or insolvency,
all outstanding Notes will become due and payable without further action or
notice.  Holders may not enforce the Indenture
or the Notes except as provided in the Indenture.  Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. 
The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. 
The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all
of the Notes waive any existing Default or Event of Default and its
consequences under the Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes.  Ahern Rentals is required to deliver to the
Trustee annually a statement regarding compliance with the Indenture, and Ahern
Rentals is required upon becoming aware of any Default or Event of Default, to
deliver to the Trustee a statement specifying such Default or Event of Default.

 

A-1-5

 

13.  TRUSTEE DEALINGS WITH AHERN RENTALS.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for
Ahern Rentals or its Affiliates, and may otherwise deal with Ahern Rentals or
its Affiliates, as if it were not the Trustee.

 

14.  NO RECOURSE AGAINST OTHERS. 
A director, officer, employee, incorporator or stockholder, of Ahern
Rentals, as such, shall not have any liability for any obligations of Ahern
Rentals under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for the issuance of the Notes.

 

15.  AUTHENTICATION.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

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

 

17.  ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES.  In addition
to the rights provided to Holders of Notes under the Indenture, Holders of
Restricted Global Notes and Restricted Definitive Notes shall have all the
rights set forth in the Registration Rights Agreement dated as of
August 18, 2005, between Ahern Rentals and the parties named on the
signature pages thereof (the “Registration Rights
Agreement”).

 

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

 

Ahern Rentals will furnish to any Holder upon
written request and without charge a copy of the Indenture and/or the Registration
Rights Agreement.  Requests may be made
to:

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

Attention:  Chief Financial Officer

 

A-1-6

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s legal name)

  
	
   

  	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  	
   

  
	
  and irrevocably appoint

  	
   

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

  
	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
									

 

*                 Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-1-7

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note
purchased by Ahern Rentals pursuant to Section 4.10 or 4.14 of the Indenture,
check the appropriate box below:

 

o                                    Section
4.10                                o                                    Section
4.14

 

If you want to elect to have only part of the
Note purchased by Ahern Rentals pursuant to Section 4.10 or Section 4.14 of the
Indenture, state the amount you elect to have purchased:

 

$                   

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
								

 

*                 Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-1-8

 

SCHEDULE OF EXCHANGES OF
INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this
Global Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global Note or Definitive Note for an interest
in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease

  (or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-1-9

 

EXHIBIT A-2

 

[Face of Regulation S Global Note]

 

CUSIP/CINS                      

 

91⁄4% [Series A] [Series B] Senior Secured Notes due 2013

 

	
  No.

  	
  $

  

 

AHERN RENTALS, INC.

 

promises to pay to

 

or registered assigns

 

the principal sum of 

 

Dollars on August 15, 2013.

 

Interest Payment Dates: 
February 15 and August 15

 

Record Dates:  February 1
and August 1

 

Dated:  August 18, 2005

 

	
   

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (SEAL)

  

 

This is one of the Notes referred to

in the within-mentioned Indenture:

 

WELLS FARGO BANK, N.A.,
  as Trustee

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-2-1

 

[Back of Regulation S
Global Note]

 

91⁄4% [Series A] [Series B] Senior Secured Notes due 2013

 

[Insert the
Global Note Legend, if applicable pursuant to the provisions of the Indenture]

 

[Insert the
Private Placement Legend, if applicable pursuant to the provisions of the
Indenture]

 

THE RIGHTS
ATTACHING TO THIS REGULATION S GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES
GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE
INDENTURE (AS DEFINED HEREIN).  NEITHER
THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S GLOBAL NOTE SHALL BE
ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON.

 

Capitalized terms used herein shall have the
meanings assigned to them in the Indenture referred to below unless otherwise
indicated.

 

1.  INTEREST.  Ahern
Rentals, Inc., a Nevada corporation (“Ahern Rentals”),
promises to pay interest on the principal amount of this Note at 91⁄4% per annum
from August 18, 2005 until maturity. 
Ahern Rentals will pay interest semi-annually in arrears on
February 15 and August 15 of each year, or if any such day is not a
Business Day, on the next succeeding Business Day (each an “Interest Payment Date”). 
Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of
issuance; provided that if there is no existing
Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided, further,
that the first Interest Payment Date shall be February 15, 2006.  Ahern Rentals shall pay interest (including
post-petition interest in any proceeding under the Bankruptcy Code) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the rate then in effect; it shall pay interest
(including post-petition interest in any proceeding under the Bankruptcy Code)
on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent
lawful.  Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

 

2.  METHOD OF PAYMENT. 
Ahern Rentals will pay interest on the Notes (except defaulted interest)
to the Persons who are registered Holders of Notes at the close of business on
February 1 or August 1 next preceding the Interest Payment Date, even
if such Notes are canceled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest.  The Notes
will be payable as to principal, premium, if any, and interest at the office or
agency of Ahern Rentals maintained for such purpose, or, at the option of Ahern
Rentals, payment of interest may be made by check mailed to the Holders at
their addresses set forth in the register of Holders, and provided
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest, and premium, if any, on, all Global
Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to Ahern Rentals or the Paying Agent.  Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.

 

3.  PAYING AGENT AND REGISTRAR. 
Initially, Wells Fargo Bank, N.A., the Trustee under the Indenture, will
act as Paying Agent and Registrar.  Ahern
Rentals may change any Paying Agent or Registrar without notice to any
Holder.  Ahern Rentals or any of its
Subsidiaries may act in any such capacity.

 

A-2-2

 

4.  INDENTURE.  Ahern
Rentals issued the Notes under an Indenture dated as of August 18, 2005 (“Indenture”) between Ahern Rentals 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, as amended (15 U.S. Code §§ 77aaa-77bbbb).  The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms.  To the extent any provision of
this Note conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling.  The Initial Notes are secured obligations of
Ahern Rentals limited to $200,000,000 in aggregate principal amount.  In addition, Ahern Rentals shall be entitled,
subject to its compliance with Section 4.09 of the Indenture, to issue
Additional Notes.

 

5.  OPTIONAL REDEMPTION.

 

(a)                                  At
any time prior to August 15, 2008, Ahern Rentals may on any one or more
occasions redeem up to 35% of the aggregate principal amount of Notes issued
under the Indenture at a redemption price of 109.250% of the principal amount,
plus accrued and unpaid interest and Additional Interest, if any, to the
redemption date, with the net cash proceeds of one or more Public Equity Offerings;
provided that:

 

(1)                                  at
least 65% of the aggregate principal amount of Notes originally issued under
the Indenture (excluding Notes held by Ahern Rentals and its Subsidiaries, if
any) remains outstanding immediately after the occurrence of such redemption;
and

 

(2)                                  the
redemption occurs within 90 days of the date of the closing of such Public
Equity Offering.

 

(b)                                 On
or after August 15, 2009, Ahern Rentals may redeem all or a part of the
Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Additional Interest, if any, on the
Notes redeemed, to the applicable redemption date, if redeemed during the
twelve-month period beginning on August 15 of the years indicated below,
subject to the rights of Holders of Notes on the relevant record date to
receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2009

  	
   

  	
  104.625

  	
  %

  
	
  2010

  	
   

  	
  102.313

  	
  %

  
	
  2011 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

(c)                                  Except
pursuant to the preceding paragraphs, the Notes will not be redeemable at Ahern
Rentals’ option prior to August 15, 2009. 
Unless Ahern Rentals defaults in the payment of the redemption price,
interest will cease to accrue on the Notes or portions thereof called for
redemption on the applicable redemption date.

 

6.  MANDATORY REDEMPTION. 
Except as set forth in paragraph 7 below, Ahern Rentals shall not be
required to make mandatory redemption payments with respect to the Notes.

 

7.  REPURCHASE AT OPTION OF HOLDER.

 

(a)                                  Upon
the occurrence of a Change of Control, Ahern Rentals shall make an offer (a “Change of Control Offer”) to each Holder to repurchase all
or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s
Notes at a purchase price equal to 101% of the aggregate principal

 

A-2-3

 

amount thereof plus accrued and unpaid
interest and Additional Interest on the Notes repurchased, if any, to the date
of purchase (the “Change of Control Payment”).  Within 10 days following any Change of
Control, Ahern Rentals shall mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and stating:

 

(1)                                  that
the Change of Control Offer is being made pursuant to Section 4.14 of the
Indenture and that all Notes tendered will be accepted for payment;

 

(2)                                  the
purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 business days from the date such notice is mailed (the “Change of Control Payment Date”);

 

(3)                                  that
any Note not tendered will continue to accrue interest;

 

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

 

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

 

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

 

(7)                                  that
Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to $1,000 in principal amount or an integral
multiple thereof.

 

Ahern Rentals shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a
Change in Control.  To the extent that
the provisions of any securities laws or regulations conflict with the
provisions of Section 3.09 or 4.14 of the Indenture, Ahern Rentals shall
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under Section 3.09 or 4.14 of the
Indenture by virtue of such conflict.

 

(b)                                 On
the Change of Control Payment Date, Ahern Rentals will, to the extent lawful:

 

(1)                                  accept
for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

 

(2)                                  deposit
with the Paying Agent an amount equal to the Change of Control payment in
respect of all Notes or portions of Notes properly tendered; and

 

A-2-4

 

(3)                                  deliver
or cause to be delivered to the Trustee the Notes properly accepted together
with an Officers’ Certificate stating the aggregate principal amount of Notes
or portions of Notes being purchased by Ahern Rentals.

 

The Paying Agent will promptly pay to each
Holder of Notes properly tendered the Change of Control Payment for such Notes,
and the Trustee will promptly authenticate and mail (or cause to be transferred
by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided
that each new Note will be in a principal amount of $1,000 or an integral
multiple of $1,000.  Ahern Rentals will
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

 

(c)                                  Ahern
Rentals will not be required to make a Change of Control Offer upon a Change of
Control if (1) 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 the Indenture applicable to a Change of Control Offer made by Ahern
Rentals and purchases all Notes properly tendered and not withdrawn under the
Change of Control Offer or (2) notice of redemption has been given
pursuant to Section 3.07 of the Indenture, unless and until there is a default
in payment of the applicable redemption price.

 

8.  NOTICE OF REDEMPTION. 
Notice of redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder whose Notes are to be
redeemed at its registered address. 
Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Notes held by a Holder are
to be redeemed.  On and after the redemption
date interest ceases to accrue on Notes or portions thereof called for
redemption.

 

9.  DENOMINATIONS, TRANSFER, EXCHANGE.  The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000.  The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture.  The Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and Ahern Rentals may require a Holder to pay any taxes and fees
required by law or permitted by the Indenture. 
Ahern Rentals need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the unredeemed portion of
any Note being redeemed in part.  Also,
Ahern Rentals need not exchange or register the transfer of any Notes for a
period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

 

10.  PERSONS DEEMED OWNERS. 
The registered Holder of a Note may be treated as its owner for all
purposes.

 

11.  AMENDMENT, SUPPLEMENT AND WAIVER.  The Indenture or the Notes may be amended or
supplemented only as provided in the Indenture.

 

12.  DEFAULTS AND REMEDIES. 
Events of Default are set forth in the Indenture.  If any Event of Default occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable.  Notwithstanding the foregoing, in the case of
an Event of Default arising from certain events of bankruptcy or insolvency,
all outstanding Notes will become due and payable without further action or
notice.  Holders may not enforce the Indenture
or the Notes except as provided in the Indenture.  Subject to certain limitations, Holders of a
majority in principal amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. 
The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest. 
The Holders of a majority in aggregate principal amount of the Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all
of the

 

A-2-5

 

Notes waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest on, or the principal of, the
Notes.  Ahern Rentals is required to
deliver to the Trustee annually a statement regarding compliance with the
Indenture, and Ahern Rentals is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

 

13.  TRUSTEE DEALINGS WITH AHERN RENTALS.  The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for
Ahern Rentals or its Affiliates, and may otherwise deal with Ahern Rentals or
its Affiliates, as if it were not the Trustee.

 

14.  NO RECOURSE AGAINST OTHERS. 
A director, officer, employee, incorporator or stockholder, of Ahern
Rentals, as such, shall not have any liability for any obligations of Ahern
Rentals under the Notes or the Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and
releases all such liability.  The waiver
and release are part of the consideration for the issuance of the Notes.

 

15.  AUTHENTICATION.  This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

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

 

17.  ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES.  In addition
to the rights provided to Holders of Notes under the Indenture, Holders of
Restricted Global Notes and Restricted Definitive Notes shall have all the
rights set forth in the Registration Rights Agreement dated as of
August 18, 2005, between Ahern Rentals and the parties named on the
signature pages thereof (the “Registration Rights
Agreement”).

 

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

 

Ahern Rentals will furnish to any Holder upon
written request and without charge a copy of the Indenture and/or the Registration
Rights Agreement.  Requests may be made
to:

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

Attention:  Chief Financial Officer

 

A-2-6

 

ASSIGNMENT FORM

 

To assign this
Note, fill in the form below:

 

	
  (I) or (we) assign and transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s legal name)

  
	
   

  	
   

  
	
   

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

  
	
   

  
	
   

  
	
   

  
	
   

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

  
	
   

  	
   

  
	
  and irrevocably appoint

  	
   

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

  
			

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
							

 

*                 Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-2-7

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note
purchased by Ahern Rentals pursuant to Section 4.10 or 4.14 of the Indenture,
check the appropriate box below:

 

o                                    Section
4.10                              o                                    Section
4.14

 

If you want to elect to have only part of the
Note purchased by Ahern Rentals pursuant to Section 4.10 or Section 4.14 of the
Indenture, state the amount you elect to have purchased:

 

$                      

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
   

  	
  Your Signature:

  	
   

  
	
   

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  
								

 

*                 Participant
in a recognized Signature Guarantee Medallion Program (or other signature
guarantor acceptable to the Trustee).

 

A-2-8

 

SCHEDULE OF EXCHANGES OF
INTERESTS IN THE GLOBAL NOTE

 

The following exchanges of a part of this
Global Note for an interest in another Global Note or for a Definitive Note, or
exchanges of a part of another Global Note or Definitive Note for an interest
in this Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease

  (or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Note Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2-9

 

EXHIBIT B

 

FORM OF CERTIFICATE OF
TRANSFER

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

 

[Registrar address block]

 

Re:                               91⁄4%
Senior Secured Notes due 2013

 

Reference is hereby made to the Indenture,
dated as of August 18, 2005 (the “Indenture”),
between Ahern Rentals, Inc., a Nevada corporation, as issuer (“Ahern Rentals”), and Wells Fargo Bank, N.A., as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

                                      
(the “Transferor”) owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of $                      
in such Note[s] or interests (the “Transfer”), to                                                      
(the “Transferee”), as further specified in
Annex A hereto.  In connection with the
Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  o  Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Definitive
Note Pursuant to Rule 144A. 
The Transfer is being effected pursuant to and in accordance with Rule
144A under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby
further certifies that the beneficial interest or Definitive Note is being
transferred to a Person that the Transferor reasonably believed and believes is
purchasing the beneficial interest or Definitive Note for its own account, or
for one or more accounts with respect to which such Person exercises sole investment
discretion, and such Person and each such account is a “qualified institutional
buyer” within the meaning of Rule 144A in a transaction meeting the requirements
of Rule 144A and such Transfer is in compliance with any applicable blue sky
securities laws of any state of the United States.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the 144A Global Note and/or the Definitive
Note and in the Indenture and the Securities Act.

 

2.  o  Check if Transferee will
take delivery of a beneficial interest in the Regulation S Global Note or a
Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to and
in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (i) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed
in, on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration requirements
of the Securities Act and (iv) if the proposed transfer is being made prior to
the expiration of the Restricted Period, the transfer is not being made to a
U.S. Person or for the account or benefit of a U.S. Person (other than an
Initial Purchaser).  Upon consummation of the proposed transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on Transfer

 

B-1

 

enumerated in the Private Placement Legend
printed on the Regulation S Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.

 

3.  o  Check and complete if
Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Definitive Note pursuant to any provision of the Securities Act other than
Rule 144A or Regulation S. 
The Transfer is being effected in compliance with the transfer
restrictions applicable to beneficial interests in Restricted Global Notes and
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act and any applicable blue sky securities laws of any state of the
United States, and accordingly the Transferor hereby further certifies that
(check one):

 

(a)                                  o  such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)                                 o  such Transfer is being effected to Ahern
Rentals or a subsidiary thereof;

 

or

 

(c)                                  o  such Transfer is being effected pursuant to
an effective registration statement under the Securities Act and in compliance
with the prospectus delivery requirements of the Securities Act;

 

or

 

(d)                                 o  such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144
or Rule 904, and the Transferor hereby further certifies that it has not
engaged in any general solicitation within the meaning of Regulation D under
the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which
certification is supported by (1) a certificate executed by the Transferee in
the form of Exhibit D to the Indenture and (2) an Opinion of Counsel provided
by the Transferor or the Transferee (a copy of which the Transferor has
attached to this certification), to the effect that such Transfer is in
compliance with the Securities Act.  Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the IAI Global Note and/or the Definitive Notes and in the
Indenture and the Securities Act.

 

4.  o  Check if Transferee will
take delivery of a beneficial interest in an Unrestricted Global Note or of an
Unrestricted Definitive Note.

 

(a)  o   Check if Transfer is
pursuant to Rule 144.  (i) The
Transfer is being effected pursuant to and in accordance with Rule 144 under
the Securities Act and in compliance with the transfer restrictions contained
in the Indenture and any applicable blue sky securities laws of any state of
the United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act.  Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will no
longer be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes, on Restricted Definitive
Notes and in the Indenture.

 

B-2

 

(b)  o Check if Transfer is
Pursuant to Regulation S.  (i)
The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act and in compliance with the transfer
restrictions contained in the Indenture and any applicable blue sky securities
laws of any state of the United States and (ii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

 

(c)  o  Check if Transfer is
Pursuant to Other Exemption. 
(i) The Transfer is being effected pursuant to and in compliance with an
exemption from the registration requirements of the Securities Act other than
Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
State of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. 
Upon consummation of the proposed Transfer in accordance with the terms
of the Indenture, the transferred beneficial interest or Definitive Note will
not be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture.

 

This certificate and the statements contained
herein are made for your benefit and the benefit of Ahern Rentals.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

B-3

 

ANNEX A TO CERTIFICATE OF
TRANSFER

 

1.                                       The
Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)  o   a beneficial interest in the:

 

(i)                                     o  144A Global Note (CUSIP                   ),
or

 

(ii)                                  o  Regulation S Global Note (CUSIP                   ),
or

 

(iii)                               o  IAI Global Note (CUSIP                   );
or

 

(b)  o    a
Restricted Definitive Note.

 

2.                                       After
the Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)  o   a beneficial interest in the:

 

(i)                                     o   144A Global Note (CUSIP                   ),
or

 

(ii)                                  o   Regulation S Global Note (CUSIP                   ),
or

 

(iii)                               o   IAI Global Note (CUSIP                   ),
or

 

(iv)                              o   Unrestricted Global Note (CUSIP                   );
or

 

(b)  o    a
Restricted Definitive Note; or

 

(c)  o   an Unrestricted Definitive Note,

 

in accordance with the terms of the
Indenture.

 

B-4

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

 

[Registrar address block]

 

Re:                               91⁄4%
Senior Secured Notes due 2013

 

(CUSIP                             )

 

Reference is hereby made to the Indenture,
dated as of August 18, 2005 (the “Indenture”),
between Ahern Rentals, Inc., a Nevada corporation, as issuer (“Ahern Rentals”), and Wells Fargo Bank, N.A., as trustee.  Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

 

                                                    
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                        
in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner
hereby certifies that:

 

1.                                       Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note

 

(a)  o                Check if Exchange is from beneficial interest in a Restricted Global
Note to beneficial interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a beneficial interest in an
Unrestricted Global Note in an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Global Notes and pursuant to and in
accordance with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the beneficial
interest in an Unrestricted Global Note is being acquired in compliance with
any applicable blue sky securities laws of any state of the United States.

 

(b)  o               Check if Exchange is from beneficial interest in a Restricted Global
Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for an Unrestricted Definitive
Note, the Owner hereby certifies (i) the Definitive Note is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Restricted
Global Notes and pursuant to and in accordance with the Securities Act, (iii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Definitive Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

(c)  o                Check if Exchange is from Restricted Definitive Note to beneficial
interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a
Restricted Definitive Note for a beneficial interest in an Unrestricted Global
Note, the Owner hereby certifies (i) the beneficial interest is being acquired
for the Owner’s own account without transfer, (ii) such Exchange has been
effected in compliance with the transfer restrictions applicable to Restricted
Definitive Notes and pursuant to and in

 

C-1

 

accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the beneficial interest is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.

 

(d)  o               Check if Exchange is from Restricted Definitive Note to Unrestricted
Definitive Note.  In
connection with the Owner’s Exchange of a Restricted Definitive Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted
Definitive Note is being acquired for the Owner’s own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance
with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act and (iv) the Unrestricted
Definitive Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

2.                                       Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes

 

(a)  o                Check if Exchange is from beneficial interest in a Restricted Global
Note to Restricted Definitive Note. 
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a Restricted Definitive Note with an equal principal
amount, the Owner hereby certifies that the Restricted Definitive Note is being
acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Definitive Note and
in the Indenture and the Securities Act.

 

(b)  o               Check if Exchange is from Restricted Definitive Note to beneficial
interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s
Restricted Definitive Note for a beneficial interest in the [CHECK ONE] o
144A Global Note, o Regulation S
Global Note, o IAI Global Note
with an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer and
(ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue
sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the beneficial interest issued will
be subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the relevant Restricted Global Note and in the Indenture and
the Securities Act.

 

This certificate and the statements contained
herein are made for your benefit and the benefit of Ahern Rentals.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

C-2

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Ahern Rentals, Inc.

1611 West Bonanza Road

Las Vegas, NV 89106

 

[Registrar address block]

 

Re:                               91⁄4%
Senior Secured Notes due 2013

 

Reference is hereby made to the Indenture,
dated as of August 18, 2005 (the “Indenture”),
between Ahern Rentals, Inc., a Nevada corporation, as issuer (“Ahern Rentals”), and Wells Fargo Bank, N.A., as
trustee.  Capitalized terms used but not
defined herein shall have the meanings given to them in the Indenture.

 

In connection with our proposed purchase of $                        
aggregate principal amount of:

 

(a)  o                a
beneficial interest in a Global Note, or

 

(b)  o               a
Definitive Note,

 

we confirm that:

 

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

 

2.                                       We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes and any interest therein may not be
offered or sold except as permitted in the following sentence.  We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we should
sell the Notes or any interest therein, we will do so only (A) to Ahern Rentals
or any subsidiary thereof, (B) in accordance with Rule 144A under the
Securities Act to a “qualified institutional buyer” (as defined therein), (C)
to an institutional “accredited investor” (as defined below) that, prior to
such transfer, furnishes (or has furnished on its behalf by a U.S.
broker-dealer) to you and to Ahern Rentals a signed letter substantially in the
form of this letter and, if such transfer is in respect of a principal amount
of Notes, an Opinion of Counsel in form reasonably acceptable to Ahern Rentals
to the effect that such transfer is in compliance with the Securities Act, (D)
outside the United States in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the provisions of Rule 144(k) under the
Securities Act or (F) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person purchasing the
Definitive Note or beneficial interest in a Global Note from us in a
transaction meeting the requirements of clauses (A) through (E) of this
paragraph a notice advising such purchaser that resales thereof are restricted
as stated herein.

 

3.                                       We
understand that, on any proposed resale of the Notes or beneficial interest
therein, we will be required to furnish to you and Ahern Rentals such
certifications, legal opinions and other information as you and Ahern Rentals
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions.  We further
understand that the Notes purchased by us will bear a legend to the foregoing
effect.

 

D-1

 

4.                                       We
are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of our investment in the Notes, and we and any accounts
for which we are acting are each able to bear the economic risk of our or its investment.

 

5.                                       We
are acquiring the Notes or beneficial interest therein purchased by us for our
own account or for one or more accounts (each of which is an institutional
“accredited investor”) as to each of which we exercise sole investment
discretion.

 

You and Ahern Rentals are entitled to rely
upon this letter and are irrevocably authorized to produce this letter or a
copy hereof to any interested party in any administrative or legal proceedings
or official inquiry with respect to the matters covered hereby.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

D-2

 

EXHIBIT E

 

FORM OF NOTATION OF
GUARANTEE

 

For value received, each Guarantor (which
term includes any successor Person under the Indenture) has, jointly and severally,
unconditionally guaranteed, to the extent set forth in the Indenture and
subject to the provisions in the Indenture dated as of August 18, 2005 (the
“Indenture”) among Ahern Rentals, Inc., a
Nevada corporation (“Ahern Rentals”),
the Guarantors listed on Schedule I thereto and Wells Fargo Bank, N.A., as
trustee (the “Trustee”), (a) the due and
punctual payment of the principal of, premium, if any, and interest on the
Notes (as defined in the Indenture), whether at maturity, by acceleration,
redemption or otherwise, the due and punctual payment of interest on overdue
principal and premium, and, to the extent permitted by law, interest, and the
due and punctual performance of all other obligations of Ahern Rentals to the
Holders or the Trustee all in accordance with the terms of the Indenture and
(b) in case of any extension of time of payment or renewal of any Notes or any
of such other obligations, that the same will be promptly paid in full when due
or performed in accordance with the terms of the extension or renewal, whether
at stated maturity, by acceleration or otherwise.  The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Note
Guarantee.  Each Holder of a Note, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee, on behalf of such Holder, to take such
action as may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee attorney-in-fact of such
Holder for such purpose; provided, however, that the Indebtedness evidenced by this Note
Guarantee shall cease to be so subordinated and subject in right of payment
upon any defeasance of this Note in accordance with the provisions of the Indenture.

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-1

 

FORM OF SUPPLEMENTAL
INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of                                 ,
among                                     
(the “Guaranteeing Subsidiary”), a subsidiary
of Ahern Rentals, Inc. (or its permitted successor), a Nevada corporation (“Ahern Rentals”), Ahern Rentals, the other Guarantors (as
defined in the Indenture referred to herein) and Wells Fargo Bank, N.A., as
trustee under the indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, Ahern Rentals has heretofore
executed and delivered to the Trustee an indenture (the “Indenture”),
dated as of August 18, 2005, providing for the issuance of an aggregate
principal amount of up to $200,000,000 of 91⁄4% Senior Secured Notes due 2013
(the “Notes”);

 

WHEREAS, the Indenture provides that under
certain circumstances the Guaranteeing Subsidiary shall execute and deliver to
the Trustee a supplemental indenture pursuant to which the Guaranteeing
Subsidiary shall unconditionally guarantee all of Ahern Rentals’ Obligations
under the Notes and the Indenture on the terms and conditions set forth herein
(the “Note Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the
Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt of which
is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the
Notes as follows:

 

1.                                       CAPITALIZED
TERMS.  Capitalized terms used herein
without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       AGREEMENT
TO GUARANTEE.  The Guaranteeing
Subsidiary hereby agrees as follows:

 

(a)                                  Along
with all Guarantors named in the Indenture, to jointly and severally Guarantee
to each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, the Notes or the obligations of Ahern
Rentals hereunder or thereunder, and that:

 

(i)                                     the
principal of and interest on the Notes will be promptly paid in full when due,
whether at maturity, by acceleration, redemption or otherwise, and interest on
the overdue principal of and interest on the Notes, if any, if lawful, and all
other obligations of Ahern Rentals to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

 

(ii)                                  in
case of any extension of time of payment or renewal of any Notes or any of such
other obligations, the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.

 

 

Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same immediately.

 

(b)                                 The
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or the Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against Ahern Rentals, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor.

 

(c)                                  The
following are hereby waived: diligence presentment, demand of payment, filing
of claims with a court in the event of insolvency or bankruptcy of Ahern
Rentals, any right to require a proceeding first against Ahern Rentals, protest,
notice and all demands whatsoever.

 

(d)                                 This
Note Guarantee shall not be discharged except by complete performance of the
obligations contained in the Notes and the Indenture, and the Guaranteeing
Subsidiary accepts all obligations of a Guarantor under the Indenture.

 

(e)                                  If
any Holder or the Trustee is required by any court or otherwise to return to
Ahern Rentals, the Guarantors, or any Custodian, Trustee, liquidator or other
similar official acting in relation to either Ahern Rentals or the Guarantors,
any amount paid by either to the Trustee or such Holder, this Note Guarantee,
to the extent theretofore discharged, shall be reinstated in full force and
effect.

 

(f)                                    The
Guaranteeing Subsidiary shall not be entitled to any right of subrogation in
relation to the Holders in respect of any obligations guaranteed hereby until
payment in full of all obligations guaranteed hereby.

 

(g)                                 As
between the Guarantors, on the one hand, and the Holders and the Trustee, on
the other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article 6 of the Indenture for the purposes of this
Note Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article 6 of the Indenture, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of
this Note Guarantee.

 

(h)                                 The
Guarantors shall have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Guarantee.

 

(i)                                     Pursuant
to Section 10.02 of the Indenture, after giving effect to any maximum amount
and any other contingent and fixed liabilities that are relevant under any
applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to
any collections from, rights to receive contribution from or payments made by
or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under Article 10 of the Indenture, this new Note Guarantee shall be
limited to the maximum amount permissible such that the obligations of such
Guarantor under this Note Guarantee will not constitute a fraudulent transfer
or conveyance.

 

F-2

 

3.                                       EXECUTION
AND DELIVERY.  Each Guaranteeing
Subsidiary agrees that the Note Guarantees shall remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Note Guarantee.

 

4.                                       GUARANTEEING
SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.

 

(a)                                  The
Guaranteeing Subsidiary may not consolidate with or merge with or into (whether
or not such Guarantor is the surviving
Person) another corporation, Person or entity whether or not affiliated with
such Guarantor unless:

 

(i)                                     subject
to Sections 10.04 and 10.05 of the Indenture, the Person formed by or surviving
any such consolidation or merger (if other than a Guarantor or Ahern Rentals)
unconditionally assumes all the obligations of such Guarantor, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the
Trustee, under the Notes, the Indenture and the Note Guarantee on the terms set
forth herein or therein; and

 

(ii)                                  immediately
after giving effect to such transaction, no Default or Event of Default exists.

 

(b)                                 In
case of any such consolidation, merger, sale or conveyance and upon the
assumption by the successor corporation, by supplemental indenture, executed
and delivered to the Trustee, of the Note Guarantee endorsed upon the Notes and
the due and punctual performance of all of the covenants and conditions of the
Indenture to be performed by the Guarantor, such successor corporation shall succeed
to and be substituted for the Guarantor with the same effect as if it had been
named herein as a Guarantor.  Such
successor corporation thereupon may cause to be signed any or all of the Note
Guarantees to be endorsed upon all of the Notes issuable hereunder which
theretofore shall not have been signed by Ahern Rentals and delivered to the
Trustee.  All the Note Guarantees so
issued shall in all respects have the same legal rank and benefit under the
Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of the Indenture as though all of such Note Guarantees
had been issued at the date of the execution hereof.

 

(c)                                  Except
as set forth in Articles 4 and 5 and Section 10.05 of Article 10 of the
Indenture, and notwithstanding clauses (a) and (b) above, nothing contained in
the Indenture or in any of the Notes shall prevent any consolidation or merger
of a Guarantor with or into Ahern Rentals or another Guarantor, or shall
prevent any sale or conveyance of the property of a Guarantor as an entirety or
substantially as an entirety to Ahern Rentals or another Guarantor.

 

5.                                       RELEASES.

 

(a)                                  In
the event of a sale or other disposition of all of the assets of any Guarantor,
by way of merger, consolidation or otherwise, or a sale or other disposition of
all the capital stock of any Guarantor, in each case to a Person that is not
(either before or after giving effect to such transaction) a Restricted
Subsidiary of Ahern Rentals, then such Guarantor (in the event of a sale or
other disposition, by way of merger, consolidation or otherwise, of all of the
capital stock of such Guarantor) or the corporation acquiring the property (in
the event of a sale or other disposition of all or substantially all of the assets
of such Guarantor) will be released and relieved of any obligations under its
Note Guarantee; provided that the Net Proceeds of
such sale or other disposition are applied in accordance with the applicable
provisions of the Indenture, including without limitation, Section 4.10 of the
Indenture.  Upon delivery by Ahern
Rentals to the Trustee of an Officers’ Certificate and an Opinion of Counsel to
the effect that such sale or other disposition was made by Ahern Rentals in
accordance with the provisions of the Indenture, including

 

F-3

 

without limitation, Section 4.10 of the
Indenture, the Trustee shall execute any documents reasonably required in order
to evidence the release of any Guarantor from its obligations under its Note
Guarantee.

 

(b)                                 Any
Guarantor not released from its obligations under its Note Guarantee shall
remain liable for the full amount of principal of and interest on the Notes and
for the other obligations of any Guarantor under the Indenture as provided in
Article 10 of the Indenture.

 

6.                                       NO
RECOURSE AGAINST OTHERS.  No past,
present or future director, officer, employee, incorporator, stockholder or
agent of the Guaranteeing Subsidiary, as such, shall have any liability for any
obligations of Ahern Rentals or any Guaranteeing Subsidiary under the Notes,
any Note Guarantees, the Indenture or this Supplemental Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation.  Each Holder of the Notes by
accepting a Note waives and releases all such liability.  The waiver and release are part of the
consideration for issuance of the Notes. 
Such waiver may not be effective to waive liabilities under the federal
securities laws and it is the view of the SEC that such a waiver is against
public policy.

 

7.                                       NEW
YORK LAW TO GOVERN.  THE INTERNAL LAW OF
THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE 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.

 

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

 

9.                                       EFFECT
OF HEADINGS.  The Section headings herein
are for convenience only and shall not affect the construction hereof.

 

10.                                 THE
TRUSTEE.  The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or sufficiency
of this Supplemental Indenture or for or in respect of the recitals contained
herein, all of which recitals are made solely by the Guaranteeing Subsidiary
and Ahern Rentals.

 

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

 

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [GUARANTEEING SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AHERN RENTALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

F-4

 

	
   

  	
  [EXISTING GUARANTORS]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

F-5

 

Schedule
I

 

SCHEDULE OF GUARANTORS

 

The following schedule lists each Guarantor
under the Indenture as of the Issue Date:

 

None

 

F-6

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